Liberty Mutual Hits Construction Co. With $25M Bond Suit

Law360 (November 7, 2019, 10:09 PM EST) -- Liberty Mutual Insurance Co. slammed a construction company with a $25 million suit in California federal court that claimed the insurer helped bail the company out after it allegedly defaulted on contracts for various projects in California.

Liberty Mutual said in Wednesday's complaint that it executed at least $130 million worth of performance and payment bonds on behalf of Contra Costa County, California-based Vila Construction Co. for more than a dozen municipal building and school projects, but that Vila failed to pay certain obligations to laborers and subcontractors involved in the projects.

The insurer said it entered into an indemnity agreement...

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