east west resort development et al v. ace american insurance company complaint

8/7/2019 EAST WEST RESORT DEVELOPMENT et al v. ACE AMERICAN INSURANCE COMPANY Complaint

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Case 2:10-cv-01394-JAM-DAD Document 1-2 Filed 06/07/2010 Pa



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NOT10E TO DEFENDANT: ACE AMerican Ineurancts Company, aOV ISO AL DEM ANbA DOPPennaylvania corpOration.; andDOBS 1 through 10 , inolusive

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YOU ARE BE 1NO SpED BY PLA1NT1FF:B A S T W E S T r t e s o R T D E V E L O P ME N T V .(LO ESTÄ DEMANDANDO EL DEMANDANVE): LP., a Delaware lim ited partnership;

NORTHSTARBIO HORN, LLC, a D e l a w a re I lm i te d I t a b fk c o m p a n y ; a n dNORTHSTARIRON HORSB, LLC, a Delaware l imi ted I t a b I l I t y c o m p a n y

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•N O T I C E I Y o u h a ve boon eued.Tlie court m ay deride aga lnet y o u wIthout your beIng h a a r d a n t e s s y o u respand30 daya. Haed the Inform atIonbelow.

Y o u h e v e 3 O C A L E N D A R D A Y S a f te r th l a B U M M O M and leoa l papere ere aervad on you tow ri tten reponee et th le acturt end have e a coPYserved on the p la Int Iff . A let ter a r phan enot proteot you. Your wrilten responasmust be In proper legat faim If yau want the court to hear youroase. There ma y be a court form lha t you aen u ee for your taspanee. You oan find Ihrtee court forma and more Informallon at lhe.CalIfomla CourtsOnlIne S el f-Help C e n t e r (w w w . c ourt In f o . o rt gov I s e l lhe l p ) , your aounty la w Ilbrary, orthe aourlhouse neareat you. II you aannot pay the fffing fee. askthe court derk for a fee wa lver form. If you do not ele yourreeponee on a , yau may Icise Ihe oase bydefoul l , .and yourwagee, money, and properlym pybe taken wIthout furthar werreng fram the court .

There are other tagal requIremente. You m ay w ant to oal l an at tomey rIght awa y. l f y o u d o n o t k n o w a n a t to m e y , y o u m a y w a n t t o a a l l a n a l l o m e y -referral servIcte. I f y o u o a n n o t afford a n a t t o r n e y . Y o u m l i t It a ofor free legat earvices from a nonprofit legal aervloes program. You can locate

"therre nonproet group a t the Ca l l fonde Leaa l servIctes webefte ( w w w . le w h e l p e e ll f e rn t e .o r g) , the CaUfamla Courte OnlIne Self-Help Center( w w w . c o u r l I n fo . c ag o v I e e l t h e lp ) , a r b Y contaatInn Your Irmal actut ar aountY hor anroolatIoneNOTE: The aourt haa a atatutory Ilen for weIved fe es andcosts on any seelement or a rbIbIl lon aw ard of110,000or m ore In a a tv /I case: Tl ie courra I len m uet be pa ld before the aourtd lani lea the oase.tAVISOI Lo h en demendedo. S1 no r espande entro de 30 dles, la cort e puetle deefdfree su contre sln escucher eu ver eidn. Leit le Inform acIdn ac o n t I n u e o I 6 n ,-Thm e 30 D1AS DE OALENDARIO despud s de que le antr aguen eatit cllact6n y pep etes legales para p re e e n t e r una respueste par esarlio en estaoor te y hacer gue se eidtegue Urui cop la demandenfe. Une cane 0 una Rem ede IelefOnIce no to p rett gep. Su reepueste p o r eserito Ifene que eaterOn to tma to l e g a l c o rrac to a l de se a qu e p ro c e e ón su o aso e n l a c o r t e . E s p o s I b l e qu e h e y a u n f o n n u larlo qu e u s t e d p e ade u se r p e i a su re sp u e s t e .Puede OfiConfroresfas f o rm u t e r t e s do oonem ds Infoirnsohln en et C entra de Ayude de fes Cot tee de Cb Illornte I tvew.eucartaca,gov), en teb f b n o t e o e d e l e y e s d e su candedo o e n l e cat te q ue l e quede m ds c e rc e . S t n o p u e de p ag e r l e e u o ta de p re se n t e o ldn , p lde e l s e c re t e rlo de l a ao t t eq ue te o'rt farmblarlo de exenottin de pago de.cuotes. St na presente su arepuesla a Ilemp o, puede p e rde r el turea por Incum plfm tento y la C ort e lep a r k d q u l t e r eu su e ldo , d I n e re ybIenalt e l n m d s edwittencle.

