Folks last month the T-P’s Hammerman reported Camp Dresser McKee kicked Benetech off the Plaquemines Parish Jail Project but that Benetech had retained the Army Corp of Engineer contracts to storm proof 8 pumping stations in metro New Orleans. In a way he is right that Benetech is still on the job but that is in name only as yesterday Benetech’s surety, Zurich filed suit against Benetech, Aaron Bennett and his father Bill Bennett to enforce the indenmity agreement the Bennett’s signed with Zurich to secure Benetech’s bonding program. A looksie at the suit indicates to me Benetech stiffed various subs on the Pump station job and the surety has taken it over. Payouts by Zurich on the project to date total almost $3 million dollars and counting.
This can go 2 ways folks. Sometimes the surety will keep the insolvent contractor on the job as they know the project best and simply take over handling the money part of the project including collection of the progress billings. Other times the surety will hire another contractor to finish the project. Given the new suit I think Benetech is not affiliated with managing the buildout of these projects.
Click the pic below to get the pdf of the complaint and first exhibit. Hat Tip Duris on Twitter.
I would have to look at the "Diversity of Citizenship" statute again, but I don't think this lawsuit belongs in Federal Court.