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EAST WEST RESORT DEVELOPMENT et al v. ACE AMERICAN INSURANCE COMPANY Complaint

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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Case 2:10-cv-01394-JAM-DAD
Document 1-2
Filed 06/07/2010
Page 1 of 9
EXHIBIT A
.y10
Case 2:10-cv-01394-JAM-DAD
••■• lor aW w.nS
218l
(CITACION JUDICIAL)
Document 1-2
Filed 06/07/2010 FOR co
(SOLopAplar DELA USO
Page Ussonv 2 of oo Firs)
9
OVISO AL DEMANbADOPPennaylvania corpOration.; and
DOBS 1 through 10 , inolusive •
NOT10E TO DEFENDANT: ACE AMerican Ineurancts Company, a
SUPENOR GOURT OF OALWORKV. GOUITTY Of PIACESI Sfy 1. 2519 Ey,EGU1NE Offlattr.GLERW ily ii.11,10tItuts,Oupai
YOU ARE BE1NO SpED BY PLA1NT1FF: BAST WEST rtesoRT DEVELOPMENT V. (LO ESTÄ DEMANDANDO EL DEMANDANVE): LP., a Delaware limited partnership; NORTHSTARBIO HORN, LLC, a Delaware Ilmited Itabfk company; and NORTHSTARIRON HORSB, LLC, a Delaware limited ItabIlIty company
'
•NOTICEI You have boon eued.Tlie court may deride agalnet you wIthout your beIng haard antess you respand
30 daya. Haed the InformatIon below. e written reponee et thle acturt end hav e a coPY You heve3OCALENDAR DAYS after thla BUMMOM and leoal papere ere aervad on you to not proteot you. Your wrilten responasmust be In proper legat faim If yau want the court to hear your served on the plaIntIff. A letter ar phane oase. There may be a court form lhat you aen uee for your taspanee. You oan find Ihrtee court forma and more Informallon at lhe.CalIfomla Courts OnlIne Self-Help Center (www.courtInfo.ortgovIsellhelp), your aounty law Ilbrary, orthe aourlhouse neareat you. II you aannot pay the fffing fee. ask the court derk for a fee walver form. If you do not ele yourreeponee on a, yau may Icise Ihe oase bydefoull,.and yourwagee, money, and properly mpybe taken wIthout furthar werreng fram the court. There are other tagal requIremente. You may want to oall an attomey rIght away. lf you do not know an attomey, you maywant to aall an allomey referral servIcte. If you oannot afford an attorney. You mlitItao for free legat earvices from a nonprofit legal aervloes program. You can locate "therre nonproet group at the Callfonde Leaal servIctes webefte (www.lewhelpeellfernte.org), the CaUfamla Courte OnlIne Self-Help Center (www.courlInfo.cagovIeelthelp), ar bY contaatInn Your Irmal actut ar aountY hor anroolatIoneNOTE: The aourt haa a atatutory Ilen for weIved fe es and dlanilea the oase. costs on any seelement or arbIbIllon award of110,000or more In a atv/I case: Tlie courra Ilen muet be pald before the aourt tAVISOI Lo hen demendedo. S1 no respande entro de 30 dles, la corte puetle deefdfree su contre sln escucher eu vereidn. Leit le InformacIdn a Thme 30 D1AS DE OALENDARIO despuds de que le antraguen eatit cllact6n y pepetes legales para preeenter una respueste par esarlio en esta oorte y hacer gue se eidtegue Urui copla demandenfe. Une cane 0 una Remede IelefOnIce no to prettgep. Su reepueste por eserito Ifene que eater
contInueoI6n,
-
Jason. M. Sherman, SBN 232420 Sproul Trost LLP N. Weathers Roseville , CA 95661 DATE: ,Cterk, by — 9 Fecha . Seareferlo (For proof o sendee of thla eummone, Use Proof of Servkle of ummons form POS-010).) (Pare prueba de entrege de epte cttattön use ei formularlo Proof of Serviae of Summons, (P05-010)). NOTICE TO THE PERSON SERVED: You are served
