In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.

Q: claim because "she was not diligent in preserving her legal rights”); Felty, 818 F.2d at 1129 ("One who fails to act diligently cannot invoke equitable principles to excuse that lack of diligence.”) (quoting Baldwin County Welcome Ctr. v. Brown, 466 U.S. 147, 151, 104 S.Ct. 1723, 80 L.Ed.2d 196 (1984)); United States ex rel. Cogifer, S.A. v. Ins. Co. of North Am., Civ. A. No. 86-183-NN, 1987 WL 19932, at *4 (E.D.Va. Oct. 15, 1987) (unpublished). 11 . See, e.g., Cada v. Baxter Healthcare Corp., 920 F.2d 446, 450-51 (7th Cir. 1990). 12 . See, e.g., Humble Oil, 402 F.2d at 896 (finding equitable estoppel where surety reneged on promise to pay after statute of limitations had run). 13 . See, e.g., United States ex rel. Nelson v. Reliance Ins. Co., 436 F.2d 1366, 1371 (10th Cir.1971) (<HOLDING>); United States ex rel. Atlas Erection Co. v. 
 Holding statements: (A) holding that a performance bond surety was allowed to sue the government based on the doctrine of equitable subrogation (B) holding that an agreement which required the submission of an affidavit of payment to subcontractors or lien waivers before payment was made by the general contractor was for the direct benefit of the subcontractors (C) holding that a surety has standing to sue for a progress payment released by the government after notification by the surety of unpaid subcontractors (D) holding that estoppel applied where surety repeatedly responded to subcontractors threats to sue with answers which assured them that amicable settlement was just around the corner (E) holding that there is no privity of contract between the government and a surety since the government is not a party to the agreement between the surety and the contractor the government never undertakes an obligation to the surety

A: holding that a performance bond surety was allowed to sue the government based on the doctrine of equitable subrogation
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Q: v. Libbey-Owens-Ford Glass Co., 376 F.2d 711 (7th Cir. 1967), stated that section 2(d) shows that the legislature contemplated multiplicity of actions and provides a court with two options: stay the entire proceeding pending arbitration, or, if the issue is severable, the stay may be granted with respect to that issue only. 710 ILCS 5/2(d) (West 1994). The Galt court explained: “In enacting the Uniform Arbitration Act, the [Illinois] Legislature has not eradicated a chancellor’s inherent powers, but the legislature has determined in Section 2 that it is no longer equitable to enjoin arbitration to prevent multiplicity of actions.” Galt, 376 F.2d at 716. See Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 20, 74 L. Ed. 2d 765, 782, 103 S. Ct. 927, 939 (1983) (<HOLDING>). Accord Dean Witter Reynolds Inc. v. Byrd, 470 
 Holding statements: (A) holding that where an arbitration agreement between an employer and employee does not specifically provide for the handling of arbitration costs california courts should interpret the arbitration agreement  as providing  that the employer must bear the arbitration forum costs (B) holding that once the party seeking to compel arbitration establishes the existence of an arbitration agreement and that the claims raised fall within the scope of that agreement the trial court must compel arbitration (C) holding that the federal arbitration act requires piecemeal resolution when necessary to give effect to an arbitration agreement and mandates enforcement of an arbitration agreement notwithstanding the presence of other persons who are parties to the underlying dispute but not to the arbitration agreement emphasis added (D) holding that an arbitration agreement is separable from the underlying agreement (E) holding that the faa mandates courts to direct parties to arbitration on issues to which a valid arbitration agreement has been signed

A: holding that where an arbitration agreement between an employer and employee does not specifically provide for the handling of arbitration costs california courts should interpret the arbitration agreement  as providing  that the employer must bear the arbitration forum costs
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Q: 198, ¶ 15, 761 A.2d 291 (adopting the view that we should not "anticipate a question of constitutional law in advance of the necessity of deciding it” (quotation marks omitted)). 12 . In fact, the court already could have terminated the guardianship. The mother represented in her first four affidavits that the child's father was unknown. There is now no dispute that she believed R.M. to be the father, and informed him and the court of that fact just weeks after filing her affidavit. When, in January of 2010, the court realized that the father had been identified, it could have terminated the guardianship because it was based on the fraud or misrepresentation of the mother. See 18-A M.R.S. § 5-204; M.R. Civ. P. 60(b)(3); Presnell v. Peoples Heritage Bank, 619 A.2d 1205, 1206 (Me.1993) (<HOLDING>). Indeed, the guardianship may no longer exist 
 Holding statements: (A) recognizing the courts inherent sua sponte powers in certain circumstances to allow it to manage its own affairs so as to achieve the orderly and expeditious disposition of cases in the furtherance of justice quotation marks omitted (B) recognizing inherent power in the courts to preserve the efficient and expeditious administration of justice and protect it from being impaired or destroyed (C) recognizing a district judge may dismiss a case sua sponte under either rule 41b or its inherent authority to manage its docket (D) recognizing every federal appellate court has a special obligation to consider its own jurisdiction even if it must do so sua sponte (E) holding that the right to choose counsel cannot be manipulated so as to obstruct the orderly procedure in the courts or to interfere with the fair administration of justice

A:
recognizing inherent power in the courts to preserve the efficient and expeditious administration of justice and protect it from being impaired or destroyed
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