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Panel: Surety Did Not Act In Bad Faith In Settling Work Contract Dispute

Mealey's (November 9, 2016, 12:25 PM EST) -- CINCINNATI — A surety’s settlement of breach of contract claims against the state of Michigan for refusal to make final payments to a general contractor for work to a prison kitchen was not in bad faith because the surety and the contractor had shared interests, the Sixth Circuit U.S. Court of Appeals ruled Nov. 7 (Great American Insurance Co. v. E.L. Bailey & Company Inc. and Edward L. Bailey, No. 15-2149, 6th Cir.; 2016 U.S. App. LEXIS 20018).

(Opinion available.  Document #69-161202-004Z.)

The state contracted with...
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