Electrical Contractors, Inc. v. Ins. Co. of the State of Pennsylvania

Summary

The court held that a surety's failure to pay or deny a payment-bond claim within the statutory ninety-day period does not waive substantive defenses or automatically entitle the claimant to the full amount claimed. The response deadline is directory, not mandatory, because the statute provides no such forfeiture, the deadline facilitates claim resolution, and automatic liability could create an unjust windfall. The court treated the surety's failure to respond as a denial for purposes of permitting suit, while leaving other certified questions unresolved.