1999 Minnesota Statutes

     574.31 Limit of time to bring action. 

    Subdivision 1.    Claims on performance bonds.  In the 
 event of a claim by the public body on a performance bond, no 
 action shall be maintained later than permitted under the 
 statute of limitations applicable to the claim.  Nothing in this 
 subdivision may be construed to otherwise affect the common law 
 or equitable rights of performance bond sureties, principals, or 
 public bodies that are obligees. 

    Subd. 2.    Claims on payment bonds.  (a) In the event 
 of a claim on a payment bond by a person furnishing labor and 
 materials, no action shall be maintained on the payment bond 
 unless, within 120 days after completion, delivery, or provision 
 by the person of its last item of labor and materials, for the 
 public work, the person serves written notice of claim under the 
 payment bond personally or by certified mail upon the surety 
 that issued the bond and the contractor on whose behalf the bond 
 was issued at their addresses as stated in the bond specifying 
 the nature and amount of the claim and the date the claimant 
 furnished its last item of labor and materials for the public 
 work.  For the purpose of this section, notice is sufficient if 
 served personally or via certified mail to the addresses of the 
 contractor and surety listed on the bond.  The form of notice is 
 sufficient if it is substantially as follows: 

         NOTICE OF CLAIM ON PAYMENT BOND FOR PUBLIC WORK

       TO:  ...................................................
                 (Surety that issued payment bond)
       and ....................................................
           (The contractor on whose behalf the bond was issued)

          NOTICE IS HEREBY GIVEN that the undersigned claimant
       has a claim against the above named surety for labor and
       materials furnished by the undersigned for the public
       work described as follows:  ............................
       ........................................................
                 (Description of the public work)

       The labor and materials were furnished under a
       contract or agreement with .............................
       ........................................................
       (Name and address of contractor or supplier requesting
            labor and materials from the claimant)

       The nature of the labor and materials furnished is as
       follows:  ..............................................
       ........................................................

       The amount of the claim is:  ...........................
       The date the claimant last furnished labor and materials
       to this public work is the ... day of ..........., .......

       Claimant seeks payment of the claim according to the
       law.

                                           ....................
                                           Claimant

                                           ....................
                                           Address

                                           ....................

      STATE OF ...............
                           ss.

      COUNTY OF ..............

           .................... being duly sworn on oath says
      that ... is .............. of the claimant named above and
      has knowledge of the claim and that the claim is correct,
      and no part of the claim has been paid.

                                      ......................
      Signed and sworn to before me
      on .............., .......,
      by .......................          (Notary Seal)
      ..........................
             Notary Public

    (b) If the contractor providing the payment bond fails to 
 comply with the filing requirements of section 574.28 by failing 
 to state its address or the address of the surety providing the 
 bond, then a claimant under the bond need not provide the surety 
 or the contractor written notice of its claim under paragraph 
 (a).  

    (c) An action to enforce a claim against the surety under 
 the bond must be commenced within one year from the date of 
 completion, delivery, or provision by the claimant of its last 
 item of labor and materials for the public work stated in its 
 notice of claim.  If no notice of claim was required because the 
 contractor providing the bond failed to comply with the 
 requirements of section 574.28, then any action under the bond 
 must be commenced within one year from the actual date of 
 completion, delivery, or provision by the claimant of its last 
 item of labor and materials for the public work.  Any other 
 person having a cause of action on a payment bond may be 
 admitted, on motion, as a party to the action, and the court 
 shall determine the rights of all parties.  If the amount 
 realized on the bond is insufficient to discharge all the claims 
 in full, the amount must be prorated among the parties.  

    (d) The claimant can extend the time within which to bring 
 an action to enforce a claim under the bond to beyond that 
 specified in paragraph (c) either by:  (1) written stipulation 
 between the claimant and surety stating the extended deadline 
 and executed by both parties before the expiration of one year 
 from the actual date of completion, delivery, or provision by 
 the claimant of its last item of labor and materials for the 
 public work; or (2) written notice extending by one year the 
 deadline specified in paragraph (c) sent by the claimant to the 
 surety via certified mail 90 days before the expiration of the 
 deadline specified in paragraph (c), which notice is not 
 objected to in a return written notice sent by the surety to the 
 claimant via certified mail within 30 days after the surety's 
 receipt of claimant's notice.  If a claimant's payment is not 
 yet contractually due within one year from the actual date of 
 completion, delivery, or provision by the claimant of its last 
 item of labor and materials, the court shall continue and not 
 dismiss the action until the payment is due. 

    HIST: (9705) RL s 4539; 1909 c 413 s 1; 1929 c 369 s 2; 1983 c 
 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444; 1994 c 419 
 s 11; 1995 c 31 s 5,6; 1998 c 254 art 1 s 107