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Public Works: Dismissal After Demurrer Of General Contractor Claim Versus Subcontractor Performance Bond Surety

The Firm defended a performance bond, obtaining a dismissal of the client after filing a series of demurrers. A large general contractor sued a subcontractor and its performance bond surety alleging defects in work performed by the subcontractor. Subcontractor and general contractor had signed an agreement tolling the ten-year statute of repose, the surety had not. The general contractor argued the surety was bound by the subcontractor’s agreement to toll claim deadlines. The Firm argued the surety was not bound and all claims were barred in two demurrers, leading to dismissal of its surety client before any other litigation or discovery was required.

Counsel: Louis J. Blum and Daniel P. Scholz

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