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

SAPA EXTRUSIONS, INC. v. LIBERTY MUTUAL INSURANCE COMPANY et al

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: 
3:13-cv-02827 Search Pacer
Opposing Party: 
Sapa Extrusions, Inc.
Court Type: 
Federal
US District Court: 
Middle District of Pennsylvania
Date Filed: 
Nov 19 2013

ACE Primary Policies
65. ACE sold to Alcoa, Inc. a General Liability Policy, Policy No. HDO G205 86023,
for the policy period July 1, 2002 through July 1, 2003 (the "2002 ACE Policy").
66. ACE sold to Alcoa, Inc. a General Liability Policy, Policy No. HDO G21738335,
for the policy period July 1, 2003 through July 1, 2004 (the "2003 ACE Policy").
67. ACE sold to Alcoa, Inc. a General Liability Policy, Policy No. HDO G21707466,
for the policy period July 1, 2004 through July 1, 2005 (the "2004 ACE Policy").
68. ACE sold to Alcoa, Inc. a General Liability Policy, Policy No. HDO G2171804A,
for the policy period July 1, 2005 through July 1, 2006 (the "2005 ACE Policy"). A copy of the

2005 ACE Policy is attached as Exhibit "K" and, by this reference, incorporated as though fully
set forth herein.
69. ACE sold to Alcoa, Inc. a General Liability Policy, Policy No. HDO G21734548,
for the policy period July 1, 2006 through July 1, 2007 (the "2006 ACE Policy"). A copy of the
2006 ACE Policy is attached as Exhibit "L" and, by this reference, incorporated as though fully
set forth herein.
70. Upon information and belief, the 2002 ACE Policy, the 2003 ACE Policy, and the
2004 ACE Policy have substantially similar terms as the 2005 ACE Policy and the 2006 ACE
Policy. All of these policies are collectively referred to hereafter as the "ACE Primary Policies".
71. At the time of the ACE Primary Policies, Sapa, then known as Alcoa Extrusion,
Inc., was a subsidiary company to Alcoa, Inc. and, therefore, a named insured under the
Schedule of Named Insureds in the ACE Policies.
72. The annual limits of liability for the ACE Primary Policies are $5,000,000 (five
million dollars) per occurrence with a $5,000,000 (five million dollars) deductible per
occurrence.
73. The ACE Primary Policies provide that ACE:
[W]ill pay those sums that the insured becomes legally obligated to pay as
damages because of "bodily injury" or "property damage" to which this
insurance applies. We will have the right and duty to defend the insured
against any "suit" seeking those damages. However, we will have no duty
to defend the insured against any "suit" seeking damages for "bodily
injury" or "property damage" to which this insurance does not apply.
* * *
This insurance applies to "bodily injury" and "property damage" only if:
(1) The "bodily injury" or "property damage" is caused by an
"occurrence" that takes place in the "coverage territory"; and

(2) The "bodily injury" or "property damage" occurs during the policy
period.
74. The term "Property Damage" is defined under the ACE Primary Policies as:
a. Physical injury to tangible property, including all resulting loss of use of
that property. All such loss of use shall be deemed to occur at the time of
the physical injury that caused it; or
b. Loss of use of tangible property that is not physically injured. All such
loss of use shall be deemed to occur at the time of the "occurrence" that
caused it.
75. The term "Occurrence" is defined under the ACE Primary Policies as "an
accident, including continuous or repeated exposure to substantially the same general harmful
conditions."
76. Sapa tendered the claim stemming from the Underlying Action to ACE.
77. Sapa has complied with all terms of the ACE Primary Policies.
78. To date, ACE has refused to provide defense or indemnity costs.

