CHARLESTON — Fair American Insurance and Reinsurance Company (Fairco) filed a lawsuit against Capitol Valley Contracting alleging that it breached its contract and owes more than $400,000.
Mickey Farmer Jr. and Jeanne Farmer were also named as defendants in the suit.
The defendants entered into an agreement of indemnity in 2016, but in 2018, the plaintiff received a letter from the Boone County Public Service District that said Capitol was in default of the obligations with the agreement, according to a complaint filed in U.S. District Court for the Southern District of West Virginia.
The plaintiff claims Capitol and the Farmers are in breach of their contract and owe a total of $422,894.21.
"Under the terms and conditions of the (agreement), the Indemnitors are obligated to reimburse and indemnify Fairco for the losses, costs and expenses thus far incurred, and to continue to reimburse and indemnify Fairco for all losses it incurs going forward until this matter is concluded," the complaint states. "The Indemnitors have failed to reimburse or indemnify Fairco in any amount."
Fairco is seeking damages in the amount of $422,894.21 with pre- and post-judgment interest. It is represented by Thomas J. Moran of Wright Constable & Skeen.
U.S. District Court for the Southern District of West Virginia case number: 2:21-cv-00212
