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Home My WebLink About03-0835FREIGHT EXPRESS, INC. Plaintiff, VSo RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE Cumberland County Bar Association 2 Liberty Avenue Carlisle, Pennsylvania (717) 249-3166 NOTICIA Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, us'ted tiene vionte (20) dias de plazo al partir de la fecha de la domanda y la notificacion. Usted debe prcsentar una apariencia escrita o en persona o Inn' abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a law demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y pot cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABA JO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE Cumberland County Bar Association 2 Liberty AvenueCarlisle, Pennsylvania FREIGHT EXPRESS, INC. Plaintiff, VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVILACTION-LAW_. .~ ~_ JURY TRIAL DEMANDED COMPLAINT AND NOW, comes the Plaintifl~ FREIGHT EXPRESS, INC., who brings this Complaint against Defendants, and in support thereof avers as follows: 1. Plaintiff; FREIGHT EXPRESS, INC. ("Plaintiff"), is a Pennsylvania Corporation with its principal place of business at P.O. Box 597, Mechanicsburg, Cumberland County, Pennsylvania 17055. 2. Defendant, RAM TOOR, d/b/a RT TRANSPORT ("RT Transport"), is an adult individual, residing at 2595 Coventry Blvd., Clovis, California 93612, with a principal place of business at all times herein located at 1254 Fedora Street, Clovis, California 93612. 3. Defendant, REGISTRY MONITORING INSURANCE SERVICES, INC. ("RMIS"), is licer~sed to scH and broker insurance in the Commonwealth of Pennsylvania and maintains a principle place of business located at 1600 Ventura Boulevard, Suite 814, Encino, California 91436. 4. Defendant, ROYAL INSURANCE COMPANY OF AMERICA, ("Royal") is a licensed insurance carrier authorized to do business in the Conanonwealth of Pennsylvania and is a wholly owned subsidiary of Royal & Sunallian~ with its principal place of business at 9300 Arrowpoint Blvd., Charlotte, North Carolina 28273-8135. 5. At all times herein, Defendant RMIS was licensed to do business within the Commonwealth of Pennsylvania, has engaged in, and continues to engage in, a continuous and substantial course of business within the Commonwealth of Pennsylvania. 6. At all times herein, Defendant Royal was licensed to do business within the Commonwealth of Pennsylvania, has engaged in, and continues to engage in, a continuous and substantial course of business within the Commonwealth of Pennsylvanim 7. In the course of its business, at all times herein, RT Transport regularly sends tracks and makes contracts for trucking deliveries in the Commonwealth of Penn~lvania. 8. On or about January 23, 2001, pursuant to a contractual obligation originating at Plaintiff's place of business, RT Transport contracted and agreed with Plaintiff, acting as a cargo broker, to transport a load of various frozen foods ("cargo") from various points of origin in California to a destination in Atlanta, Georgia. A copy of the doctmentation reflecting this agreement is attached hereto and made a part hereof as Exhibit "A." 9. On or about February 7, 2001, after picking up the loads of frozen food as required under the contract, RT Transport's driver, Steven Corona, abandoned his track and trailer at a Flying J Travel Stop located in Albuquerque, New Mexico. At the time, the RT Transport driver was under the control of; and an agent of, RT Transport. 10. By the time the tmek and trailer were retrieved by Defendant RT Transport, the frozen cargo in it was destroyed. 2 11. By loss claim form dated April 2, 2001, the purchaser ofthe cargo carried by RT Transport, United Natural Foods, Inc. ("United") notified Plaintiff of the failure of delivery and made claim of Plaintiff for the full value of loss in the amount of $47,742.25. April 2, 2001 Loss or Damage Claim Form is attached hereto and made a part hereof as Exhibit "B." 12. As a result of said loss, Plaintiff was required to pay for the loss of the shipment in the amount of $47,742.25, and has incurred the shipping charges paid to RT Transport in the amount of $2,100.00. 13. By loss claim form dated Aril 2, 2001, Plaintiff notified RT Transport of its claim for indemnification of the damages incurred by Plaintiff as a result of Defendant's actions aforesaid. April 2, 2001 Loss or Damage Claim Form is attached hereto and made a part hereof as Exhibit "C.' 14. Despite Plaintiff's repeated demands for indemnification, RT Transport has refused to indemnify Plaintiff for its losses. 15. At all relevant times, Plaintiff maintained a policy of insurance with Defendant RMIS, and underwritten by Defendant Royal, insuring Plaintiff against loss involving cargo, entitled "Limited Contingent Cargo Policy" and bearing the policy number POC103258 (the "policy"). The policy is attached and made a part hereof as Exhibit "D." 16. At all times herein, Defendants RMIS and Royal acted as agent for each other with respect to their relationships to Plaintiff. 17. Plaintiff, at all times, paid the required premiums in a timely manner and otherwise dutifully performed its obligations pursuant to the terms of the policy. 18. Following the realization of its loss, and within the time prescribed by the policy, Plaintiff notified RMIS of the loss and sought indemnification therefore. RMIS accordingly forwarded the claim to Royal. 19. By correspondence dated February 20, 2002, Royal, through its agent, Registry Monitoring Insurance Services, Inc. ("Registry") notified PlaintiffofRoyal's and RMIS's denial of Plaintiff's clakn. February 20, 2002 correspondence of Registry to Plaintiff is attached and made a part hereof as Exhibit "E." 20. In its notification of denial, Royal/RMIS informed Plaintiff that Royal/RMIS was denying coverage on the basis of a legal opinion rendered by counsel for RT Transport's insurance carder that the loss was not a covered loss under RT Tmmport's policy of insurance and that, accordingly, the loss was excluded under Plaintiff's policy of insurance with Royal/RMIS. 21. Specifically, the opinion cited by counsel for RT Transport's insurance carder cites policy exclusions for loss of use due to delay and crimiml, fraudulent or dishonest acts. October 22, 2001 correspondence ofHamrick & Evan, LLP is attached and made part hereof as Exhibit "F.' 22. The loss claimed by Plaintiff is the result of the total destruction of the cargo due to RT Transports actions and is not a claim for loss due to delay as that term is eomemplated under the terms of the policy. 23. The actions of RT Transport and its driver, Steven Corona, were not criminal, fraudulent or dishonest as those terms are contemplated under the terms of the policy. 24. The loss alleged by Plaintiff herein is a covered loss under the RoyaVRMIS policy. 4 25. Despite their contractual obligation to indemnify Plaintiff, Defendants RMIS and Royal have refused to do so. COUNT I - BREACH OF CONTRACT Freight Express, Inc. vs. Ram Toor, d/b/a RT Tran~qport 26. Plaintiffincorpomtes by reference the preceding paragraphs 1-25 herein as if stated at length. 27. By failing to deliver the cargo for which Defendant RT Transport agreed to deliver on behalfofPlaintiffand as a result of the actions, inactions and/or wrongdoing on the part of its employee/agem driver, Steven Corona, RT Transport breached its contract with Freight Express, Inc. 28. As a result of the averments aforesaid, RT Transport has mused Plaintiff to suffer damages for the loss of the cargo in the mount of $47,742.25, plus shipping charges expended by Plaintiff in the mount of $2,100.00, for a total of $49,842.25. WHEREFORE, Plaintiffrequests this Honorable Court to enter judgment in its favor against Defendant, Ram Toor, d/b/a RT Transport, in the amount of $49,842.25, plus interest thereon, costs of suit, attorney's fees and any other relief this Court deems just. COUNT II - NEGLIGENCE Freight Express, Inc. vs.. Ram Toor, d/b/a RT Tran..qpon 29. Plaintiff incorporates by reference the preceding paragraphs 1-28 herein as if stated at length. 30. RT Transport was responsible for the employment and actions of its employee/agent driver, Steven Corona, to tramport the subject cargo in a workmanlike manner and to keep in contact with its driver and the subject shipment at all times in order to assure the well being of the cargo. 31. RT Transport failed to adequately train, control and otherwise monitor its employee/agent driver, Steven Corona, who abandoned the cargo, and failed to adequately provide for safeguards to monitor the location of the cargo or locate the cargo in a timely fashion so that it could be preserved for delivery. 32. RT Transport's actions constitute negligence in the hiring, supervision, control and monitoring of its employee/agent driver, Steven Corona. 33. As a result of the negligence of Defendant, RT Transport, Plaintiff has suffered damages for the loss of the cargo in the amount of $47,742.25, plus shipping charges expended by Plaintiff in the amount of $2,100.00, for a total of $49,842.25. WHEREFORE, Plaintiff requests this Honorable Court to enter judgment in its favor against Defendant, Ram Toor, d/b/a RT Transport, in the amount of $49,842.25, plus interest thereon, costs of suit, attorney's fees and any other relief this Court deems just. COUNT Ill - DECLARATORY JUDGMENT Freight Express, Inc, vs. Registry Monitoring Insurances Services, Inc. and Royal Insurance Corapany of America 34. Plaintiff incorporates by reference the preceding paragraphs 1-33 herein as if stated at length. 35. Under the terms of the policy, Defendants RMIS and Royal have a duty to indemnify Plaintiff for the loss alleged herein. 36. Despite Plaintiff's demand for indemnification, Defendants have refused to indemnify Plaintiff for the loss alleged herein. WHEREFORE, Plaintiff requests this Honorable Court to enter judgment declaring that Defendants, Registry Monitoring Insurances Services, Inc. and Royal Insurance Company of America, is obligated to indemnify Plaintiff for the loss of the cargo and the damages incurred by the Plaintiff as alleged herein in the amount of $47,742.25. COUNT IV - BREACH OF CONTRACT Freight Express, Inc.. vs. Registry Monitoring Insurances Services, Inc. and Royal Insurance Company of America 37. Plaintiff incorporates by reference the preceding paragraphs 1-36 herein as if stated at length. 38. The actions of Defendant Royal constitute breach of Defendant's insurance contract with Plaintiff. 39. As a result of Defendant's breach, Plaintiff has sustained damages in the amount of $47,742.25. WHEREFORE, Plaintiff requests this Honorable Court to enter a judgment in Plaintiffs favor and against Defendants, Registry Monitoring Insurances Services, Inc. and Royal Insurance Company of America in the amount of $47,742.25, plus interest thereon, costs of suit, attorney's fees and any other relief this Court deems just. Dated:2~l~3 Respectfully Submitted: Tl(on~ A. Archer, Esquire PA Atty. II)g 73293 PO Box 5056 Harrisburg, PA 17110 (717) 233-8676 Attorney for Plaintiff 7 A PAGE 05 'Page G/l§ Cullp l~dl, PA 17911 4 t~en~'~l;/i' FRE]:GHT EXPREFaS TNC; Jan-17-o, 3:57PM; PAGE Page 14/15 '~'~s Compensation Xnsur, mce i~ mandatory by IJle Stnte of l'~r'~ayJ~nia in the nmount~ requitad by s~tute in the ju '.n~ctions ~he~e the ~.J-~ic~.s hereunder ~lJ be 8m~ ~d ~ C~m~r~ ~h~ h~e no ~;j~li~ m .i~ defend aJ~iated ~ompanies al~,imt any a~'J~d by a ~ ~on Court or s~r~tt- sdmi~ body ar r~m't of l~t.,v, a~ising out of' cl,~?.s by any employee of c~ri~r for wok te~ed injuF~ CORI~O It&l'l{ oe$1¢B R. T. TRANSPORT 1254 FEDORA AVE CLOVIS, CA 936'12 Invoice DATE INVOICE # 2/5/01 2363 FREIGHT EXPRESS,INC. P.O.BOX 597 MECHANICSBURG, PA. 17055 P.O. NO. FR4716 TERMS Duc on receipt DESCRIPTION QTY RATE LOAD FROM CORONA, CA. TO ATLANTA, GA. 2,020.00 -600.00 PARTIAL PMT. ON LOAD DRIVER-LEE PROJECT AMOUNT 2,020.00 -600.00 Total Subj: RE: NEED RA# FOR LOAD~ a$3 Date: 1/25/2001 10:37:08 AM Eastern Standard ~me From: BGardty@un~.com (Bdan Gardty) To: FTXRSCAC@aol.com ('F'I'XRSCAC@aol.com') auth # 407atl 1/25 --Original Message From: FTXRSCAC@aol.com [mailto:FTXP, SCAC@aol.com] Sent: Thursday, January 25, 2001 9:35 AM To: BGardty@unfi.com Subject: NEED PA# FOR LOAD# a53 HELLO BRIAN: NEED PA# FOR LOAD~ A53 FR~4716 FOR $150 LUMPER @ ATLANTA-GA THANKS, PAUL M. WlNER Headers Return-Path: <BGarrity@unfi.com> Received: from dy-yg05.mx.aol.com (dy-yg05.mail.aol.com [172.18.147.5]) by air-yg03.mail.aol.com (v77.31)with ESMTP; Thu, 25 Jan 2001 10:37:07 -0500 Received: from ffp.unfi.com (208.144.216.226.inverse. cw. net [208.144.216.226]) by rly-yg05, mx.aol.com (v77.27)with ESMTP; Thu, 25 Jan 2001 10:36:53 -0500 Received: from nav-mail.unfi.com by ~p. un~i.com via smtpd (for rly-yg05, mx.aol.com [205.188.156.229]) with SMTP; 25 Jan 2001 15:36:24 UT Received: by oregano, unfi.com with Intemet Mail Service (5.5.2650.21) id <ZZVV5VG6J>; Thu, 25 Jan 2001 10:33:10 -0500 Message-ID: <4E490C292CBDD411BC6A0008C709F5611C1889@oregano. unfi.com> From: Brian Garfity <BGarrity@unfi.com> To: "'F-I'XRSCAC@ao~.com"' <FTXRSCAC@aol.com> Subject: RE: NEED PA# FOR LOAD~ a53 Date: Thu, 25 Jan 2001 10:33:09 -0500 MIME-Version: 1.0 X-Mailer. Intemet Mail Se~ce (5.5.2650.21) Content-Type: text/plain; charset="iso-8859-1" Thursday, January 25, 2001 America Online: FTXR SCAC Page: I DISPATCH #800-393-0044 ~F(~_X#717-737-2025~.,) BONNIE'S HOME # (717)528.8473 .......... EMERGENCIES ONLY AFTER HOURS 6PM - 7AM 7t7-554-1461 .......... LOAD CONFIRMATION FAX 559-459-0245 PHONE: TO: RT TRANSPORT DATE: ATTN: RAM FROM: (OFFICE USE ONLY) LOAD # FR4716 DRIVER NAME LOAD DATE (559)459-0244 !