CHARLESTON -- An insurance company wants equipment sold to a local business back after the original purchaser of the equipment defaulted on bonds.
North American Specialty Insurance Company filed a lawsuit on Feb. 26 in the United States District Court for the Southern District of West Virginia against Rick Coulson Equipment L.L.C., citing conversion of collateral.
The lawsuit states the insurance company provided performance bonds in March 2010 to Atwell Construction Company Inc. and indemnitors Jayco Holdings Inc., James R. Atwell and Unita Atwell to perform contract work and pay for all labor and materials in the construction of a raw water reservoir for the town of Southern Pines. Atwell’s default triggered the insurance company’s rights to collateral.
However, the parties involved sold five pieces of heavy construction equipment to Coulson without a release or authorization from the insurance company, according to the complaint.
The insurance company is seeking damages in excess of $75,000, plus interest. It is being represented by Carl J. Roncaglione Jr. of the Law Office of Carl J. Roncaglione Jr.United States District Court for the Southern District of West Virginia Charleston Division Case No. 2:14-cv-11169.