Bond-Pro | Surety Technology

Insurer wins reversal of seven-figure judgment in surety bond case

Lexon Insurance Company appealed a trial court decision and got it overturned An insurance company won a reversal of a court decision that the company breached about $7.7 million of surety bond contracts in connection with a residential development in Cape Coral. In 2005, Lexon Insurance Company issued two...

December 10, 2017 Bond-Pro Webmaster Blog, Claims, Clients, News, Repost.

Developers Surety and Indemnity Co. (AmTrust) seeks damages over alleged breach of indemnity agreements

PITTSBURGH – A surety bond issuer alleges it was damaged by several contractors/subcontractors because of a breach of indemnity agreements. Developers Surety and Indemnity Co. (Amtrust) filed a complaint on Oct. 19 in the U.S. District Court for the Western District of Pennsylvania against Iron City Constructors Inc., Iron...

November 21, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Supreme Court of Canada hears surety bond dispute

A construction subcontractor that was not fully paid and whose claim on a surety bond was denied had its case heard Tuesday before the Supreme Court of Canada. In 2009, Langford Electric Ltd. subcontracted directional drilling work to Valard Construction Ltd. on a Suncor Energy oil sands project near...

November 13, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Contractor Files $6M Surety Bond Suit Over DC Hotel Work

United States of America vs Walsh Construction Company II, LLC, Walsh Global, LLC and Travelers Casualty & Surety Company 1:2017cv04460 A Chicago-based contracting firm on Tuesday sued an insurance company and a surety bond provider for at least $6 million in D.C. federal court, alleging they failed to cover...

November 7, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Surety and Broker Face Liability for Principal’s Alleged Violations Under the False Claims Act

A United States District Court ruled that there are instances where a surety and its broker could face liability for its principal’s violation of the Federal Government’s False Claim Act. In United States ex rel. Scollick v. Narula, 2017 WL 3268857 (July 31, 2017), an individual whistleblower brought an...

October 27, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Liberty Mutual settles dispute with Clearfield Municipal Authority

Liberty Mutual has agreed to pay all cost overruns associated with delays in the completion of Clearfield Municipal Authority’s new waste water treatment plant, announced CMA Engineer Jim Balliet of Gwin. Dobson & Foreman. In May 2014 CMA began a $35 million project to construct its waste water treatment...

October 21, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Enforcing Public Contracts against a Surety

This summer, the Washington Supreme Court ended a long dispute within the construction industry and issued an opinion finding that a performance bond is, in essence, an insurance contract. The court made clear that a public owner who must sue to enforce coverage of a performance bond is entitled...

October 2, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Travelers Casualty and Surety Co. of America seeks more than $400,000 from Godfrey corporation

EAST ST. LOUIS – A Godfrey corporation and two individuals are accused of failing to provide indemnity per the terms of their agreement with a surety company. Travelers Casualty and Surety Co. of America filed a complaint on Aug. 3 in the U.S. District Court for the Southern District...

August 12, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

Contractor With Financial Issues Blew Past Budget and Deadline on Encanto Elementary Project

Unforeseen issues drove the cost to overhaul Encanto Elementary 30 percent over budget. The project’s contractor was facing financial problems at the same time of the cost increases; but the district is adamant that there’s no link between the company’s issues and the cost overruns. Encanto Elementary needed a...

July 31, 2017 Bond-Pro Webmaster Blog, Claims, Repost.

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 the bonds from Allied World Specialty Insurance Company (“Allied”)...

June 30, 2017 Bond-Pro Webmaster Blog, Claims, Repost.