Safeco Insurance Company of America and Johnson Controls, Inc. v. Graybar Electric Company, Inc.

Summary

The Supreme Court of Alabama affirmed the trial court’s summary‑judgment ruling for Graybar Electric, holding that the settlement agreement with TDC was not a novation that extinguished Graybar’s claim under the payment bond and that Graybar satisfied the statutory elements of the little Miller Act, thus entitled to its claim, attorney fees, and interest. Justice Murdoch filed a concurring special opinion reiterating the traditional elements of novation.