ace american insurance company v. freeman decoration co. complaint

8/3/2019 ACE AMERICAN INSURANCE COMPANY v. FREEMAN DECORATION CO. Complaint

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SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW YORK Xndex No.:ACE AMERICAN INSURANCE COMPANY,as subrogee of Reed Elsevier, Inc.Plaintiff,

- against FREEMAN DECORATING CO.

Defendant,

SUMMONSPlaintiff designatesNew Y ork County asplace of trialThe Basis of Venue is noneof the pa rties reside in stateCP LR 503 (a)Plaintiff s place of businessXNewton Place, Suite 35 0Newton, Massachusetts

TO THE ABOVE NAMED DEFENDANTS:

YOU ARE HEREBY SUMMONED to answer the complaint in this action and to servea copy of your answer, or, if the complaint is not served with this summons, to serve a notice ofappearance, on the Plaintiff s Attorneys within twenty (20) days of the service of this summons,exclusive of the day of service (or within thirty (30) days after the service is complete if thissummons is not personally delivered to you within the State of New York); and in case of yourfailure to appear to answer, judgment will be taken against you by default for the reliefdemanded in the complaint.Dated: New York, New York

March 16, 2011 COZEN O'CONNORAttorneys for Plaintiffs

BY : /.4c6tal ,,6 Vincent P. Pozzuto,45 Broadway, 23 r d FloorNew York, New York 10006(212) 908-1284DEFENDANTS' ADDRESSES:Freeman Decorating Co.1421 W. M ockingbird LaneDallas, Texas

ILED: NEW YORK COUNTY CLERK 03/17/2011 INDEX NO. 650720/

YSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/17/


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SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW YORK XACE AMERICAN INSURANCE COMPAN Y,as subrogee of Reed Elsevier, Inc.ndex No.:Plaintiff,

- against FREEMAN DECORATING CO.OMPLAINTDefendant, X

Plaintiff, Ace Am erican Insurance Com pany as subrogee of R eed Elsevier, Inc., by itsattorneys, COZEN O'CONNOR, complaining of Defendant Freeman Decorating Co., alleges thefollowing upon information and belief:

PARTIES1. The Plaintiff, Ace Am erican Insurance Company, as subrogee of Reed E lsevier,

Inc. (hereinafter "Ace"), is a foreign corporation duly organized and existing under the laws ofthe State of Pennsylvania, having a principal place of business located at 43 6 W alnut Street,Philadelphia, Pennsylvania, and at all times relevant he reto, was authorized to conduct businessas an insurance company in the State of N ew Yo rk, including the issuing of policies of insurance.

2. The Plaintiff's subrogor, Reed Elsevier, Inc., (hereinafter "Reed"), is a foreigncorporation duly organized and existing under the laws of M assachusetts, with a principal placeof business at 2 New ton, Place, Suite 350 , Newton, M assachusetts.

3. The De fendant, Freeman D ecorating Co., (hereinafter "Freeman"), is a foreigncorporation duly organized and existing under the laws of the State of Iow a, with a principalplace of business located at 1421 W. Mo ckingbird Lane , Dallas, Texas.

4. Freeman reg ularly transacts business in Ne w York State.


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5 .reeman derives substantial revenue from its transaction of business in New YorkState. 6. Freeman expected or reasonably should have expected its actions to haveconsequences in New York State.

FACTS7. Reed is in the business of providing professional information to the Science,

Medical, Legal, Risk Management and Business communities.8. Plaintiff Ace, an insurance company, issued a commercial general liability policy

to Reed.9. On or about May 15, 1998, Reed entered into a contract with Freeman for

Freeman to provide decorating services for various events conducted by Reed. The term of thecontract was through October 31, 200 6.

10 . On or about November 3, 200 5, Reed entered into an agreement with New YorkConvention Center Operating Corporation whereby Reed was granted a license to utilize theJacob K. Javits Convention Center for the purpose of conducting an event to be called theInternational Vision Expo.