The name, address, and telephone number of plaIntIff's attomay, or plaintiff wIthout an etiOmey, 1B: fer nombre, la dlreooldn y el nOmero de leIdfOno de1 abogedo def demandante, o del demendante qUe no tlene ebogedo, dep Thomas G. Trost , SBN 151961 916/763-6252 916/783-6262
10820 austioe Center Drive P.O. Sox 619072 Boseville, CA 95661-9072
cuakuler reoupematan de 010,000 d mds de velarrealblde madIente un eauerdo o une can yeeldn de arblbefeen un.oeso de detecho afvll. Tfena que pager el revemen de le cone antes de ue te corte tlede deseeher el ease. e name an a rese o e oo s. (E1 nombre y dIrecOtOri de la aorte es): • Superior Court of California, County of Placter
On totmato legal corracto al desea que proceeón su oaso en la corte. Es posIble que heya un fonnularlo que usted peade user peia su respueste. Puede OfiConfroresfas formutertes do oone mds Infoirnsohln en et Centra de Ayude de fes Cottee de CbIllornte Itvew.eucartaca,gov), en te bfbnoteoede leyes de su candedo oen le catte que le quede mds cerce. St no puede pager le euota de presenteoldn, plde el secreterlo de la aotte que te o'rt farmblarlo de exenottin de pago de.cuotes. St na presente su arepuesla a Ilempo, puede perder el turea por Incumplfmtento y la Corte le parkd qulter eu sueldo, dInere ybIenalt eln mds edwittencle. abogado, puede Ilemer a un servicto de Hey ottos regulettos Es recomendeble que (leme un ebogedo Ininedlatemente. nu ocnooq mmfeldn a abogedos. SI no puede pegar uty abagedo, es posIble que eumpla con toe nutulelios pare obtener servicke legefee gmtullos de un progmme cfe servIdoe leghles sin fines de fucto. Puede encontrar estas grupos sln Ilnes de lucro en sjIbweb de Callfamta Leget Sendces. rtivuvw.lawhelpoeItfomIe.org), en el Centro de Ayude de lae Cones de Cehlomfe, (wmv.sucarte,oe.gov)p ponfOndose en centecto con lq cotti o eI colegla de ebogedoe tocales. AVISO: Por ley, ht cotte (lene derecho a rectomor leo cuohos y costosexentoa por Imponer un gnivemeneobre
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= CCP 416.60 (mInor) CCP 416.10 (aorporatIon) , = CCP 416.70 (coneervatee) CCP 41620 (defunct corporatIon) = CCP 416.40 (eseadallan or partnershIp) MCCP416.00 (authorIzed person) E3 other (apac14): . Parm 1 of 1 4.ITAI b • ereonal dellve on date . u der:
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SUMMONS
Codo al Civfl Noceduro ea 412.20,463
Case 2:10-cv-01394-JAM-DAD G. Trost, SBN 151961 Jason M. Sherman, SBN 232420 Sproul Troat LLP 3 721 Dougias Bouievardi, Suite 3-00
95661 916/783-6262 FAX NO.:
Document 1-2
Filed 06/07/2010
Page 3 of 9
ATTORNaY OR PARTY WITROUTATTORNEY (Nantr4 Sigfe ear numbaLais l arktrask —Vh0MaS
FOR COURT USE ONLV
Rossevilis , CA
st PERIo COUNTY°F r 916/783-6252
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TELEFHONENO.: ATTORNEY FOR INams): • Plaintif
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Drive crry moruicaveRosevine, CA 95661- 9072 a caan :Cd. 13 mm_y_.,___________ CAS$ NAME: EAST WEST RESORT DEVELOPMENT V, L.P. v . ACE x UnlImIted (Amount
CIVIL CASE COVER SHEET
SUPERIOR COURT OF CALIFORNIA, COUNTY OF STREETADDREES: 10820 JUE tice Center MAILINOADORESS; P . 0. Box 619072
Placer
.
flGE. neiinty. RE0aftare Fi & GLERIt E Z.v40u EX EGLII
(Amount Filed wIlh ffrat appearence by defendant JUDGM demanded de manded is . (Cal. Rules of Court, rula 3.402) DEPT: exceeds $25,000) $25,000 or Isse) Ilems 1-8 bolow must bo compleledisee Instructlons on pego 2).
