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Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 1 of 6

7 IN THE UNITED STATES DISTRICT COURT


WESTERN DISTRICT OF WASHINGTON
8 AT SEATTLE
9
WINDSONG CONDOMINIUM
10 ASSOCIATION, a Washington non-profit No.
corporation,
11 COMPLAINT FOR DECLARATORY
Plaintiff, RELIEF AND DAMAGES
12
v.
13
JURY DEMANDED
14 ACE USA SPECIALTY CLAIMS, a
foreign corporation,
15
Defendant.
16

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This is an insurance coverage dispute involving damage to a condominium.
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Defendant ACE USA Specialty Claims (“ACE”) breached its insurance contracts with
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Plaintiff, unreasonably failed to respond to, investigate, or pay Plaintiff’s claim, and
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21 damaged Plaintiff in an amount to be proven at trial – but currently believed to exceed, after

22 damages are trebled under RCW 48.30.015, at least $2,800,000.

23 I. PARTIES, JURISDICTION, AND VENUE


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1. Plaintiff Windsong Condominium Association (“the Association”) is a non-
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26 profit corporation organized and existing under the laws of the State of Washington. The

HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 1 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 2 of 6

1 Association is comprised of and represents the unit owners at Windsong Condominium, a

2 condominium located in Seattle, Washington.


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2. The Association is an insured under several insurance policies issued by ACE
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or its predecessors.
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3. The Association has paid all fees and fulfilled all other conditions precedent
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necessary to maintain this action.
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8 4. ACE is, upon information and belief, an insurance company transacting

9 business in this judicial district.


10 5. ACE is a successor to CIGNA Fire Underwriters Insurance Company and
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Bankers Standard Insurance Company, such that all amounts, duties, benefits, and
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obligations owed to the Association by CIGNA Fire Underwriters Insurance Company or
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Bankers Standard Insurance Company are owed by ACE.
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15 6. The Association is a citizen of Washington.

16 7. On information and belief, ACE is incorporated in Pennsylvania, has its

17 principal place of business in Pennsylvania, and is therefore a citizen of Pennsylvania.


18 8. On information and belief, subject matter jurisdiction exists under
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28 U.S.C. § 1332 in that this lawsuit involves citizens of different States and the amount in
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controversy exceeds the sum of $75,000, exclusive of interest and costs.
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9. This Court has personal jurisdiction over ACE under the Washington Long
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23 Arm Statute, RCW 4.28.185, in that ACE transacts business within Washington.

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HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 2 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 3 of 6

1 10. Venue is proper in this judicial district under 28 U.S.C § 1391(c) because

2 ACE is subject to personal jurisdiction in this judicial district at the time of commencement
3
of this action, and is therefore a resident of this judicial district.
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II. THE ACE POLICIES
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11. ACE, through its predecessors Bankers Standard Insurance Company and
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CIGNA Fire Underwriters Insurance Company, issued several policies of property insurance
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8 to the Association under Policy Number D17885315 (“the ACE Policies”). The ACE

9 Policies were in force for consecutive annual policy periods from May 18, 1990 through

10 May 18, 1993.


11 III. FACTUAL BACKGROUND
12
12. In 2005, the Association discovered the existence of severe property damage
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in the structure of the Windsong Condominium.
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13. All the damage resulted from an “occurrence,” as that term is defined in the
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16 ACE Policies, in that the damage resulted from an “accident, including continuous or

17 repeated exposure to the same event,” that caused some damage during the ACE Policies’

18 policy periods.
19 14. The ACE Policies cover all damage resulting from that occurrence, regardless
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of whether part of the damage occurred outside the ACE Policies’ policy periods.
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15. In November 2005, the Association informed ACE by letter of the damage to
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the Windsong Condominium. The Association requested that ACE conduct a thorough
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24 investigation of the damage, and provide all coverage afforded by the ACE Policies.

25 16. ACE failed to promptly respond to the Association’s claim letter.

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HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 3 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 4 of 6

1 17. ACE failed to promptly and thoroughly investigate the Association’s claim.

2 18. ACE unreasonably refused to pay the Association’s claim.


3
19. ACE failed to promptly provide the Association with a reasonable
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explanation of the basis for ACE’s refusal to pay the Association’s claim.
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20. On January 8, 2008, the Association sent ACE a letter providing notice that
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the Association intended to assert a cause of action against ACE under RCW 48.30.015, and
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8 providing notice of the bases for that cause of action. The Association also sent a copy of its

9 January 8, 2008 letter to the Washington Insurance Commissioner.


10 21. More than twenty days have elapsed since the date ACE received the
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Association’s notice letter, and ACE has failed to resolve the claim that is the subject of the
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Association’s RCW 48.30.015 cause of action.
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IV. CAUSES OF ACTION
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22. The allegations of paragraphs 1-21 are re-alleged and incorporated herein by
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16 reference.

