The Sword Of Damocles Hangs Over Miller Act Sureties And Brokers: Scollick Case Stayed Sixty Days For Mediation, But Outcome Remains Uncertain

legislation
On August 6, 2014, plaintiff-relator Andrew Scollick filed a complaint in the United States District Court for the District of Columbia against eighteen defendants for multiple violations of the False Claims Act (“FCA”) in connection with an alleged scheme to submit bids and obtain millions of dollars in government construction contracts by fraudulently claiming or obtaining service-disabled veteran-owned small...

Government Announces Million Dollar Settlement with Surety for Alleged Violations of False Claims Act

In the summer of 2017, a District Judge sitting in the District of Columbia issued a decision holding that a surety could be held liable under the False Claims Act where it becomes aware of facts suggesting that a bonded principal is fraudulently participating in a government set-aside program and nonetheless continues to do business with that principal. United...

More claims about where and when RI biz was ‘operating illegally’

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PROVIDENCE, R.I. (WPRI) — A construction bonding company that was recently said to be based in Providence was allegedly “operating illegally” in five states according to an arrest warrant filed in a toxic dumping scandal. Records show Leo Rush, 77, of Pelham, New Hampshire, has owned a number of performance bonding firms, including Newport Insurance Company that listed Westminster...

Non-Signatory Surety Bound By Arbitration Clause in Incorporated Contract

legislation
An arbitration provision in a contract typically applies only to the contracting parties. Where, however, the contract is incorporated by reference into a second agreement, if it is broad enough, the party to the second agreement–although a non-signatory to the original agreement–may find that the arbitration provision applies to them as well. This was the result in a case...

Intact Financial Corporation to acquire leading specialty insurer The Guarantee Company of North America and Frank Cowan Company Limited

Bolsters Intact’s leadership position in Canada Brings Intact’s North American specialty lines platform close to its $3 billion annual Direct Premiums Written objective Adds attractive surety business and expertise on both sides of the border Enhances specialty lines with public entity capabilities and adds an MGA to the platform Expands Intact’s personal lines offering in Canada with high net...

Nevada Crypto ATM Operators Now Require Money Transmission License

Nevada’s regulatory stance on cryptocurrency kiosks has shifted, now requiring a state money transmission license Speaking with CoinDesk, BitAML Senior Advisor Annelise Strader said Nevada abruptly and without announcement changed its regulatory stance on cryptocurrency kiosks. Following the last legislation session closing in May without passing a proposed cryptocurrency bill, Strader says the state’s regulatory team changed its interpretation...

Surety bonds required for dentists enrolled as DMEPOS suppliers

Beginning June 1, the National Supplier Clearinghouse began sending letters to Medicare-enrolled dentists notifying them that a surety bond of at least $50,000 per office location may be required to initiate or continue their Medicare enrollment as a supplier of durable medical equipment, prosthetics, orthodontics and supplies. Prior to 2019, dentists were exempt from this rule, “Medicare Program: Surety...

Performance Bonds – Will the Liability Ever End?

legislation
Construction contracts for commercial projects, including the ongoing boom in apartment projects, routinely require the general contractor and/or the subcontractors to provide performance bonds. Performance bonds are also typically required on government construction projects. Note: Contracts that require performance bonds usually also require payment bonds, such that the term “payment and performance bonds” is often used. There is less...

Canada: Performance Bonds: The New Form 32 Under Section 85.1 Of The Ontario Construction Act

Following up on our previous bulletin, Performance Bonds: What Project Finance Lenders Should Know, in this bulletin, we compare the widely used Canadian Construction Documents Committee’s Performance Bond Form 221-20021 (“CCDC Form”) with the new Form 32 – Performance Bond that is mandated for certain projects by the Ontario Construction Act2 (“Form 32”). Background Pursuant to section 85.1 of...

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