Spirco Must Indemnify Surety Bond Issuer: 8th Circ.

Law360, New York (February 4, 2009, 12:00 AM EST) -- A federal appeals court has ruled that contractor Spirco Environmental Inc. must indemnify the Insurance Company of the State of Pennsylvania for the cost it incurred defending a claim against a surety bond it issued to Spirco, and that another insurer must, in turn, provide coverage to Spirco for this cost.

Judge Michael J. Melloy, writing for a three-judge panel of the U.S. Court of Appeals for the Third Circuit, ruled Tuesday that Spirco must indemnify ICSP for the $800,000 cost it incurred because of the...
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