17 23. An actual controversy exists between the Association and ACE as to the

18 rights and obligations of the parties under the ACE Policies.


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24. The Association is entitled to a declaration of the rights and obligations of the
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parties, as well as the coverage afforded under the ACE Policies.
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25. The Association has complied with all applicable conditions precedent under
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the ACE Policies that were not waived by ACE.
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24 26. ACE had a contractual duty to pay covered claims.

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HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 4 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 5 of 6

1 27. ACE breached that duty, proximately causing damage to the Association in

2 an amount to be proven at trial.


3
28. ACE’s above-described conduct violates, among other regulations and
4
statutes, Washington Administrative Code (“WAC”) sections 284-30-330(2); 284-30-330(3),
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284-30-330(4); 284-30-330(13); 284-30-360(1); and 284-30-370.
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29. ACE’s violations of these WAC sections constitutes a violation of
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8 Washington’s Consumer Protection Act, RCW Chapter 19.86.

9 30. ACE’s violation of the Washington’s Consumer Protection Act has damaged
10 the Association in an amount to be proven at trial.
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31. By unreasonably denying the Association’s claim, and by violating the WAC
12
sections listed above, ACE violated RCW 48.30.015, damaging the Association in an
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amount to be proven at trial.
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15 32. ACE owed the Association a duty in tort to act reasonably and in good faith

16 in investigating and responding to the Association’s claim. ACE breached those duties,

17 proximately causing damage to the Association in an amount to be proven at trial.


18 V. PRAYER FOR RELIEF
19
WHEREFORE, the Association prays for the following relief:
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1. A declaration establishing the rights and obligations of the parties;
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2. All damages legally available for ACE’s breaches of contract, violation of
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Washington’s Consumer Protection Act, violation of RCW 48.30.015, and bad faith;
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24 3. An award of attorney’s fees and other costs incurred by the Association and

25 recoverable under applicable statute or common law, including but not limited to
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HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 5 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
Case 2:08-cv-00162-RSM Document 1 Filed 02/01/2008 Page 6 of 6

1 RCW 48.30.015, RCW 19.86.090, and Olympic Steamship Co., Inc. v. Centennial Ins. Co.,

2 117 Wn.2d 37, 811 P.2d 673 (1991);


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4. An award of treble damages, pursuant to RCW 48.30.015 and/or
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RCW 19.86.090;
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5. An award of prejudgment interest, to the extent allowed by law; and
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6. Such other and further relief as this Court deems just and proper.
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8 VI. JURY DEMAND

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Plaintiff hereby demands a trial by jury in accordance with Rule 38 of the Federal
10
Rules of Civil Procedure.
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DATED this 1st day of February 2008.
12

13 HARPER | HAYES PLLC

14
By:
15 Todd C. Hayes, WSBA No. 26361
Gregory L. Harper, WSBA No. 27311
16 Michael J. Crisera, WSBA No. 30353
17 Attorneys for Plaintiff

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HARPER | HAYES PLLC


COMPLAINT FOR DECLARATORY RELIEF One Union Square
AND DAMAGES - 6 600 University Street, Suite 2420
Seattle, Washington 98101
Telephone: 206-340-8010
! JS 44 (Rev.11/04) Case 2:08-cv-00162-RSM Document 1-2 SHEET
CIVIL COVER Filed 02/01/2008 Page 1 of 1

The JS-44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as
provided by local rules of court. This form, provided by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of the Court for the
purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)

I. (a) PLAINTIFFS DEFENDANTS

Windsong Condominium Association Ace USA Specialty Claims


(b) County Of Residence Of First Listed Plaintiff King County of Residence of First Listed
(EXCEPT IN U.S. PLAINTIFF CASES)

(c) Attorneys (Firm Name, Address, And Telephone Number) Attorneys (If Known)

Todd C. Hayes, WSBA #26361


Gregory L. Harper, WSBA #27311
Michael J. Crisera, WSBA #30353
Harper | Hayes PLLC
600 University Street, Suite 2420
Seattle, Washington 98101
II. BASIS OF JURISDICTION (Place an “X” in one box only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in one box for Plaintiff and one
(For Diversity Cases Only) box for Defendant
PTF DEF PTF DEF
1 U.S. Government 3 Federal Question Citizen of this State 1 1 Incorporated or Principal Place 4 4
Plaintiff (U.S. Government Not a Party) of Business in this State

2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated or Principal Place 5 5


