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

AMERICAN HOME ASSURANCE COMPANY v. WESTCHESTER FIRE INSURANCE COMPANY

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: 
BC477252 Search Pacer
ACE Group party(s): 
Opposing Party: 
AMERICAN HOME ASSURANCE COMPANY
Court Type: 
State
State Court: 
California.Supeior Court (Los Angeles County)
Date Filed: 
Jan 18 2012

"FIRST CAUSE OF ACTION
(Declaratory Relief Against WESTCHESTER and DOES 1-25)

24. AMERICAN HOME restates and re-alleges Paragraphs 1 through 23 as though fully set forth herein.

25. An actual, present and justiciable controversy has arisen and now exists between AMERICAN HOME on the one hand and WESTCHESTER on the other concerning the respective rights, duties and obligations of AMERICAN HOME given AMERICAN HOME no longer has any duty to continue to pay for the defense and indemnity of the Bridge Street Contractors against allegations made in the Alabama Construction Matters under the AMERICAN HOME POLICIES, and WESTCHESTER was obligated to assume the defense and indemnity of the Bridge Street Contractors against allegations made in the Alabama Construction Matters under the WESTCHESTER POLICY upon exhaustion of the single $4,000,000 products- completed operations limit of insurance for the entire Bridge Street Project under the AMERICAN HOME POLICIES.

 26. In particular, AMERICAN HOME contends and AMERICAN HOME is informed and believes and based thereon alleges that WESTCHESTER denies the following:
a. Based on the AMERICAN HOME POLICIES, the Completed Operations Extension Endorsement specifically and unambiguously limits coverage under the AMERICAN HOME POLICIES to a single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.
b. The AMERICAN HOME POLICIES exhaust upon payment of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project with regard to completed operations claims.
c. AMERICAN HOME issued payments for covered completed operations claims with regard to the Bridge Street Project on the Alabama Construction Matters in excess of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project and has thus exhausted the applicable limit of insurance.
d. As of the date of exhaustion of the applicable limit of insurance to the AMERICAN HOME POLICIES, AMERICAN HOME no longer had any duty to defend or indemnify any Bridge Street Contractor in any Alabama Construction Matter.
e. WESTCHESTER'S obligations under the WESTCHESTER POLICY have attached by reason of exhaustion of the AMERICAN HOME POLICIES.
f. WESTCHESTER is obligated to assume handling of the defense and indemnity of the Bridge Street Contractors and reimburse AMERICAN HOME for any amounts paid after exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project included in the AMERICAN HOME POLICIES.

27. By reason of the foregoing, a declaratory judgment is both necessary and proper so that the respective rights, duties and obligations between AMERICAN HOME and WESTCHESTER may be determined under the applicable provisions of the applicable policies of insurance. AMERICAN HOME is entitled to a declaratory judgment in its favor on this question in order to resolve the controversy between the parties, and specifically request a judicial determination that it no longer has any obligation to defend or indemnify any insured in any matter under the AMERICAN HOME POLICIES due to exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.

SECOND CAUSE OF ACTION
(Equitable Subrogation Against WESTCHESTER and DOES 1-25)

28. AMERICAN HOME restates and re-alleges Paragraphs 1 through 27 as though fully set forth herein.

29. AMERICAN HOME discharged all duties to defend and indemnify under the AMERICAN HOME POLICIES and no longer has any coverage obligations by reason of exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.

30. AMERICAN HOME alleges that the WESTCHESTER POLICY provides coverage for O&S, the Bridge Street Contractors, and any other person qualifying as an "insured" under the applicable policies such that WESTCHESTER'S coverage obligations have attached due to exhaustion of the AMERICAN HOME POLICIES' applicable limit of insurance. Pursuant to its obligations under the WESTCHESTER POLICY, WESTCHESTER was obligated to assume the defense and indemnify the Bridge Street Contractors in the Alabama Construction Matters immediately upon exhaustion of the AMERICAN HOME POLICIES.

31. Despite the fact that AMERICAN HOME has contended that the AMERICAN HOME POLICIES have exhausted, AMERICAN HOME has incurred and may continue to incur expense in excess of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project if it were to continue to defend the Bridge Street Contractors in the Alabama Construction Matters pursuant to full and complete reservations of rights under the AMERICAN HOME POLICIES due to WESTCHESTER'S refusal to acknowledge that its coverage obligations have attached with regard to the Alabama Construction Matters. AMERICAN HOME is therefore equitably subrogated to the rights of the Bridge Street Contactors and/or any other person or entity that qualifies as an "insured" under the AMERICAN HOME POLICIES as against WESTCHESTER in relation to the Alabama Construction Matters.

