Eastern Steel Constr. v. Int. Fidelity Ins Co, Pet

• Court: Supreme Court of Pennsylvania
• Decided: November 7, 2023
• Docket: 574 MAL 2022 (Granted)
• Status: Published

Opinion

IN THE SUPREME COURT OF PENNSYLVANIA MIDDLE DISTRICT

EASTERN STEEL CONSTRUCTORS, INC., : No. 574 MAL 2022 : Respondent : : Petition for Allowance of Appeal : from the Order of the Superior Court v. : : : INTERNATIONAL FIDELITY INSURANCE : COMPANY, : : Petitioner :

EASTERN STEEL CONSTRUCTORS, INC., : No. 609 MAL 2022 : Cross-Petitioner : v. : : : Petition for Allowance of Appeal INTERNATIONAL FIDELITY INSURANCE : from the Order of the Superior Court COMPANY, : : : : Respondent : :

ORDER

PER CURIAM

AND NOW, this 7th day of November, 2023, the application to strike at 574 MAL

2022 is DENIED, and the Petition for Allowance of Appeal at 574 MAL 2022 is GRANTED,

LIMITED to the issues set forth below. Allocatur is DENIED as to all remaining issues.

The issues, as stated by Petitioner, are: (1) Whether a surety is liable for attorneys’ fees and/or contractual interest under the terms of a payment bond that covers only labor, materials and equipment?

(2) Whether a surety is bound by a default judgment entered in an arbitration to which the surety was not a party and despite a provision in the bond specifying that litigation against the surety will proceed in a court of law?

The Cross-Petition for Allowance of Appeal at 609 MAL 2022 is GRANTED, LIMITED TO

the issue set forth below. Allocatur is DENIED as to all remaining issues. The issue, as

stated by Cross-Petitioner, but edited for clarity, is:

Whether Pennsylvania’s insurance bad faith statute, 42 Pa.C.S. § 8371, applies to surety contracts/policies issued by insurance companies?

[574 MAL 2022] - 2