Hollister Construction Services Trustee Demands $15Million From Berkley Assurance Company For Alleged “Breach of Contract”
January 31, 2022, District of New Jersey – Bernard Katz, as liquidation trustee for the bankruptcy estate of Hollister Construction Services, LLC, institutes a lawsuit against Berkley Assurance Company for alleged “breach of contract.”
As alleged in the complaint, the Debtor was a regional general commercial construction services firm that provided construction and professional management services for owners of construction projects. The complaint asserts that Berkley issued Hollister a construction professional liability policy. Hollister further argues that it provided Berkley with notice of a protective claim under the policy related to a subcontractor and requested that Berkley provide protective indemnity to Hollister under the terms of the policy.
The complaint states that Berkley allegedly “denied the coverage”, contending that Hollister “failed to file the action before a specific date.” Hollister claims that the policy is allegedly a binding contract between Berkley and Hollister and that subcontractor, Elevation 1, qualifies as a responsible entity, and the claim against Elevation 1 for $15,153,740.72 is allegedly a protective claim under the policy. Hollister further claims that it provided notice of the claims against Elevation 1 to Berkley before the expiration of the policy period.
Accordingly, Katz demands judgment against Berkley for damages and costs of suit, including attorneys’ fees for $15 million.
In re: HOLLISTER CONSTRUCTION SERVICES, LLC, Case No. 19-27439 (MBK)