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ALPHA KAPPA OF ALPHA CHI OMEGA v. CENTURY INDEMNITY COMPANY Notice of Removal

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.

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NOTICE OF REMOVAL OF CIVIL ACTION – 1
No. 13-987
1200.00310 ff041n03me
R. Lind Stapley, OSB No.: 030531
stapley@sohalang.com
Soha & Lang, P.S.
1325 Fourth Ave., Ste 2000
Seattle, WA 98101-2570
(206) 624-1800
(206) 624-3583 (fax)
Attorneys for Defendant Century Indemnity Company
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
ALPHA KAPPA OF ALPHA CHI
OMEGA,
Plaintiff,
vs.
CENTURY INDEMNITY COMPANY
Defendant.
Civil No. 13-987
NOTICE OF REMOVAL OF CIVIL
ACTION
[28 U.S.C. §1441(a)]
TO: The Clerk of the Above-Entitled Court:
PLEASE TAKE NOTICE that Defendant Century Indemnity Company (“Century”)
hereby removes the above-entitled action to the United States District Court District of Oregon
in accordance with 28 U.S.C. § 1441(a).
In support of this Notice of Removal, Century states as follows:
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 1 of 11 Page ID#: 1
NOTICE OF REMOVAL OF CIVIL ACTION – 2
No. 13-987
1200.00310 ff041n03me
1.
The above-entitled action was filed in the Circuit Court of the State of Oregon for Lane
County, Cause No. 16 13 08195, on April 30, 2013.
2.
Century was first served, via registered agent, on May 17, 2013. True and correct
copies of all process, pleadings and orders served upon Century are attached as Exhibit 1.
3.
Jurisdiction in this Court is based on diversity of citizenship, pursuant to 28 U.S.C. §§
1332 and 1441(a). Diversity jurisdiction is founded on the following facts:
A. As set out in plaintiff’s complaint, The amount in controversy is $103,652.75,
plus attorney fees and costs, which exceeds the requisite amount for diversity
jurisdiction.
B. As stated in paragraph 1 of plaintiff’s complaint, Alpha Kappa was a not-for-
profit charitable organization duly organized under the laws of the State of
Oregon.
C. Century Indemnity Company is a Pennsylvania Corporation, with its principle
place of business in Philadelphia, Pennsylvania.
4.
This Notice of Removal is timely under 28 U.S.C. § 1446, in that the Complaint in this
case was served on Century by substituted service on the registered agent on May 17, 2013, and
less than thirty days have passed since service of the complaint.
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 2 of 11 Page ID#: 2
NOTICE OF REMOVAL OF CIVIL ACTION – 3
No. 13-987
1200.00310 ff041n03me
5.
In accordance with 28 U.S.C. § 1446(a), Century has filed with this Notice true and
correct copies of the Complaint, process, orders, additional records, and additional proceedings
which were previously filed in the Lane County Circuit Court of Oregon.
6.
Based on the foregoing, this Court has jurisdiction over this controversy under 28
U.S.C. § 1332 and 28 U.S.C. § 1441.
Respectfully submitted this 13th day of June, 2013.
SOHA & LANG, P.S.
By: s/R. Lind Stapley
R. Lind Stapley, OSB #030531
Phone No.: 206-624-1800
Attorneys for Defendant Century Indemnity
Company
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 3 of 11 Page ID#: 3
EXHIBIT 1
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 4 of 11 Page ID#: 4
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CERTIFIED TO BE A TRUE, CORRECT
AND COMPLETE COPY OF ORIGINAL
IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR LANE COUNTY
ALPHA KAPPA OF ALPHA CHI OMEGA,
Plaintiff, Case No: 16 1308195
v,
SUMMONS
CENTURY INDEMNITY COMPANY,
Defendant.
TO: Century Indemnity Company, Defendant
c/o Patti Dietz
12909 SW 68
th
Parkway, Suite 450
Portland, OR 97223
IN THE NAME OF THE STATE OF OREGON: You are hereby required to
appear and answer the Complaint filed against you in the above-entitled cause within
thirty (30) days from the date of service of this Summons upon you; and if you fail so to
answer for want thereof, the Plaintiff will apply to the Court for the relief demanded
therein, /-Z-
DATED thisL day of May 2013.
HUTCHINSON, COX, COONS,
ORR&SHER£P.
WitHam H. Sherlock, OSB #90381
Of Attorneys for Plaintiff
NOTICE TO DEFENDANT
READ THESE PAPERS CAREFULL YI
You must "appear" in this case or the other side will win automatically. To "appear" you must file
with the Court a legal paper called a "motion" or "answer." The "motion" or "answer" must be given to the
court clerk or administrator within thirty (30) days along with the required filing fee. It must be in proper
form and have proof of service on the Plaintiff's attorney or, if the Plaintiff does not have an attorney,
proof of service on the Plaintiff.
