ERIE — An insurance company is suing a host of construction contractors, citing alleged breach of an indemnity agreement.
Great American Insurance Co. filed a complaint Nov. 19 in U.S. District Court for the Western District of Pennsylvania against defendants Goodea Construction Co. Inc., Pipeline Systems Inc., GilCon & Associates Inc., Gildea Partnership, Mark D. Gildea, Roger L. Gildea, Gildea Equipment LLC and Pipeline Systems Transportation LLC, alleging they refused to perform their obligations under its indemnity agreement.
According to the complaint, the plaintiff alleges that between July 28, 2004 and November 15, 2018, Great American Insurance Co. has performed and is performing its obligations pursuant to the bond it wrote on behalf of Pipeline Systems Inc. and has demanded that the defendants perform in accordance with the terms of the indemnity agreement. The plaintiff holds Goodea Construction Co. Inc., Pipeline Systems Inc., GilCon & Associates Inc., Gildea Partnership, Mark D. Gildea, Roger L. Gildea, Gildea Equipment LLC, and Pipeline Systems Transportation LLC responsible because the defendants allegedly failed to grant Great American full access to their books and records, prohibiting plaintiff from, among other things, determining the status of project completion and the extent to which defendant has misappropriated bonded contract proceeds on the project. Additionally, they failed and refused to pay collaterals to the plaintiff.
The plaintiff seeks the amount of $5 million, injunctive relief, attorneys’ fees, expenses and costs. It is represented by Amy Bentz of Bentz Law Firm P.C. in Pittsburgh.
U.S. District Court for the Western District of Pennsylvania Case No. 1:18-cv-00359-SPB.