Johnson Controls, Inc. v. Liberty Mutual Insurance Company

Summary

The court held that Johnson Controls, Inc. was a proper claimant under the payment bond because it supplied equipment and materials for the public-works project, was not paid, acted with a good-faith belief that the materials were for the project, and satisfied the statutory notice and filing requirements. The court rejected the argument that direct payment arrangements involving the public owner placed the materials outside the contract and bond’s coverage. It reversed the summary judgment for Liberty Mutual and remanded for entry of summary judgment for Johnson Controls. Chief Justice Moore and Justice Shaw, dissenting, would have affirmed because the general contractor was not liable for materials purchased directly by the public owner.