/19/2001 GREG ...... LOAD NUMBER MUST SHOW ON ALL FREIGHT INVOICES .... ** 1/19/2001 ~.-~ ~ ;00 [~/Xt~ COMMODITY FROZEN LOAD PO # AA-15200-A16 PU # 36579 SHIPPER FOOD FOR LIFE BAKING ORIGIN CORONA CA TEMP PER B.O.L. IF NOT SHOWN RUN THE FOLLOWING DEGREES: PALLET EXCHANGE ]'x,J (9 # OF PALLETS DATE 1/23/2001 TIME RECEIVER UNITED NATURAL FOODS INC/CORNUCOPIA DESTINATION ATLANTA GA CONF # $2,020.00 RATE LOADED MILES R.P.M. 4:30AM CONFIRMATION COMMENTS DRIVER MUST CALL FOR DISPATCH, SIGNIN AS FREIGHT EXPRESS, AND HAVE A CLEAN TRAILER. TIME S~NSITIVE FOOD PRODUCTION INGREDIENTS - MUST DELIVER ON APPT. DATE $100.00 late delivery fine/day DRIVER IS RESPONSIBLE FOR BOX COUNT AND MAINTAINING CORRECT TEMPERATURE DRIVER TO CALL DAILY BY 08:30AM 800-393-0044, NO CALL OR LESS THAN 24 HR NOTICE WILL RESULT IN A $100.00 FINE. COMCHECK FEE- $10. PER COMCHECK ISSUED. FEE OF 3% OF GROSS REVENUE CHARGED FOR ANY ADVANCE OR COMCHECK SETTLEMENT. Driver responsible for unloading unless otherwise noted. Pallet receipt to prove exchange or charge will be incurrred. REFRIGERATED LOADS NEED PULP TEMPERATURE TAKEN AT LOADING PLEASE SIGN ACKNOWLEDGEMENT AND FAX T ~ . /~/C ~,~ .~ )~ ~: PLEASE SEND ALL APPROPRIATE PAPERWORK TO ATTENTION: PAUL. All bills and receipts must be turned in together. Reimbursement for expenses after the fact will be denied. PLEASE SEND ALL BILLS TO FREIGHT EXPRESS, INC. P. O. BOX 597 MECHANICSBURG, PA 17055 DEADHEAD MILES R.P.M. Sent By; FflE2-~IT EXPREP~ [NC;; 7t77900~100; Jan-J7-~l 4:16PN; Page FAX w"~"MENIEI~NG~E~ Ol~Y Alq'jl~ ~OURI ~.TA!ll i'17-450-1461'-'-'.-- TO: RT TEARS~T LOAD D47E FO;; PHONE; DATE.* FROM: TEM~ eX)J_ F NOT 8HOWll NUN ?N'E~ t:)EISItEE~ PALLET B(~ ~ 0 m o~ .*~-m · i~/F.~ Mt~'i' c~lj. FOrt ~ISI~ATCN, ,~IGNiN AS ]~F~¢~11' t.'-'XPRE~ AND I IAVB ~0/I0 39~d GP~O6SPBSS £P:0~ TOO~/BT/[O unicr, D NATURAL FOODS~ INC. LOSS OR DAMAGE CLAIM FORM Claim # Internal use only fo;' (Check one) Lossl :::;' IDamagel ' '::~'1FullValue Date~ile~ Y/'/O' Claimants Claim No. UNFI Release Bill of Lading No. Carrier Pro No. Date / Del Date Mail Claim To: CARRIER NAME STREET & NO. OR P.O. BOX CIW OR ~OWN & ~ATE ' ZIP CLAIM PAYABLE TO: United Natural Foods 260 Lake Road Dayville, CT 06241 ATTN: Alan Babbin, Logistics Manager CITY & STATE ~ ~ ZIP CITY & STATE ~ CORP EXTENDED PROD ~ QTY PAC~SIZE DESCRIPTION COST COST NOTE: Claim should be supported by the following documents. Failure to include sufficient documentation may delay conclusion of the claim. Documentation of transportation contract Documentation that loss or damage occurred F---]copy of freight bill Noted consignee copy of bill Documentation of value/amount claimed Other documents of support claim r~--]Complete vendor invoice or photocopy Copy of bill of lading showing all discounts Inspection report ~ Pictures Attached how many? I ' ! '.] I ..... IWeight of lost or damaged article Remarks: Be s~re to attach leffe-r oCexpl~nation if there are special drcumstances we should know about. The foregoing statement of facts is hereby certified.as correct ~f Date This form must be completed within 24 hours of receipt of product. Revisded 11/14/2000 Telephone No. Claimant's Signature ~_Damage Form.xls PO COST Release# $ 2,419.20 36874 $ 2,832.00 36914 $ 3,002.40 36907, $ 7,788.12 35907 $ 3,040.20 36924 $10,257.53 36936 $ 766.003690t~ $ 9,169.26 36932 $ 2,020.00 3569~ $ 676.053634~ $ 4,980.20 4980.3 $ 359.5533371~ $ 185.9036904 $ 245.8533533 $ 47,742.26 Claim in the amount of $ is hereby, filed for (Check one) Date Filed q/Z/O/ Claimants Claim No. Release# ~' C~V~ .:?'. ,.:,;.-:., ~.:..~:~ · Bill of Lading No. Date ~/Z/.//~) ) Carrier Pro No. Del Date LOSS OR DAMAGE CLAIM FORM Claim # Internal use only Mail Claim To: CARRIER NAME STREET & NO. ORJ~.O. BOX C' O. TOWN,ST^TE F//OV 3 Z,P ...C..LAI__.M P.__AYA.___B L_._E...T..o_: COrDiTE OFF[CE; 20 So. 36~ SI., Suite 200 C~p H~, PA 17011 Ma~Add~s: P.O. Box 5~ ~ch~ni~b~g, PA 17055 ~[~ 737-=~ (~) F~ ~ ~1~ 337-2025 SHIPPER CONSIGNEE ADDRESS ADDRESS CiTY & STATE ZIP CITY & STATE PROD PACK/SIZE ON COST EXTENDED TOTAL CLAIM 7/'~'2.2g $0.00 NOTE: Claim should be supported by the following documents, Failure to include sufficient documentation ~ conclusion of the claim. Documentation of tra,~sportation contract Documentation that loss or damage occurred [-'--'~Copy of freight bill · Documentation of value/amount claimed ~---]Complete vendor invoice or photocopy showing all discounts [------]Pictures Attached howmany? ~- [~'--'-]Noted consignee copy of bill Other documents of support claim Copy of bill of lading Inspection report Weight of lost or dama~led article [ emarK,s:_ ' - / - - / ) circumstances we ShOUld know a.ut. Date Telephone No. Claimanrs Signature This form must be completed within 24 hours of receipt of product. 1tl 412000 L~l~ge Form z~ SUNALUANCE POLICY NUMBER: POC 103258 Royal Insurance Company of America PRODUCER CODE: 3499100 9300 Arrowpoint Blvd. Charlotte, NC 28201 Named Assured REGISTRY MONITORING INSURANCE SERVICES AND/OR INSURANCE REGISTRY COMPANY 15030 VENTURA BLVD., SUITE 787 SHERMAN OAKS, CA 91403 Producer Name and Address MARSH RISK INSURANCE SERVICES CITICORP PLAZA 777 SOUTH FIGUEROA STREET LOS ANGELES, CA 90017-5822 LIMITED CONTINGENT CARGO POLICY (FOLLOWING FORM) POLICY PERIOD: From: MARCH 1, 2000 UNTIL CANCELLED POLICY LIMIT: $250,000 in any one place at any one time or in any one disaster ON: As Per Policy LOSS PAYEE: Loss if any payable to Registry Monitoring Insurance Services and/or Insurance Registry Company or Order Authorized Representative TERMS & CONDITIONS I) A TTA CHMENT AND CANCELLATION This policy and the coverage granted hereunder attaches on and covers in respect of all insured go ~ds on and after March 1, 2000 and will continue in force until March 1, 2001 or until cancelled by either party giving the other, or its agent, thirty (30) days 'written notice, or unless otherwise mutually agreed upon or otherwise provided for herein, or unless otherwise voided by reason of breach of warranty, misrepresentation or concealment. Notwithstanding anything herein to the contrary, the Company may effect immediate cancellation of this Policy by giving written notice thereof at any time when any premium has been due and unpaid for a period of thirty (30) days. 2) GOOD$ INSURED 3) Lawful goods and merchandise in shipment consisting of general commodities. VAL UA TION The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual cash value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with merchandise of like kind and quality. 4) LIMIT OF LIABILITY The liability of these Assurers shall not exceed the lesser of the limits carded by each individual trucking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in case of partial or total loss, of any .other costs and expenses, or all combined. 5) I/'AL UE A T RISK In the event that the total value at risk exceeds the applicable Limit of Liability set forth herein, these Assurers shall nevertheless be entitled to receive premium on the full value at risk. The acceptance of such premiums by the Assurer shall in no way alter or increase the applicable Limits of Liability, but the Assurer shall be liable for the full amount of loss up to, but not exceeding such Limit of Liability. In the event of loss which exceeds the applicable Limit of Liability, any deductible will be subtracted from the applicable Limit of Liability and not from the full amount of loss. 6) COVERAGE A. For account of whom it may concern. Loss, if any, payable to Insured or order. Loss of or damage to lawful goods and merchandise in shipment consisting of GENERAL COMMODITIES caused by the perils insured against herein, occurring while in transit from POINT OF ORIGIN TO POINT OF ~ ' DESTINATION. Co Within these limits this policy covers said property from the time of leaving the warehouse, store or factory of shipper and thereai~er continuously, in ordinary course of transportation until same as delivered to warehouse, store or factory at destination, but in no event shall this policy cover property after the same has ceased to be at risk of the Insured. This policy insures the property only while in the custody of the motor truck, air fi.eight, or railroad carrier(s) to whom the Insured has entrusted the shipment. The policy' insures against ail risks of physical loss or damage to the insured property from external cause, except as specifically excluded. This policy is strictly a "following form" policy. In no event will this policy provide · coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy. Fo The liability of these Assureds shall not exceed the lesser of the limits carried by each individual trucking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in case of partial or total loss, of any other costs and expenses, or all combined. Go VALUATION: The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual cash value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however, caused, and shall in no event exceed what it would then cost to repair or replace the same with merchandise of like kind and quality. In the event of loss or damage to machinery consisting of several parts, RMIS shall only be liable for the value of the part or parts lost or damaged, or the invoice cost of the machinery, whichever is less. It is understood and agreed that this contingent insurance provides coverage for cargo only; restricted to RMIS approved common and contract carriers, when the carrier is proven liable. 7) EXCLUSIONS - This policy does not insure: A. Shipments by mail, account, bills, deeds, evidence of debt, money, notes, securities or salesman's samples or shipments of HOUSEHOLD GOODS; Against loss of market, business interruption, loss, dan~age or deterioration arising from delay, inherent vice, infestation, spoilage and loss from changes in termperature, a change in climate condition or refrigeration breakdown. Against loss or damage caused by or resulting from strikes, lockout workmen, or persons taking part in labor disturbances, or riots or civil commotions; loss of nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to or aggravated by peril(s) insured against in this policy; however, subject to the foregoing and all provisions of this policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this policy. Any fraudulent, dishonest or criminal act done by or at the instigation of any Insured, partner or joint adventurer in or of any Insured, an officer, director or trustee of any Insured; pilferage, appropriation or concealment of any property covered due to any fraudulent, dishonest or criminal act of any employee or agent or any Ifisured while working or otherwise, or any person to whom the property covered may be trusted; E. Shipments that have been either refused or are returned by the receiver thereof, unless the same is the result of a peril covered by this policy. Fo Loss or damage caused byor resulting from (1) hostile or warlike actiOn in time of peace or war, including action in hindering, combating or defending against an actual, impending, or expected attach, (a) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval, or air forces; or © by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or Customs regulations, confiscation by order of any government or public authority, or risk of contraband or illegal transportation or trade; 8) 9) PREMIUM The Assured shall report to these Assurers a monthly list of clients and pay monthly premium of $22.50 per client per 500 registered carriers or part thereof. DED UCTIB. L E None. 1 O) CONSTRUCTIVE TOTAL LOSS CLAUSE No recovery for a Constructive Total Loss shall be had hereunder unless the property insured is reasonably abandoned on account of its actual loss appearing to be unavoidable, or because it cannot be preserved from actual loss without an expenditure which would exceed its insured value when the expenditure had been incurred. 11)PREMIUMPA YMENTS Premiums at the rates specified in the schedule attached hereto or as otherwise agreed shall be paid in cash and due immediately upon attachment of the risk; and the Company shall be entitled to premium on all shipments covered by the Policy, whether reported or not. 12) DECLARATIONS The ASSURED by the. acceptance 0fthis Policy warrants and agrees to report all · exposures in respect of which insurance is provided hereunder to the Company as soon as known to the ASSURED, or as soon thereafter as may be practicable. The Company or its agents shall be permitted to examine the books, accounts and recordS of the ASSURED for the purpose of tabulating and verifying all exposures in respect of which insurance is provided hereunder. 13) ERRORS AND OMISSIONS It is agreed that this insurance shall not be prejudiced by any unintentional delay or inadvertent omission in reporting hereunder, or any unintentional error in the description of the interest, vessel or voyage, if prompt notice be given the ASSURERS in all such cases as soon as said delay and/or omission and/or error becomes known to the ASSURED and adjustment of premium be made if and as required. 