No Bad Faith for Breach of Performance Bond

US District Court in New Jersey holds no bad faith action for breach of surety bond

On June 1, 2015, United States District Judge Anne E. Thompson, handed down an opinion holding that in New Jersey, “there is no cause of action for bad faith breach of a surety bond.”1

The case at issue was U.S. Sewer & Drain, Inc. v. Earle Asphalt Co. and Federal Insurance Co., which was brought to the Court on two separate Motions to Dismiss filed by the Defendants, Earle Asphalt Co. (“Earle”) and Federal Insurance Co. (“Federal”). As with most disagreements that find their way to a courtroom, we begin with a dispute over money:

In August 2011, Earle was awarded a contract by the New Jersey Turnpike Authority (“NJTA”) to widen and improve a section of the [Garden State] Parkway. As per the requirements of the New Jersey Bond Act, Earle provided the NJTA with a payment bond issued by Federal. Earle arranged for U.S. Sewer to provide materials and services for the installation of pipelining as part of the project. However, a dispute arose regarding U.S. Sewer’s performance, and Earle refused to pay U.S. Sewer. U.S. Sewer then made a claim to the payment bond, which Federal has thus far refused to pay.2

For those not particularly familiar with surety bonds, “[a] surety bond is defined as a contract among at least three parties: the obligee – the party who is the recipient of an obligation; the principal – the primary party who will perform the contractual obligation; [and] the surety – who assures the obligee that the principal can perform the task.3 In the situation at hand, the NJTA was the obligee, Earle was the principal and Federal was the surety.

After U.S. Sewer was refused payment they filed suit against Earle and Federal. Shortly thereafter, Earle and Federal filed their motions to dismiss. After reviewing the parties’ submissions and relevant case law, Judge Thompson ultimately sided with the Defendants. However, in doing so, Judge Thompson cast off prior New Jersey case law. In U.S. ex rel Don Siegel Constr. Co. v. Atul Constr. Co., the “court first noted that the New Jersey Supreme Court had recognized the bad faith cause of action against insurers in Pickett v. Lloyd, 621 A.2d 445 (1993), and then it held ‘This Court concludes that the New Jersey Supreme Court would apply the same rationale to a claim for bad faith damages brought by an oblige against a surety.’4

Judge Thompson indicated that the Atul decision had not been followed by the New Jersey Supreme Court or any other state court in New Jersey for fifteen (15) years. Additionally, Judge Thompson cited two newer cases which specifically declined to follow Atul, which included Deluxe Building Sys., Inc. v. Constructamax, Inc. InDeluxe, the Court held, “New Jersey law does not currently recognize a cause of action for ‘bad faith’ breach of a surety bond, and further, that the New Jersey Supreme Court is unlikely to recognize such a cause of action in the future.” Judge Thompson agreed with the Court’s ruling in Deluxe and dismissed the Plaintiff’s claims for bad faith on the surety bond.

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Bid Bond Companies

Relocation or even shifting to a new rented or personal accommodation is quite an uphill task as it involves packing every piece on you own & then handing them to the un-trained bunch of people who rather look more like goons, only to find most of your delicate crystals, show pieces broken & your precious cutlery missing once the individual reached in his/her new house.

With industrialization came the new age professional who was mobile and had to move for growth to greener pastures. His job responsibilities at work needed him on time & what he required was someone to take care of his home & his belongings while he could concentrate on his job. There were frequent transfers cross state & countries. The modern professional required someone to handle his expensive possessions with utmost care & safety. The result was professional moving companies who provide relocation services.

There are cheap movers available which help an individual pack & move his/her belongings in the safest possible manner. One can choose as to what kind of movers service does one require-interstate movers or long distance movers, local movers or auto transport. The cost of the relocation is calculated by the moving company based on the type of relocation service taken from them.

Moving companies not just offer timely service but make a person’s relocation simple. They earn a name for the fact that their manpower is trained & completely in line with the demand of the customer who wants his belongings to be handled with utmost care. The relocation company packs everything in a complete organized manner & come equipped with ready to pack cartons, cellophane, bubble paper, thermocol etc. They even label each box number wise & give a copy of things kept inside each box to the customer.