Hey o t tos regulet tosEs recom endeble que ( leme un eboged o Ininedlatemente. nu ocnooqabogado, puede Ilemer a un servicto d em m feldn a abogedos. SI no puede pegar ut y abagedo, es posIble que eum pla con toe nutulelios pare obtener servick e legefee gmt ullos de unp r o g m m e c fe s e r v I d o e l eg h les s i n f i n es d e fu c to . Pu ed e en co n t r a r e s ta s g ru p o s s ln I ln es d e lu cr o en s j I b web d e C a l l f a m t a L e g e t S e n d c e s .r t i v u v w . l a w h e l p o e I t fo m I e .o r g ) , en el Centro de Ayude de lae Co nes de Cehlom fe, ( w m v . su c a r t e ,o e .g o v )p ponfOndose en centecto con lq cot ti o eIc o l e g la de e bo g e do e t o c a l e s . A V I SO: P o r l e y , h t c o t t e ( l e n e de re c h o a r e c t o m o r l e o c u o h o s y c o s t o s e x e n t o a p o r I m p o n e r u n g n i v e m e n e o b r ecuakuler reoupem atan de 010,000 d m ds de velarrealblde madIente un eauerd o o une can y eeldn de arblbefeen un. oeso de det echo afvll. Tfena quep ager el revem en de le cone antes de ue te cort e t lede deseeher el ease.

e namean a rese oe oo s.(E1 nomb re y dIrecOtO ri de la aor t e es):

Superior Court of California, County of Placter10820 austioe Center Drive

P.O. Sox 619072Boseville, CA 95661-9072T h e n a m e , a d d r e s s , a n d t e l e p h o n e n u m b e r o f p l a In t I ff 's a t t o m a y , o r p l a i n t i ff w I t h o u t an e t iOm ey , 1 B :fe r no m bre , la d l re o o l d n y e l nOm ero de le Id fOno de1 abogedo de f dem andante , o de l demendante qU e no t lene ebogedo , de pThomas G.Trost , SBN 151961916/783-6262916/763-6252Jason. M. Sherman, SBN 232420Sproul Trost LLPRoseville , CA 95661D A T E :F e c h a

(F or proo f o s e n d e e o f t h l a e u m m o n e , U s e Pro o f o f Servkl e o f um m o ns f o r m PO S - 010) . )( P a r e p ru e b a d e e n t r e g e d e e p t e c t t a tt ö n u s e e i f o r m u l a r lo Proof of Serviae of Summons, ( P 0 5 - 0 1 0 ) ) . N O T I C E T O T H E P E R S O N S E R V E D : Y o u a r e s er v ed

1. = ne en IndIvIdual defendent,

2 . = es i h e p e r s o n s u e d u n d e r t h e f l o ti l l ou s n a m e o f ( s p eo l l y ) :

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u rde r :CCP 416.10 (aorporatIon)= CCP 416.60 (mInor)CCP 41620 (defun ct corporatIon), = CCP 416.70 (coneervatee)

= CCP 416.40 (eseadallan or partnershIp) MCCP416.00 (authorIzed person)E3 other (apac 1 4 ) :

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Case 2:10-cv-01394-JAM-DAD Document 1-2 Filed 06/07/2010 P



Ilems 1 -8 bolow m ust bo com pleledisee Instruct lons on pego 2).

1. Chack one bo x beto W f o r th e ca se typ e h a t beet desa r l bee th l e ca se:A u t o T o r tE l A uto (22)

UnIneured m atortst (48)Other PI/PD/WD (Pereon al InJury/Pro portyOamage /Wrong fu l Death ) T o r t

A sbestos (04)

E J Produot liabilIty (24)

m a l m e a l la a ( 4 6 )

1=1 Olher PUPDAND (23)

N o n • P UP D IW D (Other) Tort•IJ Su a lness tortrunfa l r bu stness preaUce ( 0 7 )

ClvIt rights (014Unlawful DetaIner

•E:1 Defama tIon (13)E : 1 C o m m e r a l a l ( 31 )