Defendant (Indicate Citizenship of Parties of Business in Another State
in Item III)
Citizen of Subject of a 3 3 Foreign Nation 6 6
Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
110 Insurance 610 Agriculture 422 Appeal 28 USC 158 400 State Reapportionment
PERSONAL INJURY PERSONAL INJURY
120 Marine 620 Other Food & Drug 410 Antitrust
130 Miller Act 310 Airplane 362 Personal Injury -- 625 Drug Related Seizure 423 Withdrawal 430 Banks and Banking
140 Negotiable Instrument 315 Airplane Product Med. Malpractice of Property 21 USC 28 USC 157 450 Commerce/ICC Rates, etc
150 Recovery of Overpayment Liability 365 Personal Injury -- 630 Liquor Laws 460 Deportation
& Enforcement of Judgment 320 Assault, Libel & Product Liability 640 R.R. & Truck PROPERTY RIGHTS 470 Racketeer Influenced and
152 Recovery of Defaulted Slander 368 Asbestos Personal 650 Airline Regs. Corrupt Organizations
Student Loans 330 Federal Employers’ Injury Product 660 Occupational 820 Copyrights 810 Selective Service
(Excl. Veterans) Liability Liability Safety / Health 830 Patent 850 Securities/Commodities
153 Recovery of Overpayment 345 Marine Product PERSONAL PROPERTY 690 Other Trademark Exchange
of Veteran’s Benefits Liability 370 Other Fraud 875 Customer Challenge
160 Stockholders’ Suits 350 Motor Vehicle 371 Truth in Lending LABOR SOCIAL SECURITY 12 USC 3410
190 Other Contract 355 Motor Vehicle 380 Other Personal 891 Agricultural Acts
195 Contract Product Liability Product Liability Property Damage 710 Fair Labor Standards Act 861 HIA (1399 ff) 892 Economic Stabilization Act
360 Other Personal injury 385 Property Damage 720 Labor /Mgmt. Relations 862 Black Lung (923) 893 Environmental Matters
Product Liability 863 DIW C/DIWW 405(g)) 894 Energy Allocation Act
730 Labor/Mgmt. Reporting 864 SSID Title XVI 895 Freedom of Information Act
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS & Disclosure Act 865 RSI (405(g)) 900 Appeal of Fee Determination
740 Railway Labor Act Under Equal Access to
210 Land Condemnation 441 Voting 510 Motions to Vacate FEDERAL TAX SUITS Justice
220 Foreclosure 442 Employment Sentence 790 Other Labor Litigation 950 Constitutionality of State
230 Rent Lease & Ejectment 443 Housing / Habeas Corpus 870 Taxes (U.S. Plaintiff Statutes
240 Torts to Land Accommodations 530 General 791 Empl. Ret. Inc. of Defendant)
245 Tort Product Liability 444 Welfare 535 Death Penalty Security Act 890 Other Statutory Actions
290 All Other Real Property 440 Other Civil Rights 540 Mandamus & Other 871 IRS – Third Party
550 Civil Rights 26 USC 7609
555 Prison Condition

(PLACE AN “X” IN ONE BOX ONLY)


V. ORIGIN
1 Original 2 Removed from 3 Remanded from 4 Reinstated or 5 Transferred from another 6 Multidistrict 7 Appeal to District Judge
Proceeding State Court Appellate Court Reopened district (specify) Litigation from Magistrate Judgment

(Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity)
V. CAUSE OF ACTION Brief description of cause:
Breach of Insurance Contract – Bad Faith
CHECK IF THIS IS A CLASS ACTION CHECK YES only if demanded in complaint
VII. REQUESTED IN COMPLAINT UNDER FRCP 23
DEMAND $
JURY DEMAND: Yes No

VIII. RELATED CASE(S) IF ANY JUDGE DOCKET NUMBER

SIGNATURE OF ATTORNEY OF RECORD

DATE February 1, 2008


FOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE


Case 2:08-cv-00162-RSM Document 1-3 Filed 02/01/2008 Page 1 of 2

Greetings Clerk of the Court:

Attached are the requisite documents for filing a new civil lawsuit in Federal Court:
Civil Cover Sheet;
Praecipe (to issue Summons);
Summons [40 days] – ACE USA Specialty Claims; and
Complaint for Declaratory Relief & Damages
The filing fee of $350 is on its way via messenger; you should have it by 2 pm today.

Thank you for your assistance

Victoria Heindel
Litigation Manager
HARPER | HAYES pllc
One Union Square
600 University Street, Suite 2420
Seattle, Washington 98101
Tel: 206.340.8832
Fax: 206.260.2852
www.harperhayes.com

This electronic message transmission contains information which may be confidential or privileged. The
information is intended to be for the use of the individual or entity named above. If you are not the intended
recipient, please be aware that any disclosure, copying, distribution or use of the contents of this information is
prohibited. If you have received this electronic transmission in error, please notify us by telephone at (206)
340-8010 or by electronic mail at vheindel@harperhayes.com immediately.
Case 2:08-cv-00162-RSM Document 1-3 Filed 02/01/2008 Page 2 of 2