CITY OF SANTA FE VS. TRAVELERS CASUALTY & SURETY COMPANY


2010-NMSC-010, No. 31,549:
​City of Santa Fe v. Travelers Casualty & Surety Company


The City of Santa Fe sued Travelers under a performance bond after declaring Lone Mountain Contracting in default under a contract with the City  to repair a water tank. Travelers obtained summary judgment because the City did not sue within the two-year time to sue provisions of the performance bond Lone Mountain purchased from Travelers. In an opinion by Justice Chavez, the Supreme Court reversed, holding that allowing Lone Mountain and Travelers to unilaterally contract for a two-year limitation period on the bond (where a six-year statute of limitations applied between the City and Lone Mountain) would be contrary to the purpose of the Little Miller Act, NMSA §13-4-18(A)(1), to protect the public and assure performance of government contracts.

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