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

REALCOMP II LIMITED 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: 
2:12-cv-11280 Search Pacer
ACE Group party(s): 
Opposing Party: 
Realcomp II Limited
Court Type: 
Federal
US District Court: 
Eastern District of Michigan
Date Filed: 
Mar 21 2012

"COUNT I - DECLARATORY JUDGMENT

19. Realcomp restates and realleges paragraphs 1 through 18 of this Complaint as if repeated herein word for word.

20. ACE American refused to defend or indemnify Realcomp for the claims and allegations asserted against Realcomp in the Underlying Action.

21. Realcomp seeks a determination of its rights and benefits under the Policy, and the duties and obligations it is owed by ACE American under the Policy for the claims and allegations asserted against Realcomp in the Underlying Action.

22. Realcomp seeks a declaration from this Court that, pursuant to the Policy, ACE American is required to defend and indemnify Realcomp for all of the claims and allegations asserted against it in the Underlying Action.

23. Realcomp also seeks a declaration from the Court that ACE American is obligated, pursuant to the Policy, to: (1) reimburse Realcomp for all costs, expenses and attorney fees incurred by Realcomp in the defense of the Underlying Action; (2) assume the defense of Realcomp in the Underlying Action and pay all costs, expenses and attorney fees associated with the defense of Realcomp; and (3) indemnify Realcomp for all damages and other loss which Realcomp may be found legally obligated to pay in the Underlying Action.

WHEREFORE, Realcomp respectfully requests that this Honorable Court issue a declaration as to the rights and benefits owed by ACE American to Realcomp under Policy for the claims and allegations made against Realcomp in the Underlying Action, and issue an order requiring ACE American to: (1) reimburse Realcomp for all costs, expenses and attorney fees incurred by Realcomp in the defense of the Underlying Action; (2) assume the defense of Realcomp in the Underlying Action and pay all costs, expenses and attorney fees associated with the defense of Realcomp; and (3) indemnify Realcomp for all damages and other loss Realcomp may be found legally obligated to pay in the Underlying Action, along with an award to Realcomp of all costs, expenses and attorney fees it incurs to prosecute this action, and any other relief which this Court deems appropriate, equitable or just.

COUNT II - BREACH OF CONTRACT

24. Realcomp restates and realleges paragraphs 1 through 23 of this Complaint as if repeated herein word for word.

25. The claims and allegations made against Realcomp in the Underlying Action are at least arguably covered by the Policy which Realcomp purchased from ACE American.

26. Pursuant to the Policy, ACE American has a duty and is obligated to defend Realcomp for the claims and allegations brought against it in the Underlying Action.

27. Moreover, again pursuant to the Policy, ACE American has a duty and is obligated to indemnify Realcomp if Realcomp is found legally obligated to pay damages for any of the claims and allegations brought against it in the Underlying Action.

28. In spite of these duties and obligations, ACE American has breached the Policy by failing and refusing to defend and indemnify Realcomp in the Underlying Action.

29. ACE American's failure and refusal to defend and indemnify Realcomp for the claims and allegations asserted in the Underlying Action constitutes a material breach of the Policy.

30. ACE American's duty and obligation to defend and indemnify Realcomp for the claims and allegations asserted against it in the Underlying Action is not reasonably in dispute, and therefore ACE American's failure and refusal to defend and indemnify Realcomp in the Underlying Action constitutes a violation of Michigan Compiled Law 500.2006.

31. Pursuant to MCL 500.2006, failure by an insurer to timely pay benefits which an insured is owed under an insurance policy constitutes an Unfair Trade Practice, and such an insurer is liable to the insured for penalty interest on the unpaid benefits at the rate of 12% per year, compounded annually.

32. Realcomp has suffered damages and continues to suffer damages as a direct result of ACE American's breach of the Policy.

WHEREFORE, Realcomp respectfully requests that this Honorable Court enter a Judgment in its favor and against ACE American for all costs, expenses and attorney fees incurred by Realcomp to date and which are incurred in the future for its defense in the Underlying Action, all damages to which Realcomp may be found legally obligated to pay in the Underlying Action, along with pre and post-judgment interest, penalty interest pursuant to M.C.L. 500.2006, the costs, expenses and attorney fees incurred by Realcomp to prosecute this matter, and any additional relief which this Court finds to be appropriate, equitable or just.

BAD FAITH

33. Realcomp restates and realleges paragraphs 1 through 32 of this Complaint as if repeated herein word for word.

34. ACE American is required to act in good faith toward Realcomp with respect to its contractual duties under the Policy, including, but not limited to, properly addressing and responding to the claims and allegations brought against Realcomp in the Underlying Action.

35. ACE American's assertion that the Policy does not apply to the claims and allegations brought against Realcomp in the Underlying Action is wrong, unsupported by the terms and conditions of the Policy as considered in respect of the claims and allegations of the Underlying Action, and was made by Ace American in a bad faith breach of the duties and obligations it owes to Realcomp in an improper attempt to avoid its contractual duties and obligations, as well as to improperly prejudice Realcomp in its efforts to defend itself against the claims and allegations of the Underlying Action.

36. ACE American's actions in refusing to defend Realcomp and to indemnify it if Realcomp is found legally obligated to pay damages is so egregious as to constitute an action taken by ACE American in bad faith, in an improper attempt to avoid its contractual duties and obligations, and to improperly prejudice Realcomp in its efforts to defend itself against the claims and allegation of the Underlying Action.

37. ACE American has intentionally disregarded the interests of its insured, intentionally breached the duties and obligations it owes to Realcomp, and has asserted false and/or inapplicable Policy defenses motivated by a desire to protect its own financial interests at the expense of Realcomp.

38. As a result of the aforementioned bad faith actions by ACE American, Realcomp has suffered additional damages exceeding the defense costs and indemnification due under the Policy, including consequential damages caused by ACE American's ongoing failure to defend and indemnify Realcomp in the Underlying Action.

WHEREFORE, Realcomp respectfully requests that this Honorable Court enter a Judgment in its favor and against ACE American in an amount in excess of $75,000 for the bad faith actions taken by ACE American with regard to this claim, plus pre and post-judgment interest, the costs, expenses and attorney fees incurred by Realcomp to prosecute this matter, and any additional relief which this Court finds to be appropriate, equitable or just."

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.