Surety Had No Fiduciary Duty Toward Principal, Pa. Federal Judge Rules

Surety Had No Fiduciary Duty Toward Principal, Pa. Federal Judge Rules

PITTSBURGH - Concluding that a surety does not owe fiduciary duties to its principal under performance and payment bonds, a Pennsylvania federal judge on May 31 granted dismissal of breach of fiduciary claims against the surety related to disputes over two construction projects (Reginella Construction Company Ltd. v. Travelers Casualty and Surety Company of America, No. 2:12-cv-01047, W.D. Pa.; 2013 U.S. Dist. LEXIS 76353).

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