Annual survey of fidelity and surety law, 1992 - Part II

Recent cases and developments in the area of fidelity and surety law are discussed. A number of 1992 cases involving public and private construction bonds, fidelity and financial institution bonds, and sureties' remedies are summarized. In the area of public construction bonds, cases involving the Miller Act and state and local bonds are discussed. Issues decided in cases involving private construction bonds included: 1. liability of surety, 2. standing as claimant, 3. limitation period, and 4. pay when paid clauses. Cases involving fidelity and financial institution bonds covered the following issues: 1. definition of employee, 2. definition of dishonesty, 3. forgery, 4. discovery, 5. exclusions, 6. termination of coverage, 7. amount of damages, and 8. rights of 3rd parties. Issues raised in cases involving sureties' remedies included: 1. indemnity, 2. subrogation, and 3. collateral.