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

ACE AMERICAN INSURANCE COMPANY, INC. v. WYKURTZ

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: 
1:13-cv-05086 Search Pacer
ACE Group party(s): 
Court Type: 
Federal
US District Court: 
Northern District of Illinois
Date Filed: 
Jul 16 2013

"COUNT I
(Rescission)

39. ACE restates and realleges paragraphs 1 through 44 as if fully set forth herein.

40. The Policy provides that it is void in any case of fraud by the insured, or if the insured conceals or misrepresents any material fact or circumstance relating to the Policy or the Application, whether before or after a loss.

41. Defendant concealed or misrepresented material facts by failing to disclose in the Application:
(a) the true purchase price of the Vessel;
(b) that the Vessel had sustained insurance losses;
(c) that the Vessel had previously sunk;
(d) that the Vessel had sustained extensive damage to its hull.

42. Defendant’s concealment and misrepresentation were material to ACE’s assessment of the risk, and ACE’s determination of applicable policy limits, premiums, and terms of coverage.

43. As a result of Defendant’s concealment and misrepresentation, the Policy is void ab initio, or, in the alternative, voidable by ACE.

44. Contemporaneous with filing of this Complaint for Declaratory Judgment, ACE has issued payment to Defendant in the amount of all premiums paid under the Policy.
WHEREFORE, Plaintiff, ACE AMERICAN INSURANCE COMPANY, INC., prays that this honorable Court enter judgment declaring (1) that the Policy is void ab initio, or, in the alternative, voidable by ACE; and (2) that ACE has no obligation under the Policy to provide insurance coverage for the Storm Loss or the Theft Loss.

COUNT II
(Maritime Doctrine of Ubberimae Fidei)

45. ACE restates and realleges paragraphs 1 through 52 as if fully set forth herein.

46. Federal maritime law applies to the Policy.

47. Defendant had an affirmative obligation pursuant to federal maritime law to disclose to ACE all facts material to the Policy.

48. Defendant had an obligation pursuant to federal maritime law to exercise the utmost good faith in applying for and obtaining the Policy.

49. Defendant breached its obligation to act with the utmost good by failing to disclose:
(a) the true purchase price of the Vessel;
(b) that the Vessel had sustained insurance losses;
(c) that the Vessel had previously sunk;
(d) that the Vessel had sustained extensive damage to its hull.

50. Defendant’s breach of the duty of utmost good faith induced ACE to issue a policy of marine insurance for a risk that did not meet its underwriting guidelines and criteria, and/or affected ACE’s determination of applicable policy limits, premiums, and terms of coverage.

51. As a result of Defendant’s breach of the duty of utmost good faith, the Policy is void ab initio, or, in the alternative, voidable by ACE.

52. Contemporaneous with filing of this Complaint for Declaratory Judgment, ACE has issued payment to Defendant in the amount of all premiums paid under the Policy."

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.

Javascript is required to view this map.