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Recent New York Decision Reaffirms Limits to Surety’s Liability on a Delay Claim Made Under a Payment Bond

On January 14, 2015 by Schnader

A recent decision by the Supreme Court, New York County, reaffirmed the law as it applies to important issues relating to a surety’s defenses to a claim for delay damages made under a payment bond. In Advanced Automatic Sprinkler Co., Inc. v. Seaboard Surety Co., Inc., No. 650321/2001, N.Y.L.J. 1202678994141, at *1 (Sup. Ct. New York County Dec. 3, 2014), the Court (Hon. Marcy Friedman) granted the defendant surety’s motion for summary judgment dismissing the subcontractor’s claim for delay damages, holding, among other things, that the no-damages-for-delay clause in the subcontract precluded recovery of delay damages where the delays caused by the non-party prime contractor were foreseeable.

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