Seaboard Surety Co. v. Richard F. Kline, Inc.

MOTZ, Judge.

The case presents the question of whether a subcontractor who contracts with a joint venturer has a “direct contract” with the joint venture itself so that the subcontractor is a “claimant” under a surety bond obtained by the joint venture. Because it is undisputed that when contracting with the subcontractor the joint venturer was acting on behalf and with the authorization of the joint venture, we hold that the subcontractor had a “direct contract” with the joint venture and so was a “claimant” under the surety bond. Accordingly, we affirm the order of the Circuit Court for…