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NO STATE LAW REMEDY WHERE MILLER ACT REIGNS

Thursday, November 15, 2012 02:43 am

 

Miller Act

U.S. f/u/b/o New Millennium Building Systems, LLC v. Paul S. Akins Co., Inc. 2012 U.S. Dist. Lexis 130493 (M.D. Ga. Sept. 13, 2012)

A supplier can't have its Miller Act cake (i.e., recovery on a payment bond) and state-law-permitted attorney's fees, too.

New Millennium Building Systems, LLC (NMBS) supplied steel materials for a federal project to construct a dining facility at Fort Benning, Georgia. When NMBS did not receive full payment for materials incorporated into the project, it sought recovery for the unpaid balance under the general contractor's Miller Act payment bond. However, it also sought attorney's fees from the surety pursuant to Georgia code O.C.G.A. 10-7-30. The surety and general contractor argued that NMBS could not enforce a Miller Act bond while also asserting a state law claim for attorney's fees. The court agreed.

Georgia's O.C.G.A. 10-7-30 holds a surety liable to pay an obligee [...]

 
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