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Insurance lawsuit over a school construction project in ENC heading to federal court

PRE News & Ideas | By Annette Weston
Published June 22, 2026 at 7:02 AM EDT

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.
Annette Weston
Annette is originally a Midwest gal, born and raised in Michigan, but with career stops in many surrounding states, the Pacific Northwest, and various parts of the southeast. An award-winning journalist and mother of four, Annette moved to eastern North Carolina in 2019 to be closer to family – in particular, her two young grandchildren. It’s possible that a -27 day with a -68 windchill in Minnesota may have also played a role in that decision. In her spare time, Annette does a lot of kiddo cuddling, reading, and producing the coolest Halloween costumes anyone has ever seen. She has also worked as a diversity and inclusion facilitator serving school districts and large corporations. It’s the people that make this beautiful area special, and she wants to share those stories that touch the hearts of others. If you have a story idea to share, please reach out by email to westona@cravencc.edu.
See stories by Annette Weston