Showing 4 posts in Surety Bonds.
In a decision filed on January 13, 2011, a Federal District Court in Indiana granted a Motion for Summary Judgment upholding a defense asserted by a surety and its principal based upon a pay-if-pay clause. The case cited with approval two prior cases deciding in New Jersey and West Virginia upholding similar clauses and defenses by the surety. Read More ›
Owner Bound By Two Year Statute Of Limitation In Performance And Payment Bond In Which to Assert Claim Against the Surety
A hotel owner, Five Star Lodging, Inc., contracted with George Construction, LLC to build a hotel in Georgetown, Kentucky. The owner’s contract required George Construction to obtain a performance and payment bond. George Construction obtained the bond from the surety, Lyndon Property Insurance Company, as principal and in favor of Five Star Lodging, as obligee. The bond expressly stated that no lawsuit or other legal proceeding could be brought against the surety unless it was commenced within two years from the earlier of the date of the completion of the construction contract or the date of beneficial use or occupancy by Five Star Lodging. The bond also required written notice to the surety’s home office. Read More ›
A new Indiana House Bill would require all new buildings constructed by local governments and schools to meet green building standards. House Bill 1063 recently passed the Indiana House by a 51-47 vote and will move on to the Senate. The bill would require all buildings erected by local governments to achieve a "silver" rating on the U.S Green Building Council's LEED standards. The Indianapolis Star reported that proponents of the bill argue that this bill could be implemented with no additional costs, but would save the taxpayers 40 percent on energy of the life of the building. But opponents of the bill disagree, arguing that if there is no additional cost, there should be no need to require the green standards. "Why isn't this happening on its own? Why do we need to mandate the standards?" asked Rep. Sean Eberhardt, R-Shelbyville. "If it's the same cost, why don't we just let the natural progression of things take hold and let it happen on its own?" Read More ›
The American Recovery and Reinvestment Act of 2009 effective February 17, 2009 offers sweeping new changes in the municipal bond arena. Most of the changes apply only to bonds issued in 2009 and 2010. Many of the provisions are complex so it is impossible to accurately summarize the details of each item. Frost Brown Todd will be embarking upon a series of seminars to more adequately explain the provisions of the Recovery Act. We will be contacting you soon with information with respect to dates and locations for these seminars. Read More ›
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C. Michael Shull, III focuses his practice on construction law and litigation. Michael's client representations range from casinos and ENR Top 400 contractors to design firms and subcontractors.