Opinion ID: 329551
Heading Depth: 2
Heading Rank: 3

Heading: Recovery of Bond Premium

Text: 21 Under the Declaratory Judgment Act, Further necessary or proper relief based on a declaratory judgment or decree may be granted, after reasonable notice and hearing, against any adverse party whose rights have been determined by such judgment. 28 U.S.C. § 2202. It is well settled that further relief may include an award for damages. Security Insurance Company of New Haven v. White, 236 F.2d 215, 220 (10 Cir. 1956); Hudson v. Hardy, 137 U.S.App.D.C. 366, 424 F.2d 854, 855 (1970). In deciding whether to award damages or require the parties to engage in further litigation the determinative factor is which solution will result in the most expeditious and just conclusion of the controversy. Maryland Cas. Co. v. Boyle Const. Co., 123 F.2d 558, 565 (4 Cir. 1941). 22 Appellant does not question these legal principles, but contends that Beacon was not forced to file the bond and had two available alternatives. The first alternative suggested was serving a notice pursuant to New York Lien Law § 59; and the second was to exercise its right under Paragraph 14 of the contract in which Matco constituted Beacon its agent to discharge any liens which might be filed by Matco. 15 23 We conclude that Beacon was not required to follow either of the suggested alternatives. Matco had breached its contract in filing the lien notice. The bond effected a prompt discharge of the lien and permitted construction and financing to proceed without unnecessary delay. In this respect purchasing the bond was preferable to either of the suggested alternatives and was a reasonable attempt to mitigate damages. The cost of obtaining the bond was an expense Beacon would not have incurred in the absence of Matco's breach. 16 The district court did not err in awarding Beacon damages in the amount of the bond premium. 17 24 Affirmed.