In January of 2011, 10 ACE Group Companies agreed to pay $70 million in settlement fees to the New York Workers’ Compensation Board after an investigation into whether certain insurance companies had been overcharging policyholders.
Rusty Machine Leads to Lawsuit Against ACE Group Insurer
January 17th, 2014 - A plastics recycler has taken Westchester Fire Insurance Co. to court after it received processing equipment that allegedly was damaged in transit.
Plastic Recyclers Southeast Inc., of Decatur, Ala. bought a machine called a granulator in 2013 from a supplier based in suburban Chicago. The machine was intended to be used at a company plant at Menomonie, Wisconsin.
Plastic Recyclers hired FourWinds Transportation Inc., to arrange transportation to its plant. In turn, FourWinds engaged Chippewa Falls, Wisconsin-based Reliable Express LLC to deliver the machine and ancillary parts. It picked up the order on April 12th, 2013.
In its contract with Reliable, FourWinds specified that the machinery was to be covered with a tarpaulin. The lawsuit did not indicate whether that protective covering was in fact used, but in any event, the plaintiffs contended that the machinery arrived in Wisconsin damaged and unusable.
Plastic Recyclers said it notified Reliable of the damage on April 15th. The company followed that up four dates later with a written claim that included a request that the truck line notify its insurance carrier - Westchester Fire. But it said that neither Reliable nor Westchester Fire responded to the claim.
Plastic Recyclers said that the machine’s supplier estimated it would take at least $42,500 to remove rust from it. The machine, which was used, had an invoice for $63,900 according to the complaint.
In addition to citing the repair costs, Plastic Recyclers noted that the use value of the machine was $15,000 monthly.
In a suit filed in U.S. District Court in the Western District of Wisconsion, Plastic Recyclers said it is due at least $140,000 in damages from Reliable and Westchester Fire.
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