HAYNES, Circuit Judge:
Plaintiff JSI Communications appeals the district court's grant of summary judgment in favor of Defendant Travelers Casualty & Surety Company of America on
McMillan-Pitts Construction Company, LLC was selected as the prime contractor on a public project to construct the New Stoneville Office Building, Mississippi State University Delta Research and Extension Center, located in Stoneville, Mississippi (the "Project"). McMillan-Pitts was required to procure payment and performance bonds as surety for the Project, and McMillan-Pitts obtained these bonds from Travelers. Under their agreement, McMillan-Pitts and Travelers were jointly and severally liable for the covenants in the bonds. The agreement further specified that the bonds were "governed by and shall be construed in accordance with Mississippi law. Any inconsistency with these Bonds and any provision of Mississippi law shall be remedied by deleting the inconsistent portion of these Bonds and leaving the remaining consistent portions in full force and effect."
Tackett Electric Company LLC was a subcontractor to McMillan-Pitts on the Project, and Tackett subcontracted with JSI to install and test voice and data cabling as well as fiber optic cabling. JSI completed its work on the Project on July 31, 2012, and invoiced Tackett for $36,346.09. It is uncontested that JSI has not been paid this sum.
JSI is apparently not the only entity to which Tackett owes money. In March 2012, a Tackett creditor unrelated to the Project served a writ of garnishment on McMillan-Pitts, seeking access to any funds McMillan-Pitts owed Tackett. In response, McMillan-Pitts commenced an interpleader action in Mississippi chancery court, which named as defendants Tackett, the unrelated Tackett creditor, and two Tackett subcontractors (not JSI) on the Project with which McMillan-Pitts and Tackett had joint check agreements. According to the complaint for interpleader, McMillan-Pitts believed these four defendants were "the only persons who may be interested in the subject proceeds or who may assert claims to the proceeds of McMillan-Pitts'[s] contract with Tackett." In connection with the interpleader action, McMillan-Pitts tendered $19,445.16, the amount of money it still owed Tackett for its work on the Project, into the court's registry. On August 30, 2012, McMillan-Pitts obtained a judgment releasing it from any further liability on its subcontract with Tackett, on the two joint check agreements, and on the writ of garnishment.
On or about October 3, 2012—shortly after McMillan-Pitts obtained this judgment in the interpleader action—JSI notified both McMillan-Pitts and Travelers that it was seeking payment under the Project's payment bond due to Tackett's nonpayment of JSI's invoice. On October 25, 2012, McMillan-Pitts amended its complaint for interpleader to include JSI and "all persons or entities supplying materials and/or labor to Tackett" on the Project. That same day, McMillan-Pitts obtained an amended judgment extending the previous release of liability to "any claim made by any other claimant made a party to this action for sums due and owing from [Tackett] for materials, supplies and/or labor provided to [Tackett] on the [Project]."
On November 8, 2012, Travelers denied JSI's claim on the bond on the grounds that McMillan-Pitts had received a judgment releasing it of any obligations under
We review the district court's grant of summary judgment de novo and construe all facts and inferences in the light most favorable to the nonmoving party. See EEOC v. Chevron Phillips Chem. Co., 570 F.3d 606, 615 (5th Cir.2009). Summary judgment is appropriate when "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." FED.R.CIV.P. 56(a).