Fraud (10)Realdentlal (32)

Intetlectuel property (18)Drugs (38)

1=1ProfeaslortaI neglIgence (25)Ju dIa la l Revrew[=,,I .Other non-PltPD/W D tort (35)E J A s s e t f or t e lt u r e ( 0 5 )tulp/oyrientPeUllon re: arblItetIon aw ard (11)W r o n gf u l term lnal Ion (38)W rIt of m endate (02)1-10ther e m pl a ym e nt ( 1 6 )1=1 Other judIcIal revIew (39)

C o n t r a c t

El Eireaah of contractAv arrenty (03)

Rula 1740 c ol l eal tona (03)

Olher colkrallons (00)

Inouranae coverage (18)Othet conlraot (37)

Roal Propor lyEmlnent domaIn/Inversecondemnal l an (14)

fi W rongfu l avta l lan (33)

E J Olher realpropertY (28)

ProvIslonal ly Comptex Clvf l LItIgatIon(Cal . Ru le s o f Cou r t , ra l e s 3 .4004 .403 )

AntIlrustfTrade regulation (03)

E J Cona truotton defect (10)

E JMaes to.rt (40).

Seawil les Il lIgellon (28)

E J EnvIronmentelfroxla tort (30)Insurance ccrierege a lelms mia lng from theabove I l a led provIslanat ly aomp !mt oasetypes (41)

E n f o r c om e n t o f Ju d g m e n t

Enforaem ent of Judgm ent (20)

Mleae l laneoue Clul l ComplaInt

E J RICO (27)

Other complaIn t (nat spacItted abova) (42)

MleaslIoneous C lvI l Pet i l lon

Partnerahlp end comara te governancse (21)Olher peth lon (nat speaff lad above) (43)

AT T O RN a Y O R PART Y W IT RO UT AT T O RN E Y (Nan tr4 S ig f e e a r n u m b a L a i s l a rk t r a s k

Vh0MaSG. Trost, SBN 151961Jason M. Sherman, SBN 232420Sproul Troat LL P3 721 Dougias Bouievardi, Suite 3-00stRossevilis , CA95661

T E L E F H O N E N O . :916/783-6262FAX NO.:916/783-6252A T T O R N E Y F O R I N a m s ) : •Plaintif f

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SUPERIOR COURT OF CA LIFORNIA, COUNTY OF Placer.S T R E E T A D D R E E S : 10820 JUE tice Center DriveMAILINOADORESS; P . 0. Box 619072

cr ry moruicaveRosevine, CA 95661- 90 7 2a caan :Cd. 13mm_y_.___________

C A S $ N A M E :E A S T W E S T R E S OR Tjgg.B.ISNILM.310.....C.Mg."

C IV IL C A S E C O V E R S H E E T

DEVELOPMENT V, L.P. v . A C E

Complex Case DAshinallon - - , - - 7 - . , 9 1 .C A R ning :a 25-

xU n l I m I t e dM I ll L I m I te d 0 1 1 1 1CounterIII11 JoInd er( A m o u n t( A m o u n td e m a n d e dd e m a n d e d i sexceed s $25,000) $25,000 or Isse)

Filed wIlh ffrat appearence by defendant. (Cal. Ru les of Court , rula 3 .402)

JUDGM

DEPT:.2. Th I s oase EJIsE tj Is not complex und er rule 3.400 of the Cellfomja Ru les of Court. If thacese Is comp lex, mark the

• f act o reo qul a ng ex cept I o nal J u d I d e l m a n a g e m e n t :e .Larg e n umber of eepariately represented partles d .Large number of wItnesses

b. JExtenalve motIon preotice ralsIng difficult or novel e. EJ CoordlnatIon withreleteclactIons pendIng In one ormorecourtsIssues that w Ill be t ime-consum lng lo resolveIn other countles , s tates, or countrles , or In a federal court

c. 1:=1 Substentlet amount of documentardencef.S u b s te n t l a l p o s t ju d g m e n t k i d t c l e l s u p e r v I s lo n3. R e m e d t e s s o u g h t ( c r i e c k a ( l t h a l a p p l y ) : a. W.141 mo net ary b. 1 E 4 1 nonm onetaiy; decteratory or InjunclIve rellef o. 1=1 punI t iva

