Berkley Insurance Company is chasing more than $685,000 in losses and demanding $1 million in collateral from Texas business partners after a wave of surety bond claims on construction projects.
On August 6, 2025, Berkley Insurance Company filed a complaint in the United States District Court for the Southern District of Texas against Wayne Interests, LLC, Curtis W. Paskey, and Evelyn Lee Paskey. The insurer alleges it has incurred substantial losses after issuing performance and payment bonds for multiple construction projects in Texas, and now seeks to enforce a General Agreement of Indemnity signed by the defendants.
According to the complaint, on or about March 6, 2012, Paskey Incorporated, Wayne Interests, Curtis W. Paskey, and Evelyn Lee Paskey executed a General Agreement of Indemnity in favor of Berkley Insurance Company. This agreement was a condition for Berkley to issue certain surety bonds on behalf of Paskey Incorporated and the indemnitors for various construction projects in Texas.
Berkley states that, in reliance on this agreement and at the request of Paskey Incorporated and the indemnitors, it issued performance and payment bonds for numerous projects. Ten separate projects received bond claims on payment and performance bonds issued by Berkley Insurance Company. The complaint lists these projects as: Fort Bend County MUD No. 255, TPHTM 1464, LLC (Bond No. 253057); Fort Bend County MUD No. 258 and Century Land Holdings of Texas, LLC (Bond No. 253056); Harris County MUD No. 439 (Bond No. 222154); Galveston County MUD No. 57 (Bond No. 241870); Saint Tropez Laguna Azure, LLC on behalf of Harris County MUD No. 515 (Bond No. 241876); LGI Homes - Texas, LLC for Harris County Municipal Utility District No. 460 (Bond No. 232118); Harris County MUD No. 165 (Bond No. 235549); River Ranch Two Investments, LLC on behalf of River Ranch MUD No. 1 (Bond No. 248145); Cypress 856, LTD. on behalf of Harris County MUD No. 165 (Bond No. 232107); and Magnolia Escondido, LLC on behalf of Montgomery County MUD No. 174 (Bond No. 248137).
The complaint says that, as a result of these claims, Berkley Insurance Company has incurred losses, costs, and expenses—including interest, court costs, consultant fees, and attorneys’ fees—exceeding $685,000, with damages continuing to accrue.
Berkley further alleges that, on October 11, 2024, it made a written demand to the indemnitors to post collateral security with Berkley in the amount of $1,000,000, which Berkley determined was necessary to protect it from potential and actual loss. The complaint states that the indemnitors have failed and refused to comply with this demand, and Berkley continues to incur losses, costs, and expenses.
The insurer points to the indemnity agreement, which states that the indemnitors shall exonerate, hold harmless, indemnify, and keep indemnified Berkley Insurance Company from and against any and all liability or loss of whatsoever kind, including interest, court costs, consultant fees, and attorneys’ fees. The agreement also provides that if Berkley determines that collateral is not sufficient to protect its interests or deems itself insecure, it may call for additional collateral, and the indemnitors shall furnish additional collateral immediately upon demand.
The complaint notes that Paskey Incorporated is not a party to this suit, as it has been discharged as a debtor in bankruptcy in case number 24-90433-H2-11, currently pending in the United States Bankruptcy Court of the Southern District of Texas.
Berkley Insurance Company is seeking judgment against the indemnitors, jointly and severally, for all losses, costs, and expenses of any kind or nature, including attorney fees, consulting, and other professional fees and expenses incurred in connection with any bond or with enforcing the terms of the indemnity agreement. The insurer also seeks an order requiring the deposit of collateral security in the amount of $1,000,000 with Berkley Insurance Company, as well as attorneys’ fees, costs of court, pre- and post-judgment interest at the maximum amount allowed by law, and any other relief to which it is justly entitled.
All allegations and statements in the complaint represent Berkley Insurance Company’s claims and have not been adjudicated by the court. The outcome of the case will depend on the proceedings and any defenses raised by the defendants.
