CONWAY, SC (WBTW) – An insurance company has filed a lawsuit against Horry County Schools and others alleging they haven’t been paid nearly $3 million for work on schools.

The lawsuit was filed by Selective Insurance Company of America on Monday, the lawsuit says. Horry County Schools, MetCon Construction, Inc., Firstfloor Energy Positive, LLC, Travelers Casualty and Surety Company of America, and others are listed as defendants.

Horry County Schools reportedly entered into five separate construction contracts with FirstFloor Energy Positive to build schools, according to the lawsuit. Selective Insurance alleges that when the construction scheduled was increased to complete schools on time, the changes impacted Hester Drywall, the drywall company that reportedly worked on the schools, and they eventually went out of business. Selective Insurance also says they took over after the drywall company went into default and provided replacement crews to finish schools and supplies for the work.

“Selective, pursuant to the terms and conditions of the Hester-Selective Indemnity Agreements, is the acknowledged and recognized successor and beneficiary of any such sums which were owed to Hester Drywall for work performed for or on its behalf pre-default and for which one or more of the Defendants have heretofore failed to timely provide to Hester Drywall pre-default and which is still owed as of the date of the filing hereof.”

Selective Insurance is asking for about $792,000 they say is due for their work after Hester Drywall left the project as well as nearly $2.7 million in services they say was completed before the drywall company left.

The insurance company also claims in the lawsuit they haven’t been paid as of the date the lawsuit was filed.

“One or more of the Defendants is/are all negligently, willfully, wantonly, intentionally, and wrongfully withholding the said funds they are separately and/or collectively holding from Selective even though they know or reasonably should know those funds are due.”

The lawsuit also states First Floor Energy Positive issued bonds to pay for projects at the following schools: Carolina Forest Middle School for about $45 million, Socastee Middle School for about $43 million, Socastee Elementary School for about $37 million, St. James Intermediate School for about $47 million, and Myrtle Beach Middle School for about $46 million.

There are 14 causes of action listed in the lawsuit including:

    • Declaratory Judgment Action Against All Of The Defendants
      Constructive Trust Against All Of The Defendants
      Surety Bond Claim Against All Defendants – HCSD-Firstfloor Energy Construction Contracts
      Surety Bond Claim Against All Defendants – Firstfloor Energy-Metcon/TA Loving Construction Contracts
      Breach of Contract – Pay Applications – Against Metcon-TA Loving, MetCon, TA Loving, and Firstfloor Energy Positiv
      Unjust Enrichment Against All Of The Defendants
      Equitable Accounting Against All Defendants

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