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Pennsylvania Supreme Court blocks bad faith lawsuits against surety bond issuers

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Eastern filed for arbitration in November 2010, repeatedly notifying Fidelity and inviting its participation. Fidelity declined every time. When Ionadi filed for bankruptcy in October 2011, Eastern got the bankruptcy court to lift the automatic stay. The arbitration proceeded with neither Ionadi nor Fidelity defending. The arbitrator awarded Eastern $433,489.42, including the unpaid work, $68,299.08 in interest and penalties, and $111,404.62 in attorneys’ fees. Neither party tried to vacate the award, and the Allegheny County Court of Common Pleas confirmed it in July 2012.

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Michael J. Anderson is a U.S.-based fire safety enthusiast and writer who focuses on making fire protection knowledge simple and accessible. With a strong background in researching fire codes, emergency response planning, and safety equipment, he creates content that bridges the gap between technical standards and everyday understanding.

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