14) BROKERS AS A GENT FOR ASSURED If the laws of the state in which this polic Assured's Brokers Marsh Inc. of Los A written, or any substituted broker, shall be Agent of the ASSURED for all purposes including but not limited to, receiving nol rejecting any proposed modification or alt, such notice given to the said Agent of any alteration agreed to be the said Age~nt shall agreed to by, the ASSURED. This agency revocation by the ASSURED shall have be the office of the Royal & Sunalliance Ins. If the laws of the state in which this policy as Agent for the Assured, then all such nol alteration shall be mailed by the Assurers d address of the Assured with copies tot he A 15) NOTICE OF LOSS Warranted by the ASSURED that all claim and/or merchandise insured hereunder shall 16) PROOFS OF LOSS Proofs of loss and all bills for expenses mu: this Company, if there be one at or near the expenses are incurred or, if there be none in the Royal & Sunalliance Ins. Co., or the net Lloyd's London, and such agent or correspc surveys. 17) NORMAL LOSS In the event of claim under this insurance fo merchandise and/or goods upon which there mutually agreed that the claim shall be adjm or. parts lost or damaged shall be arrived at basis of expected outtum, whether or not th in this insurance or be a trade custom. is issued permit, it is agreed that the [eles, who caused this insurance to be deemed to be and continue to be the connection with this insurance, :e of cancellation or for accepting or ;ration in the terms of this Policy. Any such cancellation, modification or have the same effect as if given to, or shall continue until written notice of en received by the ASSURERS, or by 20. this policy. is issued do not recognize the Broker ices of cancellation, modification or irectly to the last known mailing gent of record. for loss of, or damage to, the goods be promptly reported to the Company. :t be approved by the Settling Agent of place where the loss occurs or the the vicinity, by the Correspondent of feast accredited representative of ndent must be represented on all r. loss of and/or damage to ~s a normal or usual loss, it is hereby ,ted and the insured value of the part ~ the adjustment of the claim on the deduction of normal loss be provided 18) PARTIAL LOSS In all cases of partial loss or damage caused by perils insured against, the loss shall be determined by a separation of the damaged portion of the insured property from the sound portion, and the amount of loss determined by: an agreed estimate (by survey) of the Percentage of damage of such damaged portion, in which event the ASSURED will receive such percentage of the insured value of the damaged merchandise; or if such agreement is not practicable, Bo then such damaged portion shall be sold either at public auction or by private sale (whichever the Company shall deem most advisable) for the account of the owner of the property, in which event the amount of the loss shall be the difference between the net amount so realized by the auction or sale and the insured value of the portion sold. 19) PA YMENT OF LOSS In case of loss or other claim, such loss or claim to be paid in funds current in the United States to the ASSURED or order, or to bank, or bankers as their interests may appear, within thirty (30) days after submission to the CompanY or to its agent of proper proof of loss and proper proof of interest in the goods or merchandise so involved (the amount of premium, if paid, and all other indebtedness due the CompanY by the ASSURED being first deducted). In the event that payment is required in other than United States currency, the rate of exchange shall be that in effect on the date the claim is settled. 20) SUE AND LABOR CLA USE In case of any loss or misfortune, it shall be lawful and necessary for the ASSURED, his or their factors, servants and assigns, to sue, labor and travel for in and about the defense, safeguard and recovery of the goods and merchandise insured hereunder, or any part thereof, without prejudice to this insurance, to the charges whereof this Company will contributed according to the rate and quantity of the sum hereby insured; nor shall the acts of the ASSURED or this Company in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of an abandonment. 21) TIME FOR SUIT It is a condition precedent to any action, suit or proceeding for the recovery of any claim upon, under, or by virtue of this Policy that such action, suit or proceeding shall be commenced within twelve (12) months next after the date of the accident, disaster or event causing loss of, or damage to, the insured goods or giving rise to a claim for sue and labor expenses or, in case of a claim for General Average contribution, salvage and/or special charges, next after the date of actual payment thereof by the ASSURED. Provided however, that if by the laws of the State or other place within which this Policy or any certificate thereunder is issued or where the action, suit or proceeding is instituted, such limitation is invalid, then any such claim shall become barred and void unless such action, suit or " proceeding shall be commenced within the shortest limit of time permitted by the laws of such State or place to be fixed herein for the bringing of such suit, action or proceeding. 22) ASSIGNMENT VOID Warranted by the ASSURED that the assignment of this Policy or any insurable interest therein or the subrogation of any rights thereunder, if any, to any party without the consent of the Company shall render the insurance affected by such assignment or subrogation void. 23) SUBR OGA TION AND IMPAIRMENT OF SUBROGATION It is agreed that upon payment of any loss, the ASSURED shall assign and subrogate to this Company all their rights against carriers, bailees and other third parties to the extent of such payments and shall permit suit to be brought in the ASSURED's name (but at this Company's expense), and the ASSURED further agrees to render all reasonable assistance-in the prosecution of said suit or suits: It is further a condition of this insurance that if the ASSURED or their assigns have entered or shall enter into any agreement whereby any carrier, bailee or other third party is released fi.om its liability for any loss, and/or waive, compromise, settle or otherwise impair any right of claim against such third party, to which this Company would be subrogated upon payment of a loss; then this Company shall be free from liability with respect to such loss, but premium shall not be affected. 24) 0 THER INSURANCE If an interest hereunder is covered by other insurance, which attached prior to the coverage provided by this Policy, then this Company shall be liable only for the amount in excess of such prior insurance; and this Company shall return the premium upon so much of the sum insured as it shall be exonerated from by such prior insurance. Bo If an interest insured hereunder is covered by other insurance which attached subsequent to the coverage provided by this Policy, then this Company shall nevertheless be liable for the full amount of the insurance, without right to claim contribution from such subsequent insurers, and shall accordingly be Co Other insurance upon the property with the same attachment date as the coverage's provided by this Policy, shall be deemed simultaneous, and this Company will be liable for a ratable contribution to the loss or' damage, in proportion to the amount for which this Company would otherwise be liable under this Policy, and will return to the ASSURED an amount of premium proportiOnate to such reduction of liability. 25) GOVERNING LAW All questions of liability arising under this Policy are to be governed by the law and customs of England, except in the United States and its territories and possessions, where the law and customs of the United States will prevail. Authorized Representative REGISTRY MONITORING INSURANCE SERVICES, INC. February 20, 2002 Paul Winer Freight Express P.O. Box 597 Mechanicsburg, PA 17055 Re: RSA Claim//: 1080004877 Trucking Co.: Ramm Toor DBA R T Trucking Dear Mr. Winer: Royal Insurance Company of America has reviewed the documents on the above referenced claim. This claim has been fully investigated by Hambich & Evans LLP, on behalf of the motor track cargo insurer for R T Trucking, North American Specialty Insurance Company. Freight Express, acting as the cargo broker, retained R T Trucking to transport the cargo. It has been reported that on or about February 7, 2001, an employee of R T Trucking abandoned his track and trailer at the Flying J. Travel Truck Shop located in Albuquerque, New Mexico. The trailer contained approximately $47,742.25 worth of various frozen food products. By the time the track and trailer were retrieved, the cargo was destroyed. It has been determined that coverage for this occurrence is not present under cargo policy POC103258 issued by Royal Insurance Company of America (RSA) for the period 3/1/00 to 3/1/01. Therefore, Royal Insurance Company of America declines indemnification for this loss. At this time, and based upon the information obtained as of the date of this letter, the denial consists of the following: · Coverage was denied by the trucking company's primary insurance due to violations of the policy conditions. Attached is a copy of their denial letter. 16000 Ventura Blvd., Suite 814 · Encino, CA 91436 (818)933-6350 * (800) 400-4924 * Fax: (818) 933-6352 Policy No. POC102629 is strictly a 'following form "policy which in no event will provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy. Attached is a copy of the policy. RSA issued policy POC103258 that states in part: TERMS AND CONDITIONS: GOODS INSURED Lawful goods and merchandise in shipment consisting of general commodities .... CO VERA GE E. This policy insures against all risks of physical loss or damage to the insured property from any external cause, except as specifically excluded. However, this policy is strictly a 'following form "policy. In no event will this policy provide coverage for loss or damage caused by any peril not covered by each trucker's primary insurance policy." (Underlying added). Should North American Specialty Insurance Company reconsider their denial for policy violations, please submit this information to RMIS so that we can forward it to RSA for reviewal and possible reconsideration of the current position. If you have knowledge or information that could or would have beating on this matter, we encourage you to furnish us with this information. While RSA is willing to maintain a continuing dialogue with you and will certainly consider and evaluate whatever additional comments or futher information that you might present, it should be recognized that such ongoing communications will be without prejudice to RSA's position as outlined in this letter. By identifying certain terms, conditions, provisions and exclusions of the RSA policy, RSA does not intend to and does not waive any other term, condition, provision or exclusion of the RSA policy or at law that may be applicable to this occurrence. RSA explicitly incorporates each and every term, condition, provision, and exclusion of the RSA policy in this denial and at law. Please do not hesitate to contact the undersigned if you have any questions. Sincerely, Registry Monitoring Insurance Services, Inc. Hayden Landon President P OYAL & SUNALLIANCE www. royalsunalliance-usa.com Seattle Office Ocean Marine Claims Suite 2700 999 Third Avenue Seattle WA 98104-4000 CERTIFIED MAIL Phone 206 622-7791 Fax 206 689-0308 February 7, 2002 Hayd.en ~ Regis_Sr'y'Monitoring Insurance Services, Inc. 1...50'30 Ventura Blvd., Suite 787 .