Archive: July 23, 2010

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Fifth Circuit Disallows Equitable Defenses to Limitations Under Texas Performance Bond Statute

Fifth Circuit Disallows Equitable Defenses to Limitations Under Texas Performance Bond Statute

Hartford Fire Ins. Co. v. City of Mont Belvieu, Texas, No. 09-40586 (5th Cir. July 13, 2010)

By:  David Coale & Billie Ann Maxwell, K&L Gates, Dallas

This case shows why it is important for governmental entities, their contractors, and performance bond providers to be aware of statements among the parties for limitations purposes, and the application of equitable defenses, in the context of the one-year limitations period under Texas Government Code § 2253.078(a).  The lessons of this case apply fully to similar statutes in other jurisdictions.

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