Kalfountzos v. Hartford Fire Insurance Co.

Opinion

NICHOLSON, Acting P. J.

A subcontractor on a public works project sued the general contractor for money claimed due. The subcontractor also sued the surety on the contractor’s payment- and stop-notice release bonds. At trial, the subcontractor asserted the surety could not raise the contractor’s defenses and setoffs because the contractor was in corporate suspense because of nonpayment of franchise fees and could not defend itself in court. We affirm the trial court’s judgment in favor of the surety. A surety, under these circumstances, can assert defenses and setoffs to the underlying…