14-2-2 - Failure of owner to obtain payment bond -- Liability.
14-2-2. Failure of owner to obtain payment bond -- Liability.
(1) An owner who fails to obtain a payment bond required under Section 14-2-1 is liableto each person who performed labor or service or supplied equipment or materials under thecommercial contract for the reasonable value of the labor or service performed or the equipmentor materials furnished up to but not exceeding the commercial contract price.
(2) An action to recover on the liability described in Subsection (1) may not becommenced after the expiration of one year after the day on which:
(a) the last of the labor or service was performed; or
(b) the equipment or material was supplied by the person.
(3) In an action for failure to obtain a bond, the court shall award reasonable attorneys'fees to the prevailing party. These attorneys' fees shall be taxed as costs in the action.
Amended by Chapter 111, 2004 General Session