Texas Ruling Could Impact Surety Bond Terms

Law360, New York (February 10, 2011, 5:09 PM EST) -- A Texas appeals court decision Thursday requiring Nova Casualty Co. to pay for a subcontractor's botched construction work at the Houston airport could spur sureties in the state to be more careful in drafting their bond terms.

The latest ruling was issued by the Texas Fourteenth Court of Appeals. Nova Casualty Co. had issued a performance bond to guarantee the work of Box or Container Automation Inc., which subcontracted to build the baggage handling system at a new cargo facility at Bush Intercontinental Airport.

The general...
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