PHILADELPHIA – A Pennsylvania county alleged its insurance policy should cover damages to a garage caused by a falling 12-ton panel, but the insurer says an exclusion policy related to collapses precludes coverage of any kind.
Delaware County, headquartered in Media, initially filed a complaint on May 1, 2019 in the Delaware County Court of Common Pleas against Travelers Property Casualty Co. of America of Hartford, Conn., alleging breach of contract, statutory bad faith and breach of the implied covenant of good faith and fair dealing.
The case was removed to the U.S. District Court for the Eastern District of Pennsylvania on June 4, 2019 by the defendant.
According to the complaint, the plaintiff owns a municipal parking garage in Media that was constructed in the 1970’s and on July 27, 2018, an incident occurred where a non-structural spandrel panel collapsed from the roof.
The suit stated no one was injured, but the garage was severely damaged.
The plaintiff alleged it immediately notified the defendant of the incident and the defendant denied insurance coverage in October 2018, stating that the policy’s collapse exclusion applied and precluded any coverage.
In response to the complaint, the defendant filed an amended answer on May 20, asserting no less than 34 affirmative defenses.
Among them, that the plaintiff’s complaint fails to state a claim upon which relief can be granted; the plaintiff failed to set forth a cause of action under the policy upon which relief can be granted; the plaintiff’s complaint is barred by the terms, conditions, exclusions and/or limitations of the policy and Travelers denies having breached any contractual duty allegedly due and owing to plaintiff.
“Plaintiff’s claim is barred by the following provision found at Section C. Exclusions: ‘We will not pay for loss or damage caused by or resulting from any of the following: Collapse, including any of the following conditions of property or any portion of the property: (a) An abrupt falling down or caving in; (b) Loss of structural integrity, including separation of portions of the property or property in danger of falling down or caving in; or (c) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage, or expansion as such condition relates to Paragraphs (a) or (b) above,” the defendant’s motion read, in part.
“Prior to the subject loss and at the time it contracted for the subject policy, plaintiff was aware of or reasonably should have been aware of conditions, deficiencies, and problems in the garage that caused the subject loss and therefore, plaintiff’s loss is barred by the known loss doctrine.”
The plaintiff is seeking declaratory judgment that Travelers must indemnify it under the terms of the coverage, in excess of $50,000, attorney fees and court costs.
The plaintiff is represented by Arthur R. Armstrong, Allen R. Wolff and Ethan W. Middlebrooks of Anderson Kill, in Philadelphia and New York City.
The defendant is represented by Michael J. McLaughlin, Andrea R. Procton and Richard D. Gable Jr. of Butler Pappas Weihmuller Katz Craig, in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania case 2:19-cv-02430
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com