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Settlement reached among sales, construction and insurance companies over Philly's East Market building project

PENNSYLVANIA RECORD

Monday, November 25, 2024

Settlement reached among sales, construction and insurance companies over Philly's East Market building project

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PHILADELPHIA – An equipment rental company who said it was owed thousands of dollars in exchange for products it rented out towards the completion of a major construction project in Center City, Philadelphia has settled its lawsuit.

According to a praecipe filed by plaintiff attorney Travis L. Kreiser on Sept. 15, 2017, the subject litigation was requested to be seen as “settled, discontinued and ended with prejudice” by the local court.

Terms of the settlement were not disclosed.

Norris Sales Co., Inc. of Plymouth Meeting initially filed suit on May 30, 2017 in the Philadelphia County Court of Common Pleas against Fidelity & Deposit Company of Maryland and Zurich American Insurance Company, both of Schaumburg, Ill., Federal Insurance Company of Warren, N.J., Liberty Mutual Insurance Company of Boston, Mass. and Tutor Perini Building Corp., of Philadelphia.

Per the lawsuit, Perini entered into a written contract with the 1100 Market Street, L.P., pursuant to which Perini had agreed to construct a project known as “East Market”, located at 1100 Market Street in Philadelphia.

Perini sub-contracted certain work on this project to The Espinosa Group, Inc., based in Carlstadt, N.J. Espinosa rented certain equipment from Norris Sales to facilitate this work, but Norris Sales claimed Espinosa Group did not pay them the full amount owed for the aforementioned supplied equipment.

Perini as principal, plus Fidelity & Deposit Company, Federal Insurance Company, Liberty Mutual Insurance Company and Zurich American Insurance Company (the “Sureties”) issued a payment bond on the project and Norris Sales notified Perini and the Sureties of its claim for payment under the bond in a Dec. 16 letter last year.

In response, the Sureties requested Norris complete and return a claim form, which they did by Jan. 6 and which the Sureties received on Jan. 10. Espinosa also executed a credit application whereby finance charges accrue on the account at an annual interest rate of 18 percent per year, and Norris Sales says it is entitled to recover all attorney’s fees incurred to enforce its right to payment.

An unpaid balance as of March 1, 2017 totaled $27,651.25. As a direct and proximate result of the Sureties and Perini’s alleged breaches of the bond, Norris says it has suffered damages of $23,874.78, plus interest, costs and attorney’s fees.

Prior to settlement and for a count of breach of bond, the plaintiff was seeking damages, jointly and severally, in the amount of $23,874.78, plus pre-judgment interest in an amount to be determined by the evidence, post-judgment interest, costs, attorney’s fees and such other relief as the Court deems just and equitable in this matter.

The plaintiff was represented by Kreiser of Kreiser & Associates, in Havertown.

Per court records, the defendants in this case had not responded to the litigation, or secured legal counsel.

Philadelphia County Court of Common Pleas case 170504110

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

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