| Ohio Courts Reject Legal Basis for Surety Bad Faith Claims by Principals, Obligees, and - Potentially - Claimants |
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March 4, 2010 Link
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Originally published in "Fidelity & Surety Law Committee Newsletter" by ABA (Winter 2010)
In 1984 the Ohio Supreme Court became one of the first courts to articulate what at first blush appeared to provide the legal basis for separate tort claims against sureties for alleged bad faith, and that decision was relied upon by courts in other jurisdictions that were inclined to recognize a similar cause of action. However, two recent federal decisions have severely limited the availability of such claims in Ohio by examining the factual and legal basis of that initial Ohio Supreme Court decision and then ruling that bad faith claims were not available to an obligee and a bond principal. Those cases also call into question a surety bond claimant’s right to bring a bad faith claim, as evidenced by a recent Ohio state court case in which a claimant voluntarily dismissed its bad faith claim after being served with a summary judgment motion based on those cases.
To view the full article (found on page 6), please click here.
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| The Future of "Green" Highways |
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2/10/2010 Link
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Green highways may sound like a contradiction in terms, but the University of Washington is trying to change that for the Department of Transportation. The United States has over four million miles of highway, which takes as much energy as 200 homes use in a year, consumes as much raw material as 1,000 homes and generates more waste than 1,200 homes produce just to build and maintain our highways. Submitted by Shannah J. Morris.
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| New Indiana Court of Appeals Case Clarifies Application of Statutes of Limitations On Owner Claim Against GC |
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2/10/2010 Link
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A new case in Indiana clarifies application of statutes of limitations on an owner claim against a general contractor. Power & Sons Constr. Co., Inc. v. Healthy E. Chicago, 919 N.E.2d 137, 2009 Ind. App. LEXIS 2842, at *1 (Ind. Ct. App. Dec. 30, 2009). This is important because claims against general contractors are often based on contract but have elements of negligence. Significantly, the court looked past the negligence components and determined that the statute of limitations for breach of contract applied. Submitted by Eric D. Foerg.
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| A New Indiana House Bill... |
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2/10/2010 Link
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A new Indiana House Bill would require all new buildings constructed by local governments and schools to meet green building standards. House Bill 1063 recently passed the Indiana House by a 51-47 vote and will move on to the Senate. The bill would require all buildings erected by local governments to achieve a "silver" rating on the U.S Green Building Council's LEED standards. The Indianapolis Star reported that proponents of the bill argue that this bill could be implemented with no additional costs, but would save the taxpayers 40 percent on energy of the life of the building. But opponents of the bill disagree, arguing that if there is no additional cost, there should be no need to require the green standards. "Why isn't this happening on its own? Why do we need to mandate the standards?" asked Rep. Sean Eberhardt, R-Shelbyville. "If it's the same cost, why don't we just let the natural progression of things take hold and let it happen on its own?" Submitted by Michael A. Rogers.
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