- 36 - Construction’s furnishing a performance bond to Key West Polo with regard to the construction contract.25 On June 19, 1989, Key West Polo sent Towers Construction a notice of default on the construction contract, alleging that Key West Polo had disbursed $3,473,900.48 directly to Towers Construction, relying upon Towers Construction’s representations that “you have paid all bills for material and supplies as well as all subcontractors and labor out of funds requested by you and paid by us.” The notice of default states that Key West Polo had been advised by various suppliers and subcontractors that “there are considerable balances past due that were to have been paid with funds you received from us”. On July 26, 1989, Key West Polo notified CB&T that Towers Construction had breached the construction contract and requested CB&T to pay Key West Polo $460,000 against the letter of credit. Towers Construction attempted unsuccessfully to enjoin CB&T from making payment to Key West Polo. Although Towers Construction continued to dispute its liability to Key West Polo, CB&T paid $460,000 to Key West Polo.26 Towers Construction stopped work on the construction contract and filed a claim of lien against Key 25 In consideration for the letter of credit, Columbus Bank & Trust Co. (CB&T) was to receive a share of profits from the construction project. 26 The record does not reveal the exact date of the payment by CB&T to Key West Polo.Page: Previous 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Next
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