Insurer Needn't Pay NYC $21M Bond, Judge Says

Law360, New York (March 30, 2011, 6:22 PM EDT) -- A New York federal judge ruled Monday that Federal Insurance Co. was relieved of its obligation to pay a $21 million performance bond when the New York City Economic Development Corp. and a contractor materially altered the terms of a subcontract.

Judge John F. Keenan of the U.S. District Court for the Southern District of New York granted Federal’s motion for partial summary judgment, declaring the obligations under the performance bond fully discharged. He also denied the EDC’s cross-motion for summary judgment.

Scott St. Marie of...
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