Opinion ID: 527147
Heading Depth: 2
Heading Rank: 3

Heading: Waiver Theory

Text: 34 Under a waiver theory, Whitehurst-Lassen and USF & G have the burden of proving that Trane expressly intended to relinquish its statutory rights through a clear and explicit waiver. The district court based its holding, in part, on the theory that Trane waived its statutory rights by requesting a purchase order for the air conditioning equipment. Trane's request for the August 15, 1986 purchase order for the air conditioning equipment, however, was akin to a request for additional security which the case law holds does not constitute a waiver of statutory rights. For example, in United States v. Glassman, 397 F.2d 8 (4th Cir.1968), a general contractor issued joint checks payable to both the sub-contractors and the materialman which contained waiver clauses to cover the costs of supplies the materialman had provided. Because the subcontractor was experiencing financial problems, the materialman allowed the subcontractor to retain more than its proportionate share of the checks. After the subcontractor defaulted, the materialman instituted a Miller Act claim and the general contractor defended on the basis of estoppel, waiver, and payment. 35 The Glassman Court held that where a general contractor attempts to avoid its statutory liability under a waiver theory, it must prove the supplier clearly and explicitly waived its rights under the payment bond. Id. at 10. Absent the clear language of an express waiver, we think none is to be implied; as we have held in the past, requesting and accepting 'additional security' does not indicate an intention to waive the right to that already in hand. Id. at 11 (citations omitted). 36 Similarly, in United States v. Forrester, 441 F.2d 779 (5th Cir.1971), the former Fifth Circuit adopted Glassman 's rationale in holding that a supplier's request that the general subcontractor issue checks payable to both the subcontractor and the supplier was simply a request for and acceptance of additional security and did not constitute a waiver of the supplier's right of recovery under a payment bond. Id. at 782-83 (citing Glassman ). The Court stated that the supplier's acceptance of the joint check, without more, did not deny the supplier its Miller Act protections. Id. at 783. 37 Based on Forrester and Glassman, we believe that Trane's request for a purchase order for the air conditioning equipment does not constitute a waiver of its statutory rights to compensation under the payment bond. The record evidence establishes that Trane simply requested additional security in the form of a purchase order from Whitehurst-Lassen due to Adams & Kilgore's current financial instability. There is no evidence that Trane intended to explicitly waive its statutory rights. Nor is there evidence that Trane signed a release form or agreed to forego payment on the chiller. In sum, we hold that Trane's request for a purchase order from Whitehurst-Lassen is legally insufficient to support a finding that Trane relinquished its rights under Sec. 39-1-1 based on an express waiver theory.