Liberty Mutual Sues Contractors Over $50M In Bond Losses
By Jeremy Heallen
Law360, Houston (March 1, 2013, 8:34 PM ET) -- Liberty Mutual Insurance Co. on Friday launched a suit in Texas federal court, alleging it should be reimbursed by the owners of a bankrupt general contractor, who saddled the insurer with responsibility for completing 37 construction projects at a cost that could exceed $50 million.
The insurer wants Joe C. Ballenger Sr. and his son to make good on an indemnity agreement they signed to convince the insurer to bond the projects on behalf of Ballenger Construction Co., which filed bankruptcy last year. In a December...