The Eighth Circuit held today that incorporating a construction contract by reference into a performance bond didn’t bind the bond-issuer to an arbitration clause in the contract. The court thus affirmed an order denying a motion to compel Liberty Mutual to arbitrate Mandaree’s claims on a bond that Liberty issued to Tooz Construction for remodeling and expansion of a public school. Liberty Mut. Ins. Co. v. Mandaree Public School Dist. No. 36, No. 06-3957 (8th Cir. Oct. 10, 2007) (applying North Dakota law).
Barry Barnett
