Friday, March 01, 2019 1:44 am
February 2019 - Volume 41 Number 3

Bonds — Indemnity

N. Am. Specialty Ins. Co. v. Masonry Builder’s of KY, Inc., 2018 U.S. Dist. Lexis 196824 (E.D. Ky. November 19, 2018)

By executing a broad indemnity agreement, a contractor gave up its right to complain about the way its bond surety made decisions regarding payment to a project supplier.

In May 2013, surety North American Specialty Insurance Company (NAS) issued both payment and performance bonds to Masonry Builder’s of KY, Inc. (Masonry) on a brick work construction project at the Morgan County Wellness and Youth Center.

At some point during Masonry’s contract performance, the project owner issued an unauthorized change: It selected an alternative brick product supplied by Hinkle Block and Masonry, LLC (Hinkle). Hinkle sought payment for the supplied brick from Masonry, but the contractor refused to pay, contending that the project owner should pay the difference in material costs related to the alternate product.

Hinkle submitted a claim to NAS for $66,596 against Masonry’s bond. After two years of litigation, NAS and Hinkle reached a settlement in the amount of $64,958. Next, NAS sought reimbursement from Masonry for all expenses incurred in defending and settling the Hinkle litigation. Masonry refused, and NAS initiated the current action to recover the requested sums.

NAS moved for summary judgment, seeking indemnification from Masonry. The district court ruled that, under the parties’ broad indemnity agreement, Masonry was responsible for reimbursing NAS for its bond payments in the Hinkle litigation.

Agreement encompassed any and all loss

The record showed that Masonry induced NAS into providing the bonding capacity required for the project by agreeing to enter into a broad general indemnity agreement.

Generally speaking, “[a] contract of indemnit[..]


Dear Valued Customers,

We regret to announce that ProEdTech LLC and all its affiliate brands will cease operations on April 1, 2019.

We are no longer able to fulfill online orders. We will fullfill all DVD and book orders already placed.

Customers of canceled webinars and subscription products may request a refund at (800) 223-8720 or You must do so by April 1, 2019.

Thank you for your business and loyalty over the years. We sincerely apologize for any inconvenience caused.

Best regards,
The ProEdTech Team