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

WESTCHESTER FIRE INSURANCE COMPANY v. GLASSWALL, LLC 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: 
1:14-cv-01159 Search Pacer
ACE Group party(s): 
Court Type: 
Federal
US District Court: 
Southern District of New York
Date Filed: 
Feb 24 2014

AS AND FOR A FIRST CAUSE OF ACTION AGAINST
THE DEFENDANTS FOR DEPOSIT OF COLLATERAL
11. Plaintiff Westchester Fire repeats and realleges the allegations contained in
paragraphs 1 through 10 hereof
12. By letter dated August 12, 2013, Monadnock Construction, Inc. (hereafter
"Monadnock") obligee under two Westchester Fire performance bonds (the "Bonds") in an
aggregate amount of $13,000,000 for performance of two contracts to supply curtain wall units
for a project known as Hunters Point South gave notice to Westchester that it regarded
Glasswall, LLC to have defaulted on its bonded contractual obligations.
13. By letters dated September 23, 2013, counsel for Westchester Fire informed the
defendants that Westchester Fire exercised its right under the Agreement of Indemnity to require
them to deposit collateral of $13,000,000 equal to the limits of the two foregoing performance
bonds.
14. Despite this demand, defendants did not provide Westchester Fire with the
required collateral.
15. By letters dated January 13, 2014, Monadnock gave notice to Glasswall of
Monadnock's termination of its contracts with Glasswall and gave notice to Westchester Fire
that it asserted claims under the Bonds,
16. Defendants asserted that Monadnock's termination of the contracts was improper
and invalid.
17. Under the Agreement of Indemnity, defendants are obligated, inter alia, to defend
Westchester, to indemnify it from all loss and expense and to immediately provide Westchester
with the collateral it has demanded.
18. By reason of the foregoing, Westchester Fire demands that defendants provide
collateral and deposit with Westchester Fire the sum of $13,000,000, plus any future loss, costs,
fees or expenses incurred, interest and attorney's fees.

AS AND FOR A SECOND CAUSE OF ACTION AGAINST
THE DEFENDANT FOR DECLARATORY JUDGMENT OF INDEMNIFICATION
19. Westchester Fire realleges the allegations set forth in paragraphs 1 through 19
hereof.
20. Westchester Fire will be required to defend actions by the obligees of the Bonds
and is exposed to potential obligations to pay the obligees in the event the positions asserted by
Glass wall and Westchester are not sustained.
21. Under the Agreement of Indemnity, defendants are obligated to indemnify
Westchester Fire for all losses, expenses or other payments it may be required to incur or make
by reasons of having executed the bonds.
22. Westchester Fire is entitled to a declaratory judgment that defendants have the
foregoing obligations.

AS AND FOR A THIRD CAUSE OF ACTION AGAINST
THE DEFENDANT FOR A PRELIMINARY INJUNCTION
23. Westchester Fire realleges the allegations set forth in paragraphs 1 through 23
hereof.
24. The Agreement of Indemnity requires defendants to post collateral with
Westchester Fire promptly upon the request of Westchester Fire.
25. Westchester Fire's right to collateral from defendants was specifically bargained
for and agreed to by defendants.
26. Westchester Fire has no adequate remedy at law and will be irreparably harmed if
defendants fail to pay collateral in the sum of $13,000,000 to Westchester Fire. Westchester Fire
would not have executed the Bonds without the right to demand collateral".
27. Westchester Fire has a strong likelihood of success on the merits in this action.
28. The issuance of a preliminary injunction will not create an undue hardship for
defendants as the preliminary injunction will require that defendants do only what they
contracted to do in the Agreement of Indemnity.
29. Westchester Fire will suffer irreparable injury if a preliminary injunction is not
granted as Westchester Fire would then be deprived of the security that the Indemnitors
guaranteed in their Agreement of Indemnity.
30. For the foregoing reasons, Westchester Fire respectfully requests that the Court
issue a preliminary injunction requiring (1) that defendants immediately post collateral in the
sum of $13,000,000, and (2) until defendants post such collateral, enjoining and restraining
defendants from selling, transferring, disposing or encumbering its assets and property and
granting Westchester Fire a lien upon all the assets and property owned by defendants or in
which defendants have an interest.

AS AND FOR A FOURTH CAUSE OF ACTION AGAINST DEFENDANTS
FOR COSTS. EXPENSES AND ATTORNEY'S FEES
31. Westchester Fire realleges the allegations set forth in paragraphs 1 through 31
hereof.
32. The Agreement of Indemnity requires that defendants indemnify Westchester Fire
for all losses and/or expenses of whatsoever kind or nature, including interest, court costs, and
attorney's fees that Westchester Fire may incur by reason of having executed the bonds.
33. Defendants are obligated to pay Westchester Fire the attorney's fees and expenses
it has incurred in connection with this action.

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.