Bonding and Surety Archives

Bad Faith

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Sep 28, 2017.

On September 28, 2017, the Supreme Court of Pennsylvania, in Rancosky v. Washington National Insurance Company, held that in order to recover in a bad faith action against an insurer under 42 Pa.C.S. §8371, the plaintiff must “present clear and convincing evidence (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew of or recklessly disregarded its lack of a reasonable basis.” Further, the Court held that proof of an insurance company’s motive of self-interest or ill-will is not a prerequisite to prevailing in a bad faith claim under Section 8371, observing that evidence of the insurer’s knowledge or recklessness as to its lack of a reasonable basis in denying policy benefits is sufficient.  

Kaplin Stewart Now Has a Surety Blog!

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Mar 21, 2016.

At Kaplin Stewart, we strive every day to add value to the businesses of our clients and potential clients.  We are thrilled to announce the start of another one of these efforts – our construction surety law blog!  The surety industry is one which we represent regularly; and we believe that it is a niche with specific issues that merit a special comment from time to time.  So we hope you will read the blog and join the conversation.

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Is a New Bonding Product On the Way?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Dec 10, 2013.

Recent news in the surety industry suggests that demand is increasing for a different approach to bonding on projects using public-private partnerships. A significant push seems to be underway in the surety market to provide a product responsive to that demand.

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Pennsylvania Commonwealth Court Changes The Landscape of Payment Bond “Safe Harbor” Provisions

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Aug 22, 2013.

The Pennsylvania Commonwealth Court recently issued an opinion that significantly impacts the scope of payment bond coverage by changing the application of what is commonly known as the “safe harbor” provision. The decision in Berks Products v. Arch Insurance Co., is already drawing fire from several quarters of the construction industry.

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BONDING ALTERNATIVES

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Bonding and Surety on Mar 25, 2013.

While statutory requirements will keep payment and performance bonds as a mainstay of the construction market for years to come, other viable options exist and should be considered by owners, contractors, and subcontractors as alternatives to bonding. These alternatives can create the same “net effect”.

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