Category Archives: Performance Bond

Federal District Court Holds that General Contractor’s Failure to Provide Notice of Default Does Not Preclude Recovery on Performance Bond

Curtiss-Manes-Schulte, Inc. v. Safeco Insurance Company, 2015 U.S. Dist. LEXIS 10032 (W.D. Mo. 2015) NOTE:  THIS DECISION WAS VACATED ON REHEARING AND THE DECISION ON REHEARING WILL BE THE SUBJECT OF A POST TO BE PRESENTED SHORTLY IN CONSTRUCTLAW. This … Continue reading

Posted in Notice, Performance Bond, Subcontract

U.S. District Court in Pennsylvania Dismisses Owner’s Claim Against Performance Bond Surety – Repeated Instances of Poor Performance By Contractor Were Not So Material As to Allow Owner to Terminate Without Providing Cure Notice

Milton Reg’l Sewer Auth. v. Travelers Casualty & Surety Co., 2014 U.S. Dist. LEXIS 155419 (M.D. Pa. Nov. 3, 2014) The United States District Court for the Middle District of Pennsylvania ruled that multiple instances of incomplete and/or defective performance … Continue reading

Posted in Notice, Performance Bond, Termination

Florida Court Holds Notice of Default to Surety Not Required Where Subcontract Provision as to Rights on Default Was Incorporated in Bond

Dooley & Mack Constructors, Inc., v. Developers Surety & Indemnity Company 2007 Fla. App. LEXIS 17769 (Fla. Ct. App. Nov. 7, 2007) Dooley & Mack Constructors, Inc. (“Contractor”), the general contractor on a Miami-Dade Community College project, was the obligee … Continue reading

Posted in Liquidated Damage Provision, Performance Bond, Subcontract | Tagged , , ,

Federal Circuit Court of Appeals Holds that a Payment Bond Surety that Discharges a Contractor’s Obligation to Pay a Subcontractor is Equitably Subrogated to the Rights of Both the Contractor and Subcontractor and May Bring Suit Directly Against the United States

National American Insurance Company v. United States No. 2007-5016, 2007 U.S. App. LEXIS 20058 (Fed. Cir. August 23, 2007) The US Court of Appeals for the Federal Circuit upheld the lower court’s grant of a motion for summary judgment. The … Continue reading

Posted in Miller Act, Payment bond, Performance Bond, Subcontract | Tagged , , , ,

California Court Upholds Recovery of Lost Profits Due to Impaired Bonding Capacity

BEGL Construction Company, Inc. et al. v. Los Angeles Unified School District and Star Insurance Com 154 Cal.App.4th 970; 2007 Cal.App. LEXIS 1432 (2007) In August 2000, the Los Angeles Unified School District (the “District”) entered into a public works … Continue reading

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