Reinsured Surety’s $1.8 Million Settlement of Claims Reasonable, Judge Rules
May 13, 2022
CHARLESTON, W. Va. — A West Virginia federal judge has ruled that a reinsured surety reasonably settled claims filed against it and an insured contractor pursuant to performance and payment bonds covering two sewer projects in Charleston, W. Va., rejecting the contractor’s argument that the settlement was unreasonable.
In an April 21 order, Judge John T. Copenhaver Jr. of the U.S. District Court for the Southern District of West Virginia granted the surety and reinsurer’s motion to dismiss the settled claims.
The Sanitary Board of the City of Charleston, W. Va., awarded Tri-State Pipeline Inc. a $9.8 million contract …