The icing on the cake is that before the customer’s cartons are docked into his or her house, his/her convenience is checked first. What gives these relocation companies an edge is their loyalty & trustworthiness. The safety of the customer’s belongings is their utmost priority. Many people who have experienced relocations say that such relocation companies do a better job than they themselves would have done!!

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Bid Bond Requirements

Do you have rounded teeth and you would prefer them squared, or perhaps you have had an area of a tooth chipped and would like the chip fixed? Well if this is the case then you should know about dental bonding. Dental bonding can fix many problems with your teeth but one of the main purposes of the procedure is to fix or improve the shape of teeth that may be naturally rounded, chipped, or have succumb to some level of decay. If you have a chipped tooth or any of the other conditions previously mentioned then dental bonding may be the solution that you have been looking for to restore your confidence in your smile.

If you have ever felt that your teeth are less than perfect because of imperfections then dental bonding may be the answer for you. Dental Bonding can correct the appearance of many flaws in teeth. Naturally rounded teeth, chipped teeth, decayed teeth, and minor gaps can all be corrected or improved drastically with the addition of cosmetic dental bonding. Besides doing a great deal to restore confidence in the person who receives the bonding, the work is quite simple and painless and really not as drastic a procedure as you might be thinking. Really there are so many benefits and so few drawbacks to bonding that it has become a very popular procedure.

Dental bonding is essentially a material that covers the front of the tooth and a bonding material that can be used to shape and fill missing areas in your teeth. Once the materials are in place a light is used to make the materials rock hard before they are polished to the perfect shine. What remains is an incredibly natural looking area of “tooth” where there was nothing before. On a personal level I can relate information about a good friend who had some dental bonding done on his front teeth. My friend’s front teeth were rather rounded on the inside and did not have a very “squared off” look when seen from the front. After he received dental bonding the area took on a natural square look that created the appearance of a normal tooth. The procedure did a great deal to improve my friend’s self confidence and I am sure that it can do the same for you.

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Bid Bonding

What Is This Thing Called Family bonding?

Family bonding or just plain family fun. I have many rather vivid memories of all the places my family would go when school was out and we kids were raring to go for the summer. That was from the Atlantic Coast to the great Western Pacific Coast. The Adirondack mountains where we heard the story of Rip Van Winkle who it is said slept for twenty-five years. And how we watched the fire flies glow at night. There was a Red Top from Round Top as Dad used to say. That was a Rooster that we thought was a Hen. We left him there with the family whose farm we were at for the summer. They promised to send us any eggs that might be forth coming. And by then we still didn’t know the difference. Although the folks might have caught on by then. Then to the Beach for another summer, where I made locker boy and even elevator operator for one of the hotels near by. My sister made baby sitter for a local family there. All the young girls were doing that at that time. It was and still is called ‘baby-sitting’. Whose to take care of the baby while husband and I go out for a well needed night out.

Then the scene shifts to the great Southwest. Where we ended up in San Diego and The beautiful Yosemite Valley which was not that far away for the summer. Camp Cook as I remember it. That was one of the greatest. In fact after marrying in this great State, my wife and I made Yosemite our summer two-week vacation treat. We stayed in one of those tent cabins. We did the trails and the hikes and wondered at the beautiful water falls. Bridal Veil and so forth. And the great rock formations like El Capitan and all the others. And the fire falls that were presented at night. And there were campfire sing alongs at night put on by the Cook Company on a small stage in the area. And then the drive home and back to work although now we had something to talk about and remember in the most nostalgic way. Like comparing vacations when we got back.

That was with our fellow employees. Well where did you guys go and okay how about you folks. Did you really get away some where good. And work was not that so bad anymore. Yes summer family fun for us was the greatest time of the year. And that is something of what we mean when we say ‘family bonding’. Something we would plan ahead and look forward to for all of the year. Like on the way home. Let’s come again next year, we’ve had such a good time here. And we would all agree. That sounds great for us all.

So to really get away somewhere good is truly a good bit of family bonding in the good old U.S.A Now let’s see did I leave anything out here. Was there some place else I should have mentioned. Did we ever stay home and do something unusual for vacation time. Yes I think there was at least one time when Dad couldn’t make it away. And Mother and Sister and I would get on the bus to Long Beach or That famous Jones beach with the whitest beach sand we have ever seen. Now that was Atlantic Coast if I remember correctly. Rarely did we ever have to go far to plan for the summer. There were tour books and guides a plenty where ever we would go. So I truly hope that your next family bonding or fun is a memorable one for you and all your family. As you must know family bonding is one of the most important features of our American family.

