Reviewed September 7, 2026.
400 15th Street, LLC v. Promo-Pro, Ltd., 28 Misc 3d 1233(A) (Sup Ct, Kings County 2010), concerned a troubled condominium project, excavation damage to adjoining property and a claim against a performance surety. The earlier article described the dispute without explaining the result.
The court permitted the owner’s conversion of a termination for convenience to one for cause on the particular reservation, notice and lack-of-reliance record. It nevertheless granted summary judgment dismissing the claim against the surety because no compensable damages under the bond had been shown.
The completion contract cost less than the remaining original contract balance. The claimed adjoining-property repair costs fell outside this performance bond’s coverage, and consequential losses were barred by the contract’s waiver. The ruling was specific to the bond, contract and claimed losses; it did not decide that every performance bond excludes all delay or repair costs.
Coordinate contract, bond and insurance claims
Before terminating or hiring a replacement, examine default and notice requirements, cure rights, the surety’s options, remaining funds and damage limitations. Give appropriate notice to insurers as well. A performance bond and liability insurance protect against different risks, and one should not be treated as a substitute for the other.
Kushnick Pallaci PLLC assists clients throughout New York with performance bond and surety disputes. Contact 631-752-7100 or vtp@kushnicklaw.com.
Attorney Advertising. General information, not legal advice.
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