[CLC-Discussion] 13.24 Third Party Claimants Under Bond?

[Gibbons, Michael]

  While the language is unfortunate, I don't think it will have much impact in practice for two reasons.  First, the Lien Transfer Bond is a contract running in favor of a specified lienor whose lien has been transferred to the security of the bond.  Other persons simply don't have standing to sue the Surety on the lien transfer bond.  Besides the standing issue,  in order for lower tiered materialman or sub-subcontractor to have a claim on any lien transfer bond, that materialman or sub-subcontractor must be able to establish that it has a valid and enforceable claim of lien.  And if it has a perfected claim of lien, then it will either be foreclosing on the real property or have its very own lien transfer bond as substituted security (with no need to piggyback on some other lienor's lien transfer bond).



Michael R. Gibbons  (Bio<http://lowndes-law.com/our-people/michael-r-gibbons>)
Shareholder
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
215 N. Eola Drive
Orlando, FL 32801
Phone: 407-418-6378
Fax: 407-843-4444
email: michael.gibbons at lowndes-law.com<mailto:michael.gibbons at lowndes-law.com>
website: http://www.lowndes-law.com<http://www.lowndes-law.com/>

        [cid:image003.jpg at 01CE9749.F94839B0]

From: clc-discussion-bounces at lists.flabarrpptl.org [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Roberts, Hardy L.
Sent: Saturday, August 10, 2013 2:10 PM
To: CLC Discussion (clc-discussion at lists.flabarrpptl.org)
Subject: [CLC-Discussion] FW: 13.24 Third Party Claimants Under Bond?

Please see the request below from Robert Worman...

From: Robert B. Worman [mailto:rbworman at wormanlaw.com]
Sent: Friday, August 09, 2013 10:54 AM
To: Roberts, Hardy L.
Subject: 13.24 Third Party Claimants Under Bond?

Hardy,

Can you circulate this through ListServe for the Construction Law Committee to address?

Please review the attached case which just came out.  I would appreciate comments on the dicta at the end of the 2d paragraph as to the theory under which materialman to a lienor would have a claim under the transfer bond.

Anyone want to crawl out on that limb?

Regards,

Robert B. Worman, Esq.
Worman & Sheffler, P.A.
2707 West Fairbanks Avenue
Suite 200
Winter Park, Florida (32789)
P.O. Box 1764
Orlando, Florida  32802
Phone:  (407)  843-5353
Fax:      (407)  841-9516
e-mail:  rworman at wormanlaw.com<mailto:rworman at wormanlaw.com>

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