Because public property is not subject to private liens for nonpayment, Mississippi law requires contractors on public projects to procure bonds to ensure payment to those who work on the project. MISS.CODE ANN. § 31-5-51; Key Constructors, Inc. v. H & M Gas Co., 537 So.2d 1318, 1321 (Miss.1989); Aetna Cas. & Sur. Co. v. Doleac Elec. Co., 471 So.2d 325, 327 (Miss. 1985). Mississippi's so-called Little Miller Act is premised on the federal Miller Act, which requires both a payment and a performance bond on federal projects worth more than $100,000. Key Constructors, 537 So.2d at 1321; 40 U.S.C. § 3131(b). Like the federal Miller Act, Mississippi's Little Miller Act protects both subcontractors and sub-subcontractors. 40 U.S.C. § 3133(b)(2); MISS.CODE ANN. § 31-5-51(3). Those protected under Mississippi's Little Miller Act "shall have a right of action upon the ... payment bond upon giving written notice to [the] contractor within ninety (90) days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material for which such claim is made...." MISS.CODE ANN. § 31-5-51(3). Furthermore, "the Mississippi Supreme Court has found federal court decisions interpreting the Federal Miller Act instructive and persuasive when interpreting Mississippi's Little Miller Act." Younge Mech., Inc. v. Max Foote Constr. Co., 869 So.2d 1079, 1082 (Miss.Ct.App. 2004) (citing Key Constructors, 537 So.2d at 1321).
Travelers maintains that it is no longer liable to JSI on the bond because "McMillan-Pitts'[s] liability to JSI was extinguished" by the chancery court judgment. The exact source of McMillan-Pitts's liability to which Travelers is referring is unclear. To the extent Travelers is arguing that its bond obligation to JSI was discharged because McMillan-Pitts is no longer liable on its contract with Tackett, we disagree. Under Mississippi's Little Miller Act, second-tier contractors—like JSI—can sue on a payment bond absent a direct contractual relationship with the contractor. MISS.CODE ANN. § 31-5-51(3) ("Any person having direct contractual relationship with a subcontractor but no contractual relationship express or implied with the contractor furnishing said payment
To the extent Travelers is arguing that its bond obligation was discharged under the chancery court judgment, we must construe the effect, if any, of that judgment
According to the amended complaint for interpleader, the stake in the interpleader action was the "proceeds of [the] contract between McMillan-Pitts and Tackett"— $19,445.16.
The original judgment releasing McMillan-Pitts was limited to specific sources of liability: the Tackett subcontract, the joint check agreements, and the writ of garnishment. When the judgment was amended to extend the release to additional claimants,
This construction of the judgment also comports with the policies underlying the Little Miller Act. To permit the chancery court to sub silentio nullify Travelers's bond obligation would be contrary to the very purpose of Mississippi's Little Miller Act, which is to provide protection to subcontractors in the absence of lien rights. See Aetna Cas. & Sur., 471 So.2d at 327; see also United States ex rel. Martin Steel Constructors, Inc. v. Avanti Constructors, Inc., 750 F.2d 759, 761 (9th Cir.1984) ("The purpose of the [Miller Act] is to protect persons supplying materials and labor for federal projects, and it is to be construed liberally in their favor to effectuate this purpose." (quoted by Key Constructors, 537 So.2d at 1322)).
Travelers draws our attention to the indemnification agreement between it and McMillan-Pitts. Under this agreement, if JSI recovered on its bond claim against Travelers, Travelers would seek indemnification from McMillan-Pitts. According to Travelers, requiring McMillan-Pitts to indemnify Travelers would "circumvent the effect and purpose" of the chancery court judgment. Mississippi law does not require the contractor to indemnify its surety. Rather, Travelers and McMillan-Pitts entered into this agreement between themselves and likely priced their bond agreement in accordance with the existence of the indemnification clause. That McMillan-Pitts might have to indemnify Travelers is irrelevant and has no bearing on our decision regarding Travelers's bond obligation to JSI under Mississippi's Little Miller Act.
We thus conclude that Travelers remains liable to JSI on the payment bond, requiring reversal of the summary judgment granted to Travelers on this claim. We then turn to whether summary judgment should have been granted to JSI
Accordingly, we (1) REVERSE the district court's grant of summary judgment in favor of Travelers on the bond claim; (2) RENDER judgment in favor of JSI on the issue of Travelers's liability under the bond in the amount of $36,346.09; (3) REMAND for the district court to consider the other fees and costs relevant to JSI's bond claim; and (4) VACATE the summary judgment on the bad faith claim and REMAND for reconsideration of JSI's bad faith claim in light of this opinion.