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THE PORT OF PORT ANGELES v. CERTAIN UNDERWRITERS AT LLOYD'S LONDON et al complaint

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  • 8/9/2019 THE PORT OF PORT ANGELES v. CERTAIN UNDERWRITERS AT LLOYD'S LONDON et al complaint

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    EXHIBIT 1 

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 1 of 33

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    F I LE D

    CLA LLAM COUNTY

    2

    3

    a

    I I E G E W E

    FEB 2 7 2015

    1NSURANCE

    C p M M 1 S S t O N E R

    jAN 12 Z015

    B A R B A R A C H F 3 6 S T E N S E N C L E R 4 C

    S

    G

    7

    8

    9

    1

    I1

    12

    1 3

    1 4

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    1 6

    17

    1 8

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    IN TI-iE SUPERIOR COURT OF TI;IE STATE OF WASHINGTON

    IN AND FOR THE COUNTY Or CLALLAM

    '1'HE PORT OF POR7' ANGrLES,

    a Washington municipal corporation,

    Plaintiff,

    V

    ~

    CERTAIN UNDERWRITERS AT LLOYD'S,

    LONDON AND CERTA.IN

    LONDON

    MARICET' COMPANIES, BRI'I'ISH LAW

    INSURANCE COMPANY, LTD.,

    COMMERCIAL IJNION ASSURANCE

    COMPANY P,L.C., CONTINENTAL

    ASSURANC,k: OF I.,ONDON, LTD.,

    EDINBURGI-i ASSURANCE COMPANY,

    L.TD., EDINBURGI-i ASSURANCE

    COMPANY, LTD. NO, 2, EDINBURGH

    ASSURANCE COMPANY, L'1'I). N0. 3,

    EXCESS INSURANCE COMPANY, L'1'D.,

    INDEMNITY MARINE INSURANCL

    COMPANY, LTD. T A/C, INSURANCE

    COMPANY OF NORTH AMERICA, LA

    RCUNION FRANCAISE S.A.

    D'ASSURANCES ET DES

    ItEASSURANCES, LA REUNION

    FRA.NCAISE S.A. D'ASSURANCES ET

    DES REASSUR-ANCES PL A/C,

    PORT OF PORrI' ANGELES'

    COMPLAIN`i' FOR DAMAGES AND

    DECLARATORY JUDGMEN'1'

    T E  IE;NADi.f:[t LAW GROUPi>i,i,c

    PACIfIC EiUIL.11ING

    720 Third Avcuuc, Suitc 1400

    SLA I`CLL:, WASHING'I 'ON 48104

    206•621 1433

    OR'.C'S COMPLAINT - I

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 2 of 33

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    LII3ER I Y M UTUAL INSURANCE

    COMPANY, NORTHERN ASSURANCE

    COMPANY LTD., NORTI-IERN MARITIML

    INSURANCE COM PA.NY, LTD., OCLAN

    MARINL INSURANCE COMPANY, LTD.,

    0C1;AN M ARINE INSURANCE

    COMPANY, LTD. T A/C, ONEBEACON

    INSURANCE COMPANY, PHOENIX

    ASSURANC I: PUI3I.IC COM PANY LT D.,

    PROVINCIAI., INSURANCE CO MPANY,

    LTD., 'I'HRI:ADNErDLE INSURANCE

    COMPANY , THE TRAVELERS

    INDEMNITY COMPANY

    The Port of Port Angeles (the "Port"), by and tlirougli its attorneys, by way of

    complaint alleges as follows:

    INTRODU TION

    1

    This is an action for (a) contract damages based on the defense and

    indeninifieation provisions of the liability insurance policies sold by the defendants and/or

    their predecessors in interest to the Port, sucll damages consisting of property damage

    including environ>nental response costs irleurred by the Port in respond'zng to alleged

    enviroiimental contamination at the MTA Sitc, K Ply Site, and West Hat•bor Site

    (collectively "sites") and other related activities; (b) a declaratory judgment adjudicating

    the i•espective rights, duties, and obligations of the parties under the liability insuranee

    policies sold by the defendants or their predecessors to tlte Port; and (c) costs and

    attorneys` fces incurred by tlYe

    Port in bringing this action pursuant to additional provisions

    of law.

    TIIE P RTIES

    2. The Port is a Washington municipal corporation in good standing with its

    principal placc of busincss in 1'ort Angeles, Washington. The Port is the owner of

    2

    3

    4

    5

    6

    7

    8

    9

    10

    ll

    12

    13

    14,

    15

    16

    17

    18

    19

    20

    21

    22

    23

    24

    25 i

    T'1- C NADLL'R LAW GROUP ri-i,c

    PACII7IC LiIJIL.UING

    920 Ttkird Avenue Suite 1400

    STsATTLIi, WASI-IINGTON 98104

    POR'I''S CQZvIPLAINT - 2 06-621-1433

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 3 of 33

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    ubstantial rcal property including property fronting on the Port AtigeIcs Harbor in

    2

    lallam Cotlnty, Waslaington,

    3

    .

    hc defcndants ai-e insui•ance carriers, whicll at all times relevant to this

    4

    ction were engagcd in the business of selling primaly, umbrella an.d/or excess liability

    5

    nsurance polices.

    6 .

    n consideration of substantial premiums paid by the Port, the defendants or

    7

    heir predecessors issued prinlaly, umbrella and/or excess liability insurance policies to

    8

    he Port. Ccrtain Underwriters at Lloyd's, Lonclon and Ccrtain London Market Insurers

    9 LMI ) issued primaly, umbrella and/or excess liability policies to the Port from 1966

    10

    hrougla 1988. General Accident Fire & Life Assurance issued primary, umbrella and/or

    11

    xcess liability policies to the Port from May 16, 1961 to 1969. Travelers Indemnity

    12

    olnpany ( 'f'ravelers ) issued prinlazy, umbrclla and/or excess liability policies to the

    13 ort from 1969 to 1972. General Insurance Company of Anierica issued priinary,

    14 . wnbrella and/or exeess liability policies to the Port fiom Januaiy 7, 1979 to 1982.

    15

    .

    n iliformation aiid belief, Liberty Muttlal Insurarlce Coinpany ( Liberty

    16 utual ) is the successor in interest to General Insui

    arlce Company of Anierica. On

    17

    nformation and belief, Onel3eacon insurance company ( 4nel3eacon ) is the successor in

    18 nterest to General Accident Fire and Life Assurance Corporation.

    19

    .

    xhibit A, attached hereto and incorporated by reference, sets forth the

    20 acnes of the defendants presently known to the Port and, to the extent the Port has

    21

  • 8/9/2019 THE PORT OF PORT ANGELES v. CERTAIN UNDERWRITERS AT LLOYD'S LONDON et al complaint

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    predecessors to the Port fi•om time to time, which are presently unlcnown to fihe 1'ort,

    2

    xhibit A may be amended as additional applicable policies are discovered and as the

    3

    urrently known states or countries of incorporation and the principal places of business

    4

    re determined.

    5

    IURISDICTION AND VENUE

    6

    .

