GLOBAL REINSURANCE CORPORATION OF AMERICA v. CENTURY INDEMNITY COMPANY Complaint

7/29/2019 GLOBAL REINSURANCE CORPORATION OF AMERICA v. CENTURY INDEMNITY COMPANY Complaint

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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK

GLOBAL REINSURANCE CORPORATIONOF AMERICA, as successor-in-interest toCONSTITUTION REINSURANCECORPORATION,

n I \ ~t

X

Plaintiff,-against-

CENTURY INDEMNITY COMPANY, assuccessor-in-interest to CCI INSURANCECOMPANY, as successor-in-interest toINSURANCE COM PANY OF NORTH AM ERICA,Defendant.

To:

CIVIL ACTION NO.

XSUMMONS

Superintendent of Financial ServicesOffice of General CounselNew York State Department of Financial Services25 Beaver Street4th FloorNe w York, New York 10004

As statutory agent for service of process for:Century Indemnity CompanyP.O. Box 1000436 Walnut StreetPhiladelphia, PA 19106

A lawsuit has been filed against you.Within 21 days after service of this summons on you (not counting the day youreceived it) or 60 days if you are the United States or a United States agency, or an officer oremployee of the United States described in Fed. R. Civ. P. 12 (a)(2) or (3) you must serve onthe plaintiff an answ er to the attached com plaint or a motion under Ru le 12 of the Federal Rules


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of Civil Procedure. The answer or motion m ust be served on the plaintiff or plaintiffs attorney,whose name and address are:David L . Pitchford, Esq.Daniel S. Brower, Esq.Pitchford Law Group1700 Broadway41st FloorNew York, New York 10019Tel.: (212)757-3343

If you fail to respond, judgment by default will be entered against you for therelief deman ded in the complaint. You also must file your answer or motion with the court.RUBY J. KRAJICKCLERK OF COURT

DateSEP 1 7 2013Sign ature of Clerk or Deputy C lerk


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^i-Uut t~'i fiUNITED STATES DISTRICT CO URTSOUTHERN DISTRICT OF NEW YORK

GLOBAL REINSURANCE CORPORATIONOF AMERICA, as successor-in-interest toCONSTITUTION REINSURANCECORPORATION,

Plaintiff,-against-

CENTURY INDEMNITY COMPANY, assuccessor-in-interest to CCI INSURANCECOMPANY, as successor-in-interest toINSURANCE COM PANY OF NORTH AM ERICA,Defendant.

X

CIVIL ACTION NO .

COMPLAINT

X TO &Plaintiff Global Reinsurance Corporation of America, al s i M ^

Constitution Reinsurance Corporation ("Global"), by its attorneys, Pitchford Law Group LLC,for its complaint against Century Indemnity Company, as successor-in-interest to CCI InsuranceCompany, as successor-in-interest to Insurance Company of North America ("Century"), allegesas follows:

NATURE OF THE ACTION1. This is an action by Global for judgm ent declaring that Century is not

entitled to recover its reinsurance billings to Global under a certain facultative certificates ofreinsurance, and otherwise declaring the respective rights and obligations of Global and Centuryunder the other terms, conditions and definitions of the facultative certificates, and with respectto any ongoing billings un der the same certificates which m ay hereafter arise in connection withthe same coverage litigation as described below .


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THE PARTIES2. Plaintiff G lobal is an insurance com pany organized under the laws of New

York, with its principal place of business in New York, New York.3. Upon information and belief, defendant Century is an insurance company

organized under the laws of Pennsylvania with its principal place of business in Philadelphia,Pennsylvania.

JURISDICTION AND VENUE4. Jurisdiction is based on diversity of citizenship. 28 U.S.C. 1332(a).

Global and Century are citizens of different states and the amount in controversy exceeds$75,000, exclusive of interest and costs.