MIll LImIted
01111 Counter
Complex Case DAshinallon
CAR ning
: a 25
--,--7-.,91.
.
III11 JoInder
1. Chack one box betoW for the case type hat beet desarlbee thle case: ProvIslonally Comptex Clvfl LItIgatIon Auto Tort Contract (Cal. Rules of Court, rales 3.4004.403) Auto (22) Eireaah of contractAvarrenty (03) AntIlrustfTrade regulation (03) UnIneured matortst (48) Rula 1740 collealtona (03) Other PI/PD/WD (Pereonal InJury/Proporty Conatruotton defect (10) Olher colkrallons (00) Oamage/Wrongful Death) Tort Maes to.rt (40). Inouranae coverage (18) Seawilles IllIgellon (28) Asbestos (04) Othet conlraot (37) EnvIronmentelfroxla tort (30) Produot liabilIty (24) Roal Proporly Insurance ccrierege alelms mialng from the malmeallaa (46) Emlnent domaIn/Inverse above Ilaled provIslanatly aomp!mt oase condemnallan (14) 1=1 Olher PUPDAND (23) types (41) Wrongful avtallan (33) Non•PUPDIWD (Other) Tort • Olher realpropertY (28) Enforcoment of Judgment Sualness tortrunfalr bustness preaUce (07) Enforaement of Judgment (20) ClvIt rights (014 Unlawful DetaIner Mleaellaneoue Clull ComplaInt •E:1 DefamatIon (13) E:1 Commeralal (31) Fraud (10) RICO (27) Realdentlal (32) Intetlectuel property (18) Other complaInt (nat spacItted abova) (42) Drugs (38) MleaslIoneous ClvIl Petillon 1=1ProfeaslortaI neglIgence (25) Ju dIalal Revrew Partnerahlp end comarate governancse (21) [=,,I .Other non-PltPD/WD tort (35) EJ Asset fortelture (05) tulp/oyrient Olher pethlon (nat speafflad above) (43) PeUllon re: arblItetIon award (11) Wrongful termlnalIon (38) WrIt of mendate (02) 1-10ther emplayment(16) 1=1 Other judIcIal revIew (39) 2. ThIs oase EJ Is Etj Is not complex under rule 3.400 of the Cellfomja Rules of Court. If thacese Is complex, mark the • factoreoqulang exceptIonal JudIdel management: e. Large number of eepariately represented partles d. Large number of wItnesses
El
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J Extenalve motIon preotice ralsIng difficult or novel e. EJ CoordlnatIon withreleteclactIons pendIng In one ormorecourts In other countles, states, or countrles, or In a federal court Issues that wIll be time-consumlng lo resolve c. 1:=1 Substentlet amount of documentardence Substentlal postjudgment kidtclel supervIslon f. 3. Remedtes sought (crieck a(l thal apply): a. W.1 monetary b. 1E41 nonmonetaiy; decteratory or InjunclIve rellef o. 1=1 punItiva 41 4. Number of causes of action (spec141): Three 5. Thls cese =1 1s rin 1s not e cless actIon sult. O. lf there ere any known related osses, file and senie a notIce of related case Data: September 11 , 200 9 Thomete G. Trost SEIN 151961 b.
(TYPa OR PRINT NALIE)
• PlaIntIff must Me thls cover sheet wIth the first paper Illed In the actIon or proceedIng (except small clalms cases or ceses filsd under the Probate Code, Famlly Code, or Welfare and Institufions Code). (Caf. Rules of Court, rule 3.220.) Fallure to file may resuft 1n eanct1ons. • lf this case le complex under rule 3.400 et seq. of the Cellfomla Rules of Court, you murit serve a copyof thls cover sheat on all other partles to the actIon or proceedIng. • Untess thls 1s a collectlons case under ru1s 3.740 or a complex case, thls cover sheet will be used for stellatIcat purposes only.
FounMspled for Thuidslory so
JLltfldel Counoll of Calltainfo
NOTICE
• Flle thIs cover shael In addilIon to any cover sheet requIred by lomil caurt rule.
