PITTSBURGH – An alleged outstanding amount in excess of $73,000 is at the center of a newly-filed lawsuit between construction and insurance companies in state court.
Iron City Excavating, Inc. of Freedom filed suit in the Allegheny County Court of Common Pleas on Dec. 6 versus Federal Insurance Company of Warren, N.J. and Burchick Construction Company, Inc. of Pittsburgh.
On Oct. 29, 2015, Federal Insurance Company issued a $6 million bond, which listed Burchick as its principle and Animal Friends, Inc. as its owner. The bond was issued in connection with a construction contract dated three days earlier, Oct. 26, 2015, where Iron City Excavating, Inc. contracted with Burchick to furnish labor and materials to a project undertaken at Animal Friends’ property in Pittsburgh.
Furthermore, those same parties entered into a subcontract on Dec. 17, 2015 to complete said work – which Iron City Excavating said it did, and last furnished labor and materials to the project on April 14, the suit says.
On July 7, Iron City Excavating initiated a claim with Federal Insurance Company, explaining a sum of $73,348.75 was still due and owing to it. Five months earlier, on Feb. 2, Iron City Excavating sent a letter to Animal Friends and Burchick detailing the amounts then due and owing, the suit says.
Despite repeated demands, the suit says Burchick has failed and refused to pay the amounts due and owing plaintiff for labor and materials furnished in accordance with the terms of the contract and for extra work requested by the owner and Burchick, and Federal Insurance Company has not paid or arranged for payment of any undisputed amounts.
For multiple counts of breach of contract, the plaintiff is seeking damages of $73,348.75, plus interest, costs and reasonable attorney’s fees.
The plaintiff is represented by John Linkosky of John Linkosky & Associates, in Carnegie.
Allegheny County Court of Common Pleas case GD-17-016682
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com