Free Memorandum in Support of Motion - District Court of Connecticut - Connecticut

Case 3:03-cv-00698-JBA

Document 9-4

Filed 10/16/2003

Page 1 of 2

NATHAN C. LAMPARD
280 Trumbull Street Hartford, CT 06103-3597 Main (860) 275-8200 Fax (860) 275-8299 [email protected] Direct (860) 275-8373 Also admitted in Hawaii

Via Facsimile and U.S. Mail October 16, 2003 Dennis C. Cavanaugh, Esq. Halloran & Sage LLP One Goodwin Square 225 Asylum Street Hartford, CT 06103 Re: Contractor Owner Surety Bond No. Project : : : : : VA Construction Company, LLC Housing Authority of the City of Danbury XL Specialty Insurance Company 1047714 Renovation of High Ridge Gardens

Dear Attorney Cavanaugh: As you are aware, the underwriter of the municipal bond issue for the abovereferenced project has declared the Housing Authority of the City of Danbury (the "Authority") to be in default under the indenture of trust, and refuses to release any further construction funds for the project. The Authority has diligently pursued alternative sources of funding, but to no avail. Indeed, it appears highly unlikely that adequate funding will be obtained in the foreseeable future. As a result, the Authority cannot fulfill its obligation under Paragraph 3.3 of the above-referenced performance bond to "pay the balance of the Contract Price to the Surety in accordance with the terms of the Construction Contract ...." Please be advised that the Authority hereby withdraws its performance bond claim against XL Specialty Insurance Company. The Authority reserves its right, however, to reinstitute the claim at a later date (subject to the applicable statute of limitation) if the Authority obtains sufficient funds to complete the project in accordance with the terms of its contract with VA Construction Company, LLC.

HART1-1134120-1

Case 3:03-cv-00698-JBA

Document 9-4

Filed 10/16/2003

Page 2 of 2

October 16, 2003 Page 2

Please contact me if you have any questions. Sincerely,

Nathan C. Lampard cc: Tony Rizzo, Danbury Housing Authority Christopher Hug, Esq. Christopher T. Donohue, Esq.