Supreme Court of Ohio Rules That Award of Lucrative Right to be Sole Provider of Solid Waste Management Services Not Subject to Competitive Bidding Law

Danis Clarkco Landfill Co. v. Clark County Solid Waste Mgmt. Dist.,
653 N.E.2d 646, 73 Ohio St.3d 590, 1995 Ohio LEXIS 1869 (Ohio, September 6, 1995).

County solid waste management district was not subject to provisions of public bidding law in making “designation” of exclusive provider of solid waste management services, but was required only to adhere to bidding procedures it set for itself in its RFP. 

Danis Clarkco Landfill Company (“Danis”), a landfill operator, filed an action seeking declaratory and injunctive relief to prevent a county solid waste management district (the “District”) from designating a rival bidder as the sole provider of waste management services for the District. The District had prepared a Request for Proposal (“RFP”) seeking “proposals from qualified bidders to design, construct and operate solid waste management facilities” for the District. Continue reading “Supreme Court of Ohio Rules That Award of Lucrative Right to be Sole Provider of Solid Waste Management Services Not Subject to Competitive Bidding Law”

Second Circuit Holds That Pay-When-Paid Clause Violates Public Policy Expressed in New York Lien Law

West-Fair Elec. Contractors v. Aetna Casualty & Surety Co.,
78 F.3d 61, 1996 U.S. App. LEXIS 3912 (2d Cir. March 6, 1996).

Neither general contractor nor surety could assert pay-when-paid clause as defense to payment claim by subcontractor because clause, which operated as a condition precedent to payment, constituted a prospective waiver of lien rights and therefore violated New York Lien Law. 

Defendant Gilbane Construction Co. (“General Contractor”) was the general contractor on a construction project in White Plains, NY. General Contractor hired plaintiff L.J. Coppola, Inc. (“Subcontractor”) to perform a portion of the work. General Contractor maintained a payment bond with defendant Aetna Casualty and Surety Co. (“Surety”) for the benefit of all its subcontractors. Continue reading “Second Circuit Holds That Pay-When-Paid Clause Violates Public Policy Expressed in New York Lien Law”

Material Supplier Recovers on Payment Bond Despite Receiving Assignment from General Contractor

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”