National Fuel Gas Distribution Corporation v. Hartford Fire Insurance Company
Supreme Court of New York, Appellate Division, Fourth Department
814 N.Y.S.2d 436 (N.Y. Sup. 2006)
National Fuel Gas Distribution Corporation (plaintiff) held a surety bond from Hartford Fire Insurance Company (defendant) guaranteeing Iroquois Energy Management's performance, with the bond expressly requiring National to notify Hartford in writing within five business days of any default by Iroquois and any decision to extend Iroquois's payment deadline. Iroquois was in default from April to August 2000, and National granted it payment extensions during that period, but National did not notify Hartford of either the defaults or the extensions until August 1, 2000; after Iroquois went bankrupt, National sued Hartford on the bond, and the trial court denied Hartford's motion for summary judgment, prompting Hartford's appeal.
Whether an express condition precedent must be literally performed or satisfied before the other party is obliged to perform its obligations.