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Contracts Keyed to Calamari
Western Waterproofing Co v. Springfield Housing Authority
Facts
The Plaintiffs, Western Waterproofing Co. ("Western") and Mid-Continental Restoration Company, Inc. ("Mid-Continental")(collectively referred to as the "Plaintiffs"), were subcontractors for a federally funded construction project commissioned by the Defendant, the Springfield Housing Authority (the "Defendant"). In January 1985, the Defendant entered into an agreement with the general contractor, Bildoc, Inc. ("Bildoc"), for the waterproofing and weatherization of certain buildings. Bildoc then entered into contracts with a variety of subcontractors, including the Plaintiffs. The Plaintiffs contributed both labor and materials towards the project. Bildoc was paid most of the money owed to it by the Defendant by December 13, 1985. Western was owed $129,000 and Mid-Continental was to be paid $22,456, but neither of the Plaintiffs was ever paid. The Plaintiffs secured a default judgment against Bildoc, which they could not collect on. The Plaintiffs then filed an action against the Defendant as a third-party beneficiary. The contact between the Defendant and Bildoc required Bildoc to give the Defendant a performance bond. However, the Defendant failed to obtain a bond from Bildoc. The parties are in agreement that if the Defendant had secured a payment bond, the Plaintiffs would have had a right to collect under it. On the other hand, the parties also agree that if the Defendant had secured a performance bond the Plaintiffs would have had no right to collect. The Plaintiffs argue that the bond in question included under the subtitle "Performance and Payment Bond" in the parties contract required both a payment and a performance bond. The Defendant alleges that it was only a performance bond. All parties moved for summary judgment.
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