ASA applauds Maryland court decision safeguarding subcontractors’ payment bond rights

Association filed brief supporting subcontractor’s position

The American Subcontractors Association (ASA) recently praised the Maryland Court of Appeals for ruling in favor of the subcontractor in the case of National Union Fire Insurance Company of Pittsburgh, Pa. v. Wadsworth Golf Construction Company of the Midwest. The ruling upheld the trial court’s decision that a payment surety’s failure to respond to a subcontractor’s claim in the manner prescribed in a bond form prevented the surety from disputing the claim, and required the claim to be paid in full.

In May 2005, the ASA, in conjunction with its Baltimore chapter and the D.C. Metropolitan Subcontractors Association, filed a brief supporting the subcontractor’s position that the lower court’s decision should be upheld.