Travelers Casualty and Surety Company of America v. W.P. Rowland Constructors Corporation et al

Filing 113

IT IS ORDERED DENYING defendants motion for reconsideration 110 . (See attached PDF for details.) Signed by Senior Judge Frederick J Martone on 6/11/13.(JAMA)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Travelers Casualty and Surety Company of)
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America,
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Plaintiff,
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vs.
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W.P. Rowland Constructors Corporation,)
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et al.,
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Defendants.
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No. CV-12-00390-PHX-FJM
ORDER

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The court has before it defendants’ motion for reconsideration (doc. 110). Defendants

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ask us to reconsider the part of our order dated May 22, 2013 that grants Traveler’s motion

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for summary judgment on Count 2 in the complaint, seeking specific performance of

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defendants’ promise to post collateral. We ordered defendants to provide Travelers with

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collateral in the total amount of $1,303,088 to cover Travelers potential financial exposure

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under the Bonds. Defendants now complain that this amount mistakenly included the

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$626,411.34 judgment that we awarded with respect to Count 1, thereby overcompensating

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Travelers for potential pending clams. We disagree.

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Travelers has a total bond exposure of more than $34 million. It has submitted

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evidence that it is currently facing in excess of $516,000 in pending payment bond claims

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by subcontractors and suppliers. PSOF ¶ 24 (doc. 82). Travelers also faces potential

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performance bond exposure in excess of $2 million in claimed damages involving a

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construction defect lawsuit filed on the Limestone Project. PSOF ¶ 21. Defendants agreed

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“to deposit with [Travelers] upon demand, an amount determined by [Travelers] sufficient

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to discharge any Loss or anticipated Loss.” Indemnity Agreement ¶ 5. Travelers has

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adequately demonstrated anticipated Losses in excess of $1,303,088, the collateral amount

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awarded.

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IT IS ORDERED DENYING defendants’ motion for reconsideration (doc. 110).

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DATED this 11th day of June, 2013.

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