An insurance carrier has filed a federal lawsuit against State College-based construction company Glenn O. Hawbaker in relation to coverage in the company’s ongoing legal battle with PennDOT.
Hawbaker pleaded no contest last year and was ordered to pay over $20 million in restitution after being accused of wage and benefits theft by its employees.
The company was later granted permission to continue bidding on state contracts, despite the charges, resulting in a separate lawsuit being filed by PennDOT.
In the latest federal suit, Hawbaker claims that its insurance provider, Twin City Fire Insurance Company, should provide coverage of its ongoing legal costs.
The insurance company argues against that claim and says it wants a declaration that it is not responsible for either Hawbaker’s settlement or legal expenses.
