Louisville, KY asked in Contracts and Construction Law for Kentucky

Q: We provided a Final Clean for a Large Dealership in Louisville KY. The GC has not paid in two months

We files a Demand Lrt, NOI and Mechanic Lien. They bonded off and we filed claim against the surety bond. Our bond was denied and I dont understand how it reads. The terms of the Bond define the obligations of the Surety. As such, the Bond states:

“…NOW, THEREFORE, if the above Principal [Kelley] shall pay any sum which the

claimant [Elements] may recover on the claim together with the costs of suit in the action

to enforce such claim of lien, if he recovers therein, then this obligation shall be void,

otherwise to remain in full force and effect.” (emphasis added) What does this mean It is the Surety’s understanding that Elements has not filed an action to enforce its claim of lien. Moreover,

review of Article 6 of the contract between Kelley and Elements (the “Subcontract”) provides that “[C]laims,

disputes, or other matters in controversy arising out of or related to this Subcontract…shall be subject to

mediation as a condition precedent to binding dispute resolution.

Related Topics:
1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Louisville, KY
  • Licensed in Kentucky

A: It appears to mean you have to go to mediation first, and then binding arbitration against the defaulting party prior to attempting to collect from the surety. In short, it looks like they are saying you have not exhausted all your remedies against the defaulting party prior to seeking compensation from the surety.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.