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Surety's Settlement Barred Contractor's Claim Bonds-payment; Indemnification

Wednesday, April 02, 2003 01:02 pm

 
Surety's Settlement Barred Contractor's Claim Bonds-payment; Indemnification

A Florida court has ruled that after resolution of a subcontractor's suit against a prime contractor's payment bond, the prime could not sue the sub for breach of contract.

A blanket indemnification agreement assigned all contractor claims against subcontractors to the surety. T & G Constructors, Inc. was the prime contractor for renovation of an elementary school building in the Orlando area. T & G subcontracted the HVAC work to Pro-Tech Air Conditioning and Heating Service, Inc.

A dispute developed regarding the air handling unit stands furnished by Pro-Tech. T & G Constructors said the stan [...]

 
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