An insurance company contends in a lawsuit that the Horry County (S.C.) district owes it millions of dollars in connection with the construction of five schools.
The Myrtle Beach Sun News reports that Selective Insurance Company of America filed suit against Horry County Schools and several other companies involved in building Ten Oaks Middle School, Myrtle Beach Middle School, St. James Intermediate School, Socastee Elementary School and Socastee Middle School.
Selective Insurance asserts that it has not been reimbursed for its expenditures after it was forced to take over for a subcontractor that declared bankruptcy before the school construction projects were completed.
Horry County Schools spokeswoman Lisa Bourcier says the district does not comment on pending litigation.
Selective Insurance is a company that provided coverage as part of the project. Basically, Selective served as a guarantor for aspects of the projects.
The lawsuit says Selective is owed more than $2.7 million by the defendants for some of the work. Some of the defendants — not including the school system — also owe Selective an additional $792,654, the company contends.
The case stems from the hiring of Hester Drywall as a subcontractor for the five school projects. The suit says that the company believed the work would be staggered — workers would finish one school before moving on to another.
In March 2017, the construction timeline accelerated, and Hester was required to work simultaneously at four schools. Under the accelerated timeline, Hester’s financial situation deteriorated, and company filed for bankruptcy, the suit says.
Selective says it was forced to provide replacement workers and cover the supply cost after Hester left the project.
The insurance provider says the district and the other companies haven’t paid Selective for work that Hester completed.