Starnes Davis Florie


Keenan Prevails in Surety Trial

June 23, 2016

Matt Keenan recently prevailed in representing a surety company on a construction project involving renovations to a local mental health facility in an Interpleader action brought by the facility in Mobile County following the completion of work by the surety. The facility claimed offsets for amounts paid directly to vendors, as well as various repairs and additional architectural/attorney’s fees, all of which exceeded the $298,000 in remaining contract funds by some $10,000. The surety company conceded that the facility, under the performance bond, was entitled to withhold additional architectural/attorney’s fees totaling approximately $40,000, but nothing else. Following a three day bench trial, the trial court agreed with the surety company and entered judgment in their favor in the amount of $260,000. In so doing, the Court rejected the owner’s efforts to offset additional amounts from the remaining contract funds totaling over $268,000.

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