Court Opinion

ID: 9848064
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:12:15.735015+00
Date Added: 2024-06-11T09:17:59.848640
License: Public Domain

YETKA, Justice
(dissenting).
Travelers’ bond obligates it “faithfully [to] perform the contract.” The majority unnecessarily restricts this language when it holds that the surety is only obligated to “complete the project.” Here, the Travelers’ bond incorporated portions of the general contract between Northland and Construction Leaders. Section 9 of that contract contained language, as the majority acknowledges, which read as follows: “The Contractor shall provide and pay for all materials, labor, water, tools, equipment, light, power, transportation and other facilities necessary for the execution and completion of the work.” Under this language, the contract is not “performed” until all materials provided thereunder are paid for.
Construction jobs are not negotiated in a vacuum. Almost all of the parties, including subcontractors, are experienced people and are aware of the conditions of the general contract. If Travelers wanted to limit their obligation under the bond to completion of the project only, it should have clearly stated so. It did not; therefore, in my opinion, the subcontractors had a right to rely on the conditions of the general contract as guaranteed by the bond.
I would affirm the trial court.