5. This Court also has jurisdiction under 28 U.S.C. 2201 (the "DeclaratoryJudgment Act").

6. Venue lies in this District under 28 U.S.C . 1391 in that a substantial partof the events or omissions giving rise to the claim occurred in this District, and bothGlobal and Century are subject to personal jurisdiction in this judicial district at the time thisaction is commenced.

BACKGROUNDTHE REINSURED POLICIES ANDCRC FACULTATIVE CERTIFICATES

7. Upo n information and belief, beginning no later than 1971, Century issuedexcess insurance policies to Caterpillar Tractor Company ("Caterpillar). Certain of thesepolicies were in turn reinsured in part by various Global facultative reinsurance certificates (the"Certificates"), as described b elow.


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Certificate No . E89-191, Reinsuring Policy SRL 50238. Century issued to Caterpillar Certificate of Exc ess Insurance No . SRL

5023, effective April 1, 1971 to April 1, 1974 ("Policy SRL 5023").9. Global issued Certificate of Reinsura nce N o. E89-191 to Century,

reinsuring Policy SRL 5023.10. Pursuant to Endorsement No. 3 to Certificate No. E89-191, Global

provided reinsurance in the amount of $200,000 part of $400,000 each occurrence in excess ofthe first $600,000 of liability of Policy SRL 5023.

11. Certificate No. E89-191 was originally effective April 1, 1971 to April 1,1972, its expiration date was extended to April 1, 1974 by En dorsement N o. 3 to that Certificate,and was subsequently cancelled effective July 1, 1973 by Endorsement No. 4.Certificates Nos. 61875, 64748 & 65717,Reinsuring Century Policy N o. LAB16100

12. Century issued to Caterpillar Blanket Liability and Au tomobile Policy No.LAB 16100, effective April 1, 1973 to April 1, 1979.

13. Global issued Certificate of Reinsurance No. 61875 to Century, reinsuringPolicy LA BI6 10 0, effective April 1, 1974 to April 1, 1975.

14. Global also issued Certificate of Reinsurance No. 64748 to Century,reinsuring Policy LA B161 00, effective April 1, 1977 to April 1, 1978.

15. Global further issued Certificate of Reinsurance No. 65717 to Century,reinsuring Policy LA BI 61 00 , effective April 1, 1978 to April 1, 1979.


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Certificate Nos. 62496, 62497, 63350, 63351Reinsuring Century Policy No. XCP 01212816. Century issued to Caterpillar Certificate of Excess Insurance No. XCP

012128, effective April 1, 1975 to April 1, 1977.17. Global issued Certificate of Reinsurance No. 62496 to Century, reinsuring

Policy XCP 012128, effective April 1, 1975 to April 1, 1976.18. Global also issued Certificate of Reinsurance No. 62497 to Century,

reinsuring Policy XCP 012128, effective April 1, 1975 to April 1, 1976.19. Global further issued Certificate of Reinsurance No. 63350 to Century,

reinsuring Policy XCP 0121 28, effective April 1, 1976 to April 1, 1977.20. Global also further issued Certificate of Reinsurance No. 63351 to

Century, reinsuring Policy XCP 0121 28, effective April 1, 1976 to April 1, 1977.Certificate No. 66786 , Reinsuring C entury Policy No. XC P 143467

21. Global also issued Certificate of Reinsurance No. 66786 to Century,reinsuring Policy XCP 143467, effective April 1, 1979 to April 1, 1980.

THE COVERAGE LITIGATION22 . On or about April 26, 2004, Caterpillar commenced a civil action in the

Circuit Court of the Tenth Judicial Circuit Peoria County, Illinois, for declaratory relief anddamages, seeking to enforce its general liability insurance coverage with respect to certain third-party claims alleging, among other things, bodily injuries arising from exposures to asbestos andasbestos-containing products.

23 . On or about April 26, 2004, Century commenced a civil action in theCircuit Court of Cook County, Illinois County Department - Chancery Division, for declaratory


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relief, seeking declarations as to the respective rights and obligations of the parties hereto u ndercertain liability insurance contracts in connection with certain asbestos bodily injury claimsasserted against Caterpillar.

