Legal Opinion

Dodge v. Fidelity & Deposit Co. of Md.

Arizona Supreme Court

Decided June 20, 1989No. CV-86-0370-PRPublishedCited by 41 opinions

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

  1. Anderson v. Continental InsuranceWisconsin Supreme Court · 1978
  2. Wagenseller v. Scottsdale Memorial HospitalArizona Supreme Court · 1985
  3. Rawlings v. ApodacaArizona Supreme Court · 1986
  4. Sparks v. Republic National Life InsuranceArizona Supreme Court · 1982
  5. Noble v. National American Life InsuranceArizona Supreme Court · 1981

7 more not listed; retrieve them via the Exa API.

3Cited by41 opinions

  1. Associated Indemnity Corp. v. CAT Contracting, Inc.Texas Supreme Court · 1998
  2. Great American Insurance Co. v. North Austin Municipal Utility District No. 1Texas Supreme Court · 1995
  3. Cates Construction, Inc. v. Talbot PartnersCalifornia Supreme Court · 1999
  4. Cary v. United of Omaha Life Insurance Co.Supreme Court of Colorado · 2003
  5. DADELAND DEPOT. v. St. Paul Fire and MarineSupreme Court of Florida · 2006

36 more not listed; retrieve them via the Exa API.

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