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Miller Act Covers Rented Supply

Thursday, December 02, 2010 01:29 am


Payment Bond - Miller Act

United States, for the use of Ramona Equipment Rentals, Inc. v. Carolina Casualty Insurance Co., 2010 U.S. Dist.

Lexis 91838 (D. Cal. Sept. 3, 2010)

The Miller Act allows recovery of nonpayment for rented supplies -- even if you don't own the supplies. This case a federal construction project to build fencing at the U.S. Immigration and Customs Enforcement detention facility in El Centro, California. Ramona Equipment Rentals, Inc. (Ramona) supplied equipment to subcontractor Otay Group, Inc. (Otay) but did not receive full payment. General contractor Candelaria Corp.

(Candelaria) terminated its contract with Otay for alleged mismanagement and failure to pay suppliers. Ramona then filed a Miller Act claim, seeking recovery of more than $200,000 under Candelaria's payment bond.

The Miller [...]

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