4. Num ber of caus es of ac t ion ( s p e c 1 4 1 ) : Three5. T h l s cese=11srin1s not e cless actIon sult.

O. lf there ere any known related osses, fi le and sen ie a no tI c e o f r e lated caseData: September 11 , 20 0 9Thomete G. Trost SEIN 151961

(TYPa OR PRINT NALIE)

NOTICE• P la I n t I f f m u s t M e t h ls c o ve r s h e e t wIth the f irst paper I l led In the a ctIon or proceedIng (except sma ll cla lm s cases or ceses f i lsd

un d er th e Probate Code, Famlly C o d e , o r W e l f a r e a n d I n s t i tu f io n s C o d e ) . ( C a f . R u le s o f C o u r t , r u le 3.220.) Fallure to f i le m a y resuf t1n eanct1ons.

• Flle thIs cover shael In ad dilIon to any cover sheet requIred by lom il caurt rule .• l f this ca s e le c o m p l ex un der ru l e 3 . 4 0 0 et seq . o f th e Cellfomla Rules of Court, you m urit serve a copyof thls cover sheat on al l

other partles to the actIon or proceedIng.• U n tess th l s 1 s a co l l ec tl o n s ca se u n der ru 1 s 3 . 7 4 0 o r a co m p l ex ca se , th l s co v er sh eet w i l l b e used for stellatIcat pu rposes only.

Pons 1 012

Cot FluIes ot Court, nin 250.1220,3A110-8 .403. 3.74a

11 ,a b a n d a r d s o f J u d I d a l A d n i d s I td o n , gd.3.10FounMspled for Thuidslory so

JLltfldel Counoll of Calltainfo

c o c o m ( f l o v . Ja y 1. u s t a l

CIVIL CASE COVER SH EETSo




C A S E N O.cv . 519 1

A e A S E M A N AG E M E N T C O NF E R E NC E H A S B E E N S CH E D U L E D :

D A T E : Ja n u a r y 5, 20 10TIME: 10:00 A.M . I f you r c a s e n u m b e r s t a r t s w i t h " S - C V "

11:00 A.M. If your case num ber sta rts wi th " IV1-CV"DEPT: 40 10820 Jus t i c e Cent e r DrIv e , Rosev i ll e , Cal ifo rn ia

1F Y OU D O N O T H A V E A N A T T O RN E Y , RE A D 'T H IS :T h e j u d g e d o e s n o t d e c i de w h e t h e r y o u w i n o r l o s e y o u r c a se a t t h is c o u r t d a te . I f y o u d o n o t

f i le a n " A n s w e r ," o r . o t h e r " r es p o n s i v e p l e a d i n g , " y o u w i l l a u t o m a i i c a l l y l os e th i s c a s e , u s u a l l yb e f o re t h i s co u r t d a t e . T h e A n s w e r o r re s p o n s i v e p l e a d i n g m u s t b e g i v e n t o t h e c o u r t cl e r k

w i th i n 3 0 d a y s o ft h e d a y y o u r e ce i v e d t h e S u m m o n s , a l on g w i th a f il in g f e e o r a p p l i c a ti o n f orw a i v e r o f c o u r t f e e s.

Y o u c a n g e t f re e h e l p f i ll i n g o u t y o u r A n s w e r or r e spon s i v e p l ead ing a t th e co urt ' s Lega l HelpC e n t e r. C a l l 9 1 6 - 4 0 8 - 6 4 4 6 o r g o to t h e c o u r t 's w e b s i te a t w w w . p l a c e rc o u r t s. or g a n d s e l e ct

" L e g a l H e l p C e n t e r/ S e l f H e l p " f o r in f o r m a t i o n a b o u t th e L e g a l H e l p C e n t e r .

rN FO RM A T I O N A B O U T C A S E M A N A G E M E N T C O N FE R E N C E S :F i f te e n c a l e n d a r d a y s b e f or e th e C a s e M a n a g e m e n t C o n f e r en c e , y o u m u s t f i le a n d s e rv e ac o m p l e te d C a s e M a n a g e m e n t S t a te m e n t (C M - 11 0) .

