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

WOLF 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-00193 Search Pacer
ACE Group party(s): 
Opposing Party: 
William B. Wolf, III
Court Type: 
Federal
US District Court: 
District of Maryland
Date Filed: 
Jan 7 2013

"COUNT I
(Declaratory Judgment)
33. Wolf repeats the allegations in paragraphs 1 through 32 as if fully set forth herein.

34. As a party to a contract with an interest in obtaining relief under that contract, Wolf has brought this complaint seeking to resolve a real and substantive controversy over the rights of the parties to tangible benefits provided by the Policy.

35. Wolf seeks a declaration that Westchester has a duty to indemnify Wolf against the claims asserted by DOJ, including specifically a duty to indemnify him for the $1.75 million settlement proposed by DOJ and any other settlement of DOJ’s claims within the Policy limits. Wolf further seeks a declaration that Westchester has unreasonably withheld its consent to a settlement byWolf on the terms of DOJ’s “best and final” offer.

36. Wolf also seeks a declaration that the $1,000,000 additional aggregate limit set forth in Item C.1.b of the Coverage Section of the Declarations relating to Directors and Officers and Company Coverage is available to Wolf with respect to the DOJ’s claims and to indemnify him for a settlement on the terms of DOJ’s “best and final” offer because Imagimed has refused to indemnifyWolf for the DOJ’s claims or the settlement proposed by the DOJ.

COUNT II
(Declaratory Judgment in the Alternative)

37. Wolf repeats the allegations in paragraphs 1 through 32 as if fully set forth herein.

38. As a party to a contract with an interest in obtaining relief under that contract, Wolf has brought this complaint seeking to resolve a real and substantive controversy over the rights of the parties to tangible benefits provided by the Policy.

39. Wolf seeks a declaration that, to the extent Westchester fails to indemnify him for the proposed settlement with DOJ, Westchester shall be liable for all of the consequences of its failure, including but not limited to any ultimate judgment against him that exceeds the limits of the Policy and any defense costs he incurs that exceed those limits.

COUNT III
(Declaratory Judgment as to Bad Faith)

40. Wolf repeats the allegations in paragraphs 1 through 32 as if fully set forth herein.

41. As a party to a contract with an interest in obtaining relief under that contract, Wolf has brought this complaint seeking to resolve a real and substantive controversy over the rights of the parties to tangible benefits provided by the Policy.

42. Wolf seeks a declaration that Westchester’s: a) failure to grant him authority to settle the allegations against him for an amount within the limits of the Policy; b) failure to Policy; and c) conduct that leaves its insured, Wolf facing further litigation and a potentially far greater ultimate liability, has been a bad faith breach of Westchester’s contract with Wolf.

COUNT IV
(Breach of Contract)

43. Wolf repeats the allegations in paragraphs 1 through 32 as if fully set forth herein.

44. Westchester has a contractual obligation pursuant to the terms of the Policy to indemnifyWolf for the settlement of DOJ’s claims within policy limits.

45. All conditions precedent to Wolf’s recovery under the Policy have either been met, are waived byWestchester, are the subject of an estoppel, or have otherwise been satisfied.

46. Westchester has materially breached its contractual obligation by refusing to consent to a settlement with DOJ on the terms of its “best and final” offer and refusing to indemnifyWolf for Loss in connection with an alleged Wrongful Act, as required by the Policy.

47. To the extent that Westchester fails to indemnify Wolf for the settlement with the DOJ, Wolf will incur direct and substantial financial loss arising out of that failure.

48. As a result of Westchester’s breach, Westchester is liable to Wolf for an amount yet to be ascertained for all costs Wolf incurs as a result of Westchester’s failure to indemnify him, including but not limited to: a) the amount of any ultimate settlement with the DOJ or any judgment the DOJ obtains against Wolf; b) the costs and disbursements of this action; c) Wolf’s reasonable attorneys’ fees; d) any pre- and post-judgment interest on any judgment against Wolf; and e) any other sums Wolf incurs as a consequence of Westchester’s breach.

WHEREFORE, Wolf prays for judgment:
A. Declaring that Westchester is required to indemnify Wolf for any settlement that Wolf is able to reach with DOJ within the limits of the Policy, that Westchester has unreasonably withheld its consent to a settlement with Wolf on the terms of DOJ’s “best and final” offer, and1 that the additional $1,000,000 aggregate limit of liability set forth in Item C.1.b of the Coverage Section of the Declarations relating to Directors and Officers and Company Coverage is available to Wolf with respect to the DOJ’s claims and to indemnify him for a settlement on the terms of DOJ’s “best and final” offer;
B. Declaring that, to the extent Wolf is unable to settle the allegations against him with DOJ because Westchester breaches its obligation to indemnify him for the settlement, Westchester is liable for all of the consequences of that breach, including but not limited to any judgment and any defense costs that exceed the limits of the Policy;
C. Declaring and adjudging that Westchester’s conduct constitutes a bad faith breach of its contractual obligations to Wolf under its insurance contract;
D. Awarding Wolf damages for Westchester’s breach of contract in an amount to be determined at trial; and
E. Awarding Wolf such other and further relief as this Court may deem just and equitable, including an award of costs and reasonable attorney’s fees."

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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