Statute of Limitations on Performance Bond Claim Begins to Run When Bonded Contractor Defaults on Construction Contract

2019-02-16T06:50:54-05:00December 24th, 2017|Categories: Bonds|Tags: |

In Lexon Insurance Company v. City of Cape Coral, 2017 WL 5759059 (Fla 2d DCA Nov. 29, 2017), the court held that the five-year statute of limitations on a surety bond contract begins to run once the bond principal (typically a contractor) breaches the bonded contract, not when the bond obligee (typically the owner) demands that the surety cure the principal’s default and not when the surety denies the bond claim. [...]