DC Court of Appeals Holds Contractor’s Failure to Declare Subcontractor in Default and Provide Subcontractor’s Surety with Notice Before Taking Over Completion of Subcontractor’s Work Released Surety from Liability

Hunt Construction Group, Inc. v. National Wrecking Corporation
587 F.3d 1119; 2009 U.S. App. LEXIS 25909 (2009)

Plaintiff, Hunt Construction Group (“Hunt”), commenced an action against one of its subcontractors, National Wrecking Corporation (“National”) and against two sureties (the “Sureties”) on National’s performance bond. The Sureties argued that Hunt failed to give timely notice of default depriving the Sureties of a realistic opportunity to exercise their rights under the bond to cure National’s defective performance. Continue reading “DC Court of Appeals Holds Contractor’s Failure to Declare Subcontractor in Default and Provide Subcontractor’s Surety with Notice Before Taking Over Completion of Subcontractor’s Work Released Surety from Liability”

Pennsylvania Commonwealth Court Holds Procurement Code Provides Exclusive Remedy for Substantive Challenges to Agency’s Contract Award, But Equitable Judicial Remedies Are Available Where Agency Deviates from Statutory Protest Procedures

GTECH Corp. v. Commonwealth, Dept. of Revenue
965 A.2d 1276 (Pa. Commw. 2009)

The Commonwealth Court of Pennsylvania considered whether the Pennsylvania Procurement Code provides the exclusive remedy for aggrieved bidders to challenge the procedure and outcome of bidding contests in the context of a procurement for the Pennsylvania Lottery. The Court found that while the Procurement Code provides an exclusive remedy for substantive challenges (i.e., a general right of protest to an offeror who is aggrieved in connection with the solicitation or award of a contract), it did not provide a remedy for procedural challenges. Continue reading “Pennsylvania Commonwealth Court Holds Procurement Code Provides Exclusive Remedy for Substantive Challenges to Agency’s Contract Award, But Equitable Judicial Remedies Are Available Where Agency Deviates from Statutory Protest Procedures”

US District Court for Western District of PA Holds Contractor Owes Properly Terminated Subcontractor Payment for Work Performed Prior to Termination Plus CASPA Interest

U.S. for Use and Benefit of Greenmoor, Inc. v. Travelers Casualty and Surety Co.
2009 U.S. Dist. LEXIS 113153 (W.D. PA 12/04/2009)

The Court held that a properly terminated subcontractor was nevertheless entitled to payment for contract work and extras performed prior to termination, less certain offsets for contractor’s damages. Subcontractor was also entitled to interest at 1% per month under a prompt payment statute, but because it was properly terminated was not entitled to lost profit on the terminated portion of the subcontract. Continue reading “US District Court for Western District of PA Holds Contractor Owes Properly Terminated Subcontractor Payment for Work Performed Prior to Termination Plus CASPA Interest”