    1 his Court lias suhject matter jurisdiction over this declaratoiy judgment

    7

    ction under RC W 7.24.010, et seq. because a real and ,justiciable controversy exists.

    8 uI•ther, this Court has.personal jurisdiction because the defendants or their predecessors

    9

    ach sold insurance to the Port in Washington.

    10

    . enue is proper in this Court pursuant to RCW 48.05.220 because a

    11 ubstantial part of the events or omissions giving rise to the claims brought in this action

    12

    ccurrcd in Clailam County, which is also the situs of the dainaged property that has giveli

    13

    ise to tlie liability alleged herein.

    14

    EIE POLICIES

    15

    .

    rom at least 1966, defcndants or their predccessors sold to the Port cel•tain

    16

    rinlary, umbrella and/or excess liability insurance policies, including those policies set

    17.

    orth in I;xhibit T3, and possibly otliers ("Policies°). I;xhibit B, attached hereto and

    18

    ncorporated herein by rcference, sets fortll the applicable policy nuxnbers and periods of

    19

    overage foi

     

    each defendant.

    20

    0.

    I'he Port paid all premiums due and owing under the Policies and complied

    21

    ith all applicable conditions of cacli of the Policies.

    22

    HE ENVII20NMENTAL LIABILITIES

    23

    1.

    ertain environmental liabilities have been asserted against the Port (the

    24

    Environmental Liabilities") by the federal and/or statc governments and\or other parties

    25

    TI-il:?NnDL1;R LAW GROUI'hl1c

    t'AC:II'ic 13U11.,DING

    720 fhircl Avenite, Suite 1400

    SI=A7'11.13, WASI-IING 1'ON 98104

    PORT'S COMPLAINT - 4

    06-621-1433

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 5 of 33

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    1

    collectively, the Environtnental Claimants ). These parties assert that the Port is liable

    2

    or the invcstigation and remediation of property damage resulting froin environmental

    3

    ontamination at the sites referred to by the Port as Marine Trades Area Site ( MTA

    4

    ite ), tlie K Ply Site, and the Western Harbor Sedimcnts Site, located in Port Angelcs,

    5

    Washington.

    6

    2.

    hc Environmental Claimants allege property damage caused by among

    7

    thel• tliings, chemicals, minerals, waste, by-products and/or other substances (eollectively

    8

    I-Iazardous Substances ) allegedly produced, generated, deposited or disposed on property

    9

    wned or operated by the Port. The Environmental Claimants allege that the I-Iazardous

    1

    ubstances have damaged or threatcn to damage the groundwater, sediments, surface

    11

    aters, and/or natural resources, and that the actual or potential contaminatioti resulting

    12

    i•ona the prescnce of and migration of Hazardous Substances at or near thc sites

    may

    13

    pl•esent an ilnlninent and substantial danger to the public health or welfare.

    14

    3.

    he Cnvironmental Claimants souglit and still seek to require the Port to

    15

    nvestigate, monitor, survey, test and gather information to identify and evaluate the

    16

    xistence of property damage including daniage to the environment and danger to the

    17

    ublic hcaltli or welfare, and to remediate eiivironinental contaniination and property

    18

    amage whicli was uncovered.

    19

    4,

    I'lie I;nvironmental Liabilities and the sums expended to date by the Port in

    20

    ontlectlon Wlth the Erivlronmental Liabilities fall within the coverage of the Policies

    21

    liich the defendants or their predcccssors sold to the Port.

    22

    5.

    he dcfendants brcached obligations that they undertook in the Policies by

    23

    ailing to comply with Washington regulations regarding such matters, and by failing to

    24

    illfill their duties to timely investigate the Port's claims, determine coverage and

    25

    TE-IL NADLE,R LA W C;RCIUPrt.i.c

    PACIPIC t3UtLDiNG

    720 Tliird Ave nuc, suitc 1400

    sLn 1`I LC, WAs1lING rON 98104

    PORT'S COMPLAINT - 5

    06-621-1433

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 6 of 33

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    1

    ndemnify t.he Port for ccllain expenses it lias incurred as a result of the Environmental

    2 II Liabilities.

    3 rFENDANTS LIABILITY FOR EXPENSES OF SUIT

    4

    6.

    n aecordancc with the poliey terms and conditions, the Port notified the

    5 efendants and/or their predecessors of claims with respect to certain insurance policics.

    6

    7. n responsc to the Port's claim for its environtnental liabilities at the MTA

    7

    ite, 'Travelers denied coverage. The MTA site was later divided into two sites, the MTA

    8 ite and the K Ply site. Travelers has not Lnade a coverage determination with respect to

    9

    he K Ply site. The retnaining defendants accepted the Port's tender of the defense of

    its

    1 0

    nvironmental liabilities at the MTA site and the K Ply site under reservations of rights,

    1 1

    ncli+ding thc rights to deny coverage and to seel< reimbursement of payments made to or

    12

    n the POrt's behalf. Despite being provided notice of the Port's claims more thaii twenty

    13

    ears ago, these defendants have failed to make coverage deternlinations regarding their

    14

    indemnity obligations with respect to the MTA and K Ply sites. In response to the Port's

    15

    lairn fol• its environmental liabilities at the Wcstern Harbor site, all of the defendants

    16

    ccepted the Port's tender of defense under reservations of rights, including the riglits to

    17 cny coverage and to seek reinibursement of payments made to or on tiie Port's behalf

    18

    lespite being provided notice of the Port's claims inore t11an three years ago, all of the

    1 9

    efendants have failed to nlake coverage determinations regarding their indemnity

    20

    bligations with respect to the Western 1-larbor site. All of the defendants have breached

    21

    heir enhanced duty of good faith to their insured by failing to promptly conduct an

    22

    dequate and reasonable investigatioli, by failing to niake a coverage determination, and by

    23

    iving greater consideration to their own interests than those of their insured

    24

    8.

    he Port was foreed to bring this lawsuit to obtairl the benefits o£ its

    25

    Tl IE NADL,GR LAW GROUPri,i.c

    P AC IF IC I IUILDINC 3

    720 9 Itird Avenue, Suile 1 400

    SL•:nT i1.E, WASH1 NG rON 98104

    206-621•1433

    OR I''S COMPLAINT - 6

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 7 of 33

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    1

    nsurance policies issued by the dcfendants because the defendants breached their

    2

    bligations to investigate, defend, and/or inderruiify the Port pursuant to the terms of the

    3

    olicies.

    4

    IRST CL IM FOR RELIrF

    5

    Damages)

    6 9.

    1 he Port incol

    porates the allegations of paragraplls 1 tlu•ough 18, as if fully

    7

    et folrth herein.

    8

    0.

    he Port was required to expend, and continues to bc required to expend

    9

    ubstantial sums to respond to the Environmental Liabilities. I'he Port's response costs

    1

    nclude, but are not limited to, the cost to investigate and respond to the )

     

    nvironmental

    11

    iabilities.

