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

PREVOST, JR. 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: 
1:13-cv-00046 Search Pacer
ACE Group party(s): 
Opposing Party: 
Conrad Prevost, Jr.
Court Type: 
Federal
US District Court: 
District of the Virgin Islands
Date Filed: 
Apr 30 2013

"Count I – Declaration that the Assignment is Valid

35. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 34.

36. To the extent that the Defendant is contesting the Assignment or the validity of its terms, Prevost seeks a declaration that: (1) the Assignment, and each if its terms, is valid and enforceable; and that (2) the Defendant does not have a valid defense to enforcement of the Assignment, based on the Policy’s terms or otherwise.

Count II – Declaration With Respect to the Defendant’s
Contractual Liability and Duty to Indemnify

37. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 36.

38. Islands Mechanical complied with all of its obligations under the Policy. The Defendant failed to provide a defense and refused to indemnify Islands Mechanical. The Policy required Defendant to defend and indemnify Islands Mechanical.

39. To the extent that Defendant claims late notice of the claim, which Islands Mechanical disputes, Defendant did not receive any prejudice as a result of the claimed late notice.

40. Defendant is barred from contesting the reasonableness of the settlement as a result of its refusal to defend. The settlement is reasonable given the facts of the case.

41. Prevost seeks a declaration that, based on the Assignment, the Defendant is contractually obligated to pay Prevost $1,000,000, plus costs, pre-judgment and post-judgment interest. Prevost seeks a money judgment in addition to or as an alternative to a declaration concerning Defendant’s contractual liability under the policy.

Count III – The Defendant’s Extra-Contractual
Liability Pursuant to Title 22 of the Virgin Islands Code
42. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 41.

43. Title 22 of the Virgin Islands Code governs insurance transactions affecting subjects located in the United States Virgin Islands. See 22 V.I.C. § 1. Insurance carriers owe a duty of good faith, honesty, and equity in all insurance matters. See 22 V.I.C. § 2. Also, a Defendant’s right to control the litigation, coupled with its right to settle or refuse to settle claims against the insured, imposes upon it both fiduciary duties and a duty of good faith and fair dealing under the common law. See Buntin v. Continental Ins. Co., 525 F. Supp. 1077, 1081 (D.V.I. 1981). A breach of these duties creates extra-contractual, quasicontractual, and tort liability.

44. Defendant breached its duty to timely and adequately defend and indemnify Islands Mechanical and exposed Islands Mechanical to an award in excess of $1,000,000.00.

45. When the Defendant refused Prevost’s multiple offers to settle this case within policy limits and refused to defend or indemnify Islands Mechanical, it placed its interests ahead of Islands Mechanical’s. The Defendant breached its duty of “good faith, honesty, and equity” and its fiduciary duties to Islands Mechanical by unreasonably exposing Islands Mechanical to liability in excess of policy limits. Prevost seeks judgment that the Defendant breached its duty to Islands Mechanical to accept a reasonable settlement offer and to defend and indemnify within policy limits and that it is therefore liable for the confessed Judgment, plus costs fees and interest.

Count IV

46. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 45.

47. The Defendant acted fraudulently in its dealings with Islands Mechanical in falsely claiming there is no coverage when there was.

48. As a result, Islands Mechanical was exposed to a judgment against it and is liable to Plaintiff as assignee for Islands Mechanical’s damages related thereto.

WHEREFORE, Plaintiff prays for declaratory relief as discussed above, including a declaration that the Defendant is obligated to pay him now for the confessed Judgment amount, including any costs, fees, prejudgment interest, and post-judgment interest, plus additional costs and attorneys’ fees. Prevost also seeks a declaration that the Assignment is valid and that Islands Mechanical complied with all material conditions precedent for defense and indemnity under the Policy. Judgment against Defendant for the full amount of the confessed judgment, pre and post judgment interest, costs and fees as well as punitive damages for Defendant’s reckless disregard for the rights of Plaintiff, as assignee, and its fraudulent acts towards its insured as well as any additional new costs and attorneys’ fees that he incurs in this suit."

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.