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Feeding the Beast: In a Payment Bond, "All Sums Justly Due" May Include Attorneys' Fees

In Owners Insurance Company v. Fidelity and Deposit Company of Maryland, the Eighth Circuit was asked to determine whether a private construction payment bond containing the phrase “all sums justly due” requires a commercial surety to pay attorneys’ fees incurred by the bond claimant. Its holding was a resounding Yes, at least where the underlying contract between the bond principal and the bond claimant contains an attorneys’ fee provision.

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