    12

    1.

    he defendants assumed duties pursuant to the Policies to deferid the Port

    13

    nd to indemnify it fol

     

    certain costs and liability incurred by reason of the Environmental

    14

    iabilities. By denying coverage, by failing to pay all of the Port's response costs, and/or

    15

    y failing to make a coverage determination, the defendants llave breached these dtlties. ,

    16

    FCOND CLAZM FO R RELIFF

    17

    Declaratory ReIieQ

    18

    2.

    he Port incorporates the allegations of paragraphs I lhroug1121, as if fillly

    19

    et forth herein.

    20

    3.

    he Port assei

    ts that the defendants have obligations to defend and

    21

    ndemnify the Port and to pay in full the costs which are being incurred and wliieh will

    22

    ontinue to bc incurred by the Port in connection with the Environmental Liabilities. By

    23

    ts coverage denial witli respect to the M1'A site, and by its failure to malce a coverage

    24

    eterminatiolt with respect to thc K Ply and Western Harbor site, Travelers denies that it is

    25

    PHE NAI)1.ER L,AW GROUPi>u.c

    i'ACII'IC [3UIi.DING

    720 1 hird Avenue, Suile 1400

    SI.iATTLE, VdASHING'rolJ 98104

    PORT'S COMPLAINT - 7

    06-621-1433

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 8 of 33

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    1 I bound by the obligations asserted by the Port. By their failure to make a covel•age

    2

    etermination, the remaining dcfendants also deny that they are bound by the obligations

    3

    sserted by the Port with respect to all the sites.

    4 4.

    ccordingly, an actual and justiciable controversy presently exists between

    5

    he Port and the defendants as to the defendants obligations to defend and to pay the costs

    6

    rising out of the Environmental Liabilities.

    7

    IIIRD CLAIM FOR RELIEF

    8

    Attoriiey Fees)

    9

    5.

    he Port incorporates thc allegations of paragraphs I through 24, as if fully

    10 et forth herein.

    11

    6.

    s a consequence of the Port having to bring suit to obtain the benefits of its

    12

    nsurance coverage under the Policies, the defendants are liable to thc Port for its

    13 easoiiable attorney fees and costs in bringing this suit.

    14

    EOUEST FOR RELIEF

    15

    hereforc, the Port of Port Angeles requests relief as follows:

    16

    .

    or judgnient in favor of the Port and against the defendants, jointly and

    17

    everally, awarding damages in an alnount sufficient to conlpensate the Port for alI costs,

    18

    ees, and expecises incurred in responding to and defending the Environmental Liabilities

    19 liroiugli the date of tl•ial in this action.

    20

    .

    or a deciaratoiy judgment confirming the defendants joint and several

    21

    bligafiion to defeiid and indemnify the Port against all filture claims, costs, daniages, and

    22 dverse judgments and awards arising fi•om the Lnvironmental Liabilities.

    23

    . or a judgment in favor of the Port and against the defendants, jointly and

    24

    everally, for attorneys fees, expenses and costs incurred in this action; for prejudgment

    25

    TI-16 NAULI:R LAW GRO tJPt11.LC

    PACIFIC RUfLI)ING

    720 1 hird Avcnue, Suito 1400

    SGIATTLE, WASf I ING rON 98104

    206-621-1433

    ORT S COMPLAINT - 8

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    1

    2

    3

    4

    5

    6

    7

    8

    9

    1 0

    and post judgment interest on all sulns awarded the Port; and for such other and further

    relief as may be allowed by any provision of law or that this Court deems just and proper.

    t

    DATED this

    ay of January, 2015.

    I I-IE NAllLL;R LAW GROL JP PL.I_.0

    I V j a r k

    N.

    Nacller,

    W NliA No. 1zs 126

    Liberty Waters, WSIIn No. 37034

    John S. Dolese, WSB A N o. 1801 5, of Counsel

    Attorneys for Plaintiff, Port of Port A ngeles

    12

    13

    14

    15

    6

    17

    1 8

    19

    20

    21

    22

    23

    24

    25

    rt-iENADL,ER LAW GROUPni.r.

    I ACII IC Q UIL.DING

    720 I hird Avenue, S uite 1400

    SI:AT 1 LC, WASII INGTON 98104

    PORT S COMPLAINT - 9

    06-621-1433

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 10 of 33

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    EXHIBIT

    Place of

    rirtcipal Place of

    Defendant Iixcorporation

    usiness

    13ritisli Law Insurancc Company, Ltd.

    Certain Underwriters at Lloyd's, London

    Commercial Union Assurance Company

    England

    ondon, England

    P.L.C.

    Continental Assurance of London, Ltd.

    England

    ondon, England

    r;dinburgh Assurance Company, Ltd.

    rdinburgh Assurance Coinpany, Ltd. No. 2

    I?d1nbLlrgh Assurancc Company Ltd. No. 3

    Excess Insurance Cornpany, Ltd.

    England ondon, England

    Indemnity Marine Insurance Company, Ltd.

    T

     

    A/C

    lnsuranee Company of Nortll America

    La Reunion Francaise S.A. d'Assurances et

    Erance

    aris, France

    des Reassurances

    La Reunion Francaise S.A. d'Assurances et

    des Reassurances PL A/C

    Liberty Mutual Insurance Company

    I3oston

    over, New

    Massachusetts

    -iampshire

    Northern Assurance Cotnpany Ltd.

    Northern Maritime Insurance Coinpany, Ltd.

    Occan Marine Insurance Company, Ltd.

    Ocean Marine Insurance Coinpany, Ltd. T

    A/C

    OneBcacon Insurance Conipany

    -Iarrisburg

    anton,

    Pennsylvania

    assachusetts

    I N

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 11 of 33

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    Defendant

    Plioenix Assurance Public Coinpany Ltd.

    Provincial Insurancc Company, Ltd.

    7 llreadneedle Insurance Company

    1 he Travelers Indennnity Com pany

    Place of rincipal Place of

    Incorporation asiness

    ITartford,

    artford,

    Connecticut

    onnecticut

    11-2

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 12 of 33

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    EXI IIBIT B

    Port of Port Angeles Primlr y Covera ;e

    Policy/ Cer•tificate No. Effective Dates

    Insirrer

    CG 366433 5

    /

    1 6/1961-5/16 1

    962

    General Accident I ire and

    Life Assurance Company

    CG 366712 5 1 6

    962-5/16/1963

    Gencral Accident Pire and

    Life Assurance Company

    CG 384259 5/16/1963-5/16/1964

    General Accident Fire and

    Life Assurance Company

    CG 370877

    5/16/1964-5/16/1965 General Accident Fire and

    Life Assurance Company

    CG 451052 5  

    6/1965-5/16/1966

    General Accident i ire and

    Life Assuranee Company

    CG 450793

    5/16/1966-5/16/1967

    General Accident rire and

    Life Assurance Conipany

    GLA 36-728-14

    5/16/1967-5/16/1968 General Aecident Pire and

    Life Assuranee Company

    GLA 37-758-04 5

     

