CNA Monetary Corp. is demanding $834,458 from a Mount Vernon development firm for allegedly paying solely a small portion of its insurance coverage premiums.
Three subsidiaries of Chicago-based CNA accused PCI Industries Corp. and proprietor Richard Persico of fraud, unjust enrichment and breaches of contract in a criticism filed June 4 in U.S. District Courtroom, White Plains.
CNA claims Persico and PCI “by no means supposed to remit cost for the extra premiums owed.”
PCI gives a wide range of development companies, in accordance with its web site, akin to excavation and street paving. It has labored on many authorities jobs for New York State, New York Metropolis and municipalities all through Westchester County.
The development firm took out two basic legal responsibility insurance policies and a enterprise auto coverage with CNA insurance coverage corporations from 2017 to 2018, in accordance with the criticism, however paid solely a portion of the required premiums.
In 2017, as an example, the preliminary premium for a basic legal responsibility coverage was $114,160, based mostly on data offered by PCI. After the coverage expired, CNA audited PCI and concluded that the corporate owed a further $468,904.
PCI paid $161,225, leaving a stability of $421,839.
CNA claims that PCI nonetheless owes $775,616 on the three insurance coverage insurance policies.
For 12 months from mid-2019 to mid-2020, Persico and a PCI legal professional negotiated with CNA to settle the debt, in accordance with the criticism.
A number of occasions, CNA claims, each side agreed on the phrases of a $834,458 promissory be aware, however every time PCI did not return an executed copy of the be aware.
The PCI legal professional allegedly “made intentional misrepresentations” that the corporate “would remit cost for the audits and extra premiums owed underneath the insurance policies,” however PCI has did not make any funds.
The legal professional isn’t named as a defendant within the criticism.
Persico, of Yonkers, didn’t instantly reply to a request for remark, and an legal professional representing PCI declined to touch upon ongoing litigation.
CNA is represented by Manhattan legal professional Dennis E. Kadian.