Y o u d o n o t n e e d t o c o m e t o c o u r t fo r th e f i r st C a s e M a n a g e m e n t C o n f e r e n c e . Y o u c a n s e e t h ec o u r t 's p r o p o s ed o r d e r s 1 2 c a l e n d a r d a y s b e fo r e th e C a s e M a n a g e m e n t C o n f e r e n c e o n t h e

c o u r t ' s w e b s i t e , w w w . p l a c e r c o u r t s . o r g . S e l e c t "T e n t a ti v e R u l i n g s a n d Calen dar Notes" , then"Ci v i l CM C. " I f y o u d o n o t h a v e I n t e r n e t a c c e s s , c a ll t h e c o u r t a t 91 6 -4 0 8 -60 00 t o g e t t h ei n f o rmat i on .

A t th e F i r st C a s e M a n a g e m e n t C o n f e r e n c e , t h e c o u r t w i l l m a l c e o r d e r s w h i c h m a y i n c l u d e : re d e s i g n a t i n g t h e cl a s s

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

c a s e a s a s h o r t ca u s e tr i a l m a t t e r; i d e n t i f y in g t h e c a s e a s o n e w h i c h m a y b e p r o t r a c t e d ; id e n t i f y i n g t h e c a s e a s o n e w h i c hmay be amenabIe to early settlement; establishing a discovery cut-off; scheduling the exchange ofexpert witness

i n f o r m a t i o n ; s c h e d u l i n g a r n a n d a t o r y s e t t l e m e n t c o n f e r e n c e ; s c h e d u l i n g a f i n a l c a s e m a n a g e m e n t c o n f e r e n c e ; o r ,

other orders to achieve the interests ofjustice and timely disposition of the case.

Th e c o u r t do e s no t p r o v i d e a c o u r t r e po r t e r at Case Man agem ent Conferences ar Law & Motion hear ings . I fy o u w a n t th e proceedings reported, you must provide you r own cou rt reporter at your ow n expense.

1F Y O U W A N T T O A P PE A R B Y T E L E P H O NE , Y O U M US T 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.




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T h o m a s G . T rost (SB N 151961)Jason Shennan (SBN 232420)S P R O U L T R O S T L L P37 21 Dou gIas B ou levard , S u i te 300Rosevi l le , Ca l i forn ia 9 5 6 6 1Te1ephone: (916) 783-6262F a c s i m i l e: (91 6 ) 7 8 3 - 6 2 5 2

A ttom eys for E ast W est Resort Developm entV, L.P.

S U P E R 1 O R C O UR T O F T H E S T A T E O F C A L I F OR N IA

C O U NT Y O F P L A C E R

CaseNo.S CV 2.51 91

COMPLA1NT FOR:

1. B r e n c h o f C o n t r ac t2. Breach of Implied Covenant of Good

Fn i t h and Fa i r Den l i ng3. D e e l a r a t o r y R e l i e f

[Unl imi ted Ju dsd ic t ion]

x .

COMES N O W P l ai n t i ff E a s t W e s t R e s o rt D e v e l op m e n t V , L . P ., a n d f o r C o m p 1 a i n t a g a i n s t

defendants , and each of them, a l leges as fo l low s:

GENERAL ALLEGATIONS

1. Plaint i f f East W est Resor t DeveIopm ent V, L.P. ("E ast W est" ) is, and a t a l l t imes herein

m e n t io n e d w a s , a D e t a w a r e l im i te d p a r tn e r sh i p a n d du l y a u t h o ri z ed t r a n s a c t b u s i n e ss a n d t ra n s a c t i n g

business in the S ta te of Califomia.

2. Pla in t i ff Northstar Big H orn , LLC ("Big H om ") is, and a t a l l tim ee herein m ent ioned w as ,

a Delaware 1 imited l iab i l i ty company and du ly au thorized t ransact business and t ransact ing business in

th e . State of California.

3. P l a i n t i f f N o r ths ta r I r o n H o r se , L L C ( " Ir o n H o r s e " a n d c o l le c t iv e l y w i th B i g H o r n

Case No.

FILEDSUPERIOR COURT OF CALIFORNIA

COUNTY OF PLACER

sEp 112009

EXECUTIVE OFFICER & CLERK

By N. Waallmrs, Depuly

E A S T W E S T R E S O R T D E V E L OP M E N T V , L P.,a D e la w a r e l im i te d p a r t n er sh 1 p ; N O R T H S T A RHORN, LLC, a Delaware limitedc o m p a n y ; a n d NORTHSTAR IRON HORSE, LLC,a Delaware l imited l iab i l i ty company;

Plaintiffs;

V .

ACE American Insuranee Company, aP e n n s y lv a n i a c o r p o ra t i on ; . a n d D O E S 1 th m u g h10, inclusive;

Defendants .