    6/1968-

    5

     1

    6 1969

    General Accident rire and

    Life Assuranee Coinpany

    650-2689023-IND

    11/1/1972-11/1/1973

    The Travelers Indeintlity

    Company

    650-188A227-9-IND

    1 l/1/1973-1 i/1/1974 The Travelers Indemnity

    Coinpany

    650-188A227-9-IND-74

    11/1/1974-11/1/1975

    The Travelers Indemnity

    Company

    650-188A227-9-IND-78

    11/1/1978-11/1/1979

    The Travelers Indeinnity

    Company

    Cl 922901

    I/1/1979-1/1/1982

    General Insurance

    Company of Ainerica

    m

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 13 of 33

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    MC 5984

    /1/1982-t/1/1984

    ertain Underwriters at

    Lloyd s, London

    MC 6023

    /1/1984-1/1/1988

    ertain Underwriters at

    Lloyd s, London

    Pox•t of Port Aiiiieles Excess Coveragc

    Policy/ Cei tificate No. ffective Dates

    Insui•er

    ST 13938

    2/31/1966-12/31/1969

    Certain Undex

     

    writers at Lloyd s,

    London and Certain London

    Market Companies

    ST 13937 2/31/1966-12/31/1969

    Certain Underwriters at Lloyd s,

    London and Certain London

    Market Companies

    S I' 13934

    1/18/1966-12/31/1966

    Certain Underwriters at Lloyd s,

    London and Certain London

    Market Companies

    CtIP-189A750-A

    l./1/1973-11/

     

    /

     

    974

    'I'he Travelers Indezn.nity

    Company

    CUP-189A750-8-74

    1/1/1974-11/1/1975

    The Travelers Indernnity

    Cornpany

    JSL 1025

    2/31/1977-12/31/1979

    Certain Underwriters at Lloyd s,

    London and Certain London

    Maricet Companies

    JSL1070

    2/31/1979-12/31/1980

    Certain Underwriters at Lloyd s,

    London and Certain I,ondon

    Market Companics

    JS1_. 1091

    2/31/1980-12/31/1983

    Ccrtain Underwriters at Lloyd s,

    I,ondon and Certain London

    Market Companies

    JSL 1142

    2/31/1983-12/31/1986

    Certain Underwriters at Lloyd s,

    London and Certain L.ondon

    Market Coanpanies

    13-2

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 14 of 33

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    CERTAIN UNDERWRITERS AT

    LLOYD'S, LONDON AND CERTAIN

    LONDON MARKET COMPANIES,

    BRITISH LAW INSURANCE

    COMPANY, LTD., COMMERCIAL

    UNION ASSURANCE COMPANY

    P.L.C., CONTINENTAL ASSURANCE

    OF LONDON, LTD., EDINBURGH

    ASSURANCE COMPANY, LTD.,

    EDINBURGH ASSURANCE

    COMPANY, LTD. NO. 2, EDINBURGH

    ASSURANCE COMPANY, LTD. NO.

    3, EXCESS INSURANCE COMPANY,

    LTD., INDEMNITY MARINE

    INSURANCE COMPANY, LTD. T

    A/C, INSURANCE COMPANY OF

    NORTH AMERICA, LA REUNION

    FRANCAISE S.A. D'ASSURANCES

    ET DES REASSURANCES, LA

    REUNION FRANCAISE S.A.

    D'ASSURANCES ET DES

    REASSURANCES PL A/C, LIBERTY

    MUTUAL INSURANCE COMPANY,

    DECLARATION REGARDING EMAIL TRANSMISSION

    Re: PORT OF PORT ANGELES COMPLAINT FOR

    DAMAGES AND DECLARATORY JUDGMENT

    NO.

    DECLARATION REGARDING

    E MAIL TRANSMISSION

    GR 17(a)(2)

    PLATT IRWIN LAW FIRM

    403 South Peabody S t.

    Port Angeles, WA 98362

    360) 457-3327

    SUPERIOR COURT OF WASHINGTON FOR CLALLAM COUNTY

    THE PORT OF PORT ANGELES,

    a Washington municipal corporation,

    Plaintiff,

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 15 of 33

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    NORTHERN ASSURANCE

    COMPANY LTD. NORTHERN

    MARITIME INSURANCE COM PANY

    LTD. OCEAN MARINE INSURANCE

    COMPANY LTD. OCEAN MARINE

    INSURANCE COMPANY LTD. T A/C

    ONEBEACONINSURANCE

    COMPANY PHOENIX ASSURANCE

    PUBLIC COMPANY LTD.

    PROVINCIAL INSURANCE

    COMPANY LTD. THREADNEEDLE

    INSURANCE COMPANY THE

    TRAVELERS INDEMNITY

    COMPANY

    The undersigned SIMON BARNHART declares and states as follows:

    1

    On the 12` 

    day of January 201 5 I received the PORT OF PORT

    ANGELES COMPLAINT FOR DAMAGES AND DECLARATORY JUDGMENT,

    via email transmission signed by M ark S. Nadler.

    2.

    I have examined the document to which this Declaration is attached and it

    consists of 1 5 pages including this Declaration.

    3.

    It is complete and legible.

    I declare under penalty of perjury under the laws of the State of W ashington that

    the foregoing is true and correct.

    DATED this 12 t

    day of January 2015 at Port Angeles Washington.

    SIMON BARNHART

    DECLARATION REGARD ING EMAIL TRANSMISSION

    Re: PORT OF PORT ANGELES COMPLAINT FOR

    DAMAGES AND DECLARATORY JUDGMENT

    PLATT IRWIN LAW

    IRM

    403 South Peabody St.

    Port Angeles, WA 98362

    (360) 457-3327

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 16 of 33

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    PFliEIVED

    F £ 8 2 7 2 1 5

    INSURANCE

    C O M M f S S IO N E R

    IN THE SUPERIOR COURT OF TIIE STATE OF WASHINGTON

    IN AND FOR TIIE COUNTY OF CLALLAM

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    '1'HE PORT OF PORT ANGELES,

    a Washington municipal corporation,

    Plaintiff,

    V

    CERTAIN tJNDF..,RWRITERS AT

    LLOYD'S, LONDON, ASSICURAZIONI

    GENERALI S.P.A., BALOISE

    INSURANCE COMPANY, LTD., BRITISI

    LAW INSURANCE COMPANY, LTD.,

    BRITISII LAW INSURANCE COMPANY

    L'TD. NO. 2 A/C, COMMERCIAL UNION

    COMMERCIAL UNION ASSURANCE

    COMPANY P.L.C., CONTINENTAL

    ASSURANCI_; OF LONDON, LTD.,

    EDINBURGH ASSURANCE COMPANY,

    LTD., EDINBURGH ASSURANCE

    COMPANY, LTD. NO. 2, EDINBtJRGH

    ASSURANCE COMPANY, LTD, NO. 3,

    EXCESS INSURANCE COMPANY, LTD.