11. On or about April 2, 2006, Dennis Hufford, a Freeman employee, was injuredduring the course of his work for Freeman, and during the course of Freeman providingdecorating services to Reed for the International Vision Expo. event, pursuant to Reed's contractwith Freeman.

12. Dennis Hufford and his wife Lauren Hufford filed a lawsuit arising out of theaccident of April 2, 2006, (Hufford v. New York Convention Center Operating Corporation etaL, Index No.: 108846/06), venued in Supreme Court of the State of New York, New York

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County, naming as defendants New York Convention Center Operating Corporation, New YorkConvention Center Development Corporation, Reed Elsevier, Inc. and Reed Exhibitions USA.

13. Pursuant to its ageement with New York Convention Center OperatingCorporation, Reed was obligated to defend, hold harmless and indemnify New Y ork Conve ntionCenter Ope rating Corporation from all claims for any injury to any person arising in any way inconnection with the use and enjoyment by Reed of the Jacob K. Javits Convention Center.

14. New York Con vention Center Operating Corporation settled the direct claimsasserted against it in the Hufford lawsuit for $1,600,00 0.

15. In order to fulfill its contractual obligation to New York C onvention Ce nterOperating Corporation, Reed agreed to pay the H uffords $1,600,000 on behalf of the New YorkConvention Center Operating Corporation.

16. Pursuant to its obligations under the aforem entioned policy of insurance, plaintiffAce has paid and/or w ill pay the H uffords one million six hundred thousand dollars($1,600 ,000 ), in order to cover Reed's contractual liability to the Ne w York Co nvention CenterOperating Corporation, and is therefore entitled to recover the same am ount from Freem anpursuant to its legal and equitable rights of subrogation.

FIRST CAUSE OF ACTIONCONTRACTUAL INDEMNIFICATION

17. Pursuant to the contract between Reed an d Freeman , Freeman is obligated toindemnify and ho ld Reed harm less from any claims arising out of or occasioned by theperformance b y Freem an, its subcontractors or other third parties otherwise acting under thedirection of Freeman o f Freeman's obligations under the contract.

18. On April 2, 2006, D ennis H ufford was em ployed by Freeman and performingwork for Freeman pursuant to Freeman's contract with Reed when he was injured.

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19. Dennis H ufford and his wife brought suit against, amongst others, New YorkConve ntion Center Operating Corpo ration for his injuries.

20. Pursuant to the contract between New York Convention Center OperatingCorporation and Reed , Reed was obligated to defend, hold harmless and indemn ify New Yo rkConve ntion Operating Corporation for the H uffords' claims.

21. Ace, as the com mercial general liability insurer for Reed, paid directly to theHuffords $1,600,000, in order to cover Reed's contractual indemnity liability to the New YorkConvention Center Operating Corporation.

22. Ace, as the subrogee of Ree d, is now entitled to recover from Free man$1,600,000, in addition to attorneys' fees and expenses incurred, pursuant to Freeman'scontractual liability to Reed .

SECOND CAUSE OF ACTIONCOMMON LAW INDEMNIFICATION/CONTRIBUTION

23. The damag es sustained by H uffords were due to the primary and activenegligence, carelessness and recklessness of defendant Freeman and Ace a/s/o Reed is entitledto comm on law indem nification and/or contribution from Freeman for all or part the one millionsix hundred thousand dollars ($1,600,000) Ace paid to the Huffords in order to cover Reed'scontractual liability to the N ew Y ork Conv ention Center O perating Corporation, in addition toattorneys' fees and expenses incurred.

WHEREFORE, Plaintiff requests that this Court enter judgment against the Defendantfor the amount of One Million and Six H undred Thousand Dollars ($1,600,00 0), together with

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BY : Vincent P. Pozzuto45 BroadwayNew York, New York 10006(212) 908-1284

pre-judg ment and post-judgm ent interest, attorney's fees, the cost of this suit and such otherrelief as this Court deems just and prop er.Dated: New York, New YorkMarch 16, 2011

Respectfully submitted,COZEN O'CONNORAttorneys for Plaintiff

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ace american insurance company v. freeman decoration co. complaint

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