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Appellate Court Affirms Issue of Fact Regarding Waiver of Performance Bond

Appellate Court Affirms Issue of Fact Regarding Waiver of Performance Bond

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In Pike Co. v. Customweld Industries, the Appellate Division, Second Department, affirmed a 2012 decision and order of the Honorable Emily Pines (Suffolk County) wherein it was determined that questions of fact existed as to whether Pike had waived a contractual requirement to obtain a payment and performance bond.

Customweld Industries and Slip Fit, Inc. claim that they performed more than $800,000 worth of work and were never paid a penny by Pike Co.  Pike Co. claimed that Customweld and Slip Fit were properly terminated.  The Supreme Court found there were questions of fact as to whether Pike waived the bond requirement by allowing over $800,000 worth of work to proceed.  The Appellate Division affirmed the Supreme Court’s decision, finding that there were, indeed, questions of fact as to the waiver of the bond.  The Appellate Division also found that there were questions of fact as to whether the alleged deficiencies in the construction were caused by Pike’s premature termination of Customweld and Slip Fit.

Kushnick Pallaci PLLC Managing Partner Vincent T. Pallaci argued the appeal for Customweld and Slip Fit.  The appellate brief was written by Mr. Pallaci and Jeffrey Lhuillier.

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