Frontier Ins. Co. v. Hitchcock

Federal 7th Circuit Court
Civil Court
Citation
Case Number: 
No. 11-3510
Decision Date: 
March 19, 2013
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed
Dist. Ct. did not err in directing defendants to provide collateral pursuant to terms of contract with plaintiff that also called for defendants to indemnify plaintiff for amounts paid on surety bond. While record showed that plaintiff had not actually paid any amounts on bond at time of lawsuit, Dist. Ct. could properly reject defendants’ claim that plaintiff could seek collateral to pay on bond only after plaintiff’s obligation to third-party covered by bond had been satisfied. Moreover, record showed that plaintiff’s obligation to third-party had been quantified at time of final judgment in instant action. However, Ct. noted that defendant could seek refund of portion of collateral from clerk of district court should plaintiff eventually pay less than face value of surety bond.