Summary
The Supreme Court of Alaska held that a surety issuing a statutory contractor licensing bond does not owe third-party claimants an actionable tort duty to independently investigate their claims against the bonded contractor. The court distinguished licensing bonds from construction payment and performance bonds and affirmed summary judgment for Star Insurance Company on the O'Connors' bad-faith claims.
Holdings
- An Alaska licensing-bond surety does not, merely by issuing the licensing bond, owe third-party claimants an actionable tort duty to independently investigate their claims against the bonded contractor.
- Summary judgment for Star was proper because the O'Connors failed to establish that Star owed them the actionable tort duty on which their bad-faith claims depended.
Questions Presented
- Whether a surety issuing an Alaska statutory licensing bond owes third-party claimants an actionable tort duty of good faith and fair dealing requiring it to independently investigate claims against the bonded contractor.
- Whether the superior court properly granted summary judgment to Star on the O'Connors' bad-faith claims.
Disposition
affirmed
Cases Cited (11)
- Cook Inlet Keeper v. State, 46 P.3d 957, 961 (Alaska 2002)(followed)
- Fancyboy v. Alaska Village Electric Cooperative, Inc., 984 P.2d 1128, 1132 (Alaska 1999)(followed)
- Dunn v. Dunn, 952 P.2d 268, 270 (Alaska 1998)(followed)
- R.F. v. S.S., 928 P.2d 1194, 1196 n. 2 (Alaska 1996)(followed)
- Far N. Sanitation, Inc. v. Alaska Public Utilities Commission, 825 P.2d 867, 869 n. 2 (Alaska 1992)(followed)
- Loyal Order of Moose v. International Fidelity Insurance Co., 797 P.2d 622 (Alaska 1990)(distinguished)
- Alaska Pacific Assurance Co. v. Collins, 794 P.2d 936, 947 (Alaska 1990)(followed)
- State Farm Fire & Casualty Co. v. Nicholson, 777 P.2d 1152, 1154-57 (Alaska 1989)(discussed)
- O.K. Lumber Co. v. Providence Washington Insurance Co., 759 P.2d 523, 525-26 (Alaska 1988)(discussed)
- Gross v. Bayshore Land Co., 710 P.2d 1007, 1013 (Alaska 1985)(discussed)
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Cited In (0)
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Court Document
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