Inigo Montoya would have been all over Reliance Ins. Co. v. City of Boston, No. 07-P-066, a case decided today by the Appeals Court.
A statute requires performance and payment bonds on public construction projects. Performance and payment bond companies (a/k/a sureties) occasionally step in to take over for general contractors that can't get their acts together. As a stop-gap, the sureties require the contractor to assign any rights they might have against the owner of the project (though these probably automatically pass to a surety when they step in for general contractors that can't get their acts together).
In this case, the City of Boston included a provision in the contract forbidding the general contractor from assigning any of its rights or duties under the contract to anybody else.
The Appeals Court, in a decision that feels right, essentially reads additional language into this provision to the effect of "but assignment to a performing surety is okay."
If you wait around long enough, you'll find that sometimes common sense rears its head in the courtroom. Just don't hold your breath while you wait.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment