On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in General on Apr 20, 2016.
The issue of whether a surety can be liable for violating Pennsylvania’s bad faith statute is one that often comes up in construction cases. Aside from the fact that bonds – and thus sureties – are most commonly found in construction cases, the remedy of treble damages and attorneys’ fees (mostly the second part) are attractive to litigants. Although there is very limited case law on the issue in the Pennsylvania courts, the answer to the question is presently no.