ECOA Claim and P&P Bond
In SureTec Insurance Co. v. National Concrete Structures, Inc., Case No. 12-cv-60051 (S.D. Fla. July 3, 2012) the surety paid losses and expenses and sued the principal and individual indemnitors on account of those losses. One of the individual indemnitors filed a counterclaim for damages and rescission based on alleged violation of the federal Equal Credit Opportunity Act (“ECOA”). The surety moved to dismiss the counterclaim. The court held that “neither the payment and performance bonds issued by SureTec nor the Indemnity Agreement constitute a credit transaction within the meaning of the ECOA, because no defendant obtained any right to defer the payment of a debt.” The court therefore dismissed the indemnitor’s ECOA counterclaim with prejudice. (from RPPTL Subcommittee). Trenton H. Cotney Florida Bar Certified Construction Lawyer Trent Cotney, P.A. 1211 N Franklin St Tampa, FL 33602 (813) 579-3278 www.trentcotney.com