Liquidation of First Sealord Surety

An “Order of Liquidation” was filed in state court in Pennsylvania to liquidate a surety known as First Sealord Surety Inc.  This is obviously a problem if you have a payment or performance bond claim against this surety.  The order creates deadlines for you to make any type of claim on a First Sealord surety bond.  There is also no way to know whether this liquidation will result in any assets for distribution to any claimant.  In other words, it is unlikely claims against First Sealord Surety bonds will be paid in full.  You should check whether First Sealord Surety Inc. is the bonding company on any of your projects and insist on a new bond or alternate security if they are.  A copy of the Order of Liquidation is below.

This once again shows us that you cannot be sure your company is secure just because there is a bond on a project.  Bonding companies can become insolvent, just like the companies with whom you have contracts.  In fact, financially weak sureties tend to travel with financially weak contractors. It is a good idea to require an actual copy of the bond before starting work on any project.  Then check the financial strength of the bonding company.   For corporate sureties, you have ready access to free financial rating information:

Please review the Construction Law Survival Manual, Chapter 13 for more information:  http://www.fullertonlaw.com/construction-law-survival-manual/payment-bonds.html

Sealord Liquidation Order