H. Verby Co., Inc. v. United States Fire Ins. Co.,
1996 E.S. Dist. LEXIS 3056 (March 13, 1996) (U.S.D.C., S.D.N.Y.).
A material supplier was entitled to recover on the general contractor’s payment bond even though it had received an assignment of two debts from general contractor; supplier had not made an “election of remedies” in accepting the assignment and there was no evidence that the contractor’s assignment discharged the underlying debt upon which the supplier sued the surety.
H. Verby Co., Inc. (“Supplier”) contracted with a Contractor to supply roofing waterproofing and insulations materials for a school roof replacement project. The Defendant, United States Fire Ins. Co. (“Surety”) and the Contractor executed a labor and material payment bond in favor of the Owner. After the Contractor refused the Supplier’s demands for payments, the Supplier brought the present action against the Surety for $61,068.44, the amount of the outstanding balance due.
Continue Reading Material Supplier Recovers on Payment Bond Despite Receiving Assignment from General Contractor