August 8, 2025

Houston Businesses Face Legal Action from Berkley Insurance

News Summary

Berkley Insurance has filed a lawsuit against several Houston-based construction partners, claiming over $685,000 in losses from surety bond claims. The case, lodged in the U.S. District Court, highlights the impact of various construction projects and a demand for $1 million in collateral security that the indemnitors failed to comply with. As the legal situation develops, many in the local business community are anxious about its implications.

Texas – Berkley Insurance Company has filed a complaint seeking over $685,000 in damages from Texas-based partners Wayne Interests, LLC, Curtis W. Paskey, and Evelyn Lee Paskey due to multiple surety bond claims. The complaint was submitted to the United States District Court for the Southern District of Texas on August 6, 2025, highlighting substantial losses incurred by the insurance company in relation to several construction projects across the state.

The court case centers around a General Agreement of Indemnity, which was signed by the defendants on March 6, 2012. This agreement was a prerequisite for Berkley Insurance to issue surety bonds for Paskey Incorporated as well as the indemnitors. Berkley issued performance and payment bonds for ten specific construction projects that have led to claims against the company, resulting in financial losses totaling over $685,000. Claims were filed related to the following projects:

Fort Bend County MUD No. 255, TPHTM 1464, LLC (Bond No. 253057)
Fort Bend County MUD No. 258, Century Land Holdings of Texas, LLC (Bond No. 253056)
Harris County MUD No. 439 (Bond No. 222154)
Galveston County MUD No. 57 (Bond No. 241870)
Saint Tropez Laguna Azure, LLC on behalf of Harris County MUD No. 515 (Bond No. 241876)
LGI Homes – Texas, LLC (Harris County MUD No. 460) (Bond No. 232118)
Harris County MUD No. 165 (Bond No. 235549)
River Ranch Two Investments, LLC on behalf of River Ranch MUD No. 1 (Bond No. 248145)
Cypress 856, LTD. on behalf of Harris County MUD No. 165 (Bond No. 232107)
Magnolia Escondido, LLC on behalf of Montgomery County MUD No. 174 (Bond No. 248137)

In addition to the claimed losses, Berkley has incurred various costs associated with these claims, including interest, court costs, consultant fees, and attorney fees. With damages exceeding $685,000, the company argues that these losses are ongoing and have not yet been resolved. On October 11, 2024, Berkley sent a written demand for $1 million in collateral security to the indemnitors, but they have failed to comply with this request.

Berkley Insurance insists that the General Agreement of Indemnity requires the indemnitors to hold the company harmless from any liability or loss stemming from the issued bonds. Notably, Paskey Incorporated is not included in the lawsuit since it was discharged as a debtor in prior bankruptcy proceedings.

The demand for a judgment from Berkley includes all losses, costs related to the claims, and the additional request for a $1 million deposit in collateral. The complaint also seeks reimbursement for attorney fees, court costs, and both pre- and post-judgment interest. All allegations presented in the complaint represent the claims of Berkley Insurance and are subject to court adjudication, with the final outcome dependent on the proceedings and defenses raised by the defendants.

This case underscores significant financial implications for the involved parties and shines a light on the complexities associated with surety bonds in construction projects. As the case progresses through the legal system, the outcome will be keenly watched by those in the construction and insurance industries.

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Author: STAFF HERE GEORGETOWN

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