Case Name: DOOLEY AND MACK CONSTRUCTORS, INC., Appellant, v. DEVELOPERS SURETY AND INDEMNITY COMPANY and Buildtec Construction Group, Inc., Appellees
Court: Florida District Court of Appeal
Jurisdiction: Florida
Decision Date: 2007-11-07
Citations: 972 So. 2d 893
Docket Number: No. 3D06-689
Parties: DOOLEY AND MACK CONSTRUCTORS, INC., Appellant, v. DEVELOPERS SURETY AND INDEMNITY COMPANY and Buildtec Construction Group, Inc., Appellees.
Judges: Before SHEPHERD, J., and SCHWARTZ and FLETCHER, Senior Judges.
Reporter: Southern Reporter, Second Series
Volume: 972
Pages: 893–900

Head Matter:
DOOLEY AND MACK CONSTRUCTORS, INC., Appellant, v. DEVELOPERS SURETY AND INDEMNITY COMPANY and Buildtec Construction Group, Inc., Appellees.
No. 3D06-689.
District Court of Appeal of Florida, Third District.
Nov. 7, 2007.
Rehearing and Rehearing En Banc Denied Feb. 7, 2008.
Gurley Dramis Lazo; Elizabeth Russo and Jonathan L. Gaines, Miami, for appellant.
Etcheverry Harrison LLP and Guy W. Harrison and Edward Etcheverry, Plantation, for appellee Developers Surety and Indemnity Co.
Before SHEPHERD, J., and SCHWARTZ and FLETCHER, Senior Judges.

Opinion:
SCHWARTZ, Senior Judge.
The appellant Dooley and Mack Constructors, Inc., the general contractor on a Miami-Dade Community College project, was the obligee on a performance bond issued by Developers Surety and Indemnity Company, on behalf of Buildtec Construction Group, Inc., the masonry subcontractor. Dooley appeals from a final summary judgment for the surety in an action for damages it sustained when, after Buildtec defaulted by abandoning the job, Dooley undertook to and did complete the masonry work itself. We reverse.
The basis of the ruling below was the undisputed fact that the plaintiff had not formally notified the surety of its alleged right to cure its principal's default by itself completing the masonry work or otherwise arranging for the masonry work to be done. Under a familiar term of a "standard" surety bond, which is included in this one, such a failure would indeed result in a termination of the surety's obligations. E.g., Ins. Co. of N. Am. v. Metro. Dade County, 705 So.2d 33 (Fla. 3d DCA 1997); Seaboard Sur. Co. v. Town of Greenfield, 370 F.3d 215 (1st Cir.2004); L & A Contracting Co. v. S. Concrete Sens., Inc., 17 F.3d 106 (5th Cir.1994)(applying Florida law); Sch. Bd. of Escambia County v. TIG Premier Ins. Co., 110 F.Supp.2d 1351 (N.D.Fla.2000). This rule does not apply here, however, simply because the particular agreement involved in this case — which was drafted by Dooley (quite obviously for its own benefit) and accepted by the surety — contained an additional decisive provision which, to the contrary, specifically permits Dooley to proceed as it did. See OBS Co. v. Pace Constr. Corp., 558 So.2d 404 (Fla.1990); DCC Constructors, Inc. v. Randall Mech., Inc., 791 So.2d 575 (Fla. 5th DCA 2001); Henderson Inv. Corp. v. Int'l Fid. Ins. Co., 575 So.2d 770 (Fla. 5th DCA 1991); Nat'l Fire Ins. Co. of Hartford v. Fortune Constr. Co., 820 F.3d 1260 (11th Cir.2003)(applying Florida law), cert, denied, 540 U.S. 873, 124 S.Ct. 221, 157 L.Ed.2d 133 (2003). Article 5(d) of the subcontract, which was expressly made a part of the entire agreement, ("Subcontract is by reference made a part hereof, and is hereinafter referred to as the Subcontract") states as follows:
If, in the opinion of Contractor, Subcontractor falls behind in the progress of the WORK, Contractor may require the Subcontractor to take such steps as Contractor deems necessary to improve the rate of progress including additional labor and labor time, plant time, or other remedies. Additionally, Contractor has the option, but not the obligation, to notify the Subcontractor that upon its failure to satisfactorily improve the rate of progress after forty-eight (48) hours notice, Contractor shall have the right to declare the Subcontract breached and take charge of and complete the performance of the WORK with such persons, firms, or corporations as Contractor shall deem necessary. In the event the cost to complete Subcontractor's contract exceeds the original contract price, Subcontractor shall be liable for all such extra costs and damages. The Subcontractor, its surety, and any bond shall be hable to all losses, damages, and expenses, including attorneys' fees and costs incurred in the prosecution or defense of any action, suit, or arbitration incurred by or resulting to the Contractor on the above account.
(Emphasis added). Reading all portions of the several documents together, as the law requires, see OBS Co., 558 So.2d at 406, it seems clear that they expressly grant Dooley the option either to call upon the surety, see Ins. Co. ofN. Am., 705 So.2d at 33, or, as it did, to cure Buildtee's default itself and thereafter hold the "surety, and [the] bond . liable to all losses, damages, and expenses," (emphasis added), without notifying the surety as Article 5(d) simply does not require. Because none of the cases or authorities cited by the surety and relied on by the trial court involves the term which controls this case, a contrary result is required. See RLI Ins. Co. v. St. Patrick's Home for the Infirm & Aged, 452 F.Supp.2d 484 (S.D.N.Y.2006)(holding that absence of explicit notice requirement of principal's default to surety distinguishes cases finding that notice is condition precedent to surety's payment under bond); see generally Kilpatrick Bros. Painting v. Chippewa Hills Sch. Dist., No. 262396, 2006 WL 664210 (Mich.Ct.App. Mar.16, 2006).
Accordingly, we reverse the judgment below with directions to enter summary judgment on liability for the appellant and for further proceedings to determine its damages.
Reversed and remanded.
FLETCHER, Senior Judge, concurs.
. NOW,
THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Subcontractor shall promptly and faithfully perform said Subcontract, then this obligation shall be null and void; otherwise it shall remain in full force and effect. Whenever Subcontractor shall be, and declared by Obligee to be in default under the Subcontract, the Obligee having performed its obligations thereunder, the Surety may promptly remedy the default or shall promptly:....
(Emphasis added).