Atlantic Refinishing & Restor., Inc. v. Travelers

Desbuild, Inc., was chosen as the general contractor on a government-funded restoration project and entered into a contract with the General Services Administration (GSA) to provide exterior masonry repair, painting, and cleaning. Desbuild then entered into a subcontract for certain materials and services to be provided by Atlantic Refinishing & Restoration, Inc. (Atlantic) (plaintiff). As the general contractor, Desbuild was required to issue a payment bond for the benefit of subcontractors and suppliers. Desbuild was named as the principal on the payment bond, and Travelers Casualty and Surety Company of America (Travelers) (defendant) was named as the surety. Desbuild and Travelers entered into a surety agreement, which entitled Travelers to seek indemnification from Desbuild for adverse judgments arising from Desbuild’s actions. Subsequently, in September 2009, GSA terminated Desbuild’s contract for cause. Over the course of the project, Atlantic sent Desbuild invoices totaling $197,344.25, of which $97,281.25 allegedly remained unpaid. Following Desbuild’s alleged refusal to remit the outstanding balance, on April 30, 2010, Atlantic brought an action against Travelers as the sole defendant, claiming liability for the amount owed and demanding payment. On July 19, Desbuild filed a motion to intervene as a defendant. Atlantic objected, arguing that Desbuild lacked the necessary interest in the subject matter and that any interest it did have would be adequately protected by Travelers.