Multiplex Inc. v. Town of Clay

After Petitioners and Respondent, Town of Clay, entered into a construction contract, Petitioners filed a complaint for preliminary injunctive relief based on a dispute over the contract. Petitioners paid a $25,000 injunction bond to the circuit court. Later, the court dismissed Petitioners' complaint and ordered that Petitioners' bond be forfeited and paid over to the Town to compensate it for its attorney fees and costs. The Supreme Court affirmed in part and reversed in part, holding (1) the bond was subject to forfeiture in the absence of a finding that the underlying suit was filed in bad faith; (2) Petitioners were not given a fair opportunity to contest whether the attorney fees and costs were incurred by Respondent in attempting to secure a dissolution of the bond; and (3) the circuit court erred in not holding a hearing under the standards set forth in Aetna Casualty & Surety Co. v. Petrolo to determine whether the fees and costs were reasonable. Remanded. View "Multiplex Inc. v. Town of Clay" on Justia Law