Old Republic Insurance Company has filed a lawsuit seeking indemnity and specific performance against three defendants, including a limited liability company, in the Eastern District of Louisiana. The complaint was lodged on December 3, 2024, targeting Melissa Bankston, Daniel Bankston, and Finisher, LLC d/b/a Finisher Electric.
The case revolves around two construction projects for which Old Republic issued surety bonds: the FMC Building E Renovations Project and the Evangeline Parish Sheriff's Office New Detention Center Project. According to the complaint, Finisher LLC defaulted on its contractual obligations under subcontracts related to these projects. Old Republic claims that it is now facing significant financial exposure due to these defaults. Specifically, Old Republic anticipates losses exceeding $300,000 for the FMC Project and over $1.3 million for the Evangeline Parish Project.
The plaintiff alleges that on July 31, 2020, an Indemnity Agreement was executed by the defendants in favor of Old Republic. This agreement obligated the defendants to indemnify and hold Old Republic harmless from any claims or legal expenses arising from bonds issued on behalf of Finisher LLC. Despite this agreement, Old Republic asserts that the defendants have failed to meet their obligations following Finisher's defaults.
In September 2024, Finisher informed NFT Group LLC and Trahan Construction LLC of its intent to file for bankruptcy protection under Chapter 7. Subsequently, both companies notified Finisher of its default under their respective subcontracts and requested remediation. When no action was taken by Finisher to address these defaults or continue work on the projects, both companies turned to Old Republic as per the terms of their surety bonds.
Old Republic seeks several forms of relief from the court. It demands judgment requiring indemnification for all liabilities incurred due to executing payment and performance bonds for Finisher LLC. The insurance company also requests a court order mandating that defendants place $1.6 million into funds as collateral security against anticipated losses. Additionally, Old Republic seeks reimbursement for all sums expended in satisfaction of claims related to bonded projects along with attorneys' fees and costs incurred while enforcing the Indemnity Agreement.
Representing Old Republic are attorneys David J. Krebs, Craig N. Mangum, and Gabrielle L. Ferrara from Krebs Farley PLLC based in New Orleans. The case identification number is 2:24-cv-02793.