American Bonding Company, Inc. v. American Contractors Indemnity Co.

Line of Business : Surety
State : Ohio
Case Date : 23/08/2012
Case Description :

In American Bonding Company, Inc. v. American Contractors Indemnity Co., 2012 WL 3638684 (S.D.Ohio August 23, 2012) a bail bond agency sued a surety insurer complaining about the use of Build Up Fund (BUF) money held by the surety. Many of the agency’s original claims had been dismissed by agreement. The court granted the surety summary judgment as to the remaining claims. The court found that in its agency agreement with a third party intermediary, the agency had consented to the conduct it now alleged was a breach of trust. The court also held that there was no private right of action for alleged breaches of obligations under Ohio R.C. §3905, et seq. governing build up funds.

Case Description :

In American Bonding Company, Inc. v. American Contractors Indemnity Co., 2012 WL 3638684 (S.D.Ohio August 23, 2012) a bail bond agency sued a surety insurer complaining about the use of Build Up Fund (BUF) money held by the surety. Many of the agency’s original claims had been dismissed by agreement. The court granted the surety summary judgment as to the remaining claims. The court found that in its agency agreement with a third party intermediary, the agency had consented to the conduct it now alleged was a breach of trust. The court also held that there was no private right of action for alleged breaches of obligations under Ohio R.C. §3905, et seq. governing build up funds.

Share this entry

Surety Protects
Learn how surety
bonds protect taxpayers,
save time,
reduce costs and
keep projects on track.
Learn More
U.S. Senate Unanimously Supports Surety Bonds and the Protections and Economic Value They Provide to Our Nation’s Critical Infrastructure Development
See Senators Capito, Carper and Van Hollen speak on the Senate floor about the importance of surety.
Learn More

The Surety & Fidelity Association of America Foundation Awards 19 Students With $47,500 in Scholarships

SFAA Foundation announces 19 students selected as recipients of a $2,500 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2023.
Learn More

News & Events

Surety Industry Advances Critical Federal Policy

SFAA and NASBP led a Legislative Fly-In with members from across the industry to educate Congress on the value of construction surety bonds and advocate for key legislative priorities. Surety professionals held over 135 meetings with policymakers and staff to emphasize the significant savings that surety bonding provides to taxpayers across the country.

The Surety & Fidelity Association of America Foundation Awards Record $90,000 in Scholarships

The Surety & Fidelity Association of America Foundation (SFAA Foundation) has awarded a record $90,000 in scholarships to thirty-one students through its Surety and Fidelity Intern and Scholarship Program.

SFAA’s Alex Gleason Named Among Nation’s Top Lobbyists for 2025

The Surety & Fidelity Association of America (SFAA) has announced that Alex Gleason, Head of Federal Government Affairs, has been named one of the 2025 Top Lobbyists by the National Institute for Lobbying & Ethics (NILE).
All News