![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]>
Thank You For Submiting Feedback!
United States Bankruptcy Court for the Middle District of Tennessee
November 17, 2022, Decided
Case No. 3:22-bk-00670, Chapter 11, Subchapter V, Adv. Proc. No. 3:22-ap-90072 (Lead Adversary), Adv. Proc. No. 3:22-ap-90083
[*355] ORDER AND MEMORANDUM OPINION ON MOTION FOR PARTIAL SUMMARY JUDGMENT
A determination about the nature of surety bonds issued in connection with two of Debtor's construction projects will help move this litigation a step closer toward a resolution. A critical state law issue — whether the surety bonds are "common law bonds" or "statutory bonds" — is the primary question in competing requests for partial summary judgment. Tennessee law applied to undisputed facts dictates a finding that the bonds are common law bonds.
Plaintiffs Hayes Pipe Supply, Inc. and Hawkins & Price, LLC filed a joint motion for partial summary judgment on three issues that the parties [**3] agreed were threshold issues that the Court should hear early in the case. The motion was opposed by defendant Aegis Security Insurance Company, who sought a contrary resolution of those threshold issues. The parties fully briefed the issues, and the Court heard argument on November 8, 2022.
[*356] None of the issues is fully dispositive of the claims, but instead the parties agreed that the resolution of the issues will shape the cases and the parties' discussions going forward. (Pretrial Order, Doc. 21.) The first issue, whether bonds issued by Aegis are common law bonds or statutory bonds, could be determinative of the other two issues, which the parties agreed would only apply if the Court determines the bonds to be statutory. Since the Court finds the bonds to be common law bonds, it is not necessary to address the other two issues.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
647 B.R. 352 *; 2022 Bankr. LEXIS 3241 **; 2022 WL 17069720
IN RE: Pinnacle Constructors, Inc., and Kevin Webb, Debtors.Hayes Pipe Supply, Inc., Plaintiff, v. Aegis Security Insurance Company, and Hawkins & Price, LLC, Defendants.Hawkins & Price, LLC, Plaintiff, v. Aegis Security Insurance Company, Defendant.
Bonds, notice, surety, provisions, common law, statutory bond, contractor, claimants, terms, requirement of notice, statutory requirements, common law bonds, parties, labor and material, greater right, coverage, notice provision, deleted, factors, partial summary judgment, legal requirements, limitations period, rights, public works, courts, cases, weigh, terms of the contract, statutory minimum, time limit
Bankruptcy Law, Procedural Matters, Adversary Proceedings, Judgments, Civil Procedure, Judgments, Summary Judgment, Burdens of Proof, Burdens of Proof, Nonmovant Persuasion & Proof, Entitlement as Matter of Law, Movant Persuasion & Proof, Public Contracts Law, Bids & Formation, Subcontractors & Subcontracts, Surety Bonds, Bonds, Sureties, Procedural Matters, Contract Terminations, Performance Bonds, Governments, Legislation, Statute of Limitations, Time Limitations, Contract Performance, Subcontractors & Subcontracts, Business & Corporate Compliance, Contracts Law, Types of Contracts, Guaranty Contracts, Courts, Common Law, Local Governments, Employees & Officials, Interpretation