Board of Supervisors v. Sentry Insurance A Mutual Co.

391 S.E.2d 273, 239 Va. 622, 6 Va. Law Rep. 2194, 1990 Va. LEXIS 76
CourtSupreme Court of Virginia
DecidedApril 20, 1990
DocketRecord No. 890777
StatusPublished
Cited by3 cases

This text of 391 S.E.2d 273 (Board of Supervisors v. Sentry Insurance A Mutual Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Supervisors v. Sentry Insurance A Mutual Co., 391 S.E.2d 273, 239 Va. 622, 6 Va. Law Rep. 2194, 1990 Va. LEXIS 76 (Va. 1990).

Opinion

JUSTICE LACY

delivered the opinion of the Court.

In this appeal we must determine whether a contractual statute of limitations was created by the terms of a performance bond.

In September of 1983, Lee Landing Development Corp. (Lee) entered into a contract with the Board of Supervisors of Fairfax County (the County) in which Lee agreed to construct and install certain public improvements and facilities by March 30, 1986. At the same time, Lee, as principal, and Sentry Insurance A Mutual Company (Sentry), as surety, executed a bond in favor of the County guaranteeing the performance of the contract.

Lee failed to meet its performance obligations under the contract. By letter dated March 6, 1987, the County advised Sentry of Lee’s default and demanded that Sentry carry out its obligations under the performance bond. Sentry neither offered to com[624]*624píete the project nor paid the County any portion of the performance bond.

On December 24, 1987, the County filed a motion for judgment against Lee and Sentry. Counts I and III of the motion for judgment alleged that Lee breached its performance agreement with the County. Count II alleged that Lee and Sentry were jointly and severally liable for the breach of the performance bond.

Sentry filed a motion for summary judgment, maintaining that the terms of the performance bond required the County to file suit within six months from the date it notified Sentry of Lee’s default. Because the County filed its motion for judgment approximately ten months after the notice of default, Sentry asserted the County’s suit was time-barred.

On November 30, 1989, the trial court entered an order in which it: (1) granted Sentry’s motion for summary judgment; (2) entered judgment by consent against Lee for $98,665.16 under Count I of the motion for judgment; and, (3) at the County’s request, dismissed Counts II and III against Lee with prejudice. We granted the County an appeal from that part of the trial court’s order granting Sentry’s motion for summary judgment.

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Benjamin Belrose v. Hartford Life & Accident Insur
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BOARD OF SUP'RS v. Sentry Ins.
391 S.E.2d 273 (Supreme Court of Virginia, 1990)

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Bluebook (online)
391 S.E.2d 273, 239 Va. 622, 6 Va. Law Rep. 2194, 1990 Va. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-v-sentry-insurance-a-mutual-co-va-1990.