BrigliaMcLaughlin Obtains Summary Judgment for Surety on “Overpayment” Claim Against Obligee in Federal Court

BMc’s client, International Fidelity, recently obtained summary judgment against the Western Virginia Water Authority for contract retainage improperly disbursed to its principal during the course of the project. Lauren P. McLaughlin, counsel of record, argued that the surety’s right to the contract retainage was irrefutable under the doctrines of assignment and equitable subrogration.  In International Fid. Ins. Co. v. Western Va. Water Auth., Civil Action No. 7:11-cv-00441 (W.D.Va. Sep. 28, 2012), Chief Judge Conrad agreed and found that the Authority had improperly paid retainage proceeds directly to the contractor, despite its agreement to hold all retainage in an escrow account.  The Court entered judgment in favor of the surety in the amount of those improper disbursements.

To review Judge Conrad’s opinion, click here.