Pons 1 012
CIVIL CASE COVER SHEET
cocom(flov. Jay 1. ustal
So
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Cot FluIes ot Court, nin 250.1220,3A110-8.403. 3.74a abandards ofJudIdal AdnidsItdon, gd.3.10
Case 2:10-cv-01394-JAM-DAD
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Filed 06/07/2010
Page 4 of 9 cv . 51 9 1
CASE NO.
A eASE MANAGEMENT CONFERENCE HAS BEEN SCHEDULED:
DATE: January 5, 2010 TIME: 10:00 A.M. If your case number starts with "S-CV" 11:00 A.M. If your case number starts with "IV1-CV" DEPT: 40 10820 Justice Center DrIve, Roseville, California
1F YOU DO NOT HAVE AN ATTORNEY, READ 'THIS:
The judge does not decide whether you win or lose your case at this court date. If you do not file an "Answer," or. other "responsive pleading," you will automaiically lose this case, usually before this court date. The Answer or responsive pleading must be given to the court clerk within 30 days ofthe day you received the Summons, along with a filing fee or application for waiver of court fees. You can get free help filling out your Answer or responsive pleading at the court's Legal Help Center. Call 916-408-6446 or go to the court's website at www.placercourts.org and select "Legal Help Center/Self Help" for information about the Legal Help Center.
rNFORMATION ABOUT CASE MANAGEMENT CONFERENCES:
Fifteen calendar days before the Case Management Conference, you must file and serve a completed Case Management Statement (CM-110). You do not need to come to court for the first Case Management Conference. You can see the court's proposed orders 12 calendar days before the Case Management Conference on the court's website, www.placercourts.org . Select "Tentative Rulings and Calendar Notes", then "Civil CMC." If you do not have Internet access, call the court at 916-408-6000 to get the information.
At the First Case Management Conference, the court will malce orders which may include: redesignating the class currently assigned; exempting the caso from dispositional time goals; referring the case to arbitration; transferring the case to Limited Jurisdiction; assigning the case to a particular judge for all purposes; assigning a trial date; assigning the case as a short cause trial matter; identifying the case as one which may be protracted; identifying the case as one which may be amenabIe to early settlement; establishing a discovery cut-off; scheduling the exchange ofexpert witness information; scheduling a rnandatory settlement conference; scheduling a final case management conference; or, other orders to achieve the interests ofjustice and timely disposition of the case.
The court does not provide a court reporter at Case Management Conferences ar Law & Motion hearings. If you want the proceedings reported, you must provide your own court reporter at your own expense.
1F YOU WANT TO APPEAR BY TELEPHONE, YOU MUST CONTACT COURT CALL TOLL FREE, AT 888-882-6878, AT
LEAST TWO (2) COURT DAYS PRIOR TO THE APPEARANCE TO ARRANGE FOR. THIS. YOU IvIUST PAY COURT CALL TO USE THiS SERVICE UNLESS yOU HAVE BEEN GRANTED A FEE WAIVER. BY THE COURT.
Case 2:10-cv-01394-JAM-DAD
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Thomas G. Trost (SBN 151961) Jason Shennan (SBN 232420) SPROUL TROST LLP 3721 DougIas Boulevard, Suite 300 Roseville, California 95661 Te1ephone: (916) 783-6262 Facsimile: (916) 783-6252 Attomeys for East West Resort Development V, L.P.
SUPERIOR COURT OF CALIFORNIA COUNTY OF PLACER
FILED
sEp 112009
EXECUTIVE OFFICER & CLERK
By N. Waallmrs, Depuly
SUPER1OR COURT OF THE STATE OF CALIFORNIA COUNTY OF PLACER
EAST WEST RESORT DEVELOPMENT V, LP., a Delaware limited partnersh1p; NORTHSTAR HORN, LLC, a Delaware limited company; and NORTHSTAR IRON HORSE, LLC, a Delaware limited liability company; Plaintiffs; V. ACE American Insuranee Company, a Pennsylvania corporation; . and DOES 1 thmugh 10, inclusive; Defendants.
CaseNo.
