Norfolk Southern sues Federal Insurance for refusing to honor surety bond


The bond language sits at the heart of the case. Norfolk Southern points to provisions stating that SYTE and FIC “jointly and severally, bind themselves… to pay for labor, materials and equipment furnished for use in the performance of the Construction Contract.” It also cites terms requiring FIC, once properly notified, to “promptly and at [FIC’s] expense defend, indemnify and hold harmless” Norfolk Southern against a duly tendered claim, demand, lien, or suit.



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