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
If you’re in Houston and tuned into the buzz around town, you might have heard about the latest development involving Berkley Insurance Company. This won’t just be a blip on the radar for Texas business players as the stakes have shot up – Berkley is pursuing over $685,000 in losses connected to several surety bond claims linked to various construction projects across our great state.
The Background
So, what’s the story? Well, on August 6, 2025, Berkley filed a formal complaint in the United States District Court for the Southern District of Texas, targeting a group of local partners. The defendants in this case include Wayne Interests, LLC, Curtis W. Paskey, and Evelyn Lee Paskey. These names may raise eyebrows, especially for those in the construction and business industries.
Berkley claims that it has incurred substantial losses attributed to surety bond claims on several construction projects. This isn’t just idle talk; the company is holding the defendants accountable by referencing a General Agreement of Indemnity that they signed back in March 2012. This agreement was key for securing surety bonds for Paskey Incorporated and the indemnitors mentioned.
Projects Under Fire
According to the information shared, Berkley issued performance and payment bonds for a list of ten construction projects. Some noteworthy ones 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)
These projects are significant, and it’s clear why Berkley feels driven to act. They claim that costs incurred from these bond claims stretch into the six-figure range and continue to rise. Expenses include everything from interest and court costs to consultancy and attorney fees, making this situation quite a financial headache for those involved.
The Demand for Collateral
Adding to the drama, Berkley sent a written demand for $1 million in collateral security to the indemnitors just last year, on October 11, 2024. Curiously, the indemnitors have decided not to comply with this demand, which only intensifies the tension in this ongoing saga.
Berkley argues that their General Agreement of Indemnity clearly stipulates that the indemnitors must protect Berkley against any kind of liability or financial loss. It is also essential to note that Paskey Incorporated is not named in this lawsuit, having been discharged as a debtor in previous bankruptcy proceedings.
What’s At Stake?
As the case unfolds in court, Berkley is seeking a judgment that includes coverage for all losses, costs, and expenses incurred, along with the hefty deposit of $1 million in collateral. The request also encompasses attorney fees, court costs, and interest to account for both pre- and post-judgment scenarios.
While this remains a developing story, it’s clear that the outcome will hinge on the legal strategies employed by the defendants and how the court interprets the claims presented by Berkley Insurance. It’s certainly a notable point of interest for business owners and contractors across Houston and beyond.
As the situation progresses, many will be watching closely. Stay tuned for updates as this legal drama continues to unfold in Texas.
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 HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
