Arch Insurance v. Nizar & Nuha Katbi Family Trust

MEMORANDUM

Arch Insurance, an insurer that underwrites surety bonds for the construction industry, entered into an indemnity agreement with FTR International President and CEO Nizar Katbi in 2006 (“Indemnity Agreement”). Katbi and FTR agreed to indemnify and hold Arch harmless for all losses sustained from any bonds Arch executed on FTR’s behalf. The next year, in 2007, Katbi wrote a letter informing Arch that he was switching sureties. FTR switched back to using Arch as a surety two years later. The parties did not sign a new indemnity agreement, but Arch and FTR did receive and execute new bonds.

After FTR defaulted on its obligations, Arch sued to collect the money it had paid FTR’s subcontractors and suppliers on FTR’s bonds. Arch moved for summary judgment. Katbi failed to oppose Arch’s motion on time, but the district court granted him an extension. In his opposition, Katbi claimed that the 2007 letter switching sureties terminated the Indemnity Agreement. In its reply, Arch provided evidence that Katbi continued to rely on the Indemnity Agreement after he sent that letter. The district court granted summary judgment. One month later, Katbi filed motions for relief from…