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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:windowtext'>These were 255.05 bonds which were </span>recorded. When we sent our letter to the surety indicating that we intended to look to the bonds, the surety responded by telling us that the bonds were withdrawn, with permission of the public entity. If the bonds are found to be in place, can the surety rely on the SOL to defeat the subcontractor’s claim? <o:p></o:p></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:windowtext'><img width=218 height=60 id="_x0000_i1028" src="cid:image001.gif@01CD1E1B.0657A590" alt=Logo><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Tracye K. Solove, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Certified Civil Circuit Mediator<o:p></o:p></span></p><p class=MsoNormal><u><span style='font-size:10.0pt;font-family:"Cambria","serif";color:blue'><a href="Tracye@solovelawfirm.com">Tracye@solovelawfirm.com</a><o:p></o:p></span></u></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Kendallwood Office Park One<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>12002 Southwest 128th Court<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Suite 201<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Miami, Florida 33186<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Phone: (305) 612-0800<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'>Facsimile: (305) 612-0801<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'><a href="http://www.solovelawfirm.com/">http://www.solovelawfirm.com</a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif";color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal align=center style='text-align:center'><i><span style='font-family:"Cambria","serif";color:blue'>Providing Statewide Legal Services in the areas of Commercial Collections and Recovery, Creditors' Rights, Commercial Landlord/Tenant and Real Estate Foreclosures<o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>This transmission is intended to be delivered only to the named addressee(s) and may contain information which is confidential, proprietary, attorney work-product or attorney-client privileged. If this notification is received by anyone other than the intended recipient(s), the recipient(s) should immediately notify the undersigned by E-MAIL and by telephone and obtain instructions as to the disposal of the transmitted material. In no event shall this material be read, used, copied, reproduced, stored or retained by anyone other than the intended recipient(s) except with the express written consent of the sender. Thank you. <o:p></o:p></span></p></div><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext'> constructionlaw-bounces@lists.flabarrpptl.org [mailto:constructionlaw-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Greg Elliott<br><b>Sent:</b> Thursday, April 19, 2012 10:21 AM<br><b>To:</b> RPPTL constructionlaw<br><b>Subject:</b> Re: [RPPTL-constructionlaw] Public Project Bond and SOL<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>public work (255.05 or 337.18 bond), or private work (713.23 or 24)?</span><o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'>Gregory T. Elliott</span><span style='font-family:"Copperplate Gothic Light","serif";color:navy'><br></span><strong><i><span style='font-size:10.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'>ELLIOTT - BERGER, P. A.</span></i></strong><span style='font-size:13.5pt'><br></span><span style='font-size:10.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'>10225 Ulmerton Road, Suite 4A</span><span style='font-size:13.5pt;color:navy'><br></span><span style='font-size:10.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'>Largo, Florida 33771<br>(727) 360-2600 (Phone)<br>(727) 360-6588 (Fax)</span><b><span style='font-family:"Copperplate Gothic Light","serif";color:navy'><br></span></b><b><span style='font-size:10.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'>Board Certified In Construction Law</span></b><b><span style='font-size:9.0pt;font-family:"Copperplate Gothic Light","serif";color:navy'><br><img border=0 width=62 height=81 id="_x0000_i1025" src="cid:image002.jpg@01CD1E1B.0657A590"></span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><u><span style='font-size:10.0pt;font-family:"Calibri","sans-serif";color:navy'>NOTICE OF CONFIDENTIALITY:</span></u></b><b><span style='font-size:10.0pt;color:navy'> </span></b><span style='font-size:10.0pt;color:navy'>This message and its attachments are intended solely for the use of the addressee. In addition, this message and the attachments may contain information that is confidential, privileged and exempt from disclosure under applicable law. If you are not the intended recipient of this message, you are prohibited from reading, disclosing, reproducing, distributing, disseminating or otherwise using this transmission. Delivery of this message to any person other than the intended recipient is not intended to waive any right or privilege. If you have received this message in error, please promptly notify the sender by reply E-mail and immediately delete this message from your system.</span><o:p></o:p></p></div></div></div></div><p class=MsoNormal><br>On 4/19/2012 9:57 AM, Tracye wrote: <o:p></o:p></p><p class=MsoNormal>Does anyone know of a case that would estop a surety from relying on the SOL to defeat a subcontractor claim when it denied (in writing) that a bond was in place during the SOL period? <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><img border=0 width=218 height=60 id="Picture_x0020_1" src="cid:image001.gif@01CD1E1B.0657A590" alt=Logo></span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Tracye K. Solove, Attorney at Law</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Certified Civil Circuit Mediator</span><o:p></o:p></p><p class=MsoNormal><u><span style='font-size:10.0pt;font-family:"Cambria","serif";color:blue'><a href="Tracye@solovelawfirm.com">Tracye@solovelawfirm.com</a></span></u><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Kendallwood Office Park One</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>12002 Southwest 128th Court</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Suite 201</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Miami, Florida 