Just because It Says It is a Miller Act Payment Bond Doesn’t Make It so

Just because a payment bond smells like a Miller Act payment bond, walks like a Miller Act payment bond, and talks like a Miller Act payment bond doesn’t actually mean it is a Miller Act payment bond.   What?!?     My sentiments exactly.

In a recent case, a prime contractor furnished a Miller Act payment bond. When a subcontractor sued the bond in federal court, the prime contractor and bond surety argued that it was NOT a Miller Act payment bond.   The reason being is that the project was not a public work project of the Federal Government.  This means that regardless of what the bond actually says, it does not matter because the Miller Act only applies to public work projects of the Federal Government.

There is always analysis and nuances that goes along with any payment bond claim, including a claim argued under the Miller Act.  Appreciate those nuances no matter how crazy they may–and probably are–seem.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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