Suretyship
Travelers Casualty and Surety Company v. Amoroso
2004 WL 1918890 (N.D. Cal. Aug. 24, 2004)
Contractor claimed that surety, in its capacity as surety, had verbally promised that it would use $3 million paid to it by contractor to pay contractor's subcontractors, suppliers, and overhead expenses and to issue stop notice release bonds so contractor could continue working. Instead, surety allegedly failed to take these actions and issued hold funds letters to owners of contractor's projects directing owners not to pay contractor. Court dismissed without leave to amend contractor's claim against surety for breach of the implied covenant of good faith and fair dealing.
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