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BMD CONTRACTORS v. FIDELITY AND DEPOSIT CO. OF MD.

No. 11-1345.

679 F.3d 643 (2012)

BMD CONTRACTORS, INC., Plaintiff-Appellant, v. FIDELITY AND DEPOSIT COMPANY OF MARYLAND, Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided May 11, 2012.

Attorney(s) appearing for the Case

Edwin Davis Coots, Brandon Ann Gibson (argued), Attorney, Coots, Henke & Wheeler, Carmel, IN, for Plaintiff-Appellant.

Thomas O. Crist (argued), Attorney, Benesch, Friedlander, Coplan & Aronoff, Cleveland, OH, for Defendant-Appellee.

Before FLAUM, MANION, and SYKES, Circuit Judges.

SYKES, Circuit Judge.

This case requires us to decide an increasingly important question in complex multi-tiered construction contracts—if the property owner becomes insolvent or otherwise defaults in payment, preventing a contractor from paying a subcontractor, which contractor bears the risk of loss? There is an additional wrinkle here because the question arises in a suit on a payment bond.

BMD Contractors, Inc. ("BMD") was a subcontractor for Industrial...

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