Logan Bank & Trust Company, a West Virginia banking corporation v. The Letter Shop, Inc., a West Virginia corporation, James W. Mullins, Brenda G. Mullins, Thomas J. George, Linda M. George, Louis A. Capaldini, Jacqueline M. Calpaldini, Vernon N. Mullins, and Vicki L. Mullins, No. 21610 (W. Va. October 28, 1993) (Brotherton, J.): 190 W.Va. 107, 437 S.E. 2d 271:
Reversing the award of summary judgment in a lender's liability case, the Court held that there are three factors which must be present in order to impose a duty upon a creditor to disclose to the surety information about the debtor: (1) the creditor has reason to believe that the facts materially increase the surety's risk beyond that which the surety intends to assume; (2) the creditor has reason to believe that the facts are unknown to the surety; and (3) the creditor has reasonable opportunity to communicate the facts to the surety.
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.