32. AMERICAN HOME is thus entitled to equitable subrogation from WESTCHESTER under the WESTCHESTER POLICY in an amount to be determined at trial, including any sums paid on behalf of any Bridge Street Contractor under the AMERICAN HOME POLICIES after exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.

33. Justice and equity require that the amounts paid by AMERICAN HOME to defend or indemnify any insured after exhaustion of the AMERICAN HOME POLICIES' applicable limit of insurance be shifted entirely to WESTCHESTER, and that AMERICAN HOME be reimbursed for any amounts paid after exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Proj ect.

THIRD CAUSE OF ACTION
(Equitable Indemnity Against WESTCHESTER and DOES 1-25)

34. AMERICAN HOME restates and re-alleges Paragraphs 1 through 33 as though fully set forth herein.

35. AMERICAN HOME discharged all duties to defend and indemnity under the AMERICAN HOME POLICIES and no longer has any coverage obligations by reason of exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.

36. AMERICAN HOME alleges that the WESTCHESTER POLICY provides coverage for O&S, the Bridge Street Contractors, and any other person qualifying as an "insured" under the applicable policies such that WESTCHESTER'S coverage obligations have attached due to exhaustion of the AMERICAN HOME POLICIES' applicable limit of insurance. Pursuant to its obligations under the WESTCHESTER POLICY, WESTCHESTER was obligated to assume the defense and indemnify O&S and/or the Bridge Street Contractors in the Alabama Construction Matters immediately upon exhaustion of the AMERICAN HOME POLICIES.

37. Despite the fact that AMERICAN HOME has contended that the AMERICAN HOME POLICIES have exhausted, AMERICAN HOME has incurred and may continue to incur expense in excess of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project if it were to continue to defend the Bridge Street Contractors in the Alabama Construction Matters pursuant to full and complete reservations of rights under the AMERICAN HOME POLICIES due to WESTCHESTER'S refusal to acknowledge that its coverage obligations have attached with regard to the Alabama Construction Matters. AMERICAN HOME is therefore equitably subrogated to the rights of O&S and/or the Bridge Street Contactors and/or any other person or entity that qualifies as an "insured" under the AMERICAN HOME POLICIES as against WESTCHESTER in relation to the Alabama Construction Matters.

38. AMERICAN HOME is thus entitled to equitable indemnity from WESTCHESTER under the WESTCHESTER POLICY in an amount to be determined at trial,  including any sums paid on behalf of any Bridge Street Contractor under the AMERICAN HOME POLICIES in excess of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project.

39. Justice and equity require that the amounts paid by AMERICAN HOME to defend or indemnify any insured after exhaustion of the AMERICAN HOME POLICIES' applicable limit of insurance be shifted entirely to WESTCHESTER, and that AMERICAN HOME be reimbursed for all amounts paid in excess of the AMERICAN HOME POLICIES' limit of insurance.  WHEREFORE, AMERICAN HOME respectfully requests that this Court enter an order granting AMERICAN HOME the following relief:
1. On its first cause of action, for a judicial declaration that AMERICAN HOME no longer has any obligation to defend or indemnify any insured in any matter by reason of exhaustion of the single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project under the AMERICAN HOME POLICIES, and that WESTCHESTER'S coverage obligations have attached with regard to the Alabama Construction Matters, and that WESTCHESTER is obligated to reimburse AMERICAN HOME for all  amounts paid to defend or indemnify any insured after exhaustion of the AMERICAN HOME POLICIES' applicable limit of insurance;
2. On its second cause of action, for reimbursement of any amounts paid by AMERICAN HOME after exhaustion of the AMERICAN HOME POLICIES' single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project;
3. On its third cause of action, for reimbursement of any amounts paid by AMERICAN HOME after exhaustion of the AMERICAN HOME POLICIES' single $4,000,000 products-completed operations limit of insurance for the entire Bridge Street Project;
4. For an award of pre-j udgment interest;
5. For costs of suit incurred herein; and
6. For other such relief as this Court deems just and proper."

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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