The Norwood Company v. RLI Insurance Company
2002 U.S. Dist. LEXIS 5560 (E.D. Pa. 2002)
payment bond
Florida Bankruptcy Court Holds Completing Surety Has No Claim on Funds Contractor Earned Before Default
In re: Steve A. Clapper & Assoc. of Fla.,
265 B.R. 460 (Bankr. M.D. Fla. 2001)
Capital Indemnity Corporation (“Capital”) was the surety of Steve A. Clapper & Associates of Florida (“Clapper”) on a project for Manatee County. Clapper submitted a payment application to Manatee County on September 30, 1999, seeking payment of $95,702.04 for work performed, which Manatee County accepted. On October 21, 1999, Manatee County terminated Clapper for default, and Capital assumed performance of the Project in accordance with the surety bonds.
Pennsylvania Court Holds Payment Bond Claim Is Barred By Prompt Payment Act Defense
Trumbull Corp. v. Boss Constr., Inc. et al.
768 A.2d 369 (Pa. Commw. Ct. 2001)
The Pennsylvania Department of Transportation (“PennDot”) entered into a contract with A&L, Inc. (“A&L”) pursuant to which A&L agreed to serve as general contractor for a road resurfacing project. A&L obtained a labor and material payment bond from Safeco Insurance Company of America (“Safeco”). A&L also retained Boss Construction, Inc. (“Boss”) to serve as subcontractor for a portion of the work.
Delaware Court Holds Completing Surety’s Right of Equitable Subrogation Arises Before Completion of Contract
Travelers Cas. and Sur. Co. of Am. v. Colonial Sch. Dist. et. al.
No. 18167, 2001 Del. Ch. LEXIS 31 (Del. Ch. Mar. 16, 2001)
Travelers Casualty and Surety Company of America (“Travelers”) served as surety of contractor Healy Management Services, Inc. (“Healy”) on a project for the Colonial School District (“Colonial”). Traveler’s also served as surety of Healy on a project for Electra Arms Senior Associates, L.P. (“Electra Arms”). Casey Electric, Inc. (“Casey”) and I.D. Griffith, Inc. (“Griffith”) were subcontractors of Healy on separate unbonded projects, unrelated to the projects which were bonded by Travelers.
South Carolina Court Holds Architect Can Be Liable To Subcontractors For Certifying Payments To Prime Contractor If It Knows That Subcontractors Are Not Being Paid
Cullum Mechanical Construction, Inc. v. South Carolina Baptist Hospital
Case Volume, Reporter: 344 S.C. 426, 544 S.E.2d 838 (2001)
Jenkins, Hancock & Sides Architects & Planners, Inc. (the “Architect”) entered into a design contract for the renovation of a medical center. Under its contract, the Architect was responsible for reviewing the General Contractor’s payment applications and certifying amounts due. Moreover, the Architect had the ability to withhold certification if the General Contractor failed to pay its subcontractors.
New York Court Holds That Parent of Dissolved Subcontractor May Not Sue Prime Contractor or Surety Absent Formal Merger or Prime Contractor’s Assent to Substitution
A. Servidone, Inc. v. Bridge Technologies, LLC,
2001 N.Y. App. Div. LEXIS 1407 (N.Y. App. Div. Feb. 8, 2001)
Servidone contracted with the State Department of Transportation to build three bridges. Pursuant to that contract, Servidone subcontracted with Bridge Technologies, Inc., for installation of the superstructures of two of the bridges. During the performance of the subcontract work, Bridge Technologies, Inc. was dissolved, and its parent corporation, Bridge Technologies Ltd. continued the performance of the subcontract. Servidone, however, was not notified of the dissolution.