Most Clicked NASBP SmartBrief Stories

1. Individual surety involved with NYC-area projects is arrested

NASBP SmartBrief | Feb 19, 2015

A lawyer faces charges of wire fraud and money laundering in connection with allegations that he sold contractors fraudulent bonds for major New York City-area construction projects. The company that was supposed to be backing the bonds failed to make payments on the bonds of a subcontractor that went bankrupt, resulting in $2 million in additional costs for a general contractor, prosecutors say. New York Law Journal (02/13)

2. Surety's contract takeover keeps Pa. borough's project moving forward

NASBP SmartBrief | Feb 12, 2015

A surety bond company is temporarily taking over the contract to build a wastewater-treatment plant in a Pennsylvania borough after the contractor defaulted. The surety company has proposed hiring the second-lowest bidder on the project and is expected to pay if costs come in above the initial bid. Progress (Clearfield, Pa.), The (02/07)

3. Court case: Surety argued it had no liability for consequential damages

NASBP SmartBrief | Feb 19, 2015

A Bankruptcy Court ruling highlights issues that can arise regarding direct and derivative claims. The court found that while a surety was not liable for consequential damages stemming from its bonded contractor's breach, where the contract contained a mutual waiver of consequential damages, the surety was liable for consequential damages resulting from its breach of bond obligations. (free registration) (02/13)

4. Mo. school to work with surety to find replacement contractor

NASBP SmartBrief | Feb 12, 2015

A construction company working on a kitchen expansion at a middle school in Columbia, Mo., went out of business. The school district is working with the company's surety to finish the $1.8 million project. KMIZ-TV (Columbia, Mo.) (02/06)

5. Surety says failure to provide notice of default releases its bond liability

NASBP SmartBrief | Feb 12, 2015

A surety is asking a federal court to rule that it does not have to pay a Pennsylvania township more than $600,000 on a performance bond for a developer that went bankrupt. The surety says the township did not provide notices of default or communications with the contractor, and therefore did not adhere to the terms of the bond. Pennsylvania Record, The (02/10)

6. Surety agrees to hire contractor to fix building's settling problem

NASBP SmartBrief | Feb 19, 2015

Officials in Cumberland County, N.J., are working with a surety to correct foundation problems at the county prosecutor's office. The project, which was finished late, has cracks in its foundation and has settled unevenly, officials say. Daily Journal (Vineland, N.J.), The (02/16)

7. Surety payout to help cover wrongly appropriated funds in Miss. county

NASBP SmartBrief | Feb 05, 2015

A surety will make a $197,000 payout following a Mississippi state auditor investigation's finding that the Itawamba County chancery clerk misappropriated county and investor money as a result of bookkeeping lapses. The clerk is liable for repaying $303,000 of the funds, as well as any interest. Northeast Mississippi Daily Journal (Tupelo, Miss.) (01/28)

8. Turf contractor files suit regarding bid for Dallas-area school athletic fields

NASBP SmartBrief | Feb 12, 2015

Dallas Morning News (free content), The (02/09)

9. Regional insurer issues quarterly earnings statement

NASBP SmartBrief | Feb 19, 2015

InsuranceNewsNet online (02/17)

10. Contractor, surety, school board in Va. reach compromise after mediation

NASBP SmartBrief | Feb 19, 2015

The school board in York County, Va., has agreed to pay a contractor $235,000 for an elementary-school project that was complicated by damage from Hurricane Irene in 2011. The contractor had sought more than $750,000. The two entities and the contractor's surety entered into mediation, which resulted in the compromise. Williamsburg Yorktown Daily (Williamsburg, Va.) (02/16)

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