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

Summary

The court affirmed summary judgment for Graybar on its payment-bond claim, holding that Graybar's settlement with its subcontractor did not constitute a novation or otherwise clearly relinquish Graybar's statutory right to recover from the surety and general contractor. The court also held that Graybar presented substantial evidence satisfying the payment-bond requirements, including that the materials were used for the airport project, and that the defendants' contrary evidence did not create a genuine issue of material fact. The court upheld the award of attorney fees and interest. MURDOCK, Justice, concurring specially, would clarify that a novation may occur between the same parties and need not involve substitution of a new party.