//Sherman Oaks, California 91403 Re.' Claim #: 1080004877 Trucking Co.: Ramm Toor DBA R T Trucking Your Client: Freight Express Dear Mr. Landon: We have reviewed the documents on the above referenced claim. This claim has been fully investigated by Harnbich & Evans LLP, on behalf of the motor track cargo insurer for R T Trucking, North American Specialty Insurance Company. Your client, Freight Express, acting as the cargo broker, retained R T Trucking to transport the cargo. It has been reported that on or about February 7, 2001, an employee of R T Trucking abandoned his truck and trailer at the Flying J. Travel Truck Shop located in Albuquerque, New Mexico. The trailer contained approximately $47,742.25 worth of various ,~rozen foods products. By the time the truck and trailer were retrieved, the cargo was destroyed. It has been determined that coverage for this occurrence is not present under cargo policy POC103258 issued by Royal Insurance Company of America (RSA) for the period 3/1/00 to 3/1/01. We must decline indemnification for this loss. At this time, and based upon the information obtained as of the date of this letter, our denial consists of the following: Coverage was denied by the trucking company's primary insurance due to violations of the policy conditions. Attached is a copy of their denial letter. Policy No. POC102629 is strictly a followmgform policy which in no event will provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy Attached is a copy of the policy.. Page 2 Registry Monitoring Services RSA issued policy POC 103258 that states in part: "TERHS AND CONOIIlON$: GOODS It¥$11RED LawlOr/goods and mer~and/se in shipment consisting o£ genera/ caromed/ties ..... COVERAGE E This po/icy insures against ali risks of physical loss or damage to the insured property from any external cause, except as specifically excluded. However, this oolicy is strictly a "fo#owinq fonn"policY. In no event will this policy provide coveraqe for loss or damaqe caused by any oerll not covered by each trucker's primary insurance pollo/. "(Underlying .added} Should North American Specialty Insurance Company reconsider their denial for policy violations, please forward this information to RSA so that it can be reviewed for possible reconsideration of our current position. If you have knowledge or information that could or would have bearing on this matter, we encourage you to furnish us with this information. While we are willing to maintain a continuing dialogue with you and will certainly consider and evaluate whatever additional comments or further information that you might present, it should be recognized that such ongoing communications will be without prejudice to RSA's position as outlined in this letter. By identifying certain terms, conditions, provisions and exclusions of the RSA policy, RSA does not intend to and does not waive any other term, condition, provision or exclusion of the RSA policy or at law that may be applicable to this occurrence. RSA explicitly incorporates each and every term, condition, provision and exclusion of the RSA policy in this denial and at law. Please do not hesitate to contact the undersigned if you have anY questions. Sincere)y, x/~ ' Ocean Marine Claims Representative C.C. Marsh USA Inc/Bob Rappaport 777 South Figueroa St. Los Angeles, CA 90017 Freight Express 20 South 36th Street Camp Hill, PA 17011 Ma~ 14 O1 12:34p pobf~on johnson in= svcs 916 780 S723 AAIS IM-7455 Ed 1.0 Page I of I MOTOR TRUCK CARGO LIABILITY BTN0000180-00 (The entries required to complete this endorsement will be shown below or on the "declarations".) COVERED PROPERTY Covered property consists of: Only produce, oaper products, and canned Roods. SCHEDULED LIMITS Vehicle Limit $100,000Any one vehicle Terminal Limits Location No. Not Covered Terminal Locations Not Covered Limit Not Covered Newly Acquired Terminals Limit SNot Covered Any one newly acquired terminal location Freight Charges Limit SNot Covered Freight charges, any one occurrence Catastrophe Limit $200,000Any one catastrophe DEDUCTIBLE Deductible Amount $1,000 IM-74S5 Ed 1.0 Copyright MCMXCV, American Association of Insurance Services 01/~}9/02 WED 14:56 FAX ?07 426 241~ Hlchae] Smith Claims F*i:::~NO. :?70 951 I974 22, 200'1 Mr. l~m Toor R.T. Truckle, 124:5 Fcdota'Street Clovis, CA 9361:2 Re'. /a Re C/dim qf,q.T. Trdn~'] Insured : :.1~m T~ d~ R. T. TraM~ N~ Poli~ No. : BTN~I~ (9/I~0~9/1S~1) N~ Claim Ne. : .[~1o6 Our ~le No. : ~ On behalfofN~ American Spe~iidh:ies lnsman~ Company ("NAS"), this letter will serve to a~knowJedSethe Clabn of Loss 0m'ehu~er "Claim") filed by the insured, Rmm Tom d~)a ITT. Transport (heteJ~t~er"R.T. TremOrS" or"d.~¢ imuted") under Policy Numbm BL. ed upon our review ,nd investigation oftbb Claim, and ns.heretmafter discu.cd more detail, we regret te inform you. that NAS must decline your rujuest for covern~e with Speciflenlly, our invediSaUon ortho iplendings ~nd matcriels provic~d w~th our ongotnl~ eovcra~ investigation de~rmmde n. Th~ l~t-~ Policy d¢~s not p~vido coverage for demagogs which b. The NAS Poli~y do~s not prd)vtde coveregc f'or frauduleF~t acts °f'~ha insmed °r an P~ 01/~}9/02 ~Vi~[) 14:56 FAX ?07 426 2412 Mi. ohae] ,Smith FRCYl :~5outt~_.aSt Claims FRX NO, :7;q~ ~1 1974 3~r~ 1~9 ~ 1~4:46PH P2 O~ or about F~ 18, 2001, a Cl. aim w~s filed by Uni~ Nam~ F~, ~, ('~a~ F~ ~ F~ ~, ]~- ~t EXpr~;') for mi~ing F~ ~ ~~ ~ H~F~y Twu ~11~ a~ Twonty-fi~ s~ ~~t ~m ~ ~d for ~c ~ ~ w~ d~o~ ~ ~t A~I 9, 2001, ~c ~ ~bmiU~ ~fs of~ss f~ ~e all~ thofl oft or a~t J~ ~, ~, ~ ~ ~ ~nt~o, ~.~ of~ ~u~- M ~im~ Two ~1~ ~ ~.~Jx C~ ~ ~om N~ M~i~. 01/'09/02 W~]D i4: FAX 707 426 14,12 Hicl'iael ~m.l. tn FROH :5ou'~as'~ Claims FAX NO. :770 ~L~I 197,~ ..Tan. 99 ~ 84:4~PH P3 15, 2000 t~ Scpteanbm' l~, 2(}01 provl, dcs motor ~x~ck cax~ liabilityco~ The Polk,5' ba~ a vehicle limi~ of One lltmdn:d Tlmusmd Dollitrs ($100,000) pet'vehicle. Thc Policy also a catastrop~ limit ofTwo H .u~lrcd Thousand Dollars ($200,000) p~r catafa~phc. In addition, the' Policy includes s deductible in tho amount of' One Thousand Doltars ($1,000,00). Moreover, thc Policy includ~ a gefrigm'afitm Breakdown Br~kfletnent which p~ovidcs a mflil~tion bm~xlown limit of One Hundred. Thousand. Doltms($100~O)per vehicle and Two Hundred Thousand Dollars (~.00,000) per.~tn.slmphe. Furlher, tt~ Policy con.ns a rofriBmation deductible in the amount of Two Thousm~t F~ Hundred Dollars 1. [ ~n~ ~4n! l.,dmH _sge : Th~ Motor Truck ~ LJa~|llt~ ~'We' c~/cr 'your' ~ obU~t~ ~ pry ~ 8 ~m~m ~ con~ ~ und~ a ~11 of ~lfin$ ~ '~r' &~ dehy iff pa~ d~ or sMti~ of any ~m.' ~1.) Vchioles.- 'We covcr dimctphyskal ioss'eauu~l bY t covered peril to pmpcrty of o~hm des~rib~ on the 'declarations.' 'We' eovm described property while in ~hee course of transi't on or in 'any one: vchiclc."' "'We' cover external risks cf dires:t physical loss unless thc loss is limited o~ c, amcd by a pail that is ez'chded." OI?0g/02 ~¥ED 14:57 FAX 707 426 2412 ~d. icl~:~[ Smith ~004 Mr. Itnm Toot At ~te ¢lal~ of It, 7'. Pag~ ~ "2. 'We' do not pay for k~ss o~ demagc if onc or more o£ tJ~ following =z~ludons apply to thc loss: Criminal, Framhslent, or Dishonest Acts .. 'We' do not pay for loss caused by or resulting criminal, fraud,light, dishonest, or illc~l acts alone .or in. collusion with another by: !) *yOU*; 2) othe~ who-J~sve a~ interest in the 3) others to w~mn 'you' e~tmst the property; 4) your parm~.~ ofr~ directors, truste~, or joint. 5) 1he employe~s or agrats of I), 2), 3), or4) abow, wlm~et or not they are at Loss ofUse-'We' do not pny for loss caused by or resul~in~ fi'om the loss of use, business intcrrapdon, dehy, or !o~ IlL (~OV~I~tGEANALV.ql~ Tho Motor Truck C.a~o Liability Co~m'aksc (Fosm IM-7450) ixovid~ coverage fo~ thc legal liability of en insu~ for !~ to "covc~cd property" while under the earn, oustody ami ~trol of an insured' which thc imuted b0omnes le~nlly obligated to pay as a oonunon or contract c4m'ler. 'We have det~tt~ ti.at ~.- owner of the cargo, Natural Fm~ds, ~ a claim tO F~Sht ~, tl~,' sbippin~ btokm' that c~aged the insured, rm' the. value of'the lost em'go. It appears that tl~ olaim was mede to thc ineu~ es tl~ inmr~d's Pzoof ofLo~ i~'in tt~ amount of Forty 8c-yen ~ Snven Hundml FOrty Two Dollars and ~-8ix Cents (~4'/,742,26), . Ol/'og/02 WED .14:58 FAX 707 426 Z412 Michael FaX NO. :"~ 93i 1974 Itt Claim of ~. 1~. ~ransport Oetot~ 22, 2001 Pa~ 5 for liability for tho loss of Natiop~l Feeds' emgo. Pursuant to the Policy exclu~ons set f~rth above, thc Policy docs not aiToid coverage for damages "caused by or resulting fl~m tile lorn; of use, b~i~ intmuptio~ ~lay, ar lo~ of market" Based on our Covcn~ invesfigatioa, it is 0t~ ~ thnt Mr. C~ona ~ffwed from ~ health eondi~ which impacted his ~ility to tinmly deliver the cargo to the qx~i~d dellvcry location in Alhnm, Georgia. Moaeover, it is our tmderstandin$ that, ratlan' thmt deliver ncldition, it is our undentandinj that the oetr~ was loft in tho parked trailer in New Mexico for several weeks prier to rctrieval by the inaured. Accordingly, any demase to tl~ esr8o which occurred as · result of Mr. Comna'a dclay in dclivcry of thc ~ or tho insumd'e delay in retrieval of the truck and trailer, would not be covered under me Subject Policy. A-'--~fnLdy, NAS Immb~ deaics coven~ far this Claim. pursm~ to ~"Loss of Use" cxclasion. ~n additi~ as sot forth above, the Policy does not afford coverab~: for the'criminal, fraudui~g or dishonest aots ortho hmured or any employees of the in~. Pursuant to O~r cove~e invm6$afi~n, we have obtain~d.~t~m Under O~h"' from both the ~,e. am ~i~nifi~nt di~mci~ ~n the tbettmi b~kgrmmd of i~ and Mr. Coron~ Accofdlll~gly, to the extetlt that this loss was ceo~od by, or rm'uited fian~ criminal, fraudulanL disho~lt, or illegal acts contmitted by either the' insured o~ Mr. Coron~ as an tmploy~ of the insured, them'would be ne coverage trader l~e Policy, ~ NAS hereby dcnics coventgc for the Claim under d~is additional basis. OENEILG. L R~qERYATION o1~ GROUNDS FOR FOn!_THER The above apeoitlc discusgon of t'ai,'ts and Policy Pmviaions is eot intended to be an ' exlm~P~ ~ ofthemasmts for dcayin~ coverage for the Claim filed by em tnmmd, bat mt:l~er sre .~OI~'LUS'{ON$ AND P~COMME~NDATIONS Should ~u bye ~ ~fo~ or d~~ ~ich you beH~ wo~ ~t~ ~ would ~ ~o~ ~ ~ ~s ~d ~ ~ fi~i m ~ ~ ~ ~ ~u~s in ~ to such CI~. you ~ ~ ~ ~ ~ ~ ~e~ by ~~ ~ (~). 927~ ~(213) ~-5~1- Very mdy yours, " A~OI~D EAI~tICK, ltl No,~h Ame,'ica~ Special~ lasm~ce Comp~,y Ha~ 14 Oi !2:35p robl con johnson'ins svcs S16 780 5723 AAIS IM-7461 Ed 1.0 Page 1 of I This endorsement changes the policy - PLEASE READ THIS CAREFULLY - REFRIGERATION BREAKDOWN ENDORSEMENT BTN0000180.00 (The entries required to cemplete this endorsement will be shown below or on the "declarations".) SCHEDULE Limit for refrigeration breakdown: any one conveyance any one catastrophe Refrigeration Deductible $100 000 $.,200,000 $2,500 ADDITIONAL COVERAGES Refrigeration Breakdown -- When the refrigeration or heating unit of a vehicle transporting covered property has a sudden or accidental breakdown or malfunction. "we,' cover direct physical loss to covered property caused by spoilage or contamination including decay, fungus, mildew, mold, or rot. "We" do not pay for loss caused by breakdown or malfunction that results from the failure to maintain adequate fuel levels for the refrigeration or heating unit. ADDITIONAL CONDITIONS Inspection and Records - This coverage is void if "you" or a service representative do not inspect a vehicle's refrigeration or heating unit at least once each month. "You" must maintain a record of each inspection and retain the records for at least one year. "You" must provide "us" with all records that relate to a loss and permit copies and abstracts to be made from them. IM-7461 Ed 1.0 Copyright MCMXCV American Association of Insurance Services In Witeess Whereof, the issuing Co~pany has caused this policy to be signed officially below and countersigned on the Declarations page by a duly authorized representative of said Company. Robert I. Cate Assistant Secretary Robert M. So'litro President Specialty Insurance Company NA$-POL-O01 (07/98l na~ i~ ui i~:~p ro~ison jo~m~on :m~ svcs ~1~ .'~0 57~3 ', AAIS CL 0162 10 98 Page 1 of 3 This endorsement changes the policy - pi ;~,SE READ THIS CAREFULLY - AMENDATORY ENDORSEMENT CALIFORNIA The following applies to all risks except those described in paragraph 2. Under the Common Policy Conditions, the Cancellation condition is deleted and replaced by: Cancellation and Nonrenewal -"You" may cancel this policy by retuming the policy to "us" or by giving "us" written notice and stating at what future date coverage is to stop. Dudng the first 60 days this policy is in effect, '~e" may cancel it or one or more of its parts for any reason. 'l/Ve" will give ''you" notice at least ten days before cancellation is effective. After this policy has been in effect 60 days, or if it is a renewal of a policy issued by "us", '~'e" may cancel only for one or more of the following reasons: a. the premium has not been paid when due; Co a judgment by a court or an administrative tribunal that "you" have violated a law of this state or the United States involving an act that materially increases a hazard insured against; discovery of fraud or material misrepresentation committed by an insured or an insured's representative in: 1) obtaining this insurance; or 2) pursuing a claim under this policy; discovery of willful or grossly negligent acts or omissions, or of violations of state laws or regulations establishing safety standards by "you" or ''your" representative, that materially increase a hazard insured against; failure by "you" or "your" representative to implement reasonable loss control requirements to which "you" agreed to as a condition of the issue of this policy, or which were required in order to qualify for a particular rate or rating plan, if the failure materially increases a hazard insured against; a determination by the Insurance Commissioner that the loss of, or changes in, "our" reinsurance would threaten "our" financial integrity or solvency; a determination by the Insurance Commissioner that a continuation of this policy would place "us" in violation of the law or that continuation of coverage would threaten "our" solvency; or a change made by ''you" or "your' representative in the activities or property which results in a materially added, increased, or changed h~:,'~__rd that is not included in the policy. If the premium has not been paid when due or if fraud is discovered, '~e" will give "you" notice at least ten days before cancellation is effective. If "we" cancel this policy for any other reason, "we" will give "you" notice at least 30 days before cancellation is effective. "We" may cancel this policy by delivering or mailing written notice to the producer of record and to "your" mailing address last known to "us". The notice will slate the date that the cancellation is effective and include the reason for cancellation. "Your" return premium, if any, will be calculated according to "our" rules. It will be refunded to "you" with the cancellation notice or within a reasonable time. Payment or tender of the unearned premium is not a condition of cancellation. t-;~ 14 O1 l~:3Gp p~iso,, :ohnson ins sv~ 91G 780 ~?