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Surety Law Triumph: Principal Mac W. Cabal Secures Complete Appellate Victory

By November 7, 2023February 18th, 2024No Comments
labor dispute

Congratulations to Principal Attorney Mac W. Cabal in securing a complete appellate victory on behalf of a surety client for Lanak & Hanna. The case came to Lanak & Hanna on appeal from another law firm. In doing so, Lanak & Hanna was able to bring to bear its extensive appellate experience and knowledge of surety law to the case.

By way of background, Lanak & Hanna’s client was a surety that issued an appeal bond in favor a litigant involved in a prior labor dispute. One of the other litigants in that prior case moved to post a bond to effectuate an appeal of a labor award. The case turned on whether Lanak & Hanna’s client, the surety, could be ordered to surrender the appeal bond to secure the labor award in a case where the named bond principal was disputed. Said another way, whether the surety could be held liable on a bond issued to another.

In a case of first impression given the unique facts at play and the peculiar nature of the dispute, through extensive appellate briefing and lengthy oral argument, Mr. Cabal successfully distilled the case down to its basics, relying upon well-settled suretyship principles and contract law to ultimately secure an opinion in favor of the surety client. Namely, Mr. Cabal successfully argued that notwithstanding other factors, as a matter of black letter suretyship and contract law, the debt obligation could not be enforced against a surety for a principal it did not bond. Period. In a unanimous decision, the Court of Appeal for the Second Appellate District agreed with Lanak & Hanna’s surety client affirming the prior trial court decision in full. The decision ultimately results in a finding of no liability for the surety client.

Lanak & Hanna is pleased to have obtained this favorable ruling on behalf of its client through its experienced appellate practice in combination with its extensive knowledge of surety law.

Congratulations to Mr. Cabal in securing this appellate victory. Job well done.

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