24 . As a consequence and over the course of these litigations (the "CoverageLitigation"), Century has to date paid Caterpillar certain amounts for indemnity, expense anddefense costs and, upon information and belief, is litigating and/or negotiating allegedobligations to pay additional amounts to Caterpillar for indemnity, expense and defense costs,and will continue to incur its own expense in prosecuting and defending the Coverage Litigation.Century has, in turn, begun the process of presenting billings to Global under one or more of thefacultative Certificates.

THE REINSURANCE BILLINGS25. Century has presented G lobal with various statements of loss, alleging that

Global is obligated under Certificate No. E89-191 to indemnify Century for certain amountsCentury has paid Caterpillar under Policy SRL 5023, which statements amount to a total$466,587.30 (the "reinsurance billings"). Upo n information and belief, Global reasonablyanticipates the prospect of additional reinsurance billings under its Certificates as a result of theongoing Coverage Litigation.

AS AND FOR A FIRST CAUSE O F ACTION(Declaration of Rights and O bligations of the Parties

Under the Certificates in Respect of the Reinsurance Billings)26. Global re-alleges paragraph s 1 through 25 as though felly set forth herein.27. Century's allocation of loss, presentation and billing of the underlying

claims to Global are, to date, contrary to the term s, conditions, exclusions and limitations of theCertificates.


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28. There is a substantial, present and actual ongoing controversy betweenGlobal and Century concerning the parties' rights and obligations under the Certificates withrespect to the billings to date, as well as any billings which may hereafter arise from theCoverage Litigation as described above, including but not limited to:

a) whether the billings violate the Certificates' dollar cap on liability;b) whether Century properly characterized and billed expense and loss inaccordance w ith the terms of the Certificates;c) wh ether Global is liable for any expense at all;d) whether the billings are consistent with Global's obligation to makepayments "per occurrence"e) wh ether the loss in fact exhausted the limits of the insurance policy

underlying the reinsured policies;f) whether the loss and reinsurance billings otherwise comply with the termsand co nditions of the Certificates and reinsured policies.29 . Global is entitled to and seeks a declaration of the parties' rights and

obligations under the Certificate with respect to the current and ong oing reinsurance billings.


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WHEREFORE plaintiff Global Reinsurance Corporation of America respectfullyrequests that judg m ent be entered in this action on its Com plaint:

a. declaring that Century is not entitled to recover under the Certificates;b. otherwise declaring the respective rights and obligations of Global andCentury under the other terms, conditions and definitions of theCertificates; andc. granting Global such other and further relief as this Court may deemappropriate, including attorney s' fees, expenses, and costs.

Dated: New Y ork, New YorkSeptember 16, 2013

By: David L. Pitchford (DP8163)Daniel S. Brower (DB4981)PITCHFORD LAW GROUP LLC1700 BroadwayNew York, New York 10019(212) 757-3343dpitchford(g),pitcfifordllc. comdbro werfSjpitchfordllc .comAttorneys for PlaintiffGlobal Reinsurance Corporation of Am erica,as successor-in-interest toConstitution R einsurance Corporation


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~r-i

UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF NEW YORK

GLOBAL REINSURANCE CORPORATION OFAMERICA, as successor-in-interest toCONSTITUTION REINSURANCECORPORATION,

X

Plaintiff,-against-

CENTURY INDEMNITY COMPANY, assuccessor-in-interest to CCI INSURANCECO MP ANY , as successor-in-interest toINSURANCE COM PANY OF NORTH AMERICA,Defendant.

CIVIL ACTION NO.

