The Ross Township-based Reginella Construction is suing the Travelers Insurance and Surety Company in connection to the renovation.
Reginella was the prime contractor on the extensive, $45.8 million conversion of the district's former high school, which will house grades five through eight this academic year. The Moon Area School Board to terminate the district's contract with the firm.
The former Moon Area Middle School is set to be demolished.
In the lawsuit, filed July 26 in federal court, attorneys for Reginella claim that the Connecticut-based insurer interfered with payments for the Moon Area Middle School renovation, causing the construction firm to default on the project.
The suit also involves a canceled $10 million Ohio Turnpike project, which Reginella alleges was also halted by Travelers.
In the complaint, attorneys say the canceled contracts have prevented the construction firm from bidding on and obtaining contracts and bonds for other projects.
In an Aug. 1 to community members, Moon Area Superintendent Donna Milanovich said the revamped building will be completed in time for the district's first day of school on Sept. 5.
Construction on the building, which is 95 percent complete, will continue through August, according to her letter.
Reginella claims in the suit that the renovation was more than 80 percent complete when it was fired from the project because Travelers demanded that Moon pay "the entire amount of the contract funds remaining in the custody of the Moon Area School District."
The construction company says in the claim that it terminated its contract with the district on June 11.
Representatives from Reginella could not be reached for comment. Click the media in this article to view Reginella's full complaint.
Reginella is requesting a jury trial, punitive damages and reimbursement of court costs from Travelers in the suit.