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. Continue reading “Florida Bankruptcy Court Holds Completing Surety Has No Claim on Funds Contractor Earned Before Default”

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. Eby entered into subcontract with Associated Mechanical Contractors, Inc. (“Associated”) pursuant to which Associated agreed to perform the mechanical, heating, ventilation, air-conditioning, and plumbing work for the project. Continue reading “Eleventh Circuit Strictly Construes Notice and Final Payment Provisions of Subcontract”

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. Continue reading “Pennsylvania Court Holds Payment Bond Claim Is Barred By Prompt Payment Act Defense”