X

RULE 7.1 DISCLOSURE STATEMENT OF PLAINTIFFSGLOBAL REINSURANCE CORPORATION OF AM ERICAPursuant to Federal Rule of Civil Procedure 7.1 [formerly Local General Rule

1.9] and to enable District Judges and Magistrate Judges of the Court to evaluate possibledisqualification or recusal, the undersigned counsel for Plaintiff G lobal Reinsurance C orporationOf America, as successor-in-interest to Constitution Reinsurance Corporation (a private nongovernmental party), certifies that the following are corporate parents, affiliates and/orsubsidiaries of said party:

Global U.S. Holding s, IncorporatedGLOBALERuckversicherungs-Aktiengesellschaft.


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Respectfully submitted,

By:

;CHFORD LAW GRO UP LLC

DAVID L. PITCHFORD (DP8163)DANIEL S. BROWER (DB4981)1700 Broadw ay41st FloorNew York, New York 10019(212) 757-3343dpitchford@pitchfordllc. [email protected] for Defendant/Counterclaim Plaintiff,GLOBAL Reinsurance Corporation Of America

Dated: September 13, 2013
mailto:[email protected]:[email protected]


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The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service ofpleadings or other papers as required by law, except as provided by local rules of court. This form, approved by theJudicial Conference of the United States in September 1974, is required for use of the Clerk of Court for the purpose ofinitiating the civil docket sheet.PLAINTIFFSGlobal Reinsurance Corporation of America, as successor-in-interest toConstitution Reinsurance Corporation

DEFENDANTSCentury Indemnity Company, as successor-in-interest to CCI InsuranceCompany, as successor-in-interest to Insurance Company of North Ameri

ATTORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBERPitchford Law Group LLC1700 Broadway, 41st FloorNew York, NY 10019

ATTORNEYS (IF KNOWN)David L. P itchford (DP8163)Daniel S. Brower (DB4981)

CAU SE OF ACTION (CITE THE U.S. CIVIL STATUTE UNDER WHICH YOU ARE FILING AND WRITE A BRIEF STATEMENT OF CAUSE)(DO NOT CITE JURISDICTIONAL STATUTES UNLESS DIVERSITY)2 8 U.S.C. 2201 - Declaratory judgme nt a ct ion; 28 U.S.C. s. 1332(a)

Has this or a similarIf yes, was this case

caseVol.

been previously filed in SDNY at any time? NoI""! Invol. \~~] Dismissed. No

IS THIS AN INTERNATIONAL ARBITRATION CASE? No H3 Yes

Yes If

IE)yes.i

Yes give date

Judge Previously Assigned& Case No.

(PLACE AN [x] IN ONE BO X ONLY)TORTS

NATURE OF SUITACTIONS UNDER STATUTES

CONTRACTIx] 11 0[ 1120[ 1130[ J140[ ] 150

[ J151[ ]152

[ 1153

[ 1160[ 1190[ 1195

I 1196

INSURANCEMARINEMILLER ACTNEGOTIABLEINSTRUMENTRECOVERY OFOVERPAYMENT &ENFORCEMENTOF JUDGMENTMEDICARE ACTRECOVERY OFDEFAULTEDSTUDENT LOANS(EXCL VETERANS)RECOVERY OFOVERPAYMENTOF VETERAN'SBENEFITSSTOCKHOLDERSSUITSOTHERCONTRACTCONTRACTPRODUCTLIABILITYFRANCHISE

REAL PROPERTY11210[ I 220I ] 23 0[ I 24 0[ I 245[ ]290

LANDCONDEMNATIONFORECLOSURERENT LEASE &EJECTMENTTORTS TO LANDTORT PRODUCTLIABILITYALL OTHERREAL PROPERTY

PERSONAL INJURY[ 1310I 1315[ ]320[ I 33 0

[ I 340[ J 345I ) 350[ ]355[ ]360

AIRPLANEAIRPLANE PRODUCTLIABILITYASSAULT, LIBEL &SLANDERFEDERALEMPLOYERS'LIABILITYMARINEMARINE PRODUCTLIABILITYMOTOR VEHICLEMOTOR VEHICLEPRODUCT LIABILITYOTHER PERSONALINJURY

