Can Sureties be Sued for Bad Faith?

2018-04-23T23:55:17-05:00June 26th, 2013|Construction Contractor Advisor, Performance Bond|

A recent case out of Pennsylvania again raises the oft disputed issue of whether a surety may be sued for bad faith by the beneficiary of the bond. Courts throughout the country have reached differing conclusions as to whether bad faith claims may be brought against sureties. Those courts that have found that sureties may not be sued for bad faith have found a significant distinction between insurance and suretyship. [...]