Legal Opinion

Berlin Steel Construction Co. v. Salah & Pecci Leasing Co.

Supreme Court of Delaware

Decided October 4, 2010No. 678, 2009Published

1Opinion of the Court

BERGER, Justice:

In this appeal we consider whether a leasing company that provided equipment on a construction project may recover from the principal or surety under the terms of a bond. The bond defines a claimant as one having a direct contract with the principal or a subcontractor of the principal. The leasing company had neither. Its contract was with a subcontractor of the subcontractor. Accordingly, under the plain language of the bond, the leasing company is not a “claimant” and may not seek payment from the bond.

Factual and Procedural Background

This dispute arises from a 2006…

2Cases cited5 opinions

  1. JW Bateson Co. v. United States Ex Rel. Bd. of Trustees of Nat. Automatic Sprinkler Industry Pension FundSupreme Court of the United States · 1978
  2. Royal Indemnity Co. v. Alexander Industries, Inc. Ex Rel. Berger Acoustical Co.Supreme Court of Delaware · 1965
  3. Knecht, Inc. v. United Pacific Insurance CompanyCourt of Appeals for the Third Circuit · 1988
  4. Aetna Casualty & Surety Co. v. Kemp Smith Co.District of Columbia Court of Appeals · 1965
  5. Home Indemnity Co. v. Daniels Construction Co.Supreme Court of Alabama · 1969

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