~3 AAIS CL 0162 10 98 Page 2 of 3 "We" may elect not to renew or continue this policy by delivering or mailing wdtten notice to the producer of record and to "your" mailing address shown in the policy. 'I/Ve" will give "you" notice at least 60 days, but not more than 120 days, before the expiration or anniversary date. The notice will include the reason for "our' action. 'I/Ve" will give ''you" the same number of days notice if "we" offer to renew this policy subject to a reduction of limits, elimination of coverages, an increase in deductibles, or an increase of more than 25% in the rate upon which the premium is based. '~'e" are not required to send a notice of nonrenewal if: bo Co so this policy is transferred to or renewed by another "insurer" in "our" insurance group without changing policy "terms" or the rate on which the premium is based; the policy has been extended for 90 days or less after notice was given in accordance with the requirements of this condition; "you" have obtained replacement coverage or have agreed in writing to obtain replacement coverage within 60 days of the ~ermination of this policy; this policy was issued for a term of 60 days or less and "you" ware notified when the policy was issued that it would not be renewed; "you" request a change in "terms" or hazards covered within 60 days of the end of the policy period; or in accordance with the requirements of this condition, "we" have made a written offer to renew the policy with changed 'terms" or at a change to the rate on which the premium is based. The following condition, applies to 1-4 family dwellings used only for.iresidential purposes. Under the Common Policy Conditions, 'the Cancellation condition is deleted and replaced by: Cancellation and Nonrenewal - '~'ou" may cancel this policy by retuming the policy to "us" or by giving "us" written notice and stating at what future date coverage is to stop. During the first 60 days this pol/cy is in effect, "we" may cancel it or one or more of its parts for any reason. Except in cases in which "you" terminate the policy, "we" may not cancel this policy solely because: 1) "you" have accepted "our" offer of earthquake coverage; or 2) of corrosive soil conditions, if this policy contains an exclusion for payment of loss for that pedl. '~/Ve" will give "you" notice at least ten days before cancellation is effective. After this policy has been in effect 60 days or more, or if it is a renewal of a policy issued by "us", %ye" may cancel only for one or mom of the following grounds: 1) the premium has not been paid when due; 2) ''you" have been convicted of a cdme involving an act that increases a hazard insured against; 3) discovery of fraud or matedal misrepresentation by an insured or an insured's representative in: a) obtaining this insurance; or b) pursuing a claim under this policy; rm~ ~ um ~.~:ep ro~sson .ion?~J~-~n ~n$ svcs ~16 '?BO ~7~3 p.. ~1, · AAIS CL 0162 10 98 Page 3 of 3 4) discovery of grossly negligent acts or omissions committed by "you" or Uyour" representative that increase a hazard insured against; or 5) physical changes in the property which result in the property becoming uninsurable. If the premium has not been paid when due, "we" will give "you" notice at least ten days before cancellation is effective. If "we" cancel this policy for any other reason, "we" will give "you" notice at least 30 days before cancellation is effective. If this policy is wdtten for a term longer than one year, "we" may cancel for any reason by giving "you" notice at least 45 days before the anniversary date. Except in cases in which "you" terminate the policy, "we" may not cancel this policy solely because "you" have accepted "our" offer of earthquake coverage or because of corrosive soil conditions, if this policy contains an exclusion relating to that pedl. 9/Ve" may cancel this policy by delivering or mailing written notice to "you" at the address shown in the policy. "Our" notice will show the grounds for cancellation. "We" will provide "you" with the specific reason(s), in writing, within 20 days of "your" written request. '"You"must request the specific reason(s), in writing, within 15 days of the date of cancellation. If"we" decide not to renew or to renew with changes in policy "terms", "we" will deliver or mail written notice to "you" at the mailing address shown in the policy. 'I/Ve" may not refuse to renew this policy solely because "you" have accepted "our" offer of earthquake coverage or. because of corrosive soil conditions, if this policy contains an exclusion relating to that peril. "We" will give "you" notice at least 45 days before the policy expires. ''We" will provide "you" with the reason(s), in writing, within 20 days of "your'' written request. If this policy is written for a term of less than one year, "we" will not refuse to renew until the end of the one-year period that begins with the original or renewal effective date. 'hour" return premium, if any, will be refunded at the time of cancellation or within 25 days after cancellation is effective. Payment or tender of the unearned premium is not a condition of cancellation. CL 0162 10 98 Copyflght, Amedcan AM~:~ll~lon of Insurance Services, 1998 May 1~ O1 1'2~37p robis~-~ johnson ina svos 81'B 780 5?23 8.10 . AAIS Cl. 0100 O3 99 Page I of I o COMMON POLICY CONDITIONS Assignment -'This policy may not be assigned without "our" wdtten consent. Cancellation - "You" may cancel this policy by retuming the policy to "us" or by giving "us" a written notice and stating at what future date coverage is to stop. 'I/Ve" may cancel this policy, or one or more of its parts, by written notice sent to "you" at "your" last mailing address known to "us". If notice of cancellation is mailed, proof of mailing will be sufficient proof of notice. If "we" cancel this policy for nonpayment of premium, "we" will give "you" notice at least ten days before the cancellation is effective. If 'we" cancel this policy for any other reason, 'we" will give 'you' notice at least 30 days in advance of cancellation. The notice will state the time that the cancellation is to take effect. Change, Modification, or Waiver of Policy Terms - A waiver or change of the "terms', of this policy must be issued by "us" in writing to be valid. Inspections - 'I/Ve" have the right, but are not obligated, to inspect "your" property and operations at any time. This inspection may be made by 'us" or may be mede on "our" behalf. An inspection or its resulting advice or report does not warrant that "your' property or operations are safe, healthful, or ~n compliance with laws, rules, or regulations. Inspections or reports are for "our" benefit only. Examination of Books and Records - "We" may examine and audit "your" books and records that relate to this policy during the policy period and within three years after the policy has expired. 'Your" retum premium, if any, will be calculated according to 'our' rules. It will be refunded to "you' with the cancellation notice or within a. reasonable time. Payment or tender of the unearned premium is not a condition of cancellation. CL 0100 03 99 Copyright. ~n A~octation of Insurance Services, 1998 AAIS IM-7450 Ed 1.0 Page I of 8 roo~$on ' -. t'l I'"1 ~ 0 n lr15 SVC$ MOTOR TRUCK CARGO LIABILITY COVERAGE AGREEMENT In return for "your" payment of the required premium, %ye" provide the coverage described herein subject to all the "terms" of the Motor Truck Cargo Liability Coverage. This coverage is also subject to the "declarations" and additional policy conditions relating to assignment or transfer of rights or duties, cancellation, changes or modifications, inspections, and examination of books and records. Endorsements and schedules may also apply. They are identified on the "declarations". Refer to Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or bold type. DEFINITIONS "Limit" means the amount of coverage that applies. 6. "Pollutant" means: any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes, materials to be disposed of as wall as recycled, reclaimed, or reconditioned. electrical or magnetic emissions, whether visible or invisible, and sound emissions. 7. "Specified perils" means fire; lightning; windstorm; hail; collision, overturn, or derailment of a transporting conveyance; collapse of a bridge or culvert; and theft. 8. "Terms" means all provisions, limitations, exclusions, conditions, and definitions that apply. The words "you" and "your" mean the persons or organizations named as the insured on the "declarations". The words "we", "us", and "our" mean Ihe company providing this coverage. "Any one vehicle" means arty one vehicle, truck, trailer, semitrailer, or combination of these pulled by one power unit. "Declarations"means all pages labeled Declarations, Supplemental Declarations, or Schedules, which pertain to this coverage. COVERAGE custody, and control that "you" become legally obligated to pay as a common or contract carrier a contm of carnage, or snipping receipt issued by "you". "We"do not pay for cost~ expenses, fees, fines, penalizes, or damages resulting from "your" violation of any law or regulation relating to any delay in payment, denial, or settlement of any claim. ',~s z~ uz ~:~p roczson jonns~-. [n_ =rcs SI6 ?SD ~723 ~.12. AAIS IM-7450 Ed 1.0 Pa__ge 2 of 8 PROPERTY COVERED Vehiclee - "We" cover direct physical loss caused by a covered peril to property of others described on the "declarations". 'I/Ve" cover described property while in due course of transit on or in "any one vehicle". Terminal Locatione - When a "limit" is indicated for a terminal location, "we" direct physical loss caused by a COver~lTM peril to described property while at a terminal location described on the "declarations" or within 100 feet of the described terminal. PROPERTY NOT COVERED Property Not Undera Bill of Lading - ~ '~/Ve" do not cover Property for which no bill~ of lading or shipping receipt has been issued. 8. Property On Vehiclee - "We" do not cover property in or on "any one vehicle" if the, vehicle is under "your" control and has remained at any dock, depot, station, terminal, or other location for more than 72 hours after arrival. 9. Storage - 'l/Ve" do not cover Property in due course of transit that is held in storage unless storage ia specified in a bill of lading, shipping receipt, or contract of carriage. 10. Vehicle~ - "We* do not cover transporting vehicles including tarpaulins. o Art - ''we" do not cover objects of art including paintings and statuary. Contraband -''we" do not cover contraband or property in the course of illegal transportation or trade. Jewelry, Ston~, end Metal~ - ''we" do not cover jewelry, precious or semi-precious stones, gold, silver, platinum, or other preciou~ metals or alloys. Live Animai~ - '~Ve" do not cover live animals including cattle or poultry unless death is caused or mede necessary by a "specified peril". 5.. Money end 8eguritl~ - 'We" do not cover other evidences of debt, Other Cerrfl,1 - "We" do not cover property while in the custody of any other carrier if "you" have waived or otherwise .made unenforceable "your" subrogation nghts. ADDITIONAL COVERAGES Debrt~ Removal - "We" pay the cost to remove the debris of covered Property that is caused by a covered panl. This coverage does not include costs to: a. extract "pollutants" from land or water;, or b. remove, restore, or replace polluted land or water. "We" will not pay any more under this coverage than 25% of the amount ,~ve" pay for the direct loss. "We" will not pay more for loss to property and debris removal combined than the "limit~ for the damagecl propeny. However, "we" pay an eddilional amount of debris removal expense up to $5,000 when the debris removal expense exceeds 25% of the amount '~ve" pay for direct loss or when the loss to property and debris removal combined exceeds the "limit" for the damaged property. Mab ]4 O1 12:~8p AAIS IM-7450 Ed 1.0 Page 3 of 8 ro~l :on ' ins p..13 "We" do not pay any expanses unless they are reportecl to "us" in writing within 180 clays from the date of direct physical loss to covered property. Freight Charges - "We" pay freight charges that are due "you" which become uncollectible because of a direct physical loss to covered properly caused by a covered peril. The most "we- pay under this additional coverage for all freight charges in any one loss is the lesser of:. a. the "limit" indicated on the "declarations" for freight charges; or b. $2,500. Newly Acquired Terminai~ _ When coverage is indicated for terminal locations, "we" cover terminal locations that 'You" · acquire during the policy period. This coverage applies for 60 days from the date "you" acquire the. terminal or until 'you" report the newly acquired location to "us", whichever comes first. "You" must pay any additional premium due from the date "you" acquire the terminal location. The most "we" ~ for any newly acquired terminal in any one loss is the lesser of:. a. the "limit" indicated on the "declarations" for Newly Acquired Terminals; or b. $50,000. Pollutant Cleanup and Removal - "We" pay "your' expense to exlmct "pollutants" from land or water if the discharge, escape of the "pollutants" is caused by a covered peril that occurs during the policy are reported to "us" in writing within 180 days from the date the covered peril occurs. "We" do not pay the cost of testing, evaluating, observing, or recording the existence, level, or effects.of "pollutants". However, "we" pay the cost of testing which is necessary for the extraction of "pollutants- from land or water. The most"we" pay for each site or location is $10,000 for the sum of all such expenses arising out of a covered perfl occurring during each separate 12 month period of this policy. PERILS COVERED "We" cover external risks of direct physical loss unless the loss is limited or caused by a peril that is excluded. PERILS EXCLUDED '.we" do not pay for lo~ if one or more of the following exclusions apply to the loss, regardless of other causes or events that loss before, at the same Ume as, or after the excluded causes or events. a. Civil Authority - "We" do not pay for loss caused by order of any civ~ authority, including seizure, confiscation, deslruction, or quarantine of property. prevent the spread of fire, unk~ the fire is caused by a peril excluded under this Ma~ 14 O1 12~: ~J'F AA J8 IM-7450 Ed 1.0 Page 4 of 8 ~obison johns~- ~ns ~vc~ Nuclear Hazard - 'INe" do not pay for ross caused by or resulting from a nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. "We" do pay for direct loss by tim resulting from the nuclear hazard. c. War - "We" do not pay for loss caused by war. This means: 1) declared war, undeclared war, civil war, insurrection, rebellion, or revolution; 2) a warlike act by a militmy force or by military personnel; 3) the destruction, seizure, or use of the property for a military purpose; or 4) the discharge of a nuclear weapon even if it is accidental. "We" do not pay for loss or damage if one or more of the following exclusions apply to the loss. Contamination or Deterioration - ''We" do .not pay for loss mused by contamination or deterioration including corroaion; decay;, fungus; mildew;, mold; rot mst; or any quality, fault, or weakness in the covered propeRy that causes it to damage or tie. roy itself. bo Criminal, Fraudulent, or Dilltoneat Acm - "We" do not pay for loss causecl by or resulting from criminal, fraudulent, collusion with another by:. 1 ) 2) offiers who have an interest in the Property; 3) others to whom "you" entrust the pmparty; 4) "your" partners, officers, directors, trustees, or joint adventurers; or.~ 5) the employees or agents of 1), 2), 3), or 4) above, whether or not they are at work. This exclusion does not apply to acts of destruction by "your" employees, but '~ve" do not pay for theft by employees. Lm of U~e - "we" do not pay for loss caused by or resulting from lees of use, business interruption; delay, or loes of market Poilutant~ - "We" do not pay for loss caused by or resulting from release, discharge, seepage, migration, dispersal, or escape of "pollutants" unless the release, discharge, seepage, caused by a "specified peril". "we" do pay for any resuang loss caused by a Temperature/Humidity _ "we" do not pay for loss caused by humidity, . dampness, dryness, or changes in or extremes of temperature. Voluntary Partin~ - "We" do not pay volunts~ parting ~ title to or possession of any property because of any fraudulent scheme, Mck, or false pretsnss. johnson i~,- svcs $1~ ?80 AAIS IM-7450 Ed 1.0 Page $ of 8 WHAT MUST BE DONE IN CASE OF LOSS Notice - in case of a loss, "you" must: ao give "us" or "our" agent prompt nol~e including a description of the Property involved ("we" may request written notice); and b. give notice to the police when the act that causes the loss is a crime. Protect Property - "You" must take all reasonable steps to protect covered Property at and after an insured loss to avoid further loss. 'I/Ve" do pay the reasonable costa incurred by "you" for necessary repairs or emergency measures performed solely to protect covered proper~y from further .damage by a peril insured against if a pedl ;nsured against has already caused a loss to covered property. "you- must keep an accurate record of such costa. However, '~ve" do not pay for such repairs or emergency measures performed on property which has not been damaged by a peril insured against. This does not increase "our" "limit". Proof of Lo.~ - "You" must send 'us', within 60 days after "our" request, a signed, sworn proof of loss. This must include the following information: a. the time, place, and circumstances of the loss; b. other policies of inaurence that may "your" interest and the interests of all others in the property involved, including all mortgages and liens; d. estimates, specifications, inVentories, and other reasonable information that "we" may require to settle the loss. 4. Examination - "you" must submit to examination under oath in matters connected with the loss as often as "we.~ reasonably request and give "us" sworn statements of the answem. If more than one person is examined, '~ve" have the right to examine and receive statementa separately and not in the presence of others. 5. Reeord~ - "You" must produce records, including lax retums and bank microfilms of all cancelled checks relating to value, loss, Damaged Property - If the damaged and undamaged Property is in "your" care, custody, or control, "you" must exhibit the Property as often as "we" reasonably request and allow "us" to inspect or take samples of the property. 7. Volunteer Paymenl. - "You" must not, except at "your" own expense, voluntarily make any paymenta, assume any ~bligatlons, pay or offer any rewards, or incur any other expenses except as respects protecting property fi'om further damage. 8. Abandonment - "You- may not abandon the property to "us" without *our" written Cooperation _ "You" must cooperate with "us" in performing all acts required by this peacy. AAIS IM-7450 Ed 1.0 Page 6 of 8 rohzson ,ju::.,~son ins '~?cs ~16 7~0 5';~3 p. JLa3 VALUATION Invoice - The value of covered property is based on 'the amount indicated on the invoice. No Invoice - If there is no invoice, the value of covered property will be based on the actual cash value at the time of the loss (with a deduction for depreciation): The value will not exceed the value, if any, silted in bills of Fading or shipping receipts. HOW MUCH WE PAY Incurable Intem~t - "We" do not cover more than ~you? insurable interest in any property. Deductible - "We" pay only that pert of 'your" loss over the deductible amount indicated on the "declarations- in any one occurrence. Lo~ Settlement Teem - Subject to paragraphs. 1.. 2., 4., and 5. under How Much We Pay, "we" pay the lesser o~. the amount determined under Valuation; the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent ~ble; or c. the "limit" that applies to "any one vehicle" or tm'minai location indicated on the "dociamtions". In no event will "we" pay more than the catastrophe "limit" indicated.on the "declarations" regardless if a loss involves: 1) one or more terminal locations; or 2) any combination of "any one vehicle" or terminal locations. When a truck, trailer, or semi-trailer is s~tuated within a terminal building or within 100 feet of a terminal building, the "limit" for terminal locations applies. In no event Will "we" combine the "limit" for "any one vehicle" with the "limit" for terminal locations. 4. Insurance Under More Than One · ~ Coverage -If more than one coverage of this policy insures the same loss, %ye" pay no more than the actual claim, loss, or damage sustained. 5. Ineurance Under Mom Then One Policy - "You" may have'another policy subject to the same "terms" as this policy. If "you" do, "we" will pay "our'' share of the covered loss. "Our" shera is the Proportion that the applicable "limit" under this policy beara to the "limit" of all policies covering on the same ba,~. If there is another po/icy covering the same loss, other than that described above, "We" pay only for the amount of covered loss in excess of the amount due from that other policy, whether "you" can collect on it or not. But "we" do not pay more than the applicable "limit". LOSS PAYMENT 1. Our Optlmm - "We" have the following options: a. pay the value of the loss; b. PaY the cost of rapeiring or rap~acing the rebuild, repair, or replace with prop~y of like kind and quality, to the extent practicable, within a reasonable time; lake all or any part of the damaged property at the agreed value. AAIS IM-7450 Ed 1.0 Page 7 of 8 "We" must give "you" notice of "our" intent to rebuild, repair, or reolace within 30 days after receipt of a duty executed proof of foss. Payment of Loss - An insured loss will be has been entered. If a loss has been paid or made good by others "We" will not be liable for any part of the loss. OTHER CONDITIONS AppraMal - If 'You" and "we" do not agree on the amount of the loss or the actual cash value of covered pm,,,,~, eith ..... ,., .......... '-,-'-.,, ,,, pa~ may .,.,m,,~,.. mm mese amounts be dete,'~in,,~ oy appraisal. ' ........ If either makes a written demand for appraisal, each will select a competent, independent appraiser and notify the other of the appraiser's identity within 20 dey~ of receipt of the written demand. The two appraisers will than select a competent, impar'dal umpire. If the two ~PPraiaers ~re unable to agree upon an umpire within 15 days, "you'! or %ye" can ask a judge of a court of record in the state where the properly, is located to select an umpire. The appraisers will then determine and slate separately the amount of each lo~. The appraisers will also determine the value of covered property item~ at the time of the loss, if requested. If the appraisers submit a written report of any agreernant to "ua*', the amount agreed upon will be the amount of the loss. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. Wdtten agreement so itemized and signed by any two of these three sets the amount of the loss. Each appraiser will be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire will be paid equally by "you" and "us". 2. Conformity With Statute - When a condition of this coverage is in conflict ~th an appiicable law, that condition is amended to conform to that law. 3..Eatate~ - This Provision applies only if the ~nsured is an individual. On ''your'' death, '.'we" cover "your" legal relDresantetive as an insured. This person or organ/zation is an insured only with real:tact to property covered by this coverage. This coverage does not extend past the policy period indicated on the "declarations-. Miampreaentation, Concealment, or Fraud - This coverage is void as to "you" and any other insured if, before or after a ross: a. 'you" or any other insured have willfully concealed or misrepresented: 1) a material fact or circumstance that relates to this insurance or the subject thereof;, or 2) ''your" interest herein; or b. there has been fraud or false swearing by "you" or any other insured wiffi ragard to a matter that relates to this insurance or the subject thereof. 5. ~Pol~ p~ ._ ,,We. pay for a coverad loss o~curs aunng the policy period. R~overlea - if "we" pay for a loss an~l lost or damaged property is recovered, or payment is made by those responsible for the loss, the following provisions apply: a. 'you" must notify "ua" promptly if"you- recover property or receive payment; AAIS IM-7450 Ed 1.0 Psge 8 of 8 bo do '~e" must notify "you" promptly if '~ve" recover property or receive payment; any recovery expenses incurred by e~ther are reimbursed first; if the claim paid is less than the agreed loss due to a deductible or other limiting "terms" of this policy, any recovery will be pm rated between "you" and "us" based on "our" respeclNe interest in the loss. Re.rotation of Liml~ _ A loss %ye" pay under this coverage does not reduce the applicable "limits". Subrogat~n _ If "we" pay for a loss, '~e" may require "you" to assign to "us" "your" right of recovery against others. "You" m.ust do all that is necessary to secure "our" dghts. "We" do not pay for a loss if "you" impair this right to recover. Suit Against Us - No one may bring a legal action against "us" under this coverage unless all of the "terms" of this coverage have been complied with and the suit has been brought mthin two years after "you" first have knowt.edge of the loss. If any applicable law make~ this limitation invalid, then suit must begin within the shortest period permitted by law. No one has the right under this coverage to !_o!n_ "us" a.s a party or otherwise bring "us', Into a legal action asking for damages from "you". Legal action may be brought against "us" to recover an agreed upon settlement on a final judgment award, subject to the "terms" of this coverage. 