Justice Herbert Kramer
A matter arose after escrow deposit bonds were issued by plaintiff insurance company and Lexon Insurance Company, as sureties, on behalf of Mansiana Ocean Residences in connection with a condominium development in Florida. Pursuant to the terms of the purchase agreements and applicable Florida law, Mansiana was required to hold purchaser’s initial 10 percent deposit in escrow with an approved agent until closing. In order to use the purchasers’ deposit bond to cover the purchaser’s deposit funds for construction, Mansiana requested that the sureties post escrow deposit bonds on its behalf. Mansiana paid the bond premiums for some two years and allegedly defaulted in payments in 2008. A general agreement of indemnity entered into in favor of the sureties contained express language providing that they will be held harmless for any and all losses, costs and expenses incurred by reason of their execution of the escrow deposit bonds. The sureties contended that this agreement obligates defendant personally for Mansiana’s default. The court denied summary judgment, finding issues of fact as to whether defendant intended to bind himself as a surety.
