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MASTERCLEAN, INC. v. STAR INS. CO.

No. 25379.

347 S.C. 405 (2001)

556 S.E.2d 371

MASTERCLEAN, INC., CPM Environmental, Inc., William B. Smith and Barbara P. Smith, Plaintiffs, v. STAR INSURANCE CO., Defendant and Third Party Plaintiff, v. Masterclean of North Carolina, Inc., Third Party Defendant.

Supreme Court of South Carolina.

Decided November 26, 2001.

Attorney(s) appearing for the Case

Robert Bryan Barnes and Kate B. Barroll, of Rogers, Townsend & Thomas, of Columbia, for Plaintiffs.

C. Allen Gibson, Jr., and Jonathan D. Crumly, Sr., both of Buist, Moore, Smythe & McGee, of Charleston, for Defendant/Third Party Plaintiff.

L. Franklin Elmore and Nancy W. Monts, of Ogletree, Deakins, Nash, Smoak & Stewart, of Greenville; and Edward G. Gallagher, of Washington, DC, for Amicus Curiae The Surety Association of America.

Justice BURNETT.

We agreed to answer the following questions certified by the United States District Court for the District of South Carolina:

Does South Carolina recognize a cause of action in tort by a principal against its surety for the surety's bad faith refusal to pay first party benefits to an obligee pursuant to a construction performance bond? If so, what are the elements of this cause of action and what legal standards apply to the surety...

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