If you have any questions, you should see an attorney immediately. If you need help in finding an
attorney, you may contact the Oregon State Bar's Lawyer Referral Service online at
www.aregonstatebar.org or by calling (503) 684-3763 (in the Portland metropolitan area) or toll-free
elsewhere in Oregon at (800) 452-7636.
1 - SUMMONS
HllTCHINSON, cox. COONS, ORR & SHERLOCK. P.e.
A TIORNEY S AT LAW
m HIGH STREET. SUITE 200
EUGENE,OR 97401·2782
(541) 686-9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 5 of 11 Page ID#: 5
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CERTIFIED TO BE A TRUE, CORRECT
AND COMPLETE COPY OF ORIGINAL
~ ~ w . . C
IN TIIE CIRCUIT COURT OF TIIE STATE OF OREGON FOR LANE COUNTY
ALPHA KApPA OF ALPHA CHI OMEGA,
Plaintiff,
v.
CENTURY INDEMNITY COMPANY,
Defendant.
Case'No: I ~ (3 og lOJ 5"
COMPLAINT
Duty to Pay Indemnity Costs
(Not Subject to Mandatory Arbitration)
Oaim: $103,652.75
COMES NOW Plaintiff, Alpha Kappa of Alpha Chi Omega (Alpha Kappa), and
alleges as follows:
1.
At all times material herein, Alpha Kappa was a not-for-profit charitable
organization duly organized under the laws of the State of Oregon as a sorority for
young women attending the University of Oregon.
2.
Alpha Kappa has been required by the Oregon Department of Environmental
Quality (DEQ) to clean up petroleum and hazardous material contamination of soil and
1 - COMPLAINT
HUTOUNSON, COX, COONS, ORR & SHERLOCK, P.C.
ATTORNEYS AT LAW
777 HIGH STREET. SurlC 200
EUGENE, OR 97401 -2782
(541) 68&9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 6 of 11 Page ID#: 6
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;.;.,. ..
groundwater beneath real property owned by Alpha Kappa, commonly identified as 850
East 15
th
Avenue, Eugene, Oregon ("Subject Property").
3.
Defendant Century Indemnity Company is a corporation organized under the
laws of the state of Pennsylvania and is the successor in interest to the insurance
companies that issued comprehensive liability coverage policies to Plaintiff at all times
material herein.
4.
In the 1950s, a heating oil furnace was constructed in the basement of the Alpha
Kappa sorority building. A 1,ODD-gallon single hull underground storage tank (UST)
was concurrently placed in the ground under the driveway approximately 30 feet from
the furnace to supply it with heating fuel.
5.
In September 1982, Alpha Kappa converted its heating system from oil to natural
gas. The furnace in the basement had been placed in a recessed pit and at the bottom of
the pit floor is a sump pump basin. Heating oil had been left in the UST and as a result
of rust it leaked, infiltrating the shallow groundwater and eventually migrating to the
sump pump basin where the groundwater/oil mixture was ejected into the street
through the foundation drainage system.
6.
The heating oil discharging into the street from the sump pump was discovered
and reported to the Oregon Emergency Response System on or about January 5, 2012.
The emergency response team pumped approximately 880 gallons of water and
2 - COMPLAINT
HlJrCHlNSON. COX. COONS. ORR '" SHERLOCK.P.C.
AITORNEYS AT LAW
m HIGH STREET. sum::zoo
EUGENE, OR 97401·2782
(541) 686-9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 7 of 11 Page ID#: 7
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. .. .
petroleum product from the UST on January 6, 2012. The spill was also reported to the
Oregon Department of Environmental Quality on January 6, 2012.
7.
The DEQ responded to this notification by sending Alpha Kappa a letter dated
January 10, 2012, from DEQ Manager Bruce Gilles, to Mollie Brantley, President of the
Alpha Kappa Sorority Chapter that states, in relevant part:
As the responsible party for the property, you are required to clean up
the heating oil I'e/ease according to Oregon Administrative Rules (OAR
OAR 340-177-0001 through OAR 340-177-0095. These rules require cleaning
the soil, groundwater, surface water, soil vapor, and any other media
contaminated by heating oil to the appropriate standards or demonstrating
that the contamination does not pose a risk to human health or the
environment. (Emphasis added).
