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 under a performance bond was not satisfied and, therefore, summary judgment in favor of the surety was warranted. The Court found no reason to disturb its prior ruling and denied the motion for reconsideration. Continue reading “Rhode Island Court Holds Notice of Default and Termination Prior to Completion a Condition to Claim on Subcontractor Performance Bond”

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 Guard Base in New York. Platinum Mechanical, LLC subcontracted to perform all of the plumbing and HVAC work for the Project. All work on the Project was to be completed by March 12, 2007. Notice to proceed issued on June 14, 2006.

Continue reading “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”

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 third-party complaint of the defendant holding that the statute of limitations had expired on the defendant’s performance bond claims against surety companies.

Plaintiff La Liberte LLC sued Defendant Keating Building Corporation for breach of contract, breach of implied warranty, and breach of express warranty in connection with the work Keating performed on a hotel owned by La Liberte. Under the contract between La Liberte and Keating, Keating was to make renovations and construct an addition to La Liberte’s hotel. Keating, in turn, entered into several subcontracts. Among them, Keating contracted with Voegele Mechanical Inc. and Shannon Plastering and Drywall Corporation. Both subcontracts contained warranty provisions which ran one year from acceptance by La Liberte. Voegele and Shannon obtained performance bonds for the benefit of Keating. The performance bonds contained the following identical provisions: Continue reading “US District Court in Pennsylvania Holds Time for Suit Prescribed in Performance Bond Is Not Tolled By “Discovery Rule””