In the Matter of Fidelity and Deposit Company of Maryland, Respondent v. Parsons & Whittemore Contractors…

Summary

The Court held that the surety, Fidelity, is bound by the arbitration of the dispute between the general contractor and the subcontractor and therefore is not entitled to a stay of that arbitration, while a stay is proper for any separate dispute arising under the performance bond itself. The decision overruled Matter of Lehman and relied on Madawick, with a dissent arguing that Fidelity should be compelled to participate in the arbitration.