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Labor Supplier Not Protected By Payment Bond Bonds-payment; Suppliers

Saturday, August 02, 2003 03:19 pm

 
Labor Supplier Not Protected By Payment Bond Bonds-payment; Suppliers

The highest court of New York has ruled that a labor leasing company functioned primarily as a payroll financier and human resources administrator. The company did not furnish labor to the project and was therefore not protected by a payment bond.

Team Star Contractors, Inc. was performing construction work at a site in Quincy, Massachusetts. Team Star obtained a payment bond from Mountbatten Surety Company, Inc. The bond guaranteed payment of all claimants that had furnished labor or materials to the project.

Team Star entered into an agreement with Tri-State Employment Services, Inc. Team St [...]

 
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