S CV 2.51 91
COMPLA1NT FOR: 1. Brench of Contract 2. Breach of Implied Covenant of Good Fnith and Fair Denling 3. Deelaratory Relief
[Unlimited Judsdiction]
x.
COMES NOW Plaintiff East West Resort Development V, L.P., and for Comp1aint against
defendants, and each of them, alleges as follows:
GENERAL ALLEGATIONS
1.
Plaintiff East West Resort DeveIopment V, L.P. ("East West") is, and at all times herein
mentioned was, a Detaware limited partnership and duly authorized transact business and transacting business in the State of Califomia. 2. Plaintiff Northstar Big Horn, LLC ("Big Hom") is, and at all timee herein mentioned was,
a Delaware 1imited liability company and duly authorized transact business and transacting business in the. State of California. 3.
Case No.
(05931273.IDOC; I)
Plaintiff Northstar Iron Horse, LLC ("Iron Horse" and collectively with Big Horn
COMPLAINT
Case 2:10-cv-01394-JAM-DAD
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Page 6 of 9
"Northstar") is, and at all times herein mentioned was, a Delaware limited liability company and duly 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7. authorized transact business and transacting business in the State of Califomia. 4. Defendant ACE Atnerican Insurance Company ("ACE"), is, and at all times herein
mentioned was, a Pennsylvania corporation and authorized to issue and deliver policies of liability in the State of California. 5. Defendants Does 1 through 10, inclusive, are individuals, corporations, govemment
agencies, or other businesses of a form unknown, licensed to conduct or conducting business in California. The true names and capacities, whether individual, associate or otherwise, of Does 1 through 10, inclusive, are unknown to plaintiffs, who therefore sue said defendants by such fictitious names, and plaintiffs will insert the true names and capacities of Does when they have. been ascertained. Defendants, named and fictitious, were the agents, employees and/or servants of the defendants, and each of them, and in doing the things hereinafter mentionecl, were acting within the course and scope of said employment and agency. 6. The contract(s) hereinafier referred to was perfonned in, the subject reaI property is
located in, and a substantial amount of the acts and omissions alleged in this complaint occurred in, Placer County, California. FIRST CAUSE OF ACTION (Breach of Contract against ACE and Does 140) Plaintiffs reallege and incorporate by reference the allegations contained in paragraphs 1
through 6 of the general allegations. 8. On or about April 3, 2004, Northstar, as owner, and G.E. Johnson Construction Company,
Inc., as contractor, entered into written AIA Document Al 11 — 1997 Standard Form Agreements for the construction of conunercial and residential improvements to real property located in Tahoe, California and known as Northstar Village Phases I & II (the "Project"). 9. In connection with the Project, In an around May of 2004, Plaintiffs purchased an owner
controlled policy of insurance from ACE (the "Policy" or the "OCIP"). The Policy' s effective date of coverage began July 1, 2004 and continued through all times relevant herein. Plaintiffs, and each of them, are insured under the Policy. A true and coffect copy of the Policy is attached and incorporated as
Case No.
{00931271.DOC; I)
2
COMPLAINT
Case 2:10-cv-01394-JAM-DAD
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Filed 06/07/2010
Page 7 of 9
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Exhibit A. 10. Pursuant to the Policy, ACE agreed to pay plaintiffs, and each of them, for direct physical
loss of or damage to coverecl property caused by or resulting from any covered cause ofloss. 11. While the Policy was in effect and during the coverage period of the Policy, plaintiffs
suffered damage to covered property caused by and/or resulting from a covered cause of loss as those terms are defined in the Policy, including but limited to property damage, economic and investigative damage. Plaintiffs, as insured's under the Policy, have complied with aIl requirements up and through the material breach by Defendant -and plaintiffs have filed the Complaint as now required. 12. Plaintiffs, and each of them, have performed all terms, conditions, and obligations under
the Po1icy . to be performed on their part, including timely notice and tender of claim, excepting only those that have been waived or excused by ACE's actions or failure ofperfonnance. 13. Defendants, and each of them, have breached their obligations under the Policy by, inter
alia, refining and failing to pay and otherwise reimburse plaintiffs for any and all covered loss under the Policy. 14. As a direct and proximate result of defendants' breach, plaintiffs have suffered, and will
continue to suffer damages in an amount according to proof at trial, but within the jurisdiction of the court. 15. Plaintiffs have engaged and retained the above-captioned law firm to commence and
prosecute this action, and pursuant to the Policy, plaintiffs are entitled to an award of attorneys' fees in an amount to be detennined by the court. WHEREFORE, Plaintiffs pray for judgment as set forth below. SECOND CAUSE OF ACTION (Breach of Implied Covenant of Good Faith and Fair Dealing against ACE and Does 1-10) 16. Plaintiffs re-allege and incorporate the allegations in paragraphs 1 through 16 as though
set forth in full. 17. In every contract, including the Policy, there is an implied covenant of good faith and fair
dealing that no party will do anything that vvill have the effect of impairing, destroying, or injuring the rights of the other party to receive the benefits of their agreement and each party will do all things
Case No.
