What We Know

Takeover Agreements and Bonds

Sat Nov 22, 2014 Articles

Is it time to revise your form takeover agreement?  In Allegheny Casualty Co. v. Archer-Western/DeMaria Joint Venture III, 2014 WL 4162787 (M.D. Fla. August 21, 2014), the United States District Court for the Middle District of Florida rejected non-binding authority that “when a surety elects to directly undertake performance of a principal’s obligations, the surety’s liability is no longer limited by the amount of the bond.”

Indemnity Agreements and Bonds

Sat Nov 22, 2014 Articles

Beware that some courts may compel arbitration of a surety’s salvage claims against its principal and indemnitors even if the general agreement of indemnity (the “GAI”) does not include an arbitration provision.