PSE Consulting, Inc. v. Mercede
267 Conn. 279 | Supreme Court of Connecticut | 2004
Holding Summary
A surety's prima facie evidence clause in an indemnity agreement shifts the burden to the principal to prove bad faith, but the surety's settlement payments were properly found improper where evidence showed the surety acted in bad faith rather than in good faith.
Surety's discretion to settle is not unfettered; surety entitled to indemnification only for good faith payments.
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