S & S Paving & Construction, Inc. v. Berkley Regional Insurance

OPINION

DOWNIE, Judge:

¶ 1 S & S Paving and Construction, Inc. (“S & S”) appeals the dismissal of its bad faith claim against Berkley Regional Insurance Company (“Berkley”). We hold that a surety on a payment bond issued under Arizona’s “Little Miller Act” may not be sued for bad faith and therefore affirm the judgment of the superior court.

FACTS AND PROCEDURAL HISTORY

¶ 2 The City of Prescott retained Spire Engineering, LLC (“Spire”) to act as general contractor for the Demerse Avenue Overlay Project (“the Project”). Berkley issued a payment bond for the Project. See Ariz. Rev. Stat. (“A.R.S.”)…