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Suppliers, Materialmen: Don't Place Your Bets On Recovery Under Miller Act Bonds

Saturday, August 04, 2007 12:33 pm

Suppliers, Materialmen: Don't Place Your Bets On Recovery Under Miller Act Bonds

A federal district court in West Virginia denied a company's claim under a Miller Act bond after determining that the company was a supplier or materialman to a contractor and not a subcontractor.

P.J. Dick contracted with Kimberly Concrete to supply concrete products for the construction of a federal penitentiary at Hazelton, West Virginia. The contractor provided a payment bond issued by United States Fidelity and Guaranty Company (USF&G), under which the United States was the obligee, P.J. Dick the principal and USF&G the surety. The plaintiffs -- Maryland Minerals, Cranesville Stone Company and Essroc -- supplied raw materials to Kimberly Concrete for the project.

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