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Bid Bond Return

I’m biased.  I’ll admit it.  I’m not afraid to tell you that when it comes to investing in bonds I’ve paid more attention to Barry Bonds than investment grade bonds.  Seriously, how could I not pay attention to the disgraced baseball player?  I lived in San Francisco for 10 years and I went to Giant’s games all the time.  I watched him hit home run after home run.

He was the local star.  It was exciting to see him out in the city at restaurants and nightclubs . . . or just on the street.  I’ll be the first to admit, the guy had star power.  He just exuded an enviable level of confidence.  And he was always surrounded by beautiful people, fans, and the media.  He brought a level of excitement with him wherever he went.

It’s sad that he disgraced himself and the sport by (allegedly?) using illegal performance enhancing drugs.

But I’m not a sportswriter, and that’s another topic for another day. What I wanted to discuss was the idea of bonds in your portfolio (and I don’t mean Barry Bonds baseball cards).  I wanted to challenge the status quo.  So I’m asking the question:

Do you really need to own bonds?

Just a reminder.  I’m a bit biased when it comes to bonds.  I’ve always been an equity guy.  Even during my banking career, the few bond deals I did had significant equity components.  So I’ve always been partial to investing in equities, and only equities.

So before I answer the key question about bonds, I want to point out something very important.

You can lose money in bonds.  You can lose lots of money in bonds, and it can happen very quickly.  When investors talk about bonds they normally discuss them as safe stable investments.  However, the value of a bond is adjusted against prevailing interest rates.

For example if you own a bond with a 5% interest rate and then rates fall to 4% your bond will increase in value.  Because you’re bond pays a higher rate of interest, other investors are willing to pay more for your bond.

But the opposite is true as well.

If interest rates go up, the value of any bond you own will go down.  Now with bonds, a loss in value is only a loss if you sell.  You can always hold the bond and collect your stated interest payments up until the maturity date.

Bonds are traditionally very stable.

They provide fixed rates of return for investors, which is great in retirement.  This is an important point for anyone hoping to retire – which should be all of us.  The markets gyrate and you can’t ever be certain that you’ll be investing in a bear or bull market during retirement.

This begs for some stability in cash flows.  Normally, I’d focus on individual stocks throwing off dividends.  But even dividend paying stocks have risks.  A dividend can be reduced or eliminated.  For example, Pfizer’s (PFE) paid a dividend every quarter for more than 100 years, but many now think the dividend may soon be cut for the first time. 

The obvious solution then is to be prepared to generate some income in retirement from bonds.

The closer you get to retirement the more bonds you should own.  But, how much is enough?  One simple rule of thumb – the percentage of bonds in your portfolio should match your age.  So, if you’re forty, you should have 40% in bonds.  If you’re 60 then 60%. 

Nobody’s been able to answer my question of what to do when you hit 101?  But I digress.

There are a number of ways to invest in bonds, but this gets confusing. Bonds have a wide variety of maturity rates, tax consequences, call features, and in some cases, conversion features.  I’m sure at some point I’ll address these issues.  But for now let me give you the lazy way to investing in bonds.

Buy a few Bond ETFs.

You know me.  I like to keep it simple with my investments.  And iShares is now offering a series of ETFs making it easy to invest in bonds.  These ETF’s allow you to invest in bonds based on their maturities. 

For example, they have funds focused on bonds that will mature in 1-3 years, 3-7 years, 7-10 years, 10-20 years, and 20+ years.  It’s a good idea to have a mixture of short-term, intermediate-term, and long-term bonds in your portfolio for diversification.

If you want to add bonds to your portfolio right now, take a look at the iShares Lehman 1-3 year Treasury Bond Fund (SHY).  It’s yielding around 3.53%.  Longer-term bond funds may offer a higher yield, but shorter-term bonds like these will hold their value better if interest rates start to rise.

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Bid Bond Cost

In sales the most valuable resource we have is our time, and our biggest and most important decision is how we use our time most efficiently. So the most important question we need to ask ourselves on each and every opportunity is should I Bid or not Bid.

