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Surety Has No Equitable Remedy Against City

Friday, May 04, 2007 12:05 pm

Surety Has No Equitable Remedy Against City

A surety cannot turn to the owner for indemnification when a sub-subcontractor sues the surety for payments the subcontractor owes.

The City of Chicago (City) hired Walsh Construction Co. to provide materials, equipment and services for the O'Hare Terminal Facade and Circulation Enhancement Project (Project). Walsh, as principal, and Travelers Casualty and Surety Company of America (Travelers) as a surety, gave the City a performance and payment bond for the work. Walsh subcontracted steel fabrication and erection to Carlo Steel Corporation (Carlo), and Carlo subcontracted work to Danny's Construction Company, Inc. (Danny's).

Carlo did not pa [...]

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