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.

Houston Businesses Caught in Legal Snare with Berkley Insurance

Texas businesses, particularly in the construction sector, find themselves in a legal battle as Berkley Insurance Company seeks to recover over $685,000 in losses stemming from numerous surety bond claims linked to construction projects throughout the state. The case is being heard in the United States District Court for the Southern District of Texas, and it has significant implications for the involved parties.

The Background

Berkley filed its formal complaint on August 6, 2025, against a group of local partners, specifically naming Wayne Interests, LLC, Curtis W. Paskey, and Evelyn Lee Paskey as defendants. The central issue revolves around substantial financial losses incurred by Berkley due to surety bond claims associated with several construction projects.

The legal foundations of the suit stem from a General Agreement of Indemnity signed in March 2012, which the defendants entered into to secure surety bonds for Paskey Incorporated and the other indemnitors named. Berkley alleges that the defendants have failed to uphold their obligations under this agreement, resulting in significant financial repercussions for the company.

Projects Under Fire

Berkley issued performance and payment bonds for ten construction projects that are now under scrutiny. Key projects include:

• Fort Bend County MUD No. 255 with TPHTM 1464, LLC (Bond No. 253057)
• Fort Bend County MUD No. 258 with 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 associated with 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)

The financial stakes are considerable, as Berkley asserts that the costs related to these bond claims exceed six figures and are continuing to accumulate. These expenses encompass a range of costs, including interest, legal fees, and consultancy, compounding the financial burden on those involved in the agreements.

The Demand for Collateral

On October 11, 2024, Berkley sent a written demand for $1 million in collateral security to the indemnitors, which they have yet to comply with. This non-compliance further escalates the tension in an already complex legal situation.

Berkley emphasizes that the General Agreement of Indemnity obligates the indemnitors to shield the company from any liabilities or financial setbacks. Moreover, it is important to mention that Paskey Incorporated does not face allegations in this lawsuit, having previously been discharged as a debtor in prior bankruptcy proceedings.

What’s At Stake?

As the court case unfolds, Berkley is pursuing not only compensation for all losses and expenses incurred but is also requesting the full $1 million in collateral. Additionally, they seek coverage for attorney fees, court costs, and accruing interest for both pre- and post-judgment scenarios.

The outcome of this case is significant for the defendants and the broader Houston business community, especially those involved in construction. Many will be observing closely as legal arguments are presented and as the court seeks to interpret the agreements and claims made by Berkley Insurance. The implications of this lawsuit may resonate far beyond the immediate parties involved, potentially influencing future contractual relationships in Texas’s construction industry.

As this legal matter progresses, updates will provide further insight into the ramifications for Houston businesses and the construction sector. The community remains poised to learn how this pivotal case will unfold.

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

Author: STAFF HERE AUSTIN WRITER

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