Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-00390/USCOURTS-azd-2_12-cv-00390-2/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Travelers Casualty and Surety Company of

America, 

Plaintiff, 

vs.

W.P. Rowland Constructors Corporation,

et al., 

Defendants. 

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No. CV-12-00390-PHX-FJM

ORDER

The court has before it defendants’ motion for reconsideration (doc. 110). Defendants

ask us to reconsider the part of our order dated May 22, 2013 that grants Traveler’s motion

for summary judgment on Count 2 in the complaint, seeking specific performance of

defendants’ promise to post collateral. We ordered defendants to provide Travelers with

collateral in the total amount of $1,303,088 to cover Travelers potential financial exposure

under the Bonds. Defendants now complain that this amount mistakenly included the

$626,411.34 judgment that we awarded with respect to Count 1, thereby overcompensating

Travelers for potential pending clams. We disagree.

Travelers has a total bond exposure of more than $34 million. It has submitted

evidence that it is currently facing in excess of $516,000 in pending payment bond claims

by subcontractors and suppliers. PSOF ¶ 24 (doc. 82). Travelers also faces potential

Case 2:12-cv-00390-FJM Document 113 Filed 06/11/13 Page 1 of 2
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performance bond exposure in excess of $2 million in claimed damages involving a

construction defect lawsuit filed on the Limestone Project. PSOF ¶ 21. Defendants agreed

“to deposit with [Travelers] upon demand, an amount determined by [Travelers] sufficient

to discharge any Loss or anticipated Loss.” Indemnity Agreement ¶ 5. Travelers has

adequately demonstrated anticipated Losses in excess of $1,303,088, the collateral amount

awarded. 

IT IS ORDERED DENYING defendants’ motion for reconsideration (doc. 110).

DATED this 11th day of June, 2013.

Case 2:12-cv-00390-FJM Document 113 Filed 06/11/13 Page 2 of 2