Archive: August 5, 2007

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Insurer Not Entitled to Summary Judgment on Breach of Performance Bond Claim

Insurer Not Entitled to Summary Judgment on Breach of Performance Bond Claim

Klewin Bldg. Co. v. Heritage Plumbing & Heating, Inc., 840 N.Y.S.2d 144 (N.Y. App. Div. 2007)

In this case, plaintiff was the construction manager for a building project and had entered into a subcontract with defendant Heritage Plumbing & Heating pursuant to which Heritage was required to supply plumbing materials and services for the project.  Defendant Hartford Fire Insurance Company provided a performance bond to Heritage for the benefit of Klewin.   Hartford’s obligations to Klewin under the bond would only arise upon certain conditions, including, among other things, Klewin’s declaration that Heritage had defaulted and a termination of Heritage’s right to complete the subcontract.

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