Our firm obtained summary judgment on behalf of a performance bond surety against a contractor whose bid to complete a project was accepted by the surety. When the contractor for the replacement and repair of sidewalks in Manhattan was held in default by the City of New York, the performance bond surety was obligated to complete the job. In furtherance of this obligation, the surety placed the completion of the job out for bid. The defendant submitted the winning bid, which was accepted by the surety. The defendant then sought to withdraw its bid and did not complete the contract. Thereafter, the surety negotiated a settlement with the City of New York for $150,000 to release it from its obligation to complete the contract and sued the winning bidder for breach of contract to recover the amount of the settlement. The Court correctly held, on our motion for summary judgment brought on behalf of the surety, that the offer and acceptance of the bid created a binding contract and that the surety was entitled to reimbursement from the defendant of the $150,000 the surety paid to settle with the City.
Evan S. Schwartz
Founder of Schwartz, Conroy & Hack
800-745-1755
ESS@schwartzlawpc.com