Payment Bond
The Problem with Weak Payment Bond Defenses
July 26th, 2019
A payment bond surety whose principal may be insolvent is caught in a difficult spot. But a Connecticut court decision dealt a major blow to a surety who tried to rely on a series of special defenses, none of which stood up to the facts that material…
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Categories: Construction
Payment Bond Surety Cannot Compel Subcontractor to Arbitrate
July 24th, 2019
A Maryland federal court judge has reminded a payment bond surety that it cannot compel arbitration with the subcontractor making a claim under the bond. Baltimore Steel Erectors filed suit against Hanover, the payment bond surety for ARGO Systems on…
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Payment Bond Does Not Cover Claim for Lost Work Opportunity
March 8th, 2018
A subcontractor claiming that the general contractor failed to use and pay for a minimum number of workers made a claim against the GC’s payment bond, for the value of the workers not hired. A federal court has held that the Miller Act bond does no…
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Statutory Amendment Extending Payment Bond Lawsuit Deadline Does Not Apply Retroactively
September 24th, 2016
New York amended its payment bond law in 2011 to extend the timetable for filing a claim against a public project payment bond. The former deadline was one year after submitting an invoice for final payment. The amended law requires bond claim lawsui…
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Beware Hidden Dangers of Attorneys’ Fee Provisions
September 7th, 2016
First, I believe the trial court got it mostly right. But the appeals court had the last word. The case serves as a reminder that attorneys’ fee provisions at times do not always serve the greater purpose of balancing the stakes in litigation. Seco…
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Email was insufficient notice under payment bond law, but court left the door open for (more explicit) email notice in the future
March 16th, 2016
The Massachusetts payment bond statute requires public project claimants to give notice to the general contractor by certified mail – not an uncommon requirement. The Massachusetts Appeals Court has just held that an email was not adequate notice,…
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Contractor's Court Judgment against Sub Did Not Resolve or Eliminate Sub-Sub’s Payment Bond Rights
December 8th, 2015
When third-party creditors sought to garnish an electrical sub’s contract balance, the general contractor, McMillan-Pitts, commenced an interpleader action against the electrical sub and its known creditors, and deposited the remaining subcontract…
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About Stan Martin
Stan Martin holds a law degree and an undergraduate degree in architecture. He has been involved with the construction industry for more than 45 years, working in construction prior to law school and beginning his construction law practice. During his career, he has been actively involved with the Associated General Contractors of Massachusetts, the Boston Society of Architects, the American Arbitration Association, and the Massachusetts Building Congress.