33186</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Phone: (305) 612-0800</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'>Facsimile: (305) 612-0801</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'><a href="http://www.solovelawfirm.com/">http://www.solovelawfirm.com</a></span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Cambria","serif"'> </span><o:p></o:p></p><p class=MsoNormal align=center style='text-align:center'><i><span style='font-family:"Cambria","serif";color:blue'>Providing Statewide Legal Services in the areas of Commercial Collections and Recovery, Creditors' Rights, Commercial Landlord/Tenant and Real Estate Foreclosures</span></i><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'> </span><o:p></o:p></p><p class=MsoNormal>This transmission is intended to be delivered only to the named addressee(s) and may contain information which is confidential, proprietary, attorney work-product or attorney-client privileged. If this notification is received by anyone other than the intended recipient(s), the recipient(s) should immediately notify the undersigned by E-MAIL and by telephone and obtain instructions as to the disposal of the transmitted material. In no event shall this material be read, used, copied, reproduced, stored or retained by anyone other than the intended recipient(s) except with the express written consent of the sender. Thank you. <o:p></o:p></p></div><p class=MsoNormal> <o:p></o:p></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> <a href="mailto:constructionlaw-bounces@lists.flabarrpptl.org">constructionlaw-bounces@lists.flabarrpptl.org</a> [<a href="mailto:constructionlaw-bounces@lists.flabarrpptl.org">mailto:constructionlaw-bounces@lists.flabarrpptl.org</a>] <b>On Behalf Of </b>Bruce Partington<br><b>Sent:</b> Thursday, April 19, 2012 9:31 AM<br><b>To:</b> RPPTL constructionlaw<br><b>Subject:</b> [RPPTL-constructionlaw] FW: Bond coverage</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> Gibbons, Michael [<a href="mailto:Michael.Gibbons@lowndes-law.com">mailto:Michael.Gibbons@lowndes-law.com</a>] <br><b>Sent:</b> Wednesday, April 18, 2012 6:36 PM<br><b>To:</b> Bruce Partington<br><b>Subject:</b> Bond coverage</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:"Arial","sans-serif"'> </span><o:p></o:p></p><div><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> Good question Bruce. My thoughts:</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> 1. Take a look at Phoenix Indemnity v. Board of Public Instruction of Alachua County, 114 So. 2d 478 (Fla. 1st DCA 1959). The Phoenix Indemnity court held that the contractor's surety bond was liable for payment of insurance premiums not paid by contractor despite contractor having an express contractual obligation to make the premium payments. Not exactly your claim but close and certainly gets at the obvious issue that your claim is not for completion of the bricks and mortar (which every surety lawyer wants to limit the surety bond coverage to).</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> 2. Is there an issue of who suffered the damage and the operation of the mutual waiver of subrogation clauses doubtlessly present in the contracts at issue? Could not tell in your summary but I believe this may be an issue. If the GC had insurance coverage for the claim (which it sounds like) and would simply like to have the sub's policy be primary on the loss, then there may be an issue with actual damages suffered by GC (given the presence of insurance). Also, if the loss falls on the carrier, depending on the operation and breadth of the mutual waiver of subro language, there may not be any subrogation rights arising out of the loss (especially a property loss).</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> 3. Is there an issue re operation of a mutual waiver of consequential damages provision in the incorporated subcontract (either directly or by reference or incorporation of the prime contract documents)? Not clear whether the category of damages being claimed would fall into the "consequential damages" bucket but it sounds like that might be the case.</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> 4. The AIA A 312 bond form is broad in scope and contains some favorable language for the obligee. Without knowing all the facts, it sounds like there may be a colorable claim if some of the above raised concerns are addressed (as well as others which I have failed to identify).</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> Good luck.</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><b>Michael R. Gibbons (</b><a href="http://lowndes-law.com/our-people/michael-r-gibbons"><b>Bio</b></a><b>)</b><o:p></o:p></p></div><div><p class=MsoNormal><b>Shareholder</b><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>Lowndes, Drosdick, Doster, Kantor & Reed, P.A.</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>450 South Orange Avenue, 8th Floor</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>Orlando, FL 32801</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>Phone: 407-418-6378</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>Fax: 407-843-4444</span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>email: <a href="mailto:michael.gibbons@lowndes-law.com">michael.gibbons@lowndes-law.com</a></span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'>website: <a href="http://www.lowndes-law.com">http://www.lowndes-law.com</a></span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;color:green'> </span><o:p></o:p></p></div><div style='margin-bottom:12.0pt'><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;color:green'> <img border=0 id="_x0000_i1027" src="cid:image003.jpg@01CD1E1B.0657A590"></span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'> </span><o:p></o:p></p></div><p class=MsoNormal style='margin-bottom:12.0pt'> <o:p></o:p></p><p><b><span style='font-size:9.0pt'>Notice of Confidentiality:</span></b><span style='font-size:9.0pt'> This e-mail communication and the attachment(s) hereto, if any, are intended solely for the information and use of the addressee(s) identified above and may contain information which is legally privileged from disclosure and/or otherwise confidential. 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