National Fuel Gas Distribution Corporation v. Hartford Fire Insurance Company
Supreme Court of New York, Appellate Division, Fourth Department
814 N.Y.S.2d 436 (N.Y. Sup. 2006)
National Fuel Gas Distribution Corporation (National) (plaintiff) entered into a service agreement with Iroquois Energy Management, LLC (Iroquois) that was guaranteed by a surety bond from Hartford Fire Insurance Company (Hartford) (defendant). The bond included a requirement that National “notify [Hartford] in writing within five (5) business days if [Iroquois was] in default, partially or in full, and [if National had] made a determination to grant an extension of time for payment by [Iroquois].” Iroquois was in default from April to August 2000, but National gave Iroquois extensions for payment. National did not give notice to Hartford of the defaults or the extensions until August 1, 2000. Subsequently, Iroquois went bankrupt and National brought suit against Hartford to recover on the surety bond. The trial court denied Hartford’s motion for summary judgment. Hartford appealed on that issue.
Rule of Law
Holding and Reasoning (Per Curiam)
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