Opinion ID: 2382247
Heading Depth: 1
Heading Rank: 8

Heading: Bond Claim

Text: Seaboard complains that the court of appeals miscalculated the amount of the bond claim recovery against Seaboard. We agree. As provided by the McGregor Act, a general contractor is required to execute a payment bond on public works projects. TEX.REV.CIV. STAT. art. 5160(A) (Vernon 1987). [1] The payment bonds on the Snyder and the Dayton Projects were furnished pursuant to the McGregor Act. Under the McGregor Act, a subcontractor's recovery on a bond claim must not exceed the amount of the subcontract price. TEX.REV.CIV. STAT. art. 5160(C)(c) (Vernon 1987) (A subcontractor shall have a claim, but such claim, including previous payments however, shall not exceed that proportion of the subcontract price which the work done bears to the total of the work covered by the subcontract.). Seaboard was the surety on the payment bonds for all three projects. The jury found that Solis had perfected his claim on his bond for $42,229 on the Snyder Project and $53,024 on the Dayton Project, thus totaling $95,253 against Seaboard. The trial court modified the recovery on the bond to $50,058. The court of appeals reinstated the jury's original finding that Solis had perfected his bond claim of $95,253 against Seaboard. Solis, however, is entitled to recover only $78,911 on his bond claim against Seaboard for the Snyder and Dayton Projects. The jury found that the remaining balance on the Snyder Project subcontract was $43,983. The jury found a bond claim against Seaboard for $42,229 on the Snyder Project. This recovery is permissible under the McGregor Act because it is less than the amount due on the subcontract. The jury also found a bond claim against Seaboard for $53,024 on the Dayton Project. However, in a prior question, the jury determined that Green owed a remaining balance of only $36,682 on the Dayton Project. The jury award against Seaboard was more than the amount owed on the subcontract. In order to comply with the McGregor Act, the amount awarded by the jury against Seaboard on the Dayton Project must be reduced to the amount owed on the subcontract, $36,682. Thus, Seaboard is liable for a total of $78,911 on the Dayton and Snyder Projects.