ACE Excess and Umbrella Policies
93. ACE sold to Alcoa, Inc. an Excess Liability Policy, Policy No. XCP G21742752,
for the policy period July 1, 2003 through July 1, 2004 (the "2003 ACE Excess Policy"). A copy
of the 2004 ACE Excess Policy is attached as Exhibit "O" and, by this reference, incorporated as
though fully set forth herein.
94. The 2003 ACE Excess Policy provides that ACE "will pay on YOUR behalf the
ULTIMATE NET LOSS in excess of the applicable limits of the UNDERLYING INSURANCE
(whether such insurance is collectible or not) "
95. The 2003 ACE Excess Policy provides: "The Definitions, Terms, Conditions,
Limitations, and Exclusions of the UNDERLYING INSURANCE, in effect at the inception date
of this policy, apply to this coverage unless they are inconsistent with provisions of this policy."
96. The Underlying Insurance is identified in the 2003 ACE Excess Policy as the
2003 National Union Policy and the 2003 Arch Policy.
97. The limit of liability of the 2003 ACE Excess Policy is $25,000,000 (twenty five
million dollars).
98. ACE also sold to Alcoa, Inc. a Commercial Umbrella Liability Policy, Policy No.
XOO G21976416, for the policy period July 1, 2004 through July 1, 2005 (the "2004 ACE
Umbrella Policy"). A copy of the 2004 ACE Umbrella Policy is attached as Exhibit "P" and, by
this reference, incorporated as though fully set forth herein.
99. ACE also sold to Alcoa, Inc. a Commercial Umbrella Liability Policy, Policy No.
XOO G22082723, for the policy period July 1, 2005 through July 1, 2006 (the "2005 ACE
Umbrella Policy"). A copy of the 2005 ACE Umbrella Policy is attached as Exhibit "Q" and, by
this reference, incorporated as though fully set forth herein.

100. ACE also sold to Alcoa, Inc. a Commercial Umbrella Liability Policy, Policy No.
XOO G23714632, for the policy period July 1, 2006 through July 1, 2007 (the "2006 ACE
Umbrella Policy"). The 2004 ACE Umbrella Policy, the 2005 ACE Umbrella Policy, and the
2006 ACE Umbrella Policy are hereafter collectively referred to as the "ACE Umbrella
Policies".
101. At the time of the ACE Umbrella Policies, Sapa, then known as Alcoa Extrusion,
Inc., was a subsidiary company to Alcoa, Inc. and, therefore, a person insured under the terms of
the ACE Umbrella Policies.
102. The annual limits of liability for the ACE Umbrella Policies are $25,000,000
(twenty five million dollars) per occurrence.
103. The ACE Umbrella Policies provide that ACE:
[W]ill pay on behalf of the INSURED all sums that the INSURED shall
become legally obligated to pay as damages because of BODILY
INJURY, PERSONAL AND ADVERTISING INJURY, or PROPERTY
DAMAGE to which this policy applies that take place during the POLICY
PERIOD. The OCCURRENCE must take place in the COVERAGE
TERRITORY.
104. The ACE Umbrella Policies further provide that ACE:
[S]hall be liable only for that portion of the ULTIMATE NET LOSS in
excess of:
1. The applicable limits of the UNDERLYING INSURANCE listed in the
attached Schedule of UNDERLYING INSURANCE (whether such
insurance is collectible or not).
105. The Schedules of Underlying Insurance under the ACE Umbrella Policies identify
$5,000,000 (five million dollars) in coverage for Commercial General Liability as the
Underlying Insurance.
106. The term "Property Damage" is defined under the ACE Umbrella Policies as:

a. Physical injury to tangible property, including all resulting loss of use of
that property. All such loss of use shall be deemed to occur at the time of
the physical injury that caused it;
b. Loss of use of tangible property that is not physically injured. All such
loss shall be deemed to occur at the time of the OCCURRENCE that
caused it.
107. The term "Occurrence" is defined under the ACE Umbrella Policies as "an
accident including continuous or repeated exposure to substantially the same general harmful
conditions."
108. Sapa tendered the claim stemming from the Underlying Action to ACE.
109. Sapa has complied with all terms of the 2004 ACE Excess Policy and the ACE
Umbrella Policies.
110. To date, ACE has refused to provide indemnity costs.

NINTH COUNT
BREACH OF CONTRACT VERSUS
PACIFIC EMPLOYERS INSURANCE COMPANY
200. Plaintiff incorporates by reference paragraphs 1 through 199, as though fully set
forth herein.

