Leroy M. Rashid and Richard C. Rashid v. Schenck Construction Company, Inc., and Schenck & Associates, Inc., a Kentucky corporation, United States Fidelity & Guaranty Company, Intervenor, No. 21300 (W. Va. April 23, 1993) (Brotherton, J.): 190 W.Va. 363, 438 S.E.2d 543:
Where developer filed suggestion against contractor's bonding company after the contractor's default, the Court held (1) an arbitration agreement, when it is part of a general contract, can be incorporated into a bond, by reference, to the general contract; (2) a suggestion action may be a proper method to collect on a performance bond obligation if the surety is liable or indebted to the judgment debtor; and (3) although a surety is collaterally estopped from relitigating matters decided in an arbitration proceeding under such circumstances, the surety may raise whatever other defenses that may be available in subsequent enforcement proceedings.