Tag Archives: performance bond

When Surety Bond Incorporates the Subcontract by Reference, Is the Subcontract’s Arbitration Clause Also Incorporated? Federal Court in South Carolina Says Yes; Federal Court in Kansas Says No — In Two Matters Involving the Same Parties

Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 111021 (D.S.C. July 18, 2017); Developers Sur. & Indem. Co. v. Carothers Constr., Inc., 2017 U.S. Dist. LEXIS 135948 (D. Kan. Aug. 24, 2017) Two recent decisions … Continue reading

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Federal Court in Nebraska Denies Surety’s Request for Preliminary Injunction Requiring Principal to Post Collateral Security, Finding No Irreparable Harm Absent Proof That Principal Was Insolvent or Secreting Assets

Allied World Specialty Ins. Co. v. Abat Lerew Constr., 2017 U.S. Dist. LEXIS 61794 (D. Neb. Apr. 24, 2017)  Abat Lerew Construction (“ALC”) entered into multiple construction projects which required it to obtain surety bonds guaranteeing its performance. ALC obtained … Continue reading

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Rhode Island Court Holds Notice of Default and Termination Prior to Completion a Condition to Claim on Subcontractor Performance Bond

Raito, Inc. v. Cardi Corp. 2010 R.I. Super. LEXIS 108 (RI Super. Ct. July 14, 2010) The Superior Court of Rhode Island was recently asked to reconsider its earlier ruling in which it found that a condition precedent to recovery … Continue reading

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US District Court in New York Dismisses Contractor’s Performance Bond Claim Against Subcontractor’s Surety Because of Contractor’s Failure to Provide Pre -Default Notification

U.S. ex rel. Platinum Mechanical, LLC v. U.S. Surety. Co. 07 Cv. 3318(CLB), 2007 U.S.Dist. LEXIS 94026( S.D.N.Y. Dec. 21, 2007) CFP Group, Inc. was awarded a contract with the United States Government to refurbish facilities at Stewart Air National … Continue reading

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US District Court in Pennsylvania Holds Time for Suit Prescribed in Performance Bond Is Not Tolled By “Discovery Rule”

La Liberte, LLC v. Keating Building Corp. v. Roman Mosaic and Tile Co. Civ. A. No. 07-1397, 2007 U.S. Dist. LEXIS 90878 (E.D. Pa., Dec. 11, 2007) The United States District Court for the Eastern District of Pennsylvania dismissed the … Continue reading

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