(0093 1271.DOC; I)
3
COMPLAINT
Case 2:10-cv-01394-JAM-DAD
Document 1-2
Filed 06/07/2010
Page 8 of 9
1 reasonably contemplated by the terms of the contract to accomplish its purpose. 2 18. Plaintiffs, and each of them, have performed all tenns, conditions, and obligations under
3 the Policy to be performed on their part, including timely notice and tender of claim, excepting only 4 those that have been waived or excused by ACE's actions or failure of performance. 5 19. Defendants, and each of them, breached the implied covenant of good faith and fair
6 dealing in the Policy by, inter alia, in bad faith and without justification or reasonable cause denying that 7 plaintiffs' loss is covered under the Policy and further by refusing to pay or reimburse pIaintiffs for said 8 loss. 9 20. As a direct and proximate result of defendants bad faith breach of the implied covenant of
10 good faith and fair dealing, plaintiffs have suffered, and will continue to suffer damages in an amount 11 according to proof at trial, but within the jurisdiction of the court. In committing the acts herein 12 described, defendants acted with malice; oppression, and fraud in that defendants, knowing that 13 plaintiffs' loss is covered under the Policy nevertheless deny and refuse to pay and reimburse plainfiffs 14 for said loss, thereby causing injury to plaintiffs, and each of them, and thus an award of exemplary and 15 punitive damages .is justified. 16 21. Plaintiffs have engaged and retained the above-captioned 1aw finn to coznmence and
17 prosecute this action, and pursuant to the Policy, plaintiffs are entitled to an award of attomeys' fees in 18 an amount to be determined by the court. 19
20 21
WHEREFORE, Plaintiffs pray for judgment as set forth below.
TH1RD CAUSE OF ACTION (Declaratory Relief against ACE and Does 1-10)
22
22.
Plaintiffs re-allege and incorporate the allegations in paragraphs 1 through 22 as though
23 set forth in full. 24 23. An actual controversy has arisen and now exists between plaintiffs and defendants
25 regarding their respective rights and duties. Defendants, although in bad faith, contend that plaintiffs' 26 loss is not covered under the PoIicy. Plaintiffs contend that their loss is covered under the Policy. A 27 judicial declaration is necessary and appropriate at this time under all the circumstances so that the 28 parties may determine their rights and duties under the Policy.
Case No.
(00931271.DOC; 1)
4
COMPLAINT
Case 2:10-cv-01394-JAM-DAD
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Page 9 of 9
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
WHEREFORE, Cross-Complainants pray for judgment as set forth below.
PRAYER
WHEREFORE, Plaintiffs pray fcir judgment against defendants, and each of them, as follows: 1. 2. 3. 4. 5. 6. A declaration by the court that plaintiffs' loss is covered under the Policy; For damages according to proof at trial; For exemplary and punitive ciamages; For interesi thereon at the legal rate; For costs of suit, including attorney's fees; and
For such other and further relief as the court deems proper. SPROUL TROST, LLP Dated: September IL 2009
By:
Thomas G. Trost Jason M. Sherman Attomeys .for Northstar Big Hom, LLC, Northstar Iron Horse, LLC, and East West Resort Development V, L.P.
Caso No.
(00931271.DOC; 1)
5
COMPLAINT

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