Travelers Hits Contractor With $3.7M Suit Over FBI Building
Updated: Nov 12, 2019
Law360 (October 28, 2019, 5:07 PM EDT) -- A Travelers unit has filed suit against a Puerto Rico-based contractor claiming it breached an indemnity agreement and cost the insurer more than $3.7 million over construction of an FBI building in San Juan.
ED Contractors Inc., along with its president, secretary and U.S. affiliate, breached each subsection of an indemnity agreement that outlines the terms for a default, according to Friday's complaint filed by Travelers Casualty & Surety Co. of America in Puerto Rico federal court.
The insurer says that in January 2018, ED entered into a subcontract agreement with Walsh Puerto Rico LLC, which is not named in the complaint. In March 2018, Travelers issued a performance bond and a payment bond, both in the amount of nearly $3.9 million, naming ED as the principal and Walsh as the obligee.
Travelers is represented by Carlos A. Steffens-Guzman.