A case decided by MA Appeals Court held that a surety is not liable for the punitive damages which may be attributable to the conduct of its GC arising from its actions on a public construction project.

A dispute arose between a subcontractor and a GC on a school construction project in MA. The subcontractor, a non-filed sub-bidder, claimed that the GC owed it a substantial amount for contract balances plus additional work.

The GC disputed that the subcontractor had performed its work in a satisfactory and timely manner. It also disputed the extra work claims by the subcontractor. (more)