The Debtor then entered into two unrelated government contracts for construction projects, and third-party plaintiff, Hanover Insurance Company (Surety), issued performance bonds and payment bonds for both projects
With respect to the likelihood of success on the merits factor, the court found that the surety had satisfied its burden with respect to both its request for collateral and access to the principal’s books and records
De Rosa of Ernstrom & Dreste LLP Originally published Summer 2023 While many surety bonds explicitly state whether they are intended to be statutory or common law bonds, a case out of a Tennessee bankruptcy court serves as an important warning that such bond provisions will not always control as anticipated by the issuing surety. 1 Ultimately, commonly used bond language expressly designating it a statutory bond when state law requires the bond, and meant to substitute the state’s bond terms, was deemed ineffectual
Daniels of Saul Ewing Arnstein & Lehr LLP Published February 14, 2022 A recent bench trial in Delaware State Court ruled that a subcontractor was entitled to payment from a general contractor because an order of priority clause gave priority to a bid proposal contract term that barred a pay-when-paid clause from an owner
A federal district court in Pennsylvania ruled that a surety’s claim against an accounting firm in just those circumstances could proceed, finding that the surety showed sufficient details of the misrepresentation. 1 The decision highlights important considerations for any similarly situated surety, including the need to review applicable state law
June 27, 2023), Bovis Kyle partners David Harris and Jack Burch obtained the first reported court ruling under Georgia law affirming a surety’s rights to control its principal's affirmative claims
Lenders, project companies, subcontractors and suppliers should seek risk mitigation measures to decrease reliance on bonds. Bonds are commonly used on construction projects in Canada to provide security for owners, subcontractors and other parties supplying labour and materials in the event of an insolvency or other performance failure
The principal requests bonding, which the surety has no duty to provide, and receives the bonds on the express conditions contained in the GIA.
Dixon of Snell & Wilmer LLP Published in Under Construction newsletter, January 2021 Last November, Arizona’s Court of Appeals issued a memorandum decision analyzing Arizona’s Prompt Pay Act. Though the decision was not published and is not binding authority, it does guide the construction industry and practitioners as to how this court analyzed Prompt Pay Act enforcement
Episode 50 Here Comes the Judge! A Discussion on Court Bonds This episode’s guest, Susan Jordan of Westfield Surety , discusses the interesting world of court bonds comprised of judicial bonds and fiduciary bonds. Jordan walks through various types of judicial bonds, including plaintiff bonds and defendant bonds, and the surety and underwriting considerations related to them. She also dives into the many types of Fiduciary Bonds and the related surety and underwriting considerations in that arena! Episode 42 Lean into Leadership: Talking Surety with the 5-15—Agency Start-Up This is one in a special series of “Let’s Get Surety” episodes focusing on guests and topics selected by the NASBP 5-15 Leadership Committee. 5-15 Committee members Brian Ayers of L A Surety Solutions (pictured right) and Devin Moore of Moore Surety Bonds Agency (pictured far right) discuss the trials and rewards of starting their own agencies