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Case Citations [1] (July 2020 - April 2021)

handle is hein.ali/retsgy0592 and id is 1 raw text is: SURETYSHIP AND GUARANTY 3D CHAPTER 1. TRANSACTIONS GOVERNED BY LAW OF SURETYSHIP AND GUARANTY § 1. Scope; Transactions Giving Rise to Suretyship Status C.A.Fed.2020. Cit. in diss. op. After government contractor that was terminated for default filed claims against the government before the Armed Services Board of Contract Appeals (ASBCA), the government sued surety, seeking to recover on a performance bond surety had issued to guarantee contractor's performance. Although surety entered into a settlement with the government, in which it tendered a new contractor to complete the work and agreed to dismiss its appeal in exchange for the government's agreement to release it from liability related to the bond, the ASBCA denied surety standing on the ground that it was not a contractor, thereby preventing the settlement from being completed. This court denied surety's petitions for panel hearing and for rehearing en banc. The dissent cited Restatement Third of Suretyship & Guaranty § 1 in arguing that surety agreed to assume contractor's obligations in the event it defaulted, and that surety was therefore entitled to assert contractor's claims under the doctrine of equitable subrogation. Guarantee Company of North America, USA v. Ikhana, LLC, 959 F.3d 1354, 1356. IIl.App.2019. Cit. in case quot. in sup. After developer of a subdivision went bankrupt and failed to complete certain public improvements that were required under its agreement with city, city sued, among others, surety that had issued performance bonds to developer to secure completion of the improvements, and surety filed a third-party complaint against buyer of a large number of unimproved residential lots in the subdivision. The trial court granted buyer's motions to dismiss surety's claims against it. Reversing and remanding, this court held, among other things, that surety sufficiently alleged that, when buyer acquired developer's interest in the subdivision, it became a successor developer, and that a surety relationship arose by operation of law. The court relied on principles of suretyship set forth in Restatement Third of Suretyship and Guaranty §§ 1 and 21 in support of its conclusion that buyer became liable to city under city's agreement with developer, as well as to surety under the bonds, even though buyer was not signatory to either city's agreement with developer or to the bonds. United City of Yorkville v. Fidelity and Deposit Company of Maryland, 143 N.E.3d 69, 98. 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 Ill.App.2020. Cit. in sup. Supplier that sold food products to hotel on a line of credit filed claims for breach of contract against hotel and its former general manager, who had personally guaranteed the line of credit, seeking to collect hotel's debt for food products ordered several years after general manager stopped working for hotel. The trial court conducted a bench trial and entered an order in favor of COPYRIGHT ©2021 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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