ACTIONS UNDER STATUTESCIVIL RIGHTS[ )441I ] 442I I 44 3I ] 444[ ]445

[ ]446[ J 44 0

VOTINGEMPLOYMENTHOUSING/ACCOMMODATIONSWELFAREAMERICANS WITHDISABILITIES -EMPLOYMENTAMERICANS WITHDISABILITIES -OTHEROTHER CIVIL RIGHTS(Non-Prisoner)

PERSONAL INJURY[ ] 362[ I 365[ 1368

PERSONAL INJURY -MED MALPRACTICEPERSONAL INJURYPRODUCT LIABILITY

FORFErrURE/PENALTYI 1610! ]620[ 1625ASBESTOS PERSONALINJURY PRODUCTLIABILITY

PERSONAL PROPERTYI I 370I 1371| 1380[ 1385

OTHER FRAUDTRUTH IN LENDINGOTHER PERSONALPROPERTY DAMAGEPROPERTY DAMAGEPRODUCT LIABILITY

PRISONER PETITIONSI 1510

[ J 530[ I 535I I 540

MOTIONS TOVACATE SENTENCE20 USC 2255HABEAS CORPUSDEATH PENALTYMANDAMUS & OTHER

PRISONER CIVIL RIGHTS( I 550[ 1555 CIVIL RIGHTSPRISON CONDITION

| ]630| ]640| )650| 1660| 1690

LABOR1 1710I 1720[ 1730

[ ]740[ 1790[ 1791

AGRICULTUREOTHER FOOD &DRUGDRUG RELATEDSEIZURE OFPROPERTY21 USC 881LIQUOR LAWSRR & TRUCKAIRLINE REGSOCCUPATIONALSAFETY/HEALTHOTHER

FAIR LABORSTANDARDS ACTLABOR/MGMTRELATIONSLABOR/MGMTREPORTING &DISCLOSURE AC TRAILWAY LABOR ACTOTHER LABORLITIGATIONEMPL RET INCSECURITY ACT

IMMIGRATIONI 1462I 1463I H6 5

NATURALIZATIONAPPLICATIONHABEAS CORPUS-ALIEN DETAINEEOTHER IMMIGRATIONACTIONS

BANKRUPTCY[ ] 422 APPEAL28 USC 158[ J 423 WITHDRAWAL28 USC 157

PROPERTY RIGHTS| ] 820 COPYRIGHTS| ] 830 PATENT| ] 840 TRADEMARK

SOCIAL SECURrnr[ 1861 HIA(1395ff)| ] 862 BLACK LUNG (923)| ] 863 DIWC/DIWW (405(g))[ ] 864 SSID TITLE XVI1 1865 RSI (405(g))

FEDERAL TAX SUITS[ ]870 TAXES (U.S. Plaintiff orDefendant)[ 1871 IRS-THIRD PARTY26 USC 7609

OTHER STATUTES[ ) 400[ 1 4 1 0[1430

STATEREAPPORTIONMEANTITRUSTBANKS & BANKIN[ 1450 COMMERCEI 1460[ H7 0 DEPORTATIONRACKETEER INFLENCED & CORRUORGANIZATION A(RICO)[ ]480 CONSUMER CRED( ]490[ 1810[ 1850

[ 1875

[ J 890[ 1891I ] 892[ J893[ 1894[ ]895[ ]900

[ I 950

CABLE/SATELLITSELECTIVE SERVSECURITIES/COMMODITIES/EXCHANGECUSTOMERCHALLENGE12 USC 3410OTHER STATUTOACTIONSAGRICULTURAL AECONOMICSTABILIZATION AENVIRONMENTALMATTERSENERGYALLOCATION ACTFREEDOM OFINFORMATION ACAPPEAL OF FEEDETERMINATIONUNDER EQUALACCESS TO JUSTCONSTITUTIONALOF STATE STATU

Check if demanded in complaint:CHECK IF THIS IS A CLA SS AC TIO NUNDER F.RC.P. 23 DO YOU CLAIM THIS CASE IS RELATED TO A CIVIL CASE NOW PENDING IN S.D.N.Y.?IF SO, STATE:

DEMAND $ OTHER JUDGE DOCKET NUMBERCheck YES only if demanded in complaintJ URY DEM AND : YES NO NOTE: Please submit at the time of filing an explanation of why cases are deemed related.