10. Territorial Llmll~ - "We" cover properly while it is in the United States of America, its terrftodas and Possessions, Canada, and Puerto Rico. 11. Your Reimbumement To U. - "You" will reimburse "us" if "we" pay a loss because of any endomement to this policy:. a. that is required by law or any regulatory authority;, and b. whicfl extends "our" liability for loss. C, opyr~t MCMXCV Amerk~n A~4ci~lMn of Insurance Ser~c~ AAIS IM-7462 Ed 1.0 Page I of I This endorsement changes the policy - PLEASE READ THIS CAREFULLY - LOADING AND UNLOADING ENDORSEMENT ADDITIONAL COVERAGES Loading and Unloading - 'I/Ye" pay for loss caused by a covered peril to covered property while it is being loaded into or unloaded from "any one vehicle". "We" only provide coverage under this provision if the covered property is loaded from or unloaded onto a sidewalk, street, loading dock, or similar area that is adjacent to "any one vehicle". Iid-7462 Ed 1.0 Copyright MCMXCV, · · Amencan Assoc~alion of Insurance Sen/ices AAIS IM-7466 Ed 1.0 Page 1 of I This endorsement changes the policy - PLI;;ASE READ THIS CAREFULLY - PROPERTY EXCLUDED PROPERTY NOT COVERED "We" do not cover the property described below (indicate by checking below): [X] 1. livestock or poult~ [X] 2. liquor IX] 3. tobacco products IX] 4. furs or fur trimmed garments IX] 5. eggs We" do not cover the following property for loss caused by or resulting from theft: [X] 1. non-ferrous metal in scrap and or ingot form, silks, garments, ammunition, firearms, cameras, toys, seafood, cosmetics, drugs, rubber tires, computers and computer parts or related components, and electronics consisting of but not limited to video game players, cartridges and accessories, televisions, VCR's, video recorders, stereos, DVD and CD players. Copyfigta MCMXCV, Amedcan Associalten of ~nsurance Smvicee VERIFICATION I, Paul M. Winer, President of Freight Express, Inc., hereby verify that the statements made in this Amended Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are made to the penalties of 42 Pa. C.S.A. §8371 et. seq. relating to unsworn falsification to authorities. Date: 2/19/03 Paul M. Winer FREIGHT EXPRESS, INC., Plaintiff Vo RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. Defendants In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED NOTICE TO PLEAD TO: FREIGHT EXPRESS, INC. AND WILLIAM H. QUESENBERRY THOMAS A. ARCHER, ESQ. P.O. BOX 5056 HARRISBURG, PA 17110 You are hereby notified to file a written response to the enclosed Preliminary Objections of Defendant Royal Insurance Company of America within twenty (20) days from service hereof or a judgment may be entered against you. Date: DUANE MORRIS LLP Attorney I.D. No. 76652 305 North Front Street, 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 Attorneys for Defendant Royal Insurance Company of America HBG\I13396.1 FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. Defendants In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED ORDER AND NOW, this __ day of ,2003, upon filing and presentment of Defendant Royal Insurance Company of America's Preliminary Objections to Plaintiff's Complaint, IT IS HEREBY ORDERED AND DECREED that the same are granted. Jo HBG\113396.1 FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. Defendants In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED DEFENDANT ROYAL INSURANCE COMPANY OF AMERICA'S PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT Defendant Royal Insurance Company of America ("Royal Insurance"), by and through its counsel, Duane Morris LLP, respectfully files pursuant to Rule 1028 of the Pennsylvania Rules of Civil Procedure its Preliminary Objections to Plaintiff's Complaint and, in support thereof, states the following: 1. On or about February 25, 2003, this action was filed by Complaint in the Court of Common Pleas of Cumberland County, Pennsylvania. 2. This case apparently arises out of a Broker Contract Carrier Agreement entered into between Plaintiff and Defendant RAM Toor d/b/a RT Transport ("RT Transport"), whereby Plaintiff, acting as an alleged cargo broker, hired RT Transport to transport and deliver a load of cargo from California to a destination in Atlanta, Georgia. 3. The Complaint in this matter alleges that in February of 2001, RT Transport's driver abandoned his truck, trailer and the cargo at a truck stop in Albuquerque, New Mexico and that as a result of the same, the cargo (food products) was destroyed. 4. The Complaint further alleges that Plaintiff suffered a loss in the amount of Forty- Nine Thousand Eight Hundred Forty-Two Dollars and Twenty-Five Cents ($49,842.25) due to HBG\113396.1 the fact that it had to reimburse the purchaser of the cargo for its losses resulting from the aforementioned cargo abandonment. 5. As a result of the alleged losses suffered by the Plaintiff, Plaintiff in mm, made a request for indemnification to Defendant Registry Monitoring Insurance Services, Inc. and Defendant Royal Insurance, the same of which was denied. 6. Plaintiff has filed this action against the above-named Defendants seeking, inter alia, the recovery of losses associated with its reimbursement to the purchaser of the otherwise destroyed cargo as aforesaid. 7. Specifically, the Plaintiff has set forth four separate causes of action including: (a) Breach of Contract v. RT Transport; (b) Negligence v. RT Transport; (c) Declaratory Judgment v. Registry Monitoring Insurance Services, Inc. and Royal Insurance; (d) Breach of Contract v. Registry Monitoring Insurance Services, Inc. and Royal Insurance. I. PRELIMINARY OBJECTION - IMPROPER VENUE 8. Paragraphs 1 through 7 are incorporated herein by reference as if set forth in full. 9. Royal Insurance files this Preliminary Objection to Plaintiff's Complaint pursuant to Pennsylvania Rule of Civil Procedure 1028(a)(1) inasmuch as venue of this action is not proper in Cumberland County. 10. Paragraph 8 of Plaintiff's Complaint purportedly asserts that venue is proper in Cumberland County as it states that, "On or about January 23, 2001, pursuant to a contractual obligation originating at Plaintiff's place of business, RT Transport contracted and agreed with Plaintiff, acting as a cargo broker, to transport a load of various frozen foods ("cargo") from HBG\113396.1 2 various points of origin in California to a destination in Atlanta, Georgia." See Plaintiff's Complaint at ¶8. 11. As set forth in ¶8, Plaintiff's Complaint asserts that venue is proper in Cumberland County against all Defendants solely due to the alleged origination of the contractual relationship between itself and Defendant RT Transport. 12. There are no allegations contained within Plaintiff's Complaint which assert any other bases for venue against the other named Defendants, specifically Royal Insurance. 13. Rule 1006 of the Pennsylvania Rules of Civil Procedure provides that an action against an individual may be brought in and only in a county in which the individual may be served or in which the cause of action or where a transaction or occurrence took place out of which the cause of action arose or in any other county authorized by law. Pa. R.C.P. 1006(a). 14. The cause of action, which is founded upon a breach of contract, arose at Defendant RT Transport's principal place of business located in California, when RT Transport accepted Plaintiff's offer to transport the cargo. 15. Moreover, the transaction or occurrence out of which the cause of action arose concerns activities which occun'ed in California and New Mexico and not in Cumberland County, Pennsylvania. 16. In fact, Plaintiff's averment that it is located in Mechanicsburg, Pennsylvania is the only connection to Cumberland County and pursuant to the applicable rules of civil procedure, such a connection is not sufficient to compel this matter to be heard and tried in Cumberland County, Pennsylvania. 17. Accordingly, under Pennsylvania Rule of Civil Procedure 1006, venue in Cumberland County is not proper. I-IBG\113396.1 3 WHEREFORE, Defendant Royal Insurance Company of America respectfully requests that this Court sustain its Preliminary Objections to Plaintiff's Complaint. Respectfully submitted, DUANE MORRIS LLP Attorney I.D. No. ~ 305 North Front Street, 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 James W. Carbin, Esq. DUANE MORRIS LLP 744 Broad Street, Suite 1200 Newark, NJ 07102-3889 (973) 424-2000 Attorneys for Defendant Royal Insurance Company of America HBG\113396.1 4 CERTIFICATE OF SERVICE On this 21st day of April, 2003, I, Nora A. Stames, a secretary with the law finn of Duane, Morris LLP, hereby certify that a true and correct copy of the foregoing Defendant Royal Insurance Company of America's Preliminary Objections to Plaintiff's Complaint was served upon the following individual at his respective address by U.S. first class mail, postage prepaid, at Harrisburg, Pennsylvania: Thomas A. Archer, Esquire P.O. Box 5056 Harrisburg, PA 17110 Ram Toor d/b/a RT Transport 2595 Coventry Boulevard Clovis, CA 93612 Registry Monitoring Insurance Services, Inc. 1600 Ventura Boulevard, Suite 184 Encino, CA 91436 Nora A. Statues HBG\113396.1 F:~FILES~DATAFILE\GenerahDocuments\10892- l.ans 1/td¢ Created: 5/23/03 10:35:55 AM Revised: 6/3/03 1 l:59:49 AM FREIGHT EXPRESS, INC., Plaintiff Vo RAM TOOR, d/b/a/RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 03-835 CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT REGISTRY MONITORING INSURANCE SERVICES, INC.'S ANSWER WITH CROSS CLAIM AND NEW MATTER TO PLAINTIFF'S COMPLAINT TO: FREIGHT EXPRESS, INC., Plaintiff and its attorney, THOMAS A. ARCHER, ESQUIRE YOU ARE HEREBY NOTIFIED TO FILE A WRITTEN RESPONSE TO THE ENCLOSED NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. AND NOW, comes Defendant Registry Monitoring Insurance Services, Inc., (hereinafter sometimes referred to as "Answering Defendant") by and through its attorneys, MARTSON DEARDORFF WILLIAMS & OTTO, and avers as follows to Plaintiff's Complaint: 1. Admitted based on information received. 2. Denied. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form a belief as to information regarding Defendant Ram Toor d/b/a RT Transport. 3. Denied in part and admitted in part. Answering Defendant is licensed only in the state of California to include acting as agent on behalf of Royal Sun Alliance which is an admitted insurer in 48 states. Admitted that its principal place of business is located at 16000, Suite 814, Encino, California 91436. By way of further answer, this is the Answering Defendant's only place of business. 4. Admitted, based on information received. 5. Denied. Paragraph 3 hereof is incorporated herein by reference thereto. 6. Admitted, based on information received. 7. Denied. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form abeliefas to where Defendant Ram Toor d/b/a RT Transport does business. 8. Denied. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form a belief as to the relationship, if any, between Plaintiff and Defendant Ram Toor d/b/a RT Transport. 9-10. Denied. While Answering Defendant received notice from Plaintiff as to an abandoned load, Answering Defendant did not conduct an investigation and has no knowledge or information sufficient to form a belief as to the accuracy of this claim, nor the parties involved. 11. Admitted only that Answering Defendant received from Plaintiff the claim form attached to the Complaint as Exhibit "B." The balance of the averment is denied in that while Answering Defendant received notice from Plaintiffas to an abandoned load, Answering Defendant did not conduct an investigation and has no knowledge or information sufficient to form a belief as to the accuracy of this claim, nor the parties involved. 12. Denied. After reasonable investigation, Answering Defendant is without sufficient knowledge or information to form a belief as to the value of the load or the shipping costs incurred. 13. Denied. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form a belief as to notices made to, or claims made against, Defendant Ram Toor d/b/a RT Transport by Plaintiff. 14. Denied. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form a belief as to the position of Defendant Ram Toor d/b/a RT Transport with regard to claims made against it by Plaintiff. 15. Denied. As is evident by the "limited contingent cargo policy" attached to the Complaint as Exhibit "D," Answering Defendant is the named insured. By way of further answer, Answering Defendant is a California licensed agent/broker that extended the coverage under said policy to Plaintiff; however, said coverage was provided by Defendant Royal Insurance Company of America and not by Answering Defendant. 16. Denied. Answering Defendant was an agent for Defendant Royal Insurance Company of America, and at all times acted in that capacity and for a disclosed principal. 17. Admitted only that Plaintiffpaid Answering Defendant a monthly premium to extend coverage of the "limited contingent cargo policy" issued by Defendant Royal Insurance Company of America to Plaintiff and that Plaintiff duly reported a claim to Answering Defendant which Answering Defendant duly filed with Defendant Royal Insurance Company of America. Allegation 17 of Plaintiff's Complaint is denied to the extent it is intended to aver more than this. 18-19. Admitted. 20. Denied as stated. Defendant Royal Insurance Company of America denied coverage to Plaintiff based upon the denial of coverage by the primary carder. Defendant Registry Monitoring Insurance Services, Inc. notified Plaintiff of the basis for the denial of coverage by Defendant Royal Insurance Company of America. 21. Answering Defendant is not going to interpret the reasons for the denial of coverage by the insurance carder for Defendant Ram Toor d/b/a RT Transport. Those documents will speak for themselves. 22-23. Answering Defendant will not interpret the policy of the insurance carrier for Defendant Ram Toor d/b/a RT Transport. Such policy documents will speak for themselves. 