HARSCO CORP v. GRIPON CONSTR.


301 A.D.2d 90 (2002)

752 N.Y.S.2d 59

HARSCO CORPORATION, PATENT CONSTRUCTION SYSTEMS DIVISION, Respondent, v. GRIPON CONSTRUCTION CORP., Defendant, and AXA GLOBAL RISKS US INSURANCE COMPANY, Appellant.

Appellate Division of the Supreme Court of the State of New York, Second Department.

November 25, 2002.


Attorney(s) appearing for the Case

Wolff & Samson, P.A., New York City (Armen Shahinian and Jonathan S. Bondy of counsel), for appellant.

Schnader Harrison Segal & Lewis, LLP, New York City (John I. Karesh and Benjamin P. Deutsch of counsel), for respondent.

SMITH, J.P., McGINITY and TOWNES, JJ., concur.


OPINION OF THE COURT

O'BRIEN, J.

This appeal presents the issue of whether the surety on a labor and material bond issued pursuant to State Finance Law § 137 is required to pay for the cost of equipment which was rented by its principal for use on a public improvement project but thereafter was not returned to the supplier.

I

In October 1998 the Dormitory Authority—State of New York (hereinafter the DASNY) entered into a contract...

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