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Hartford Fire Insurance Co. v. City of Mont Belvieu, Texas

Appellant issued such a bond to a construction company on a city project. When the builder failed to complete punch list items and warranty work, the city sued appellant for compensation under the bond, and a jury found in favor of the city. Appellant now appeals the district court's denial of its motion for judgment as a matter of law. The city's claim was barred by the applicable statute of limitations, and no act of appellant excuses the city's failure to bring suit within the limitations period. 5th U.S. Circuit Court of Appeals, No. 09-40586, 07-15-2010

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Published opinion

Before JONES, Chief Judge, and BENAVIDES and PRADO, Circuit Judges.

A performance bond guarantees the timely completion of a construction project for the benefit of the project’s owner. The Hartford Fire Insurance Company issued such a bond to a construction company on a project for the City of Mont Belvieu, Texas. When the builder failed to complete punch list items and warranty work, the City sued Hartford for compensation under the bond, and a jury found in favor of the City, awarding nearly $500,000 in damages. Hartford now appeals the district court’s denial of its motion for judgment as a matter of law. Because the City’s claim was barred by the applicable statute of limitations, and no act of Hartford excuses the City’s failure to bring suit within the limitations period, we sustain Hartford’s position and reverse and render the judgment.

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