DODGE v. FIDELITY & DEPOSIT CO. OF MD.

No. 1 CA-CIV 7675.

161 Ariz. 340 (1986)

778 P.2d 1236

David Elgin DODGE and Anneliese M. Dodge, husband and wife, Plaintiffs-Appellants, v. FIDELITY AND DEPOSIT COMPANY OF MARYLAND, Defendant-Appellee.

Court of Appeals of Arizona, Division 1, Department D.

Review Granted September 16, 1986.


Attorney(s) appearing for the Case

Jennings, Strouss & Salmon by Stephen A. Myers, Jefferson L. Lankford, Phoenix, for plaintiffs-appellants.

Snell & Wilmer by H. William Fox and Richard L. Strohm, Phoenix, for defendant-appellee.


OPINION

JACOBSON, Presiding Judge.

The sole issue raised by this appeal is whether a surety under a construction performance bond may be liable in tort for the breach of an implied covenant of good faith as to the obligee under the bond.

Since this matter was disposed of in the trial court by the granting of a motion to dismiss for failure to state a claim for relief, we deem the facts on appeal to be undisputed.

In March 1978, plaintiffs-appellants...

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