Court Approves Surety and Fidelity Association’s Motion to File Amicus Brief in Argonaut Insurance Company Vs. Faucon V

WASHINGTON, January 28 (TNSOps) — The Surety and Fidelity Association of America issued the following press release:

The Surety & Fidelity Association of America (SFAA), a non-profit, non-partisan trade association representing all segments of the surety and loyalty industry, is pleased to announce the United States Court of Appeals for the Firth Circuit approved its motion to file an amicus brief in Argonaut Insurance Company v. Falcon V, LLC

In the Amicus brief, the SFAA argues that a decision made by the US Bankruptcy Court should be struck down and the Fifth Circuit should rule that a debtor’s bond program, including the indemnification agreement, is an enforceable contract and a financial accommodation that could be assumed by a debtor with the consent of the surety.

Failure to allow one debtor to assume a surety program with the consent of the surety could deprive other debtors of significant financial resources needed to emerge from bankruptcy and remain viable after it. In its filing, the SFAA urges the Court to modernize its test for enforceable contracts so that it can be applied to surety bonds, which are three-party contracts.

Learn more about Argonaut Insurance Company against Falcon V, LLC on casetext.com.