    INDEMNITY MARINE ASSURANCE

    COMPANY, I.,TD. T A/C, INDEMNITY

    MARINE INSURANCE COMPANY, LTD

    T A/C, INSURANCE COMPANY OF

    NORTI-I

    NO. 15-2-00027-9

    PORT OF PORT ANGELES' FIRST

    AMENDED COMPLAINT FOR

    DAMAGES AND DECLARATORY

    JUDGMENT

    Tl-IL' NADLLR LAW GRUUPrt.l.c

    Pacific 13uilding

    720 Ttiird Avenue, Sttite 1400

    Scaltic, Washingto» 98104

    206-621-1433

    Iwitlers(~ )nad I erlaivgrou p, com

    ORT'S FIRST AMENDED COMPLAINT - 1

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 18 of 33

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    AMERICA, LA REUNION FRANCAISE

    S.A. D'ASSURANCES ET DES

    REASSURANCES, LA REUNION

    FRANCAISE S.A. D'ASSURANCES ET

    DES REASSURANCES PL A/C,

    LIBERTY MUTUAL INSURANCE

    COMPANY, NATIONAL INDEMNITY

    COMPANY, NIPPON FIRE AND

    MARINE INSURANCE COMPANY

    (UK) W. LTD, NORTHERN

    ASSURANCE COM PANY LTD.,

    NORTHERN ASSURANCE CO. LTD.

    NO. 6 A/C, NORTH ERN MA RITIME

    INSURANCE COMPANY, LTD.,

    OCEAN MA RINE INSURANCE

    COMPANY, LTD., OCEAN MARINE

    INSURANCE COMPAN Y, LTD. T

    A/C, ONEBEACON INSURANCE

    COMPANY, PHOENIX ASSURANCE

    PLC, PHOENIX ASSURANCE PUBLIC

    COMPANY LTD., PROVINCIAL

    INSURANCE COM PANY, LTD., RIVER

    THAM ES INSURANCE CO. LTD.,

    SKANDIA U.K. INSURANCE PLC T

    A/C, SCOTTISH LION INSURANCE

    COMPANY, LTD., THREADNEEDLE

    INSURANCE COMPANY,

    THREADNEEDLEINSURANCE

    COMPANY, LTD., THE TRAVELERS

    INDEMNITY COMPANY,

    WUTTEMBERGISCHE A.W. A/C,

    YASUDA FIRE & M ARIE INSURANCE

    CO. (UK) LTD., YASUD A FIRE &

    MARINE INSURANCE COMPANY

    (UK) LTD. T A/C,

    Defendants

    The Port of Port Angeles (the Port ), by way of complaint alleges as follows:

    INTRODU TION

    1. his is an environm ental insurance coverage action. Plaintiff the Port

    seeks:

    a.

    declaration of the rights, duties, and liabilities of the parties under

    THE NADLER LAW GROUP P[.Lc

    Pacific Building

    720 Third Avenue, Suite 1400

    Seattle, Washington 98104

    206-621-1433

    PORT' S FIRST AMENDED CO MPLAINT = 2

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 19 of 33

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    rimary, excess, and/or umbrella liability insurance policies issued by the defendants or

    2 heir predecessors or reinsureds with respect to certain environmental liabilities incurred

    3

    y the Port for property damages in the form of environmental contamination and/or

    4

    lleged damage to natural resources;

    5 .

    amages for breach of defendants' contractual obligations under the

    6

    11 Policies with respect to certain environmental liabilities;

    7

    amages for bad faith, and Consumer Protection Act violations;

    8 .

    osts and attorneys' fees incurred by the Port in bringing this action and

    9 ~I pursuant to additional provisions of law.

    1

    HE PARTIES

    1 1

    .

    he Port is a Washington municipal corporation in good standing with its

    12

    rincipal place of business in Port Angeles, Washington. The Port is the owner and/or

    13

    essee of substantial real property including property fronting on the Port Angeles Harbor

    14

    n Clallam County, Washington.

    15

    .

    he defendants are insurance carriers and/or successors for same, which at

    16

    ll times relevant to this action were engaged in the business of selling or managing

    17

    laims for primary, umbrella and/or excess liability insurance polices. Upon information

    18

    nd belief, none of the defendants are residents of or are domiciled within the state of

    19

    ashington, but all have transacted business within the state.

    2

    .

    efendant The Travelers Indemnity Company ( Travelers ) is a

    21

    orporation organized under the laws of the State of Connecticut, with its principal place

    22

    f business in Hartford, Connecticut. Travelers is, and at all times relevant to this

    23

    omplaint was, an authorized insurer in the State of Washington.

    24

    efendant Liberty Mutual Insurance Company ( Liberty Mutual ) is a

    25

    orporation organized under the laws of the State of Massachusetts, with its principal

    THE NADLER LAW GROUP PLLc

    Pacific Building

    720 Third Avenue Suite 1400

    Seatt le W ashington 98104

    2 0 6 6 2 1 1 4 3 3

    PORT' S FIRST AMENDED COMPLAINT - 3

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 20 of 33

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    1

    lace of business in Dover, New Hampshire. Upon information and belief, Liberty

    2 utual is the successor-in-interest to General Insurance Company of America. Liberty

    3

    utual is, and at all times relevant to this Complaint was, an authorized insurer in the

    4

    tate of Washington.

    5

    .

    efendant OneBeacon Insurance Company ( OneBeacon ) is a

    6

    orporation organized under the laws of the State of Pennsylvania, with its principal

    7

    lace of business in Canton, Massachusetts. Upon information and belief, OneBeacon is

    8

    he successor-in-interest to General Accident Fire and Life Assurance Company.

    9 .

    efendants Certain Underwriters at Lloyd's, London and Certain London

    10 arket Companies (together London Market Insurers or LMI ) underwrote the

    11

    ondon Market Insurance policies at issue in this case. Exhibit A, attached hereto and

    12 ncorporated by reference, sets forth the names of the LMI defendants presently known

    13

    o the Port and, to the extent the Port has knowledge, their states or countries of

    14 ncorporation, and principal places of business. There may be other applicable policies

    15

    hich have been issued by the LMI defendants to the Port from time to time, which are

    16

    resently unknown to the Port. Exhibit A may be amended as additional applicable

    17

    olicies are discovered and as the currently known states or countries of incorporation

    18

    nd the principal places of business are determined.

    19

    .

    efendant National Indemnity Company ( NICO ) is

    a

    corporation

    20

    rganized under the laws of the State of Nebraska, with its principal place of business in

    21

    maha, Nebraska. NICO is, and at all times relevant to this Complaint was, an

    22

    uthorized insurer in the State of Washington. Upon information and belief, NICO is the

    23

    ssumption reinsurer of and/or the successor-in-interest to certain of the LMI defendants,

    24

    ncluding Certain Underwriters at Lloyd's, London, with respect to the London Market

    25

    nsurance policies at issue in this case.