When you’re in a new sales role, naturally you want to be active and will talk to anybody who’s willing to listen, and you’ll work on any projects that come your way.

However it shouldn’t take long until your pipeline begins to fill and you start feeling busy. Now you’ve got important decisions to make about who you’re going to invest your time with. You’re decision is made all the more urgent when you need the support of other people within your organisation, and you have to consider the impact of their time and the opportunity cost of their efforts.

The decision to bid always requires the expenditure of time, money, and energy that could be invested elsewhere. So your call to either bid or no bid should not be taken lightly or made carelessly.

Sometimes the decision to go ahead or not is a already made, or it’s a “no brainer” because of existing relationship or the nature of the potential contract.

But when you have the choice it’s an important decision to me and to be successful in sales it’s vital you make this assessment intelligently and weigh up your prospects properly.

Here are 10 crucial questions you need to ask yourself when deciding to Bid or not:

1. Is this a “must Bid” opportunity?

2. Is the prospect really ready to buy? And honestly are you really in a position to be able to supply if they do buy?

3. Is the prospect looking for service and value over a simple price comparison? If they are deciding purely on price and you’re not the cheapest then save yourself a lot of hassle and effort and bow out now – No Bid!

4. Can you introduce some extra added value to the opportunity? Can you move the goalposts and alter the specification in your favour?

5. Do you have a good relationship in place with the client decision makers?

6. Can you meet the requirement in full?

7. Do you have a defined competitive edge? Do you have a technical or commercial advantage that can add value to the opportunity?

8. Are you competitively priced? Either you have a cost competitive offer or you can tangibly offer added value?

9. Can you meet the timescales of the project?

10. Will this lead to further opportunities?

The more times you can answer ‘Yes’ the better this prospect is – 10 “Yes” answers and you’ve got a hot prospect here! Less than 7 and you need to think real hard if this is the best use of your time.

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Bid Bond Insurance

Also, when licenses are given out to bonded locksmiths, the governments, agencies such as the FBI collect identification details. They also collect fingerprint information for each bonded locksmith. This ensures that the bonded locksmith does not have a criminal background. This gives the user of the locksmith services an assurance that the bonded locksmith you are hiring is legitimate and that he uses his craft and skills to ensure your protection.

Finally, and unfortunately, there are many locksmiths out there who are not licensed locksmiths. Many times these unlicensed locksmiths who are often also inexperienced, very unprofessional and simply call themselves “locksmiths” are simply trying to earn as much money as possible. These locksmiths therefore will give deleterious and very misguided advice. Most of the times, these people do not have any real experience in locksmith services. They also lack training in the security industry. They are often very greedy individuals.

It is only a licensed locksmith who can give you qualified advice. He can also give you recommendations regarding your security needs, your security systems, your security solutions security solutions which maybe physical as well as electronic for your home. This advice also is availed of by big business houses.

A licensed locksmith is the one who has filed the necessary paperwork. This paperwork has to be filed with state and sometimes also with federal government agencies. The locksmith then receives a license to operate as an official bonded locksmith. So the next time you seek a locksmith, ask him for his license number first.

An insured locksmith is the one who has purchased liability insurance. This insurance protects both the locksmith and his clients against any accidental damage to the property or to life. This is similar to the car insurance. We must an insured locksmith to ensure the safety of work, property and of life.

A bonded locksmith is bonded when he pays a fee, which is often quite nominal to a bonding company. After passing a background check, these locksmiths are guaranteed that in case of occurrence of an accident, the bonding company will reimburse certain previously agreed upon amount of money. They will then modify the situation and fix the problem. Bonding is similar to insurance. It is an added protection for the client. Many big industry organizations offer bonding for locksmiths in their respective areas. Associated Locksmiths of America (ALOA) offers bonding to their members.

You yourself can also conduct your own locksmith license search. It is your right to get hold of this information. It will assist you in making a responsible decision when choosing your locksmith. Car locksmiths install security hardware similar to deadbolts and access control systems. Car locksmiths can give you advice for your security needs. They can help you gain access to your car if you happen to get locked out. You name it; these locksmiths can help you with it.

For more information visit us today

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