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INDEMNITY INSURANCE COMPANY OF NORTH AMERICA v. AMERICAN WATER WORKS CO., INC.

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: 
2:14-cv-05178 Search Pacer
Court Type: 
Federal
US District Court: 
Eastern District of Pennsylvania
Date Filed: 
Sep 8 2014

COMPLAINT
Plaintiff, Indemnity Insurance Company of North America, as subrogee of
Northeastern Educational Intermediate Unit 19, by and through its attorney, Dennis J. Crawford,
Esquire, by way of Complaint hereby avers as follows:
JURISDICTION
1. Jurisdiction in this case is based on diversity of citizenship of the parties
and the amount in controversy. Plaintiff is an insurance company with headquarters located in
the Commonwealth of Pennsylvania. Defendant is a corporation with headquarters located in the
State of New Jersey. The amount in controversy exceeds the sum of Seventy Five Thousand
Dollars ($75,000.00), exclusive of interest and costs.
THE PARTIES
2. Plaintiff, Indemnity Insurance Company of North America ("ACE"), is an
insurance carrier with a principal place of business in 436 Walnut Street, Philadelphia, PA, and is
Case 2:14-cv-05178-CMR Document 1 Filed 09/08/14 Page 2 of 4
the property insurer for the Northeastern Intermediate Unit 19 ("NEIU19"), located at 1200 Line
Street, Archbald, PA 18403.
3. Defendant, American Water Works Company, Inc. ("AMERICAN
WATER"), is a public utility company engaged in the generation, distribution and supply of
water, with headquarters located at 1025 Laurel Oaks Road, Voorhees, NJ 08043.
BACKGROUND
4. On or about January 30, 2014, a water leak occurred at the NEIU19
building from the pipes of a defunct sprinkler system.
5. The aforementioned sprinkler system had been decommissioned
approximately 18 years prior to the date of the leak.
6. The water supply to the decommissioned sprinkler system came from a
fire hydrant located off the NEIU19 premises.
7. At the time the sprinkler system was decommissioned, the water supply
from the subject fire hydrant had been shut off at the said hydrant.
8. At the time of the incident, employees, representatives, agents, and/or
servants of defendant, American Water, were repairing the subject fire hydrant located off the
NEIU19 premises.
9. Upon completion of the repair, all lines from the subject fire hydrant were
opened.
10. As a result, water was allowed to flow unabated into the NEIU19 building
through the defunct sprinkler system pipes.
11. Significant water damage to the building and business personal property
was incurred as a result of this incident.
Case 2:14-cv-05178-CMR Document 1 Filed 09/08/14 Page 3 of 4
12. As a result of this incident, a claim was submitted by the NEIU19 to the
plaintiff for the repairs, restoration and replacement of the damaged property.
13. The total damages are valued at no less than $250,000.00, which has been
settled between the plaintiff and NEIU19 according to the terms and conditions of their policy of
insurance.
14. As a result of the payment to its insured, plaintiff seeks to recover the
aforementioned damages, owing to defendant's negligence.
COUNT I
NEGLIGENCE
15. Plaintiff repeats the allegations set forth above in paragraphs 1 to 14, as
though set forth herein at length.
16. At all times relevant hereto, defendant, generated, supplied and distributed
water throughout the area of the NEIU 19 and to the subject building.
17. The lines emanating to/from the subject hydrant are within the sole control
of the defendant.
18. The plaintiff alleges that the defendant negligently and carelessly reopened
the lines of the fire hydrant, in that they did not take the necessary steps and precautions
required to ensure that all lines that had been shut off remained as such.
19. The defendant further failed to observe the necessary, reasonable diligence
to inquire as to the reasons why certain lines were shut off and ensuring that they remained shut
off.
20. As a direct and proximate result of defendant's negligence, the plaintiff
incurred damages in the amount of no less than $250,000.00 for the property damaged by this
water leak.
Case 2:14-cv-05178-CMR Document 1 Filed 09/08/14 Page 4 of 4
WHEREFORE, plaintiff, Indemnity Insurance Company of North America, as
subrogee of Northeastern Educational Intermediate Unit 19, demands judgment in its favor and
against defendant, American Water Works Company, Inc. in the amount of $250,000.00 together
with the costs of this action, and any other relief this Court may deem just and proper.
DEMAND FOR TRIAL BY JURY
Demand is hereby made for a trial by jury as to all issues.

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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