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Lien Claim Was Not Bond Notice Bonds-payment; Notice

Thursday, October 02, 2003 05:37 pm

Lien Claim Was Not Bond Notice Bonds-payment; Notice

A Florida court has ruled that a supplier's lien claim did not serve as notice of recourse against a private payment bond furnished to keep the project exempt from liens.

Bridgeport Incorporated was the prime contractor on a private construction project. Bridgeport furnished a payment bond issued by CGU Insurance Co. Under Florida law, a statutory private payment bond exempts the project from all liens except those of the prime contractor. The bond substitutes for the real estate as payment security for parties with no direct contract with the project owner. Fla. Stat. section 713.23.

Bridgeport awarded a subcontract to P.C [...]

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