Greg Collins (Akron) and David Lester (Cleveland) recently obtained summary judgment for the Surety under a substantial Performance Bond, where the project Owner failed to comply with notice conditions of the Bond. The case is Warren Roofing & Insulating Co. v. St. Noel Parish, Lake County Court of Common Pleas, Case No. 21CV001388. The Bond required notice to the Surety of potential and actual defaults, and an agreement to pay the balance of the contract price.
Instead of complying with these requirements, the Owner unilaterally declared the Contractor in default, and entered into new contracts to repair and complete the work. The court agreed with the Surety that the Owner’s compliance with the Bond’s requirements was a condition precedent to the Surety’s obligation, the breach of which precluded recovery under the Bond.
CRUG regularly represents bond issuers in such disputes. Contact Greg or David with questions about the case or representation.