Your Principal has defaulted or informs you that it needs financing from the Surety, otherwise it will default. These decisions can be complicated and difficult. In most situations, completing the project should be the first objective and the Surety is under pressure to make a decision quickly. For over 25 years, Vernon & Duray, L.L.P. has been assisting Surety clients in investigating performance bond defaults, assessing completion options, locating potential completion contractors, re-bidding contracts, negotiating and monitoring financing agreements with the Principal/lndemnitors and/or negotiating buy-out agreements with the Obligee.
Our firm will also investigate any claims of the Principal and potential Surety defenses, while reserving all rights. Our hourly rates are very competitive when compared to surety consultant firms. Some of the advantages of using our law firm over a surety consultant include:
- We keep up to date on the latest legal decisions concerning Surety issues and will promptly identify and investigate any potential Surety defenses, while reserving the Surety’s rights and defenses.
- We are attorneys and also handle subrogation, so we attempt to motivate the lndemnitors to get actively involved. lndemnitors may be able to assist in mitigating costs since they may have special knowledge or expertise. If the lndemnitors are not cooperative, we make sure the Surety’s claims against the lndemnitors are properly documented and the necessary notices are given to the lndemnitors so that the Surety can respond to any potential defenses the lndemnitors may attempt to raise at a later date concerning the Surety’s handling of a Performance or Payment claim.
- Our law firm has trial experience defending Sureties. In the unfortunate event the Performance Bond Claim subsequently ends up in ligation, our law firm can defend the Surety and the Surety does not incur the cost of educating its trial counsel. Our primary goal is always to assist the client in mitigating its costs, including its attorney’s fees.