Hanson Pipe & Products, Inc. v. Falcon Construction Corp.

Summary

The court addressed claims for unpaid concrete materials supplied on two municipal construction projects, each covered by a separate payment bond. It held that the defendant surety for the Glenrock Project was protected by the statute of limitations and that the surety for the Little Creek Project was not liable for Glenrock materials because the bonds clearly covered distinct projects. The court also rejected equitable-estoppel arguments and ruled in favor of both defendant sureties.

Holdings

1. F&D was not equitably estopped from asserting the statute of limitations because F&D had no knowledge of the lawsuit or of any misinformation given to Hanson and owed no duty to disclose the existence of its bond before being served.
2. USF&G was not contractually liable for the Glenrock materials because its bond plainly covered the non-Part-B Little Creek project, while F&D's separate bond expressly covered the Glenrock Project, designated as Part B.
3. USF&G was not equitably estopped from denying liability for the Glenrock materials because its conduct did not cause the limitations delay in a manner that benefited USF&G; any resulting inability to sue benefited F&D, the separate surety.

Questions Presented

1. Whether F&D was equitably estopped from asserting Virginia's one-year statute of limitations for an action on the Glenrock payment bond.
2. Whether the plain language of USF&G's Little Creek payment bond made USF&G liable for materials supplied to the separately bonded Glenrock Project.
3. Whether USF&G was equitably estopped from denying liability for the Glenrock materials because it did not disclose the existence of F&D's separate bond.

Disposition

other