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 lawsuit in the United States District Court for the Southern District of Texas, seeking to recover over $685,000 in losses incurred from multiple surety bond claims involving local business partners. The defendants in this case include Wayne Interests, LLC, and individuals Curtis W. Paskey and Evelyn Lee Paskey.
On August 6, 2025, Berkley Insurance submitted the complaint, claiming significant financial damages arising from bond claims on ten separate construction projects across Texas. The company is now pursuing not only the repayment of its losses but also a written demand for $1 million in collateral security that was initially served to the defendants on October 11, 2024, which they have failed to comply with.
At the heart of the issue lies a General Agreement of Indemnity that was signed by the defendants on March 6, 2012. This agreement was a prerequisite for Berkley to issue performance and payment bonds for Paskey Incorporated and its associated indemnitors. Berkley maintains that the General Agreement of Indemnity necessitates that the indemnitors must protect the company from any liability or loss resulting from the issued bonds. Consequently, the total damages related to various claims have exceeded $685,000, with ongoing losses continuing to accumulate due to associated costs such as interest, court fees, consultant fees, and attorney fees.
The ten construction projects linked to the claims included:
- 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 the lawsuit, Berkley is also asking for a judgment to cover all losses, expenses, and attorney fees, along with pre- and post-judgment interest. Notably, Paskey Incorporated, which was involved in the original agreements, is not a party to this lawsuit because it has been discharged as a debtor in earlier bankruptcy proceedings.
As the legal process unfolds, the court will determine the validity of Berkley’s claims as well as the defenses put forth by the defendants. The outcome could have significant financial implications for Wayne Interests, LLC, and the Paskeys, particularly if they are held liable for the outstanding claims and the collateral demand made by Berkley Insurance Company.
As a major player in the surety bond industry, Berkley Insurance’s actions in this case reflect broader trends in how construction financing and surety bonds are managed in Texas, especially amidst ongoing concerns regarding financial liability and the protection of creditors in similar agreements.
This developing case underscores the complexities involved in surety bonds and indemnity agreements in construction projects and may set important precedents for how such disputes are resolved in the future within the Texas business landscape.
Deeper Dive: News & Info About This Topic
- Insurance Business: Berkley Insurance Demands $1 Million Collateral
- Houston Chronicle: Home Insurance for Fortified Homes
- Program Business: Texas Legislature Takes Aim at Workers’ Compensation Reforms
- Statesman: Texas Construction Workers’ Wages and Safety Conditions
- Risk & Insurance: Texas Workplace Injuries Drop Despite Industry Challenges
- Wikipedia: Construction
- Google Search: Texas construction industry
- Google Scholar: Texas construction workers compensation
- Encyclopedia Britannica: Construction Insurance
- Google News: Texas construction laws
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