In response to this DEQ Order, the UST was removed from the property. The UST
was permeated with a number of thumb-sized holes. During the abatement and
remediation of contamination, a 250 gallon holding tank that had been set up to receive
sum pump groundwater and oil discharge overflowed from too much volume and an
additional street cleanup was necessary. Alpha Kappa's environmental contractor also
removed 288 tons of contaminated soil as well as contaminated groundwater that was
contained and removed via the holding tanks and a carbon filter system.
8.
The DEQ communicated that groundwater contamination had occurred at the
spill site under DEQ regulations. DEQ Project Manager/Hydrologist Bill Robertson
stated:
The sump at the Alpha Chi Omega property extracted water contaminated
by petroleum that was attributed to leaks from an underground heating oil
3 - COMPLAINT
HllTCHlNSON. COX. COONS. ORR", SHERLOCK. P.C.
ATTORNEYS AT LAW
m HIGH STREIIT. sum 200
EUGENE, OR 97401·2782
(541) 68<>9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 8 of 11 Page ID#: 8
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tank. Under DEQ rules, this water would be identified as groundwater
even though the water was only intermittently present and insufficient to
provide a source of water for beneficial use.
9.
Groundwater is property of the State of Oregon, a third-party, and the state's
property was damaged by contamination of water at and around the spill site.
10.
From at ieast 1980 through 1986 and during other intervals, Plaintiff obtained
insurance coverage, including comprehensive liability coverage, from Defendant's
predecessor in interest.
11.
Alpha Kappa has incurred expenses that it has not otherwise been indemnified
for by other third parties in the amount of $103,652.75 for the investigation, remediation,
and cleanup of petroleum products and other contaminants from the groundwater and
soil beneath the Subject Property. Alpha Kappa dutifully performed this cleanup in
accordance with ORS Chapter 465 and OAR Chapter 340, divisions 122 and 177 under
the supervision of the DEQ.
12.
On or about August 28, 2012, Alpha Kappa tendered a demand to Defendant's
predecessor in interest to honor its contractual obligations to indemnify Alpha Kappa
for the reasonable and necessary remediation costs required by the DEQ.
13.
On or about October 18, 2012, Defendant denied coverage for the remediation
costs.
4 - COMPLAINT
HUTCHINSON, COX. COONS. ORR & SHERLOCK, P.C.
ATTORNEYS AT LAW
m HlGH STREET. SUITE 200
EUGENE, DR 9740]·2782
(54] ) 686-9] 60
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 9 of 11 Page ID#: 9
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FOR ITS CLAIM FOR RELIEF Alpha Kappa alleges as follows:
(Duty to Pay Indemnity Costs under ORS 465.480(3)(a))
14.
Alpha Kappa realleges and incorporates by reference the preceding paragraphs.
15.
Pursuant to ORS 465.480(3)(a), Defendant, as the insurers' successor in interest
during the period hazardous substances and contaminants were released onto and into
the Subject Property and groundwater, has a duty to pay all sums arising out of a risk
covered by the policy and must pay all indemnity costs incurred by Alpha Kappa
pursuant to the applicable terms of its comprehensive liability policies.
16.
Pursuant to ORS 742.061(1), Alpha Kappa also requests the award of reasonable
attorney fees incurred by the Plaintiff in pursuing this action as a result of Defendant's
refusal to honor its contractual obligations to indemnify Plaintiff for remediation costs.
* * * * *
WHEREFORE, Plaintiff prays for judgment as follows:
A. For Judgment against Defendant for indemnity costs under ORS
465.480(3)(a) in the amount of $103,652.75;
B. For an award of Plaintiff's reasonable attorney fees and costs pursuant to
ORS 742.061(1); and
1//
1/
/
5 - COMPLAINT
HUTCHINSON. COX. COONS. ORR & SHERLOCK. P.C.
AITORNEYSATLAW
m HIGH STREET. SUITE 200
EUGENE, OR 97401·2782
(541) 686-9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 10 of 11 Page ID#: 10
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e. For such additional relief as the court deems just and equitable.
DATED this '1ay of April 2013.
6 - COMPLAINT
HUTCHINSON, COX, COONS,
ORR & SHERLOCK, P.e.
£ ~
By .. ______ ____________ __
William H. Sherlock, OSB #90381
Of Attorneys for Plaintiff
HlTTCIIINSON. COX. COONS. ORR '" SHERLOCK. P.C.
ATTORNEYS AT LAW
m Hl GH STREET. SUITE 200
EUGENE, OR 97401·2782
(541)686.9160
Case 6:13-cv-00987-TC Document 1 Filed 06/13/13 Page 11 of 11 Page ID#: 11

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