Hartford Fire Insurance Co. v. Micah A. Curtis and Angela L. Curtis; Hartford Fire Insurance Co. v. Jerry Lee Rhodes and Bonnie M. Cochran

Summary

This document is a dissenting opinion by Chief Justice Benjamin in consolidated West Virginia Supreme Court of Appeals cases involving mortgage broker and lender surety bonds. The dissent argues that the bonds are performance bonds rather than judgment bonds, contending that claimants must establish the principals’ statutory violations and allow the surety an opportunity to assert defenses before recovery.

Holdings

1. In Chief Justice Benjamin's view, the bonds were performance bonds rather than judgment bonds because they conditioned liability on the principal's failure to conform to the governing Act and applicable rules or to pay amounts due, and did not guarantee unconditional payment of a judgment.

Questions Presented

1. Whether the mortgage broker and lender surety bonds were judgment bonds requiring the surety to pay a judgment against the principal without an opportunity to assert defenses or contest damages.
2. Whether the bond language instead created performance bonds whose liability depended on the principal's failure to comply with applicable law and regulations, followed by the contractually specified procedure for asserting a claim.

Disposition

other