Obtained Summary Judgment for Client Surety – Absolute Liability for Indemnification

Quadrino Schwartz attorney Brad Schlossberg obtained summary judgment on behalf of a client surety for indemnification pursuant to a surety agreement. The defendant entered into several contracts with the Town of Schaghticoke to construct water transmission and distribution main lines along New York State Route 40. One of the requirements of the contracts was the filing of performance bonds with the town guaranteeing the performance of the contractor. When the contractor was held in default under the contracts and terminated by the town, the surety stepped in and financed the completion of the projects. Upon a motion for summary judgment, the Federal Court for the Northern District of New York held that the obligation of the contractor to indemnify the surety was absolute and that it was irrelevant whether the contractor actually defaulted on the underlying contracts.