    THE NADLER LAW GROUP PLLC

    Pacific Building

    720 Third Avenue Suite 1400

    Seattle W ashington 98104

    206-621-1433

    PORT' S FIRST AMENDED COMPLAINT - 4

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 21 of 33

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    1 .

    efendants Certain Underwriters at Lloyd's, London are comprised of the

    2

    ndividuals, referred to as Names and organized into syndicates, who underwrote

    3

    ortions of, or all of, one or more of the London Market insurance policies at issue in

    4 his case. As discussed in more detail below, Equitas reinsured the liability of those

    5

    yndicates and Names, and under English law, Equitas has been statutorily novated for

    6

    he syndicates and Names with respect to the London Market insurance policies at issue

    7

    n this case. NICO is the assumption reinsurer of Equitas.

    8

    0.

    n consideration of substantial premiums paid by the Port, the defendants

    9

    r their predecessors and/or reinsureds issued primary, umbrella and/or excess liability

    10

    nsurance policies to the Port. General Accident Fire Life Assurance issued primary,

    11

    mbrella and/or excess liability policies to the Port from prior to May 16, 1961 to 1969.

    12

    he LMI defendants issued primary, umbrella and/or excess liability policies to the Port

    13

    rom at least 1966 through 1988. Travelers issued primary, umbrella and/or excess

    14

    iability policies to the Port from at least 1972 to 1978. General Insurance Company of

    15

    merica issued primary, umbrella and/or excess liability policies to the Port from 1979

    16 to 1982.

    17

    1.

    ICO is liable to the Port for all benefits the Port is entitled to from certain

    18

    f the LMI defendants under the London Market policies at issue in this case. On

    19

    nformation and belief, NICO is also liable to the Port along with LMI for the bad faith

    20

    laims handling of the Port's claims.

    2

    URISDICTION ND VENUE

    22 2.

    his Court has subject matter jurisdiction pursuant to RCW 2.08.010 and

    23

    CW 7.24.010,

    et seq

    Further, the Court has subject matter jurisdiction over this

    24

    eclaratory judgment action because a real and justiciable controversy exists.

    25

    3.

    his Court has personal jurisdiction because each of the defendants is an

    THE NADLER LAW GROUP Pr.Lc

    Pacific Building

    720 Third Avenue Suite 1400

    Seattle Washington 98104

    206-621-1433

    PORT' S FIRST AMENDED COMPLAINT - 5

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 22 of 33

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    1

    uthorized insurer in the State of Washington and/or sold insurance to the Port in

    2

    ashington, or managed or reinsured policies sold to the Port in Washington.

    3 4

    Venue is proper in this Court pursuant to RCW 48.05.220, because a

    4

    ubstantial part of the events or omissions giving rise to the claims brought in this action

    5

    ccurred in Clallam County, which is also the situs of the damaged property that has

    6

    iven rise to the liability alleged herein.

    7

    URY DEMAND

    8

    5.

    he Port hereby demands pursuant to CR 38(b), trial by jury of twelve of

    9

    ll issues so triable in this action.

    10

    HE PO LICIES

    11

    6.

    rom prior to 1961, defendants or their predecessors or reinsureds sold to

    12

    he Port certain primary, umbrella and/or excess liability insurance policies, including

    13

    hose policies set forth in Exhibit B, and possibly others ( Policies ). The Port's claims

    14

    in this matter extend to any and all such additional policies as may become known to the

    15

    ort during the course of this litigation.

    16 7

    The Port paid all premiums due and owing under the Policies and complied

    17

    ith all applicable conditions of each of the Policies, including all conditions precedent

    18

    o coverage, if any.

    19

    HE ASSUMPTION REINSURANCE OF THE PORT S LONDON M ARKET

    20

    OLICIES

    21

    8. Equitas has been working since 1996 to achieve finality for the Names

    22

    Certain Underwriters at Lloyd's, London) by extinguishing their long tail liability under

    23

    he 1992 and prior non-life liability insurance they underwrote ( Business ).

    24

    9. By written agreement dated September 3, 1996 ( Reinsurance and Run-off

    25

    ontract ), Equitas Reinsurance Limited ( ERL ) reinsured the Names by assuming all

    THE NADLER LAW GROUP

    PLLC

    Pacific Building

    720 Third Avenue Suite 1400

    Seattle W ashington 98104

    206-621-1433

    PORT' S FIRST AMENDED COMPLAINT - 6

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 23 of 33

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    1

    f the Names' rights and obligations under the policies and undertaking to administer

    2 II the Business.

    3

    0. By separate written agreement dated September 3, 1996 ( Retrocession

    4

    greement ), ERL retroceded the liability for the reinsurance and administration of the

    5

    un-off Names' Business to Equitas Limited ( EL ) and EL assumed all of the Names'

    6

    ights and obligations under the policies and undertook to administer the Business and

    7 Run-off.

    8

    1. By yet another separate written agreement dated November 10, 2006

    9 Retrocession and Run-off Agreement ) EL retroceded its liability for the reinsurance of

    10 RL and the Names, along with the obligation to administer the run-off of the Names'

    11

    usiness to NICO, and NICO assumed all of the rights and obligations under the

    12

    olicies and undertook to administer the Business and Run-off, all of which was subject

    13

    o the English Court's approval of the Part VII Transfer and certain other conditions, all

    14

    f which have come to pass.

    15

    2. The November 10, 2006 Retrocession and Run-off Agreement also

    16

    rovided that EL delegated responsibility for the administration of the run-off of the

    17

    ames' Business to Equitas Management Services Limited ( EMSL ) subject to the

    18

    nglish Court's approval of the Part VII Transfer and certain other conditions, again all

    19 f which have come to pass. Equitas Holdings Limited ( EHL ) the owner of EL, ERL

    20 nd EMSL, promised in the same agreement to transfer full ownership of EMSL to

    21 ICO subject to the same conditions which have come to pass. The agreement required

    22

    ICO to change the name of EMSL to some different name which does not include the

    23

    ord Equitas . NICO changed the name of EMSL to Resolute Management Services

    24 Limited.

    25 3. urrently, NICO and/or Equitas have reinsured, indemnified, and assumed

    THE NADLER LAW GROUP Pt,[,c

    Pacific Building

    720 Third Avenue Suite 1400

    Seattle Washington 98104

    206-621-1433

    PORT' S FIRST AMENDED COMPLAINT - 7

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 24 of 33

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    1

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    25 '

    all responsibilities of the N ames to deal directly with insureds, to service and administer

    the contracts of insurance, and to adjust and pay the insured's claims for all benefits

    under the insured's policies.

    24.

    Equitas Limited has publicly proclaimed to the Names' policyholders (of

    which the Port of Port Angeles is one such policyholder), that you will have no further

    claims, as a matter of English law, against the Nam es who underw rote your policies at

    Lloyd's. ... Instead of your claims against the Nam es you w ill have claims against an

    FSA authorised company... Similarly, Equitas Holdings Limited has proclaimed to the

    Nam es that ... no Nam e has any further liability whatsoever, under English law, in

    respect of 1992 and prior non-life Lloyd's liabilities. ... In the unlikely event that

    Equitas becom es insolvent, no policyholder with an unsatisfied claim w ill be able to

    enforce that claim in any court of the EEA to recover it from any Name. ... Now that we

    have achieved finality under English law, [Equitas] believe[s] `the long day's task is

    done......

