Homebuilders Breached Agreement With Insolvent Surety, 9th Circuit Finds

Mealey's (May 22, 2020, 1:16 PM EDT) -- SAN FRANCISCO — Homebuilders breached a continuing agreement of indemnification (CAI) when they refused to reimburse an insolvent surety for claims of $1,925,880.84 filed against surety bonds by two California cities, the Ninth Circuit U.S. Court of Appeals held May 20, affirming summary judgment to the insolvent surety (Western Insurance Co. in liquidation v. Frontier Homes LLC, et al., No. 19-55101, 9th Cir., 2020 U.S. App. LEXIS 16099)....