This case was last updated from U.S. District Courts on 11/19/2022 at 05:18:39 (UTC).

Chesapeake Tunnel Joint Venture v. Brasfond USA Corporation et al

Case Summary

On November 4, 2022, Chesapeake Tunnel Joint Venture (“CTJV” or “Plaintiff”), represented by Stephen B. Shapiro and Gregory H. Koger of Holland and Knight LLP, filed a contract lawsuit against Brasfond USA Corporation, Fidelity and Deposit Company of Maryland, and Zurich American Insurance Company (collectively, “Defendants”) seeking arbitration payment. This case was filed in the U.S. District Court for the District of Maryland, with Judge Richard D. Bennett presiding.

In the complaint, the plaintiff stated, “On July 27, 2016, the Chesapeake Bay Bridge and Tunnel Commission (‘CBBT’) awarded a contract (the ‘Prime Contract’) to CTJV to design and construct a portion of the Parallel Thimble Shoal Tunnel (the ‘Tunnel’) in Virginia Beach, Virginia (the ‘Project’). CTJV and Brasfond entered into a subcontract dated May 10, 2017 (the ‘Subcontract’) that required Brasfond to excavate and construct slurry walls for entrance and exit portals for the Tunnel.”

The plaintiff then alleged, “Pursuant to the dispute resolution procedure in the Subcontract, CTJV, Brasfond and Zurich attempted to resolve their disputes through mediation but the mediation was unsuccessful. In November 2019, CTJV commenced an arbitration against Brasfond with the American Arbitration Association (‘AAA’), which was assigned Case No. 01-19-0004-0820 (the ‘Arbitration’), seeking damages from Brasfond resulting from Brasfond's alleged breaches and defaults under its Subcontract (the ‘CTJV Arbitration Claim’). Brasfond responded to CTJV’s Arbitration Claim by denying liability and asserting a counterclaim against CTJV (the ‘Brasfond Arbitration Counterclaim’). On June 30, 2020, CTJV filed an Amended Request for Arbitration stating its claim against Zurich (the ‘Performance Bond Claim’). Prior to the hearings in the Arbitration, CTJV and Zurich entered into a confidential settlement agreement resolving CTJV's Performance Bond Claim.”

The plaintiff further alleged, “On November 3, 2022, counsel for Zurich demanded that CTJV should direct payment of the Arbitration Payment to Zurich instead of Brasfond by virtue of the GAI. According to Zurich, under the terms of the GAI, Brasfond is obligated to exonerate, indemnify and hold Zurich harmless from any and all liability and loss, sustained or incurred, arising from or related to the Performance Bond.”

Plaintiff additionally alleged, “According to Zurich, Zurich incurred losses under the Performance Bond in excess of seven million five hundred thousand dollars ($7,500,000). Zurich also informed CTJV that under applicable law, CTJV could not discharge its obligation under any judgment awarded in Brasfond's favor by making payment to Brasfond. Instead, CTJV could only be discharged from such obligation by making payment of the Arbitration Payment to Zurich.”

In the prayer for relief, the plaintiff requested an order directing CTJV to deposit the Arbitration Payment into the Court or to such person as the Court directs; direct the Defendants to interplead their rights to such sum; and further restraint the Defendants from instituting or prosecuting any proceeding in any state or United States Court in connection with the payment of the Arbitration Payment. 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:22-CV-02858

  • Filing Date:

    11/04/2022

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Other Contract

Judge Details

Presiding Judge

Richard D. Bennett

 

Party Details

Plaintiff

CHESAPEAKE TUNNEL JOINT VENTURE

Defendants

BRASFOND USA CORPORATION

Fidelity and Deposit Company of Maryland

Zurich American Insurance Company

Attorney/Law Firm Details

Plaintiff Attorney

Stephen Brett Shapiro

Attorney at Holland and Knight LLP

800 17Th Street Nw Ste 1100

Washington, DC 20006

 

Court Documents

1 #1

Main Document

1 #1

Exhibit 1

1 #2

Exhibit 2

1 #3

Exhibit 3

1 #4

Civil Cover Sheet

1 #5

Summons re Brasfond USA Corporation

1 #6

Summons re Fidelity and Deposit Company of Maryland

1 #7

Summons re Zurich American Insurance Company

#2

(#2) Local Rule 103.3 Disclosure Statement by CHESAPEAKE TUNNEL JOINT VENTURE identifying Other Affiliate SCHIAVONE CONSRUCTION COMPANY LLC, Other Affiliate DRAGADOS USA INC for CHESAPEAKE TUNNEL JOINT VENTURE.(Shapiro, Stephen) (Entered: 11/04/2022)

#3

(#3) Local Rule 7.1(Shapiro, Stephen) (Entered: 11/04/2022)

 

Docket Entries

  • 11/04/2022
  • View Court Documents
  • Docket(#3) Local Rule 7.1(Shapiro, Stephen) (Entered: 11/04/2022)

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  • 11/04/2022
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  • Docket(#2) Local Rule 103.3 Disclosure Statement by CHESAPEAKE TUNNEL JOINT VENTURE identifying Other Affiliate SCHIAVONE CONSRUCTION COMPANY LLC, Other Affiliate DRAGADOS USA INC for CHESAPEAKE TUNNEL JOINT VENTURE.(Shapiro, Stephen) (Entered: 11/04/2022)

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  • 11/04/2022
  • View Court Documents
  • Docket(#1) COMPLAINT Interpleader Complaint against BRASFOND USA CORPORATION, Fidelity and Deposit Company of Maryland, Zurich American Insurance Company, filed by CHESAPEAKE TUNNEL JOINT VENTURE. (Attachments: #1 Exhibit 1, #2 Exhibit 2, #3 Exhibit 3, #4 Civil Cover Sheet, #5 Summons re Brasfond USA Corporation, #6 Summons re Fidelity and Deposit Company of Maryland, #7 Summons re Zurich American Insurance Company)(Shapiro, Stephen) (Entered: 11/04/2022)

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