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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

ACE AMERICAN INSURANCE COMPANY et al v. RAYONIER PERFORMANCE FIBERS LLC et al

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

Case Number: 
2:13-cv-01741 Search Pacer
ACE Group party(s): 
Court Type: 
Federal
US District Court: 
District of South Carolina
Date Filed: 
Jun 26 2013

"CAUSE OF ACTION DECLARATORY RELIEF
21. ACE American and ACE Property re-allege each and every allegation of Paragraph 1-20 above as though fully set forth herein.

22. MWV alleges a breach of contract against Rayonier and seeks damages arising from that alleged breach of contract.

23. MWV also alleges that Rayonier made certain intentional misrepresentations to MWV prior to and subsequent to the negotiation of the contract regarding the properties of the product being purchased by MWV.

24. The Primary Policies provide, in pertinent part, as follows:
COMMERCIAL GENERAL LIABILITY COVERAGE FORM

SECTION I – COVERAGES COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LIABILITY
1. Insuring Agreement
a. We will pay those sums that the insured becomes legally obligated to pay as damages because of …”property damage” to which this insurance applies. We will have the right and duty to defend the insured against to defend the insured against any “suit” seeking damages for … “property damage” to which this insurance does not apply … .
b. This insurance applies to … “property damage” only if:
(1) The … “property damage” is caused by “occurrence” …;
(2) The … “property damage” occurs during the policy period…

2. Exclusions This insurance does not apply to:
b. Contractual Liability …”[P]roperty damage” for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages:
(1) That the insured would have in the absence of the contract or agreement ….
k. Damage To Your Product “Property damage” to “your product” arising out of it or any part of it.
m. Damage To Impaired Property Or Property Not Physically Injured “Property damage” to “impaired property” or property that has not been physically injured, arising out of:
(1) A defect, deficiency, inadequacy or dangerous condition in “your product” …. Section V – Definitions
8. “Impaired property” means tangible property, other than “your product” …, that cannot be used or is less useful because:
a. It incorporates “your product” … that is known or thought to be defective, deficient, inadequate or dangerous; or
b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by:
a. The repair, replacement, adjustment or removal of “your product” …; or
b. Your fulfilling the terms of the contract or agreement.
13. “Occurrence” means an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

17. “Property damage” means:
a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or
b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the “occurrence” that caused it.

21. “Your product”:
a. Means:
(1) Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by:
(a) You….
b. Includes
(1) Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of “your product”…."

The provided text is an excerpt from a document filed in this case. For a full understanding of the case, one should read the complete court file, including the response.

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