Supreme Court of Arkansas

Travelers Casualty & Surety Company of America; Bcc Construction, LLC D/b/a Boyd Corley Construction, LLC…

November 20, 20142014 Ark. LEXIS 626

Summary

The court held that the subcontract’s pay-if-paid provisions were enforceable conditions precedent and were not affirmative defenses that BCC was required to plead, so the directed verdict for BCC was proper. Because the lien-release bond made Travelers’ obligation coextensive with BCC’s contractual obligation, Travelers could invoke the same condition precedent and was entitled to a directed verdict. The court reversed SCI’s attorney-fee award and did not reach BCC’s fee claim because the circuit court’s unchallenged alternative ground independently supported its denial. Justice Hart, joined by Justice Baker, dissented, reasoning that the lien-release bond independently secured SCI’s payment claim and that substantial evidence supported the jury’s verdict against Travelers.