Frost v. Williams Mobile Offices, Inc.

795 F.2d 372
Court of Appeals for the Fourth Circuit·Decided July 10, 1986·No. Nos. 84-1772, 84-2000·Published·Cited by 2 cases

Opinion

PER CURIAM:

This appeal involves the rights of two suppliers of a subcontractor under a subcontract 1 to recover as third-party beneficiaries under an indemnity bond executed by the primary subcontractor in favor of the general contractor. It was agreed that the determination of such right was a matter governed by South Carolina law. We accordingly submitted it as a certified question for resolution by the Supreme Court of South Carolina. See Lehman Bros. v. Schein, 416 U.S. 386, 389-90, 94 S.Ct. 1741, 1743-44, 40 L.Ed.2d 215 (1944); 17 Wright-Miller-Cooper, Federal Practice and Procedure, § 4246 (1978). In the order of submission, attached here as a part of this opinion, the facts giving rise to the issue are detailed. The question certified was:

Are the Claimants third-party beneficiaries of the surety bond executed by Fireman and as such entitled to sue for the recovery of their unpaid claims under the bond as executed by Fireman?

The Supreme Court of South Carolina answered the certified question by holding that the materialmen of the secondary subcontractor were third-party beneficiaries of the indemnity bond executed by the primary subcontractor, the appellant Williams, and the surety, the appellant Fireman. It, therefore, agreed with the ruling made by the district judge on the basis of which he granted judgment in favor of the appellees herein. We, therefore, affirm the decision of the district court and the judgment in favor of the appellees granted therein.

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Frost v. Williams Mobile Offices, Inc., 795 F.2d 372 (4th Cir. 1986).

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