January 11, 2012
Jordan R. Pavlus recently obtained summary judgment against a surety company on behalf of a construction material supplier. The surety company posted a labor and material payment bond on a public project pursuant to the New York State Finance Law. The surety defended the action claiming it was not obligated to pay because the contractor had diverted materials to other job sites. Judge Thomas D. Nolan of the Saratoga County Supreme Court held that the material supplier was entitled to full payment from the surety because it supplied the materials in good faith, notwithstanding the fact that they could have been diverted. Judge Nolan also awarded interest and attorney’s fees pursuant to State Finance Law Section 137(4)(c).