Surety Liability and the Face Amount of a Lien-Discharge Bond

Reviewed and updated September 7, 2026. This case note concerns a December 29, 2009 decision.

In Casa Redimix Concrete Corp. v. Cosner Construction Corp., 68 A.D.3d 673 (1st Dept. 2009), the court distinguished the contractor's debt from the surety's obligation under a lien-discharge bond.

The bond limited the surety's liability

The trial judgment awarded the subcontractor $261,197.60 plus $162,879.96 in prejudgment interest, together with costs and disbursements, against the contractor and surety. The Appellate Division reduced the surety's liability to the bond's $288,000 face amount.

The court explained that the undertaking limits the surety's liability, with interest potentially running from the surety's own default. Because the surety was not in default here, prejudgment interest on the contractor's debt could not increase the surety's liability above the bond amount. The procedure for seeking an additional undertaking also did not expand the original surety's contractual obligation.

What to check in a bonded lien claim

Obtain the actual bond, identify the parties and amount, and distinguish the claim against the contractor from the claim against the surety. Do not assume that a judgment against one establishes the amount recoverable from the other.

For assistance evaluating a bonded lien, see Kushnick Pallaci PLLC's information on mechanic's lien enforcement and construction litigation.

This historical case note is general information. The applicable bond, procedural history and current law must be reviewed for a particular claim.