(05931273.IDOC; I)COMPLAINT




"Northstar") is, and at all times herein mentioned was, a Delaware limited liability company and duly

a u t h o r ize d t r a n s a c t b u s i n e s s a n d t ra n s a c t i n g b u s i n e s s i n t h e S t a t e o f C a l i f o m i a .

4. Defendant ACE Atnerican Insurance Company ("ACE"), is, and at all times herein

m ent i o ned w a s , a P ennsy l v a n i a c o rpo ra t i o n a nd a u tho r i z ed to i ssu e a nd d e l i v er po l i c i es o f l i a b i l i ty i n the

S t a t e o f C a l i fo r n i a .

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

C a l i f or n i a . T h e t r u e n a m e s a n d c a p a c i t ie s , w h e t h e r in d i v i d u a l , a s s o ci a t e o r o th e r w i s e , o f D o e s 1 t h r ou g h

1 0 , i nc l u s i v e , a re u n k no w n to p l a i n t i f fs , w ho theref o re su e sa i d d ef end a n ts b y su c h f i c t it i ou s na m es , a n d

p l a i n t i f f s w i l l i n s e r t t h e tr u e n a m e s a n d c a p a c i ti e s o f D o e s w h e n t h e y h a v e . b e e n a s c e r t a in e d . D e f e n d a n t s,

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

e m p l o y m e n t a n d a g e n c y.

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,

P l a c e r C o u n t y , C a l i f o r n i a .

FI RST CAUSE OF ACTI ON( B r e a c h o f C o n t r a c t a g a in s t A C E a n d D o e s 1 4 0)

7. P l a i n t i f fs rea l l eg e a nd i nc o rpo ra te b y ref erenc e the a l l eg a t io ns c o nta i ned i n pa ra g ra ph s 1

t h r o u gh 6 o f t h e ge n e r a l a l l e ga t i o n s .

8. O n o r a b o u t A p r i l 3, 2 00 4 , N o r th s ta r , a s o w n e r , a n d G . E . J o h n s o n C o n s t r u c ti o n C o m p a n y ,

I n c ., a s c o n tr a c to r , e n t er e d i n t o w r i tt en A I A D o c u m e n t A l 1 1 1 9 9 7 S t a n d a r d F o r m A g r e em e n t s f o r t h e

construction of conunercial and residential improvements to real property located in Tahoe, California

a n d k n o w n a s N o r t h s ta r V i l l a ge P h a s e s I & I I ( th e " P r o j e c t" ) .

9. I n c o n n e c t i on w i th t h e P r o j ec t , I n a n a r o u n d M a y o f 20 0 4 , P l a i n t if fs p u r c h a s e d a n o w n e r

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

t h e m , a r e i n s u r e d u n d e r t h e P o l i cy . A t ru e a n d c o ff e c t c o p y o f t h e P o li c y i s a tt a c h e d a n d i n c o rp o r a t ed a s

Case No. 2

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{00931271.DOC; I) COMPLAINT




E x h ib i t A .

10. P u r s u a n t t o t h e P o l ic y , A C E a gr e e d t o p a y p l a i n t i ff s , a n d e a c h o f t h e m , f or d i r e ct p h y s i c a l

l o s s of o r d a m a ge t o c o v e r e c l p r o p e rt y c a u s e d b y o r r e su l t i n g f r o m a n y c o v e r e d c a u s e o f lo s s .

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

d a m a g e . P l a i n ti ff s, a s i n s u r e d 's u n d e r t h e P o l ic y , h a v e c o m p l i ed w i th a I l re q u i r em e n t s u p a n d t h ro u g h t h e

m a t e r ia l b r e a c h b y D e f e n da n t - a n d p l a i n t if fs h a v e f i l ed t h e C o m p l a i n t a s n o w r e q u i r ed .

12. P l a i n t if f s, a n d e a c h o f t h e m , h a v e p e r f o rm e d a l l te r m s , c on d i ti o n s , a n d o b l i g a t io n s u n d e r

the Po1icy . to be performed on their part, including timely notice and tender of claim, excepting only

t h o s e t h a t h a v e b e e n w a i v e d o r e xc u s e d b y A C E' s a c t i o n s o r f a i l u r e o f p e r f o n n a n c e .

