Facility Engineering Services Corp. v. Travelers Casualty and Surety Company of America

Surety – Payment Bonds – Intervention and Amendment of Complaint

In Facility Engineering Services Corp. v. Travelers Casualty and Surety Company of America, 2020 U.S. Dist. Lexis 155324 (D. Neb. August 26, 2020), a first tier subcontractor on a federal project sued the prime contractor’s surety.  The prime contractor moved to intervene both as of right and permissively.  The court did not reach the right of the contractor to intervene since it granted it permissive intervention.  The court recognized the prime contractor’s interest in the subject matter of the action and rejected the plaintiff’s argument that intervention would cause undue delay or prejudice.  The court stated, "[w]hile allowing KP [the prime contractor] to intervene may expand the scope of this case in some regards, weighing that delay against KP's interest in this matter counsels in favor of allowing intervention."