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REPUBLIC INS. CO. v. BD. OF COUNTY COMM'RS

No. 1625, September Term, 1985.

68 Md. App. 428 (1986)

511 A.2d 1136

REPUBLIC INSURANCE COMPANY v. BOARD OF COUNTY COMMISSIONERS OF ST. MARY'S COUNTY.

Court of Special Appeals of Maryland.

July 15, 1986.

Attorney(s) appearing for the Case

Robert N. Boyer, Upper Marlboro, for appellant.

Joseph R. Densford, Leonardtown, for appellee.

Argued before GILBERT, C.J., and ROSALYN B. BELL and WENNER, JJ.

GILBERT, Chief Judge.

The overriding question in this appeal is whether a surety1 is permitted to limit its liability to the face value of a bond. A secondary issue is: does Maryland recognize an action by an obligee to recover from a surety for the latter's "bad faith"?

The Facts

The developers of a subdivision in St. Mary's County known as Discovery were required to post performance bonds with the County as obligee...

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