A07-2134, Liberty Mutual Insurance Company, Respondent, vs. Northeast Concrete Products, LLC, et al., Appellants, and Northeast Concrete Products, LLC, Appellant, vs. Liberty Mutual Insurance Company,

State: Minnesota

Court: Court of Appeals

Docket No: A07-2134

Case Date: 09/30/2008

Preview:STATE OF MINNESOTA IN COURT OF APPEALS A07-2134 Liberty Mutual Insurance Company, Respondent, vs. Northeast Concrete Products, LLC, et al., Appellants, and Northeast Concrete Products, LLC, Appellant, vs. Liberty Mutual Insurance Company, Respondent. Filed September 23, 2008 Affirmed Connolly, Judge Hennepin County District Court File No. 27-CV-06-16977 . Holly J. Newman, Marilyn J. Rosberg, Mackall, Crounse & Moore, PLC, 1400 AT&T Tower, 901 Marquette Avenue, Minneapolis, MN 55402; and Robert G. Watt, C. William Groscup, Watt, Tieder, Hoffar & Fitzgerald, L.L.P., 8405 Greensboro Drive, Suite 100, McLean, Virginia 22102-5104 (for respondent) Kyle E. Hart, Julie A. Doherty, Fabyanske, Westra, Hart & Thomson, P.A., 800 LaSalle Avenue, Suite 1900, Minneapolis, MN 55402 (for appellant)

Considered and decided by Connolly, Presiding Judge; Worke, Judge; and Muehlberg, Judge. SYLLABUS Minnesota law does not require a showing of fraudulent intent to prove that a surety acted in bad faith relating to its obligations concerning the issuance of a performance bond in a construction project. OPINION CONNOLLY, Judge Appellant argues that summary judgment was improperly granted and $400,000 in escrowed funds was improperly released by the district court. Because the district court did not err in granting summary judgment, nor did it abuse its discretion in releasing the funds, we affirm. FACTS In 2003, M.A. Mortenson Company (Mortenson) and the United States Navy entered into a design/build contract relating to the construction of a parking garage (the project). On September 25, 2003, Mortenson and appellant Northeast Concrete Products, LLC (NECP), entered into a subcontract whereby Mortenson was to pay NECP $4,667,000 to structurally design, fabricate, and erect the precast concrete structure for the project. On December 15, 2003, respondent Liberty Mutual Insurance Company (Liberty) issued the performance bond for the project as the surety, naming NECP as

Retired judge of the district court, serving as judge of the Minnesota Court of Appeals by appointment pursuant to Minn. Const. art. VI,

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