Suretyship and Bonding
High-rise condominium: Defended performance and payment bond surety for window subcontractor on 20-story ocean front condominium.
Sanitary sewer: Represented general contractor and surety on breach of contract and payment bond claims by boring subcontractor on sanitary sewer project.
Bankruptcy equitable lien: Represented construction surety and obtained first ruling in any of the United States Bankruptcy Courts in North Carolina, recognizing a surety’s equitable lien on contract funds and establishing that the surety’s equitable lien right has priority over the interests of the Trustee in Bankruptcy.
Bankruptcy stay relief: Represented numerous construction sureties in obtaining timely relief from automatic bankruptcy stay and utilization of contract funds to complete projects and satisfy claims of subcontractors.
Default termination: Represented construction sureties in default terminations, including the negotiation and implementation of completion agreements with obligees and completing contractors, preparation of re-let packages, negotiating subcontractor ratification agreements, adjusting and defending payment bond claims.
Default termination: Represented construction sureties in default terminations, and obtaining revocation of defaults.
Surety discharge: Represented construction surety seeking discharge against project owner arising from owner’s overpayment of contractor principal.
Multi-prime surety defense: Represented surety on multi-prime public contracts in connection with claims by prime contractors; and successfully pursued declaratory judgments which established law in North Carolina that prime contractors may not pursue claims against the bonds provided to other prime contractors.
Indemnity claims: Represented sureties in connection with claims under General Indemnity Agreement, obtaining immediate injunctive relief for the release of project files and accounting records to enable the surety to better pursue its performance bond obligations and adjust payment bond claims, as well as freezing assets of both the principal and individual indemnitors.
Bankruptcy discharge exception: Represented construction surety in obtaining exception to bankruptcy discharge based upon bond principal’s misrepresentation of financial information and claim history; resulting in $1.5 million non-dischargeable judgment against indemnitor.