Subcontractor sues insurance company over claim denial

GRETNA – A subcontractor is suing its insurance company which allegedly denied a claim for damage.

Bernard Construction Company Inc. filed suit against Stiel Insurance Services of New Orleans Inc. in the 24th Judicial District Court on June 10.

Bernard Construction Company Inc. claims that it entered into a subcontract to do stucco work on an apartment building located at 301 Lakeshore Blvd. in Slidell and that after the job was completed the owner complained of extensive water damage to the building caused by faulty construction. The plaintiff alleges that the general contractor repaired the damage as requested by the owner and then requested that Bernard Construction Company Inc. pay for part of the damages. The plaintiff alleges that when it entered into the subcontract Stiel Insurance Services was supposed to provide insurance in the case of a property damage and that it was issued a policy on July 11, 2010 to cover the work, but that the claim was denied by the insurer.

The defendant is accused of breach of contract and being liable for not providing insurance under the agreement.

An unspecified amount in damages is sought for cost of repairs plus attorney’s fees and legal costs.

Bernard Construction Company Inc. is represented by Timothy F. Hand of Hand, Holmes, Pilie & Matthews LLC.

The case has been assigned to Division C Judge June Berry Darensburg.

Case no. 727-824.