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Case Citations [1] (July 2017 through April 2018)

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              SURETYSHIP AND GUARANTY 3D





 CHAPTER 1. TRANSACTIONS GOVERNED BY LAW OF SURETYSHIP AND GUARANTY

 § 1. Scope; Transactions Giving Rise to Suretyship Status

 Me.2017. Com. (d) cit. in sup. Successor conservator of patient at a psychiatric facility brought claims
 for, among other things, breach of fiduciary against state department of health and human services,
which formerly acted as patient's temporary public conservator, alleging that defendant mismanaged
patient's property. The trial court denied defendant's motion for summary judgment on plaintiff's claim
for breach of fiduciary duty, finding that defendant was not immune from suit in tort when acting as a
public conservator. While vacating and remanding, this court declined to resolve whether sovereign
immunity barred recovery against the surety bond filed by defendant, noting that, under Restatement
Third of Suretyship and Guaranty § 1, an action on the bond had to proceed against the surety that
provided the bond, rather than against defendant as the principal, and plaintiff did not file her claims in
this action against the surety. Perry v. Dean, 156 A.3d 742, 748.



      CHAPTER 2.   FORMATION, ENFORCEMENT, AND INTERPRETATION OF THE
                                SECONDARY OBLIGATION

               TOPIC   1. FORMATION OF THE SECONDARY OBLIGATION

§ 7. Formation of the Contract Creating the Secondary Obligation-Generally

Ct.Int'I Trade, 2017. Quot. in sup. Surety that issued single-entry bonds to importers to cover customs
duties sued the United States, seeking refunds of amounts it paid on the bonds on the ground that the
bond forms had not been completely and accurately filled out by importers or their customs brokers.
This court granted in part the government's motion for summary judgment, holding that the bonds were
valid and enforceable as a matter of law, and that surety failed to show that its suretyship rights had been
impaired. The court reasoned, in part, that the requisites of formation of a contract creating a secondary
obligation set forth in Restatement Third of Suretyship and Guaranty § 7 appeared to have been met,
because the record showed that surety, in step with the customs brokers, offered the bonds for
acceptance by the government, and, upon their acceptance, reviewed copies of the submitted bonds,
billed the importers for premium payments on each of them, and retained the premium payments.
Hartford Fire Insurance Company v. United States, 254 F.Supp.3d 1333, 1366.

§ 8. When Notification of Acceptance of the Secondary Obligor's Offer Is Necessary for Creation
of the Secondary Obligation

Ct.Int'l Trade, 2017. Com. (a) quot. in sup. Surety that issued single-entry bonds to importers to cover
customs duties sued the United States, seeking refunds of amounts it paid on the bonds on the ground




           For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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