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(PLACE AN x IN ONE BO X ONLY) ORIGINIE1 1 Original f j 2 Removed from D 3 Remanded d 4 Reinstated or 5 Transferred from 6 Multidistrict D 7Appeal to DProceeding State Court from Reopened (Specify District) Litigation Judge from

3 . a pa rt , r e p re s ,nt e d Appelate MgI I b. At least oneparty is pro se.

(PLACE AN x INONEBOXONLY) B A S I S OF J U R I S D I C T I O N IFDIVERSITY, INDICAT 1 U.S. PLAINTIFF 2 U.S. DEFENDANT Q 3 FEDERAL QUESTION IE]4 DIVERSITY CITIZENSHIP BELOW.(U.S. NOT A PARTY) (28 l/SC 1332, 1441)

CITIZENSHIP OFPRINCIPAL PARTIES (FOR DIVERSITY CASES ONLY)( P l a c e an [X] inone box for Plaint if f and onebo x for Defendant )

PT F DEF PTF DEF PTF DCITIZEN OF THIS STATE [ ]1 ( ] 1 CITIZEN OR SUBJECT OF A [ ]3 [ ]3 INCORPORATED and PRINCIPAL PLACE [ ]5 M 5FOREIGN COUNTRY OF BUSINESS IN ANOTHER STATECITIZEN OF ANOTHER STATE [ ]2 [ ) 2 INCORPORATED orPRINCIPAL PLACE M 4 [ ]4 FOREIGN NATION [ ]6 [ ]OF BUSINESS IN THIS STATE

P L A I N T I F F ( S ) A D D R E S S ( E S ) A N D C O U N T Y ( I E S )Global Reinsurance Corporation of America7 Times Square, 37th FloorNew Yo rk, NY 10036County of New YorkDEFENDANT(S) A D D R E S S ( E S ) A N D C O U N T Y ( I E S )Century Indemnity Company436 Wa lnut Street, P.O. Box 1000Philadelphia, PA 19106County of PhiladelphiaD E F E N D A N T ( S ) A D D R E S S U N K N O W NREPRESENTATION IS HEREBY MADE THAT, AT THIS TIME, I HAVE BEEN UNABLE, WITH REASONABLE DILIGENCE, TO ASCERTA IN THERESIDENCE ADDRESSES OF THE FOLLOWING DEFENDANTS:

Checkone: THIS ACTION SHOULD BEASSIGNED TO: WHITE PLAINS |X| MANHATTAN(DO NOT check either box if this a PRSONER PETTON/PRSONER CIVL RGHTS COMPLAINT)

DATE 09/13/2013 SIGNATUREjaF^TKBNEYOFjHECORD jS /fttU**^, ADMITTED TO PRACTCE IN THS DISTRCTJ ,/,, JC- Izfly*- [ ] NO\- I < K M tr M YES (DATE ADMITTED Mo. JJ Yr. 2008 )

RECEPT # v . * * ^ - . , ( aA ei -J . uiewer Attorney Bar Code # DB4981Magistrate Judge is to bedesignated bythe Clerk of the Court.Magistrate Judge is soDesignated.Ruby J. Krajick, Clerk of Court by Deputy Clerk, DATED .UNITED STATES DISTRICT COURT (NEW YORK SOUTHERN)

GLOBAL REINSURANCE CORPORATION OF AMERICA v. CENTURY INDEMNITY COMPANY Complaint

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Transcript of GLOBAL REINSURANCE CORPORATION OF AMERICA v. CENTURY INDEMNITY COMPANY Complaint