A union welfare fund has taken Berkley Insurance Company to federal court over nearly $100,000 in unpaid benefits tied to a public project in New Jersey. The International Union of Painters and Allied Trades District Council No. 21 Welfare Fund, along with the union and fiduciary Bernie Snyder, filed the lawsuit in the United States District Court for the District of New Jersey.
The dispute centers on Berkley’s role as the surety for a renovation project at the Essex County Parks Administration Building. According to the union, a subcontractor named Premier Construction LLC hired union workers from May through September 2024 but failed to submit required reports and pay the union fringe benefits owed under the collective bargaining agreement. The project was subject to a Project Labor Agreement, with Berkley issuing the surety bond, Tekcon Construction as principal, and the County of Essex as obligee.
The union first reached out to Premier Construction in October 2024, demanding the missing payments and reports, but received no reply. On November 25, the Welfare Fund sent a formal Notice of Claim to Berkley, seeking $97,511.81 in unpaid contributions. Berkley acknowledged the claim in early December and asked for supporting paperwork. The fund supplied additional documents through early 2025, but Berkley did not respond to later follow-up attempts.
The complaint argues that under New Jersey law, the surety bond must guarantee payment to those providing work and materials on public projects. It claims Berkley is contractually responsible for covering the unpaid benefits due to the subcontractor’s failure. The union and Welfare Fund seek a court judgment covering the outstanding contributions, interest, damages, and legal costs.
This lawsuit focuses on the surety bond and state statutes, not an insurance policy dispute. So far, these are just allegations. No court has yet ruled on the case or determined any liability. The outcome could have wider implications for how surety bonds protect workers on public projects where subcontractors fall short.