Safeco Prevails In Battle Over Army Project Bond Losses

By Jeff Sistrunk (March 30, 2017, 5:17 PM EDT) -- Safeco Insurance Co. of America is entitled to indemnification from a pair of construction contractors for losses it suffered under surety bonds issued for three projects with the Army Corps of Engineers, a New York federal judge ruled Thursday, refusing to find that Safeco acted in bad faith in connection with the bonds.

In a wide-ranging 76-page opinion, U.S. District Judge Pamela K. Chen found that Safeco can collect full indemnity from MES Inc., Hirani Engineering & Land Surveying PC and a joint venture between those two companies for losses the insurer says it suffered under surety bonds after the Corps found...

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