Ropers Majeski

The area of fidelity and surety bond litigation requires a high level of skill, experience, and discretion. Although often discussed in the same context as insurance, litigation arising from bonds requires unique knowledge and experience in a different area of the law. Our partners heading up this department manage teams who have this unique knowledge and are dedicated to this specialized and demanding category of work.

Management of fidelity and surety bond litigation creates special problems in California because the matters can involve extra-contractual and bad faith allegations leading to exposures far in excess of the bond amount. When necessary, we combine the unique knowledge and experience of this group with lawyers from our bad faith/extra-contractual practice group to minimize the company’s exposure.

On the surety side, we have experience on subdivision performance, payment and maintenance bonds, Miller Act payment and performance bonds, financial guarantee bonds, notary and oil exploration bonds, and all aspects of construction bonds. In recent litigation, a hospital sued the principal on a bond for allegedly failing to provide and properly install the mechanical parts of a cogeneration plant designed to provide electricity to the hospital and generate excess electricity for sale. The suit claimed that the bonding company had acted in bad faith. We successfully defended the surety company against these allegations and settled the case under the normal bond provisions.

Our fidelity bond experience includes investigation and litigation arising from inventory theft from high tech companies and thefts from financial institutions through sophisticated fraudulent loan schemes involving loan officers, appraisers, and borrowers with ties to organized crime. In one action we represented the issuer of a fidelity bond who refused to pay a $6.5 Million claim alleging an elaborate scheme involving fraudulent equipment lease transactions. This matter involved both actions on the bond and allegations of bad faith. The case was originally filed in state superior court, but we were able to negotiate a more favorable settlement following removal to federal court.

Bond litigation involves the potential for subrogation against the principal or other wrongdoers once payment is made. We have handled numerous subrogation and collection actions following payment under bonds including actions against banks and other financial institutions for honoring checks and other negotiable instruments bearing forged signatures, and against principals and subcontractors arising out of payment under construction surety bonds.

RMKB's Commitment to Diversity

Ropers, Majeski, Kohn & Bentley promotes a diverse, inclusive work environment, understanding that diversity creates a productive workplace, is a social responsibility, and creates value for its clients who appreciate and expect their legal team to reflect the diversity of their own organizations and communities.  Well before many law firms in the Bay Area began instituting formal “diversity” programs, RMKB implemented internal employment practices demonstrating its commitment to diversity within the firm and within the legal profession.

Today, RMKB offers a wide range of support –both in volunteer time and financial resources – to help increase an awareness of diversity-related concerns and find ways of accomplishing its diversity-related goals. 

 Within The Community

• Through the firm's connection with the Los Angeles County Bar Association, several attorneys from our Los Angeles office are participating in an ongoing High School Outreach Program as volunteer mentors to Garfield High School students.
• RMKB was the catalyst for the formation of a formal diversity program in San Mateo County and continues to work closely with the San Mateo County Bar Association to foster and encourage diversity related programs.
• RMKB is proud to join PG&E, Union Bank of California, Wells Fargo, and others as the first and only law firm sponsor of the Bay Area Gardeners Foundation, a non-profit organization dedicated to providing financial support to economically disadvantaged students attending college.
• RMKB is working with Sequoia High School in Redwood City in an effort to commit a team of diverse students to compete in the San Mateo County Mock Trial Program, offering to provide attorney coaches and financial assistance.
• RMKB has been honored to sponsor an annual holiday celebration for the students at St. Elizabeth Seton School in East Palo Alto for almost two decades.  The mission of St. Elizabeth Seton School, a Vincentian Catholic School, is to educate kindergarten through eighth grade students from the multi-cultural and economically diverse populations of East Palo Alto, Palo Alto, and the surrounding communities.

 RMKB proudly supports other diversity related causes: 

• Bay Area Legal Aid
• Charles Houston Bar Association
• Food Bank Society of Los Angeles
• Bar Association of San Francisco Diversity Program
  

Our attorneys belong to the following organizations:

• Asian-American Bar Association of the Great Bay Area
• Iranian-American Bar
• Japanese-American Bar
• Korean-American Bar Association of Northern California
• Law Society of Hong Kong
  
   

Within RMKB:

RMKB maintains a formal mentorship program for its associates

RMKB provides funding for and supports attorney participation in local and national organizations seeking to promote and encourage diversity within the legal profession.

RMKB provides flex-time schedules and part time employment for attorneys at both the partner and associate level.

Diversity Committee: Richard Wilson, Enrique Marinez, Kristina Chung, Dennis Ward, John Koeppel, Darcy Diaz

Ropers, Majeski, Kohn & Bentley offers equal opportunity in employment and advancement for all qualified persons without regard to race, religion, national origin, age, gender, sexual orientation, disability, marital status, veteran status, or any other factor prohibited by local, state, and federal law.