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Florida High Court Addresses Payment Bond Notice Bonds-payment; Notice

Tuesday, August 09, 2005 03:00 pm


The Florida Supreme Court has ruled that if a surety omits statutory notice requirements from a payment bond form, the surety cannot raise lack of notice as a defense against an unsuspecting claimant.

Cone Constructors, Inc., prime contractor on a state highway project, furnished a payment bond issued by American Home Assurance Co. The Florida statutes require 45 and 90-day notice of claims against public works payment bonds and also impose a one-year limitation period. Fla. Stat. sec. 255.05(2). Subsection (6) of the same statute requires these terms to appear on the face of the bond itself. American Home violated the statute by omitting the terms.

One of Cone's subcontractors, [...]

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