    25.

    Since at least 2009, NICO's wholly owned subsidiary (Resolute

    Management) has serviced portions or all of the Port's LMI insurance policies and

    served as the primary point of contact for matters related to the Port's environmental

    insurance claims against Certain Underwriters at Lloyd's, London.

    26.

    By operation of the foregoing, NICO and/or Equitas are the assumption

    reinsurers of the Port (or are otherwise successors in interest to the Names and

    Syndicates that underwrote the Port's policies), and thus are liable to the Port for all

    benefits the Port is entitled to from defendants Certain Underwriters at Lloyd's, London,

    under the Port's London Market insurance policies at issue in this case.

    THE UNDERLYING ENVIRONMENT L LI BILITIES

    27.

    The P ort has incurred, and w ill continue to incur, liability for third party

    THE NADLER LAW GROUP Pr.t,c

    Pacific Building

    720 Third Avenue, Suite 1400

    Seattle, Washington 98104

    206-621-1433

    PORT' S FIRST AMENDED COMPLAINT - 8

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 25 of 33

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    property damag e to surface water, groundwater, sediments, and/or alleged dam age to

    2 atural resources as a result of historical operations and the resulting environm ental

    3

    ontamination at the Marine Trades Area ( MTA ) Site, the K Ply Site, and the Western

    4

    ort Ang eles Harbo r ( Harb or ) Site (together referred to as the Sites ).

    5

    8.

    he Port s environmental liabilities at the Sites arise out of occurrences or

    6 ccidents that took place du ring the policy periods for each o f the Policies.

    7

    9. Third party property damage, in the form of alleged damage to natural

    8

    esources as well as contamination of groundwater, surface water, and/or sediments

    9

    ccurred during the policy pe riods for each of the Policies.

    10

    0.

    he Port neither expected n or intended the releases or the resulting

    11 roperty dam age at issue prior to the inception of the Policies.

    12

    1.

    he defendants breached obligations that they undertook in the Policies by

    13

    ailing to comply with Washington regulations regarding such matters, by failing to -

    14 romptly investigate the Port's claims, by failing to make coverage determinations, by

    15

    ailing to fulfill their duties to defend and /or indemn ify the Port for certain expenses it

    16 as incurred as a result of its environm ental liabilities at the Sites, and by generally

    17

    lacing their own economic interests ahead of those of the Port, their insured.

    18

    EFENDANTS LIABILITY FOR EXPENSES OF SUIT

    19

    2.

    n accordance with the policy terms and conditions, the Port notified the

    20

    efendants and/or their predecessors or reinsureds of the Port s claims with respect to the

    21

    TA site (which was later divided into two sites: the MTA Site and the K P ly Site) in

    22

    993. Defendant Travelers denied coverage for the Port s environmental liabilities at the

    23

    TA site. Defendant Travelers has not made a coverage determination for the Port s

    24 nvironmental liabilities at the K Ply site. Defendants OneBeacon, Liberty Mutual, and

    25

    MI accepted the Port s tender of defense for the MTA and K Ply sites under

    THE NADLER LAW GROUP Pt,Lc

    Pacific Building

    720 Third Avenue, Suite 1400

    Seattle, Washington 98104

    206-621-1433

    PORT S FIRST AMENDED COMPLAINT - 9

    [email protected]

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 26 of 33

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    reservations of rights, including the rights to deny coverage and seek reimbursement of

    payments (including those defendants determine to be indemnity payments) made to or

    on behalf of the Port. Defendants OneBeacon, Liberty Mutual, and LMI have failed to

    make a determination regarding their duty to indemnify the Port under their respective

    policies. Despite receiving notice of the Port s claims for the MTA site more than twenty

    years ago, defendants OneBeacon, Liberty Mutual, and LMI have failed to make a

    coverage determination regarding their duty to indemnify the Port under their respective

    policies.

    33.

    In accordance with the policy terms and conditions, the Port notified the

    defendants and/or their predecessors or reinsureds of the Port s claims with respect to the

    Harbor Site by 2011. Defendants Travelers, OneBeacon, Liberty Mutual, and LMI

    accepted the Port s tender of defense for the Harbor Site under reservations of rights,

    including the rights to deny coverage and seek reimbursement of payments (including

    those defendants determine to be indemnity payments) made to or on behalf of the Port.

    Despite receiving notice of the Port s claims for the Harbor site more than three years

    ago, defendants Travelers, OneBeacon, Liberty Mutual, and LMI have failed to make a

    determination regarding their duty to indemnify the Port under their respective policies.

    34.

    After agreeing to defend the Port under reservations of rights, the

    defendants have delayed and continue to delay making coverage determinations,

    allowing the passage of time to potentially prejudice the Port s ability to prove elements

    of coverage at trial.

    35.

    Defendants have breached their enhanced duty of good faith to their

    insured by failing to promptly conduct an adequate and reasonable investigation and by

    giving greater consideration to their own interests than those of their insured.

    36.

    Over the course of handling the Port s claims, the defendants violated

    THE NADLER LAW GROUP PLLc

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    1

    ther standards provided for in WAC 284-30, et seq.

    which sets forth Washington s.

    2

    nfair claims settlement practices regulations.

    3

    7. The Port has been harmed by the defendants bad faith actions and

    4 nactions in handling the Port s claims. Among other things, the Port has incurred

    5

    ttorney fees to address the wrongful actions and to bring this lawsuit to obtain the

    6

    enefits of its insurance policies because of the defendants failure to respond to,

    7

    nvestigate, and/or make coverage determinations in response to the Port s claims.

    8 8.

    he Port was forced to bring this lawsuit to obtain the benefits of its

    9

    nsurance policies issued by the defendants or their predecessors and/or reinsureds

    10

    ecause the defendants breached their obligations to investigate, defend, and/or

    11

    ndemnify the Port pursuant to the terms of the Policies.

    12

    IRST CLAIM FOR RELIEF

    13

    Damages)

    14

    9. he Port incorporates the allegations of the above paragraphs as if fully set

    15 I forth herein.

    16

    0. The Port was required to expend, and continues to be required to expend

    17

    ubstantial sums arising from its environmental liabilities at the Sites. The Port s

    18

    esponse costs include, but are not limited to, the cost to investigate and remediate the

    19 ontaminated groundwater, surface water and/or sediments, and to investigate and

    20 espond to claims for alleged natural resource damages.

    21

    1.

    he defendants and/or their predecessors or reinsureds assumed duties

    22

    pursuant to the Policies to defend the Port and to indemnify it for certain costs and

    23

    xpenses arising from the Port s environmental liabilities at the Sites. These defendants

    24

    ave breached these duties.

    25

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    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

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    12

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    16

    17

    18

    19

    20

    21

    22

    23

    24

    25

    SECOND CLAIM FOR RELIEF

    Declaratory Relief)

    42.

    The Port incorporates the allegations of the above paragraphs as if fully set

    II forth herein.

    43.

