Justia Construction Law Opinion SummariesArticles Posted in US Court of Appeals for the Eighth Circuit
Liberty Mutual Insurance Co. v. International Fidelity Insurance Co.
The Eighth Circuit affirmed the district court's judgment against a subcontractor's surety (Fidelity), and in favor of the general contractor's surety (Liberty) for the full amount of Fidelity's performance bond. The appeal stemmed from a dispute over costs that resulted from contractor defaults in completing a federal government construction project. The court held that when Fidelity issued a performance bond for a subcontractor on a federal project, and its principal defaulted, the word "successor" in the performance bond included as obligee a surety operating under the Takeover Agreement with the federal government. The court agreed with the district court that the many subcontract changes in the Ratification Agreement cited by Fidelity did not as a matter of law, singly or in combination, so materially alter Electric's obligations under the Subcontract that Fidelity's performance bond was discharged. Finally, the court rejected Fidelity's argument that Liberty failed to meet conditions precedent. View "Liberty Mutual Insurance Co. v. International Fidelity Insurance Co." on Justia Law
Randy Kinder Excavating, Inc. v. JA Manning Construction Co.
Kinder filed suit against Manning, alleging that Manning breached a contract to build a pumping station. The Eighth Circuit affirmed the district court's judgment in favor of Manning, holding that Kinder committed the first material breach of contract by threatening to assess delay-related damages without any justification, interfering with the relationship between Manning and EarthTec, and failing to provide adequate assurances that Manning would be paid for its work. The court also held that the district court correctly found that Kinder wrongfully terminated the contract and that evidence at trial supported the damage award. View "Randy Kinder Excavating, Inc. v. JA Manning Construction Co." on Justia Law