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WEST VIRGINIA RECORD

Thursday, March 28, 2024

Surety bond underwriter sues contractors for breach of agreement

HUNTINGTON — A surety bond underwriter is suing Capitol Valley Contracting Inc. and contractors Mickey L. Farmer Jr. and Jeanne Farmer for alleged breach of Agreement of Indemnity.

Great American Insurance Company filed a complaint in U.S. District Court for the Southern District of West Virginia against the defendants alleging that they refused to provide collateral.

According to the complaint, the plaintiff alleges that on Sept. 9, 2012, the parties entered into an Agreement of Indemnity. Pursuant to the AOI, the plaintiff served a collateral demand of $550,000 to the defendant. As a result of defendant's breach, plaintiff fears that it will suffer losses and expenses in the amount of at least $550,000 and that it would not be able to protect itself against such losses and expenses. 

The plaintiff holds Capitol Valley Contracting Inc. and Mickey L. Farmer Jr. and Jeanne Farmer responsible because the defendants allegedly refused and ignored plaintiff's request to make payment of the requested collateral in accordance with the AOI and failed to provide access to their financial records.

The plaintiff requests a trial by jury and seeks a judgment against defendants in the amount of $550,000, requiring a defendant to immediately provide a collateral and to provide access to financial records, an award for attorney's fees, costs and expenses. He is represented by Robert H. Sweeney Jr. of Jenkins Fenstermaker PLLC in Huntington.

U.S. District Court for the Southern District of West Virginia Case number 2:18-cv-01245

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