Dodge v. Fidelity & Deposit Co. of Md.
Arizona Supreme Court
1Opinion of the Court
OPINION
CORCORAN, Justice.
The question before this court is one of first impression in Arizona: Can a surety on a contractor’s performance bond be liable for the tort of bad faith? We answer the question in the affirmative.
FACTS
In March 1978, Mr. and Mrs. Dodge (plaintiffs) contracted with Homes & Son Construction Company, Inc. (Homes) to build a residence in Scottsdale, Arizona. The contract required Homes to obtain a performance bond in the face amount of the contract, $205,903. Fidelity and Deposit Company of Maryland (defendant), as surety, issued the bond, which provided:
Whenever…
2Cases cited12 opinions
- Anderson v. Continental InsuranceWisconsin Supreme Court · 1978
- Wagenseller v. Scottsdale Memorial HospitalArizona Supreme Court · 1985
- Rawlings v. ApodacaArizona Supreme Court · 1986
- Sparks v. Republic National Life InsuranceArizona Supreme Court · 1982
- Noble v. National American Life InsuranceArizona Supreme Court · 1981
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3Cited by41 opinions
- Associated Indemnity Corp. v. CAT Contracting, Inc.Texas Supreme Court · 1998
- Great American Insurance Co. v. North Austin Municipal Utility District No. 1Texas Supreme Court · 1995
- Cates Construction, Inc. v. Talbot PartnersCalifornia Supreme Court · 1999
- Cary v. United of Omaha Life Insurance Co.Supreme Court of Colorado · 2003
- DADELAND DEPOT. v. St. Paul Fire and MarineSupreme Court of Florida · 2006
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