201. The Pacific Policy constitutes a valid and enforceable contract between the
parties.
202. Under the terms of the Pacific Policy, there are no exclusions or limitations that
would preclude coverage of the Plaintiffs' claim for these losses.
203. Pacific's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
204. As a direct and proximate result of Pacific's breach of its contract of insurance
with Plaintiff, Plaintiff has sustained considerable damage including, but not limited to,
attorney's fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant Pacific Employers
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and just.
TENTH COUNT
BREACH OF CONTRACT VERSUS
ACE AMERICAN INSURANCE COMPANY
205. Plaintiff incorporates by reference paragraphs 1 through 204, as though fully set
forth herein.
206. The 2002 ACE Policy constitutes a valid and enforceable contract between the
parties.
207. Under the terms of the 2002 ACE Policy, there are no exclusions or limitations
that would preclude coverage of the Plaintiffs' claim for these losses.

208. ACE's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
209. As a direct and proximate result of ACE's breach of its contract of insurance with
Plaintiff, Plaintiff has sustained considerable damage including, but not limited to, attorney's
fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant ACE American
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and just.
ELEVENTH COUNT
BREACH OF CONTRACT VERSUS
ACE AMERICAN INSURANCE COMPANY
210. Plaintiff incorporates by reference paragraphs 1 through 209, as though fully set
forth herein.
211. The 2003 ACE Policy constitutes a valid and enforceable contract between the
parties.
212. Under the terms of the 2003 ACE Policy, there are no exclusions or limitations
that would preclude coverage of the Plaintiffs' claim for these losses.
213. ACE's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
214. As a direct and proximate result of ACE's breach of its contract of insurance with
Plaintiff, Plaintiff has sustained considerable damage including, but not limited to, attorney's

fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant ACE American
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and just.
TWELFTH COUNT
BREACH OF CONTRACT VERSUS
ACE AMERICAN INSURANCE COMPANY
215. Plaintiff incorporates by reference paragraphs 1 through 214, as though fully set
forth herein.
216. The 2004 ACE Policy constitutes a valid and enforceable contract between the
parties.
217. Under the terms of the 2004 ACE Policy, there are no exclusions or limitations
that would preclude coverage of the Plaintiffs' claim for these losses.
218. ACE's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
219. As a direct and proximate result of ACE's breach of its contract of insurance with
Plaintiff, Plaintiff has sustained considerable damage including, but not limited to, attorney's
fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant ACE American
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and just.

THIRTEENTH COUNT
BREACH OF CONTRACT VERSUS
ACE AMERICAN INSURANCE COMPANY
220. Plaintiff incorporates by reference paragraphs 1 through 219, as though fully set
forth herein.
221. The 2005 ACE Policy constitutes a valid and enforceable contract between the
parties.
222. Under the terms of the 2005 ACE Policy, there are no exclusions or limitations
that would preclude coverage of the Plaintiffs' claim for these losses.
223. ACE's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
224. As a direct and proximate result of ACE's breach of its contract of insurance with
Plaintiff, Plaintiff has sustained considerable damage including, but not limited to, attorney's
fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant ACE American
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and just.
FOURTEENTH COUNT
BREACH OF CONTRACT VERSUS
ACE AMERICAN INSURANCE COMPANY
225. Plaintiff incorporates by reference paragraphs 1 through 224, as though fully set
forth herein.
226. The 2006 ACE Policy constitutes a valid and enforceable contract between the
parties.

227. Under the terms of the 2006 ACE Policy, there are no exclusions or limitations
that would preclude coverage of the Plaintiffs' claim for these losses.
228. ACE's conduct, in refusing to pay any of the litigation costs or settlement cost
arising from the Underlying Action, constitutes a breach of contract for which no justification
exists.
229. As a direct and proximate result of ACE's breach of its contract of insurance with
Plaintiff, Plaintiff has sustained considerable damage including, but not limited to, attorney's
fees and costs of suit and costs of settlement in the Underlying Action, all of which are
compensable.
WHEREFORE, Plaintiff demands judgment against Defendant ACE American
Insurance Company for compensatory damages, prejudgment and post-judgment interest, costs
of suit, and such other relief as the Court deems equitable and 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.

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