13. D e f e n d a n t s , a n d e a c h o f t h e m , h a v e b r e a c h e d t h e i r o b li g a t io n s u n d e r t h e P o l ic y b y , inter

alia, ref in i ng a n d f a i l i ng to pa y a nd o therw i se re i m b u rse p l a i n t i f f s f o r a ny a nd a l l c o v ered l o ss u n d er the

Pol icy.

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

cour t .

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

a n a m o u n t to b e d e t en n i n e d b y th e c o u r t .

W H E R E F O R E , P l a i n ti ff s p ra y f o r j u d g m e n t a s s e t f o rt h b e lo w .

SECOND CAUSE OF ACTI ON

( B r e a c h o f I m p l ie d C o v e n a n t o f G o o d F a i th a n d F a i r D e a l in g a g a in s t A C E a n d D o e s 1 -1 0)

16. Plaintiffs re-allege and incorporate the allegations in paragraphs 1 through 16 as though

set forth in fu l l .

17. I n ev ery c o nt ra c t , i nc l u d i ng the P o l i c y , there is a n i m pl i ed c o v en a nt o f g o o d f a i th a nd f a i r

d e a l i n g t h a t n o p a r t y w i l l d o a n y t h i n g t h a t v v i l l h a v e t h e e f f ec t o f im p a i r i n g , d e s t ro y i n g , o r in j u r i n g t h e

rights of the other party to receive the benefits of their agreement and each party will do all things

Case No. 3

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COMPLAINT(0093 127 1.D O C ; I )




1 r e a s o n a b l y c o n t em p l a t e d b y t h e t e rm s o f t h e c o n t ra c t t o a c c o m p l i s h i ts p u r p o s e .

218 .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 t h o s e th a t h a v e b e e n w a i v e d o r e x c u s e d b y A C E 's a c t io n s o r fa i l u r e o f p e rf o rm a n c e .

519 .Defendants, and each of them, breached the implied covenant of good faith and fair

6 dealing in the Policy by, inter alia, i n b a d f a i t h a n d w i t h o u t j u s t i f i c a t i o n o r r e a s o n a b l e c a u s e d e n y i n g t h a t

7 plaintiffs' loss is covered under the Policy and further by refusing to pay or reimburse pIaintiffs for said

8 loss.

920 .A s a d i re c t a n d p r o xi m a t e r es u l t o f d e f e n d a n t s b a d f a i th b r e a c h o f t h e i m p l i e d c o v e n a n t o f

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 . i s just i f ied .

1621 .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.

19W H E R E F O R E , P la i n t if fs p r a y fo r ju d g m e n t a s s e t f o rt h b el o w .

20TH1RD CAUSE OF ACTION

21(Declaratory Relief against ACE and Does 1-10)

2222 .Plaintiffs re-allege and incorporate the allegations in paragraphs 1 through 22 as though

23 set forth in full.

2423 .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. 4

(0 0 9 31 271 .DOC; 1 ) COMPLAINT




W H E R E F O R E , C r o ss -C o m p l a i n a n t s p ra y f o r j u d g m e n t a s se t fo r th b e l ow .

PRAYER

W H E R E F O R E , P l a in t if fs p r a y f ci r ju d g m e n t a g a i n st d e f en d a n t s, a n d e a c h o f th e m , a s f ol lo w s :

1. A d e c l a r a t i o n b y t h e c o u r t th a t p l a i n t i f fs ' l o s s is c o v e r e d u n d e r t h e P o l i c y;

2. F o r d a m a ge s a c c o r d i n g t o p r o o f a t tr i a l ;

3. F o r e x e m p l a r y a n d p u n i t i v e c i a m a g e s ;

4. For in teres i thereon a t the legal rate ;

5. For costs of su i t , inc lud ing at torney 's fees; and

6. F o r s u c h o t h e r a n d f u r th e r r e l ie f a s t h e c o u r t d e e m s p r o p e r .

Dated: SeptemberIL 2009SPROUL TROST, LLP

B y :T h o m a s G . T r o s tJ a s on M . S h e r m a nA t t o m e y s . f o r N o r th s ta r B i g H o m , L L C ,N o r t h s ta r I ro n H o r s e , L L C , a n d E a s t W e s tR e s o rt D e v e l o p m e n t V , L . P .

C a s o N o . 5

(00931271 .DOC; 1 ) COMPLAINT

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east west resort development et al v. ace american insurance company complaint

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