Construction Surety Bonds - Appeal

Mr. McReynolds handled this matter in which a surety company sued an insurance agency and its liability carrier to recover $2.5 million in construction defaults on bonds fraudulently issued by the agency’s former employee. A trial limited to liability resulted in judgment for defendants on grounds that the surety company had ratified the bonds by demanding remission of the premiums. The court of appeal affirmed.
North American Speciality v. Employers Reinsurance Corporation, et al, 02-2649 (La. App. 1 Cir. 9/26/03), 857 S. 2d 606, writ denied, 03-2977 (La. 1/16/04), 864 So. 2d 633.