Masonry Magazine January 2007 Page. 86
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Index to Advertisers
Leagal Issues continued from p.62 any defense in its bond response letter foreclosed the surety from denying the payment bond claim.
Implications
The Casey decision is the natural outgrowth of the logic in the National Union v. Bramble case. While Casey involved a surety who had asserted some defenses, the same reading of the same bond language naturally required a surety to assert all available factual defenses in its bond response letter. Thus, the court in Casey saw the extension of the same argument as reasonable, and held that the surety was barred from developing any further factual defenses not previously raised in the bond response letter.
Perhaps most importantly, both the Casey and National Union cases involve construction and interpretation of the American Institute of Architect's performance and payment bonds. These bonds are used nationally and on a wide variety of projects. Accordingly, potential claimants on the national stage should pay close attention to these two cases and understand that, while they are only Maryland state and Virginia federal courts, these decisions have national implications. If you are considering or have presented a bond claim, these decisions may have an enormous impact on your case.
Timothy R. Hughes, Esq., is the principal of the Northern Virginia law firm of Hughes & Associates PLLC. Jacobus P. Joubert, Esq., is an associate with the firm. They specialize in construction litigation, corporate and business-related representation, and complex civil Ntigation. They can be reached at tim@hughesnassociates.com, or by phone at (703) 671-8200. The attomeys of Hughes & Associates PLLC were counsel for Casey Industrial Inc., the subcontractor in the above-referenced case.
This article is not intended to provide legal advice, but to raise issues on legal matters. You should consult with an attorney regarding your legal issues, as the advice you may receive will depend upon your facts and the laws of your jurisdiction.
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