Monthly Archives: May 2002

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 … Continue reading

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Eleventh Circuit Strictly Construes Notice and Final Payment Provisions of Subcontract

Associated Mechanical Contractors, Inc. v. Martin K. Eby Constr. Co., Inc. No. 00-10784, 2001 U.S. App. LEXIS 24235 (11th Cir. Nov. 9, 2001) Martin K. Eby Construction Company, Inc. (“Eby”) was the prime contractor on a Georgia prison construction project. … Continue reading

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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 … Continue reading

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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 … Continue reading

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West Virginia Court Holds That Absence of Privity Does Not Bar Suit Against Engineer for Negligence or for Breach of Implied Warranty of Plans and Specifications

Eastern Steel Constructors, Inc. v. The City of Salem 209 W.Va. 392, 549 S.E.2d 266 (2001) The City of Salem entered into a contract with Kanakanui Associates (“Kanakanui”) pursuant to which Kanakanui agreed to provide engineering and architectural services for … Continue reading

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