A surety says it finished a stalled Manhattan renovation, then had to sue to get paid.
The dispute concerns a building at 305 West 97th Street, known as Rose House, according to the complaint. The property is owned by 305 West 97th Street Associates, L.P., and managed by Volunteers of America – Greater New York, Inc. In June 2018, the owner hired a contractor, FG-PH Corp., to renovate it. FG-PH is not a defendant in the case.
That same month, Berkley issued the performance and payment bonds the contract required. A performance bond is a surety's promise to see a job through if the contractor defaults.
That, the complaint says, is what happened. The filing states the original contract was terminated for cause. On or about March 1, 2022, Berkley and the owner signed what the complaint calls a "Takeover Agreement," under which Berkley agreed to complete the project itself.
Berkley says it delivered. According to the filing, the agreed scope of work, plus additional "Extra Work" needed to finish the job, was completed on or about June 22, 2025. Despite that, the complaint alleges, the defendants "refused to pay Berkley the sum due and owing."
Berkley brings three claims - breach of contract, quantum meruit and unjust enrichment - and on each seeks a judgment against the defendants jointly and severally "in excess of Two Million ($2,000,000.00) Dollars," plus interest.
The complaint also reaches up the ownership chain. It names Volunteers of America, Inc., the Virginia-based parent that it says exercises "advisory oversight" over its New York affiliate, and argues the parent is bound by the takeover deal as well. It names SRO West 97th Street, Inc., the owner's general partner, as liable for the owner's actions.
The allegations have not been tested in court, and no judge has ruled on any of the claims.
