Court: Surety is owed $600,000 by contractor that filed for bankruptcy

09/11/2013 | Business Insurance (tiered subscription model)

A Kentucky construction company must repay the provider of its performance and payment bonds, the 6th U.S. Circuit Court of Appeals in Cincinnati has ruled. A net loss of $600,210 for the surety resulted when it paid to complete three projects contracted by the construction company, the ruling said. The court upheld a lower-court decision that the company's sole proprietor, who had attempted to discharge his debt to the surety in a bankruptcy filing, misappropriated trust funds when he commingled the bond contract funds with other trust money.

View Full Article in:

Business Insurance (tiered subscription model)

Published in Brief: