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

EMERSON ELECTRIC CO. v. ACE AMERICAN 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: 
4:13-cv-02114 Search Pacer
ACE Group party(s): 
Opposing Party: 
Emerson Electric Co.
Court Type: 
Federal
US District Court: 
Eastern District of Missouri
Date Filed: 
Oct 22 2013

Count I - Declaratory Relief

57. Emerson reincorporates by reference the allegations contained in paragraphs 1
through 56 above as if fully set forth herein.
58. The ACE policy expressly provides that ACE has a duty to defend Emerson and
its subsidiaries and ACE is obligated to pay Emerson for reasonable expenses incurred by
Emerson at ACE's request to assist in the investigation and defense of the Black & Decker
claim.
59. ACE requested, both expressly and implicitly, that Emerson incur expenses in the
investigation of the claim and promised to reimburse Emerson for those expenses.
60. All such expenses were reasonably and necessarily incurred in furtherance of the
defense of the now pending Netherlands lawsuit, for the benefit of both ACE and Emerson.
61. ACE has failed and continues to refuse to pay the full amount of reasonable
expenses incurred by Emerson.
62. As such, there is a present and justiciable controversy between the parties as to
whether ACE has breached its contractual obligations in connection with coverage and
supplementary payments.
63. Emerson seeks judicial declarations that (1) liability realized by Emerson in the
Netherlands lawsuit, including liability associated with drills recalled from the United States, is
covered under the ACE policy, and (2) ACE is obligated to reimburse Emerson for all expenses
described above.

 

Count II - Breach of Contract

64. Emerson reincorporates by reference the allegations contained in paragraphs 1
through 63 above as if fully set forth herein.
65. Emerson and ACE entered into a written insurance contract, for consideration,
wherein ACE agreed to defend Emerson and promised to pay Emerson for the reasonable
expenses incurred by Emerson at ACE's request to assist in the investigation and defense of the
claim.
66. Emerson has complied with all of the terms, conditions and other requirements of
the contract, including but not limited to the payment of all premiums, or the terms and
conditions have been waived.
67. ACE breached the terms of the insurance contract by, among other things, (1)
refusing to pay Emerson for the reasonable and necessary pre-suit expenses incurred by
Emerson, and (2) refusing to pay Emerson the reasonable and necessary fees and costs of counsel
based in the United States, in defending the Netherlands lawsuit.
68. As a direct and proximate result of ACE's breach of the terms of the insurance
contract, Emerson has been damaged in an amount according to proof at trial.

Count III - Tort Claim for Bad Faith Refusal to Pay/Vexatious Refusal to Pay (Mo. Rev.
Stat. §§ 375.296, 375.420)

69. Emerson reincorporates by reference the allegations contained in paragraphs 1
through 68 above as if fully set forth herein.
70. ACE owes Emerson the duty of good faith and fair dealing by virtue of the
contractual relationship embodied in the policy.
71. ACE denial and failure to fulfill its obligations under the insurance contract with
Emerson was vexatious and without reasonable cause.

72. By virtue of ACE's vexatious refusal to pay, Emerson is entitled to and hereby
seeks an award of prejudgment interest, court costs and attorneys' fees in addition to any
damages awarded, as well as other relief the Court deems just and proper.
Count IV - Tort Claim for Bad Faith Claims Handling
73. Emerson reincorporates by reference the allegations contained in paragraphs 1
through 72 above as if fully set forth herein.
74. Missouri law requires an insurer to comply with claims handling standards.
75. ACE failed to comply with Missouri's claim handling standards.
76. ACE's failure to comply with Missouri's claim handling standards was without
reasonable cause or excuse.
77. ACE knew that its conduct was contrary to the express language of the insurance
contract and inconsistent with its own prior conduct and interpretation of that contract.
78. By virtue of ACE's conduct, Emerson is entitled to and hereby seeks an award of
prejudgment interest, court costs and attorneys' fees in addition to the damages awarded, as well
as other relief the Court deems just and proper.
Count V - Breach of Fiduciary Duty
79. Emerson reincorporates by reference the allegations contained in paragraphs 1
through 78 above as if fully set forth herein.
80. Pursuant to the insurance contract issued by ACE to Emerson, ACE assumed
certain fiduciary duties to Emerson.
81. ACE breached its fiduciary duties towards Emerson.
82. ACE's breach of fiduciary duties owed to Emerson resulted in damages sustained
by Emerson.
83. By virtue of ACE's conduct, Emerson is entitled to and hereby seeks an award of
prejudgment interest and court costs in addition to the damages awarded, as well as other relief
the 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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