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L.J. Coppola Inc. v. N. Am. Specialty Ins. Co.

Insurer Owed No Duty of Care, as Surety, to Contractor on Construction Project

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OPINION & ORDER Plaintiff L.J. Coppola, Inc. (“Plaintiff”) brings this action against North American Specialty Insurance Company (“Defendant”), asserting a claim of common-law negligence after Defendant allegedly issued payment and performance bonds to a general contractor that it knew was severely undercapitalized and insolvent. (ECF No. 1.) Presently before the Court is Defendant’s motion to dismiss the Complaint. (ECF No. 10.) For the following reasons, the motion is GRANTED. BACKGROUND The following facts are taken from Plaintiff’s Complaint (ECF No. 1) and are accepted as true and construed in the light most favorable to Plaintiff for purposes of this motion. On or about February 12, 2016, Plaintiff entered into lump sum construction contracts to perform certain plumbing work and HVAC work on a construction project (the “Project”). (Compl.

15, 19.) APS Contractors, Inc. (“APS”) is a general contractor that entered into a lump sum construction contract with the State of New York to perform general contracting services for the Project. (Id. 6.) Upon information and belief, Defendant issued certain labor and material payment and performance bonds to APS, guaranteeing prompt payment of all monies due to all persons furnishing materials or performing labor in connection with the Project. (Id. 7.) Upon information and belief, Defendant knew that APS was severely undercapitalized and insolvent when it issued certain labor and material payment and performance bonds for the Project. (Id.

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