Karcher Sued Over Inland Empire Deal

An insurance company has filed a lawsuit against Carl’s Jr. founder Carl N. Karcher and developer Maurice Monnig in the latest development in a series of suits involving a failed home-building project in the Inland Empire.

Insurance Company of the West says in its suit, filed Dec. 29 in Orange County Superior Court, that it issued surety bonds guaranteeing performance and payment on some projects begun by Karcher and Monnig in the 1980s.

The suit says that as a surety, Insurance Company of the West has been exposed to more than $403,000 of claims for infrastructure and other construction work related to the projects.

Insurance Company of the West says that in a written agreement, Karcher, Monnig and others involved in the development projects agreed to indemnify against or repay any such liabilities.

Karcher and Monnig have other lawsuits pending against them for their involvement in the development project. And Karcher and Monnig themselves have filed claims blaming the project’s troubles on others.