Subcontractor Can Recover Damages From Payment Bond Surety As Result Of Delay, But Only Actual Costs Of Labor And Materials

Lexicon, Inc. v. Safeco Insurance Co. of America
No. 04-6086, 2006 U.S. App. LEXIS 3113 (6th Cir. Feb. 9, 2006)

Icon, Inc. served as a subcontractor on a steel plant expansion project in Kentucky. Pursuant to its subcontract, Icon secured a payment bond, with Safeco Insurance Company of America as surety. Lexicon, Inc. performed work on the project as a subcontractor to Icon. Lexicon incurred additional costs on the project as a result of delays for which it was not at fault. Lexicon brought a claim for these “delay and impact” costs against Safeco, as surety for Icon. Continue reading “Subcontractor Can Recover Damages From Payment Bond Surety As Result Of Delay, But Only Actual Costs Of Labor And Materials”

Owner’s Failure To Preserve Evidence Justified Dismissal Of Claims For Defect As Sanction For Spoliation Of Evidence

Harborview Office Ctr., LLC v. Camosy Inc.
2006 Wisc. App. LEXIS 149 (Wis. Ct. App. Feb. 15, 2006)

Project owner Harborview entered into a contract for the construction of a three-story office building. After discovering significant water infiltration problems, Harborview filed suit against the parties who had provided services in its construction: the general contractor, the architectural firm, the installer of aluminum windows, and the installer of the Exterior Insulation and Finishing System (EIFS). Harborview alleged negligence and breach of contract against each and claimed that in order to resolve the water infiltration problem it would be necessary to remove and replace all of the building’s windows. Harborview hired an expert, who was an architect and engineer, to identify the causes of the problem, evaluate a correction process, and ultimately oversee the remediation process. Continue reading “Owner’s Failure To Preserve Evidence Justified Dismissal Of Claims For Defect As Sanction For Spoliation Of Evidence”

Construction Manager Sued For Failure To Ensure Quality Of Contractor’s Work Could Not Sue Contractor’s Surety For Indemnity Or Contribution

Carolina Casualty Insurance Company, et al. v. R.L. Brown & Associates, Inc., et al.
No. 1:04-CV-3537-GET, 2006 U.S. Dist. LEXIS 5261 (N.D. Ga. January 25, 2006)

In Carolina Casualty Insurance Company, et al. v. R.L. Brown & Associates, Inc., et al., No. 1:04-CV-3537-GET, 2006 U.S. Dist. LEXIS 5261 (N.D. Ga. January 25, 2006), a dispute arose between a surety that had provided a performance bond on a public works project and the project’s program manager. After the owner declared the general contractor in default for defective work, the surety finished the underlying contract under the terms of the performance bond. The owner sought additional damages from the surety. In an agreement settling those claims for additional damages, the owner assigned to the surety all of its own claims against third parties arising out of the defective construction and supervision of the project. Continue reading “Construction Manager Sued For Failure To Ensure Quality Of Contractor’s Work Could Not Sue Contractor’s Surety For Indemnity Or Contribution”