Payment Bond Fraud in Pennsylvania – Why Subcontractors Should Request Copies of Payment Bonds When Signing Subcontractors for Public Projects

The News Story The Times-Tribune reports that a Lackawanna County insurance agent recently pleaded guilty to fraud for accepting premiums for payment bonds from contractors but never actually procuring those payment bonds from a surety.  This resulted(…)

Legal Insights into Oil and Gas Infrastructure Projects and Additional Insureds in Property Damage Claims

An August 21, 2017 article in the The Legal Intelligencer, co-authored by Babst Calland Attorneys Dave White and Esther Soria Mignanelli, addresses the impacts of the new Pennsylvania Mechanics’ Lien State Construction Notices Directory on oil and gas(…)

A subcontract term that conflicts with the Miller Act is ineffective in a suit against the surety on the payment bond. But, that right may be waived.

In United States ex rel. Marenalley Constr., LLC v. Zurich American Ins. Co., et al, Civil Action No. 14-4581 (E.D. Pa. March 13, 2015), a subcontractor filed suit under the Miller Act to recover against the prime contractor’s payment bond for additio(…)

PA Court Casts Doubt on Safe Harbor Provision of Procurement Code

A recent decision by the Pennsylvania Commonwealth Court casts doubt on the “safe harbor” provision of Pennsylvania’s Procurement Code. Section 3939(b) of the Commonwealth Procurement Code provides, “Once a contractor has made payment to the subcontra(…)

Pennsylvania Federal Court Finds that Principal Has No Right to Assert Breach of FiduciaryDuty and Bad Faith Claims Against Surety

The United States District Court for the Western District of Pennsylvania recently issued an opinion in a diversity action dismissing with prejudice a principal’s claims for tortious interference with a contractual relationship, breach of fiduciary du(…)