An insurance lawsuit over a school construction project in eastern North Carolina is heading to federal court.
Liberty Mutual Insurance is suing Group III Management for roughly $1.5 million following a contract dispute with Pitt County Schools. The legal battle stems from renovations at A.G. Cox Middle School in Winterville.
Liberty Mutual issued performance and payment bonds for the project, and claims it had to step in and pay $1.8 million when the school board fired the contractor for cause. The lawsuit alleges the building firm breached an indemnity agreement by failing to fully reimburse those costs.
Liberty Mutual said it has only recouped about $257,000 from the company and is now asking a federal judge to force the contractor to pay the remaining balance.
