Claims Against A Contractor’s License Bond, Where The Construction Project At Issue Is Out-Of-State, With Specific References To Nevada And Utah Law. Among the more unusual license bond claims are the ones where the contractor has a license bond in one state, and where the construction project at issue is in another state. For example, … Continue reading “They Are Claiming What?”

Contractor’s license bonds are required by statute in Nevada (NRS 624.270), and claims against the bond are also governed by statute (NRS 624.274). Therefore familiarity with those statutes is a prerequisite for evaluating a claim. Once a claim is asserted, these basic steps should be taken to assess the validity of that claim. IS THE … Continue reading “The ABC’s of Evaluating Contractor’s License Bond Claims in Nevada”

The Faux Law Group was privileged recently to represent a surety seeking to enforce its rights for collateral security and an asset freeze based on specific performance and quia timet.  On an Emergency Motion, the United States District Court entered an order freezing the assets of the Indemnitors and ordering the posting of collateral security in … Continue reading “Case Update: Preliminary Injunction and quia timet”

Motor Vehicle Dealer Bond The Surety prevailed at a recent hearing before the Department of Motor Vehicles by a claimant asserting breach of contract, fraud and multiple deceptive trade practices. After the presentation of the evidence, the administrative judge held that it was in fact the claimant that breached contract and misrepresented his own status. … Continue reading “Case Update: Motor Vehicle Dealer Bond”

The Holcomb Decision In Holcomb, the Nevada Supreme Court ruled that “[a] party can contractually agree to a limitations period shorter than that provided by statute in certain circumstances.” Holcomb Condo. Homeowners’ Assn., Inc. v. Stewart Venture, LLC, 300 P.3d 124 (Nev. 2013). The party can do so “as long as there exists no statute … Continue reading “Can Parties Shorten Statutory Limitation Periods?”

By Kurt Faux The Nevada Supreme Court recently determined that an unconditional release from a bottom-tiered contractor to the middle-tiered and higher-tiered contractors did not preclude a claim by the bottom-tiered contractor when the middle-tiered contractor failed to pay. Cashman Equipment Co. v. West Edna Assocs., 132 Nev. Adv. Op. 69 (Sep. 29, 2016). The … Continue reading “How to Avoid Paying Twice for the Same Work”

In MB America, Inc., v. Alaska Pacific Leasing Company, 132 Nev. Adv. Op. 8 (February 4, 2016), the Nevada Supreme Court dismissed MB America’s breach of contract lawsuit because MB America did not first submit the parties’ dispute to mediation as required by the contract. The Supreme Court considered that MB America must send a request to “any … Continue reading “Industry Update: Mediation is a Condition Precedent to Filing a Lawsuit”

By John Cory & Jordan Faux In general, most payment and performance bonds do not include an arbitration provision. Instead, a surety may be bound to arbitrate when the bond incorporates arbitration provisions in an underlying contract. While the pros and cons of arbitration are not the subject of this article, claimants will often file … Continue reading “Claimants Argue New Nevada Supreme Court Case Obligates Sureties to Arbitrate”

Jordan Faux was one of the presenters at the Contract Surety Bonding Workshop by the Surety & Fidelity Association of Nevada in conjunction with the Nevada Subcontractors Association & Associated Builders and Contractors Nevada.    

Potential Recovery Source for Sureties in Utah -The Residence Lien Restriction and Lien Recovery Fund Act.   Potential Recovery Source for Sureties in Utah – The Residence Lien Restriction and Lien Recovery Fund Act. In 1994, the Utah Legislature recognized a problem within the residential construction industry. A few contractors were taking money for construction … Continue reading “Surety Industry Tip!”