    The Port asserts that the defendants have obligations to defend and

    indemnify the Port and to pay in full the costs which are being incurred and which will

    continue to be incurred by the Port in connection with its environmental liabilities at the

    Sites. By either explicitly denying coverage or by failing to make coverage

    determinations, the defendants deny that they are bound by the obligations asserted by

    the Port.

    44.

    Accordingly, an actual and justiciable controversy presently exists between

    the Port and the defendants as to the defendants obligations to defend and indemnify the

    Port for all costs arising out of its environmental liabilities at the Sites.

    THIRD CLAIM FOR RELIEF

    Bad Faith)

    45.

    The Port incorporates the allegations of the above paragraphs as if fully set

    I forth herein.

    46.

    Under Washington law, an insurer must fulfill an enhanced obligation to

    the insured as part of its duty of good faith. Insurers have broad obligations of fair

    dealing and a responsibility to give due consideration to the insured s interests in all

    matters. Defendants were obliged (a) to promptly conduct a thorough investigation and

    to inform the Port of all developments relevant to claims of coverage, (b) to make a final

    coverage determination, and (c) to refrain from actions demonstrating a greater concern

    for their interests than the interests of the Port, their insured. Defendants breached their

    enhanced duties of good faith by the actions and inactions alleged above.

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    7. Defendants bad faith conduct has proximately caused damage to the Port

    2

    n an amount to be proven at trial. The Port is further entitled to costs and attorneys fees

    3 xpended in seeking to compel defendants to provide the full benefit of the insurance

    4 policies.

    5 OURTH CLAIM FOR RELIEF

    6 Consumer Protection Act Violations)

    7 8.

    he Port incorporates the allegations of the above paragraphs as if fully set

    8 II forth herein.

    9

    9. n information and belief, the defendants, their predecessors, and/ or their

    10

    gents have engaged in multiple unfair and deceptive acts including without limitation

    11

    ne or more of the following: (1) Failing to adopt and implement reasonable standards

    12

    or the prompt investigation of claims; (2) Failing to affirm or deny coverage of claims

    13

    ithin a reasonable time; (3) Failing to complete the investigation of the Port s claims

    14

    ithin thirty days after notification of the claims; (4) Failing to make a coverage

    15

    etermination in writing within fifteen working days after receipt by the insurer of fully

    16

    ompleted and executed proofs of loss; (5) Failing to commence an investigation within

    17

    ifteen days into their records, to determine the issuance, and relevant terms and

    18

    onditions of the lost policies; (6) Failing to provide to the Port facts known or

    19

    iscovered during an investigation, including the identity of any witnesses with

    20

    nowledge of facts related to the issuance or existence of lost policies; (7) Failing to

    21

    rovide the Port with copies of documents establishing facts related to the lost policies;

    22

    8) Failing to commence investigation of an environmental claim within fifteen working

    23 ays after receipt of a notice of an environmental claim; (9) Failing to cooperate with

    24

    he Port in the investigation of the environmental claims at issue in this litigation; (10)

    25 ailing to make payments, under their duty to defend, for costs reasonably incurred in an

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    nvestigation to determine the source of contamination, the type of contamination, and

    2

    he extent of the contamination; and (11) such conduct as shall appear through discovery

    3 I and/or be proven at trial.

    4

    0.

    he actions and/or inactions of defendants as alleged above constitute bad

    5 I faith and unfair and deceptive business practices which were committed in the conduct

    6 I of trade or commerce.

    7 1.

    he defendants are engaged in a business which affects the public interest

    8

    nd their actions occurred in the conduct of trade or commerce.

    9

    2. Defendants actions are prohibited by RCW 48.30.010, WAC 284-30-330,

    10 t. seq.

    and WAC 284-30-930,

    et seq.

    and are per se violations of the Washington

    11

    onsumer Protection Act, RCW 19.86.

    12

    3.

    efendants actions have a public interest impact because they violate

    13

    tatutes and regulations containing legislative declaration of public interest impact and

    14

    ecause defendants actions were conducted in the course of their business as part of a

    15

    attern and practice that have and will be repeated in adjusting other insurance claims,

    16

    hereby affecting numerous insureds.

    17

    4.

    efendants wrongful conduct has caused injury to the Port in its business

    18 nd property and has hindered its ability to defend itself adequately against the statutory

    19 environmental liabilities.

    20 5.

    efendants are liable for actual damages in an amount to be proven at trial;

    21

    he costs of this litigation, including attorneys fees; and exemplary damages to the extent

    22 rovided by RCW 19.86.090.

    23

    IFTH CLAIM FOR RELIEF

    24

    Attorney Fees)

    25

    6.

    he Port incorporates the allegations of the above paragraphs as if fully set

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    1 II forth herein.

    2

    7. As a consequence of the Port having to bring suit to obtain the benefits of

    3

    ts insurance coverage under the Policies, the defendants are liable to the Port for the

    4

    ttorney fees and costs the Port incurred in bringing this suit and any petition for further

    5 elief to enforce the orders and judgments entered during this action.

    6

    EQUEST FOR RELIEF

    7 herefore, the Port of Port Angeles requests relief as follows:

    8

    8.

    or judgment in favor of the Port and against the defendants, jointly and

    9

    everally, awarding damages in an amount sufficient to compensate the Port for all costs,

    10

    ees, and expenses incurred in responding to and defending the environmental liabilities

    11 t the Sites through the date of trial in this action.

    12

    9.

    or a declaratory judgment confirming the defendants joint and several

    13

    bligation to defend and indemnify the Port against all future claims, costs, damages, and

    14 adverse judgments and awards arising from the environmental liabilities at the Sites.

    15 0.

    or a judgment in favor of the Port and against the defendants, jointly and

    16

    everally for the Port s damages caused by bad faith conduct in an amount to be proven

    17 t trial;

    18

    1.

    or a judgment in favor of the Port and against the defendants, jointly and

    19

    everally for exemplary damages to the extent provided by RCW 19.86.090;

    20

    2. For a judgment in favor of the Port and against the defendants, jointly and

    21

    everally, for attorneys fees, expenses and costs incurred in this action as allowed under

    22 lympic Steamship

    the Consumer Protection Act, and other applicable law;

    23 3.

    or prejudgment and post judgment interest on all sums awarded the Port;

    4 and

    25

    4.

    or such other and further relief as may be allowed by any provision of law

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    2

    3i

    4

    5 ,

    6I

    7 I

    81

    9

    10

    11

    12

    13

    14

    15

    16

    17

    18

    19

    or that this Court deems just and prop er.

    DAT ED this

    day of February 2015.

    THE NADLER LAW GROUP PLLC

    MarkS. Nadler, WSBA No.

    8 26

    eWaters, WSBA No. 37034

    John . Dolese, WSBA No. 18015, of Counsel

    Attorney s for Plaintiff Port of Port Angeles

    20

    21

    22

    23

    24

    25

    THE NADLER LAW GROUP PLLC

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    2 0 6 - 6 2 1 - 1 4 3 3

    Case 3:15-cv-05180-KLS Document 1-2 Filed 03/26/15 Page 33 of 33


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