Sloan & Company v. Liberty Mutual Insurance Company

653 F.3d 175 (2011)

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Sloan & Company v. Liberty Mutual Insurance Company

United States Court of Appeals for the Third Circuit
653 F.3d 175 (2011)

  • Written by Mary Pfotenhauer, JD

Facts

Shoemaker was a contractor on a project for Isla of Capri Associates LP (IOC). Sloan & Company (Sloan) (plaintiff) was a subcontractor on the project. Liberty Mutual Insurance Company (Liberty Mutual) (defendant) insured payment for the subcontractors’ work. Under the terms of Sloan’s subcontract, IOC’s final payment to Shoemaker was a condition precedent to Shoemaker’s payment to Sloan. The subcontract also provided that, if Sloan had not received payment within six months of when payment from IOC to Shoemaker was due, Sloan could pursue a claim against Shoemaker and Liberty Mutual for payment. When the project was finished, IOC refused to pay Shoemaker, and Shoemaker then refused to pay Sloan. Sloan sued Liberty Mutual for payment. The district court granted partial summary judgment in favor of Sloan, and Liberty Mutual appealed.

Rule of Law

Issue

Holding and Reasoning (Ambro, J.)

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