Eighth Circuit Reverses District Court Decision Allowing Surety to Rescind Bonds for Alleged Illegal Subcontract as Premature

Peckar & Abramson – In a recent decision, the United States Court of Appeals for the Eighth Circuit reversed a district court’s decision holding that a surety was not required to fulfill any of its obligations under payment and performance bonds because the subcontract between the prime contractor and the subcontractor violated the small business self-performance requirements.  Hanover Insurance Co.