24. Denied. There is clearly no coverage under the policy issued by Defendant Royal Insurance Company of America. 25. Denied as a conclusion of law. It is further denied that Answering Defendant had an obligation to indemnify Plaintiff. COUNT I - BREACH OF CONTRACT Freight Express, Inc. v. Ram Toot, d/b/a RT Transport 26-28. These allegations are addressed to a party other than the Answering Defendant. COUNT II - NEGLIGENCE Freight Express, Inc. v. Ram Toor, d/b/a RT Transport 29-33. These allegations are addressed to a party other than the Answering Defendant. COUNT III - DECLARATORY JUDGMENT Freight Express, Inc. v. Registry_ Monitoring Insurance Services, Inc. and Royal Insurance Company of America 34. Answering Defendant incorporates herein Paragraphs 1 - 33 hereof. 35-36. Denied as a conclusion of law. It is further denied that Answering Defendant has a duty to indemnify Plaintiff for the loss alleged in Plaintiff's Complaint. WHEREFORE, Answering Defendant Registry Monitoring Insurance Services, Inc. demands judgment against Plaintiff. COUNT IV - BREACH OF CONTRACT Freight Express, Inc. v. Registry_ Monitoring Insurance Services, Inc. and Royal Insurance Company of America 37. Answering Defendant incorporates herein Paragraphs 1 - 36 hereof. 38. This allegation is directed against a party other than the Answering Defendant and so no response is required; however, to thc extent a response is required, Answering Defendant denies there was a breach of the insurance contract. 39. Denied there was a breach of an insurance contract. After reasonable investigation, Answering Defendant has insufficient knowledge or information to form a belief as to the loss suffered by Plaintiff. WHEREFORE, Answering Defendant Registry Monitoring Insurance Services, Inc. demands judgment against Plaintiff. NEW MATTER CROSS CLAIM PURSUANT TO Pa.R.C.P.2252(d) AGAINST DEFENDANT ROYAL INSURANCE COMPANY OF AMERICA 40. The averments of Plaintiff's Complaint, which averments have been specifically denied, are hereby incorporated for the limited purpose of this cross claim. 41. If Plaintiff is entitled to recover from any party, which is expressly denied, then Defendant Royal Insurance Company of America is alone liable to Plaintiff or liable over to Defendant Registry Monitoring Insurance Services, Inc. by way of contribution and/or indemnity or is jointly and/or severally liable to Plaintiff on account of their own negligence or other liability producing conduct as alleged in the pleadings. 42. If Defendant Registry Monitoring Insurance Services, Inc. is found liable to Plaintiff which liability is expressly denied, its liability is secondary and passive to the liability of Defendant Royal Insurance Company of America whose liability is primary and active. 43. If the Plaintiffis entitled to recover any or all the damages set forth in his Complaint, which fight to recovery is denied, Defendant Registry Monitoring Insurance Services, Inc. avers that the liability for said damages rests solely with Defendant Royal Insurance Company of America or jointly with Defendant Ram Toor d/b/a RT Transport. In the altemative, if Plaintiff is entitled to recovery, then Defendant Royal Insurance Company of America is jointly and severally liable with Defendant Ram Toor d/b/a RT Transport, and other parties determined liable to Plaintiff. 44. If it is determined that Defendant Registry Monitoring Insurance Services, Inc. is liable for any or all damages set forth in Plaintiff's Complaint, which liability is denied, in that event Defendant Royal Insurance Company of America is jointly and severally liable with Defendant Ram Toor d/b/a RT Transport, to Plaintiff or liable to Plaintiff for contribution and/or indemnity. WHEREFORE, if it is determined that Plaintiff is entitled to recover for any or all of the damages alleged in his Complaint, which right to recovery is denied, then liability and responsibility for these damages rest solely with Defendant Royal Insurance Company of America. If, however, it is determined that Defendant Registry Monitoring Insurance Services, Inc. is liable and responsible for any or all the damages in Plaintiff's Complaint, which liability or responsibility is denied, then Defendant Royal Insurance Company of America is jointly and severally liable with Defendant Registry Monitoring Insurance Services, Inc. and other parties determined to be liable to Plaintiff, or liable over to Defendant Registry Monitoring Insurance Services, Inc. for contribution and/or indemnity. NEW MATTER CROSS CLAIM PURSUANT TO Pa.R.C.P.2252(d) AGAINST DEFENDANT RAM TOOR d/b/a RT TRANSPORT 45. The averments of Plaintiff's Complaint, which averments have been specifically denied, are hereby incorporated for the limited purpose of this cross claim. 46. If Plaintiff is entitled to recover from any party, which is expressly denied, then Defendant Ram Toor d/b/a RT Transport is alone liable to Plaintiff or liable over to Defendant Registry Monitoring Insurance Services, Inc. by way of contribution and/or indemnity or is jointly and/or severally liable to Plaintiff on account of their own negligence or other liability producing conduct as alleged in the pleadings. 47. If Defendant Registry Monitoring Insurance Services, Inc. is found liable to Plaintiff which liability is expressly denied, its liability is secondary and passive to the liability of Defendant Ram Toor d/b/a RT Transport whose liability is primary and active. 48. If the Plaintiff is entitled to recover any or all the damages set forth in his Complaint, which right to recovery is denied, Defendant Registry Monitoring Insurance Services, Inc. avers that the liability responsible for said damages rests solely with Defendant Ram Toor d/b/a RT Transport or jointly with Defendant Royal Insurance Company of America. In the alternative, if Plaintiff is entitled to recovery, then Defendant Ram Toor d/b/a RT Transport is jointly and severally liable with Defendant Royal Insurance Company of America, and other parties determined liable to Plaintiff. 49. If it is determined that Defendant Registry Monitoring Insurance Services, Inc. is liable for any or all damages set forth in Plaintiff's Complaint, which liability is denied, in that event Defendant Ram Toor d/b/a RT Transport is jointly and severally liable with Defendant Registry Monitoring Insurance Services, Inc. to Plaintiff or liable to Plaintiff for contribution and/or indemnity. WHEREFORE, if it is determined that Plaintiff is entitled to recover for any or all of the damages alleged in his Complaint, which right to recovery is denied, then liability and responsibility for these damages rest solely with Defendant Ram Toor dPo/a RT Transport. If, however, it is determined that Defendant Registry Monitoring Insurance Services, Inc. is liable and responsible for any or all the damages in Plaintiff's Complaint, which liability or responsibility is denied, then Defendant Ram Toor d/b/a RT Transport is jointly and severally liable with Defendant Registry Monitoring Insurance Services, Inc. and other parties determined to be liable to Plaintiff, or liable over to Defendant Registry Monitoring Insurance Services, Inc. for contribution and/or indemnity. NEW MATTER 50. Defendant Registry Monitoring Insurance Services, Inc. is licensed by the State of California as an insurance agent/broker. 51. In its application, Plaintiff acknowledged that said policy was issued by Defendant Royal Insurance Company of America and that the policy "covers up to my carder's limits of coverage and conditions." A true and correct copy of said application and the policy are attached hereto and marked as Exhibit "A." 52. The said policy had a specific provision for perishable freight that limited such coverage to damage from outside forces, not damaged caused by delay in the shipment. A copy of said coverage is attached hereto as Exhibit "B." 53. In its capacity as agent/broker, Defendant Registry Monitoring Insurance Services, Inc. bound coverage to Plaintiff in accordance with the terms and conditions set forth in the "limited contingent cargo policy" attached to Plaintiff's Complaint as Exhibit "D." 54. By its terms, the said "limited contingent cargo policy" is a "following form" policy which provides excess coverage only where an insured's own policy provides primary coverage and only to the extent of such primary coverage. 55. In pertinent part, and in conspicuous type, the said "limited contingent cargo policy" provides: This policy is strictly a "following form" policy. In no event will this policy provide coverage for loss or damage caused by any peril not covered by each trucker's primary insurance policy. 56. Plaintiff's Complaint alleges that the primary insurance policy has disclaimed coverage for the loss. 57. At all times pertinent hereto, Defendant Registry Monitoring Insurance Services, Inc. was acting as an agent for Defendant Royal Insurance Company of America. 58. At all times pertinent hereto, Plaintiff knew or should have known that Defendant Registry Monitoring Insurance Services, Inc. was not an insurance company. 59. At all times pertinent hereto, Plaintiff knew or should have known that insurance coverage under the limited contingent cargo policy was being provided by Defendant Royal Insurance Company of America. 60. At all times pertinent hereto, Defendant Registry Monitoring Insurance Services, Inc. did not conduct business in the Commonwealth of Pennsylvania. 61. At all times pertinent hereto, Defendant Registry Monitoring Insurance Services, Inc. had no place of business within the Commonwealth of Pennsylvania. 62. At all times pertinent hereto, Defendant Registry Monitoring Insurance Services, Inc. had no employees or agents within the Commonwealth of Pennsylvania. 63. The Commonwealth of Pennsylvania does not have jurisdiction over this claim. 64. The Commonwealth of Pennsylvania does not have jurisdiction over Defendant Registry Monitoring Insurance Services, Inc. 65. There are no facts or occurrences that create venue in the County of Cumberland for the cause of action set forth in PlaintiWs Complaint. 66. Defendant Registry Monitoring Insurance Services, Inc. is not registered to do business in the Commonwealth of Pennsylvania. 67. Defendant Registry Monitoring Insurance Services, Inc. has no registered office for service of process within the Commonwealth of Pennsylvania. 68. Defendant Registry Monitoring Insurance Services, Inc. is not licensed by the Commonwealth of Pennsylvania. 69. Defendant Registry Monitoring Insurance Services, Inc. is licensed only by the State of California as an insurance agent/broker. WHEREFORE, Defendant Registry Monitoring Insurance Services, Inc. demands judgrnent against Plaintiff. MARTSON DEARDORFF WILLIAMS & OTTO Thomas J. William, Esquire Ten East High Street Carlisle, PA 17013 (717) 243-3341 Date: June 3, 2003 Attorneys for Defendant Registry Monitoring Insurance Services, Inc. 06/02/2003 14:00 FAX 818 933 6352 ~L~-18-2~0 O9:4~ T0=i7177~ OO2 REQUEST TO PROVIDE REGISTRY MONITOR1NG INSURANCE SER VICES, INC. (RMlY;, INC.) on behalf of my company, l tl~e u~.d~rs~o~ed: A. Und~ ~ t~s of my m~p ~RegBt~ md ac~owle~e ~eipt of a ~ple ~py of~ ~15, ln~ ~n~ C~EO Polly ~hich a~lies only m my ~ m~ ~ B, Und~ ~ ~ C~[ C~go ~s~e Poli~ cowr~ up lo my camp's l~ts of ~vcmgc ~ ~difi~ ~j~ one time, ~ rcs~ ~ ph~ loss or d~ of c~go only, ~. ~s~nd ~I my money ~voi~ is ~ on ~c 25~ &y of each m~ and a~cc ~ pay ~ch invoice ~fore ~e ~Oth of~e ~Bllo~g m~. D. Und~nd that I my mn~l my mem~Mp at ~y ~. Da~ Ple~e ~k how you would ~e Plc~v i.cl~o ~o following in~a~ wi~ * ~g ofc~ ~ c[~, ~tg ~d ph~o numb~ ~ D~sR / PI~c ~ ~ y~ ~. ~. mommy memb~h~ f~ quote ......... ~~h~ ~B only b~e ~c~vc upon r~cipt of~ d~ b~ ~& l~ ~d , ~prov~ ~ b~ ~nfi~ by ~e ~I8, ln~ o~cc ~ ~i~g. Yo~ ~n~g~t C~o Po~ ~11 b~ e~fiv, u~n ~pt ofyo~ ~ Mon~ly Sta~ R~. Mail original to R.MIS, lac, 15030 ventura Blvd., Ste. 787, Sherman Oaks, CA 91403 DATE I$#$0 Ym~m $1~g, $~tlt~ #757~ Shenm~ Oaks, CA 91403 EXHIBIT "A" 06/02/2003 14:00 FAX 818 933 6352 RMIS ~005 Declaration Page Contingent Cargo Policy (Following Form) Assured: Assurer: Freight Express, Inc, P.O.Box 597 Mechanicsberg, PA 17055 Royal Insurance Company of America Policy No: POC 102529 Policy Period: September 1, 2000 to Continuos until Canceled Loss Payee: Loss if any payable to Freight Express, Inc. Policy Limit: $250,000 in any one place at any one time or in any one disaster 06/02/2003 14:01 FAX 818 933 6352 RMIS ~006 Terms & Conditions 1) 2) 3) 4) s) ATTACHMENT AND CANCELLATION This policy and the coverage granted hereunder attaches on and covers in respect of all insured goods on and after September 1, 2000 and will continue in force until Cancellation by either party giving the other, or its agent, thirty (30) days written notice, or unless otherwise mutually agreed upon or otherwise provided for herein, or unless otherwise voided bY reason of breach of warranty, misrepresentation or concealment. Notwithstanding anything herein to the contrary, the Company may effect inunediate cancellation of this Policy by giving written notice thereof at any time when any premium has been due and unpaid for a period of thirty ( 30 ) days. GOODS INSURED Lawful goods and merchandise in shipment consisting of general commodities. VALUATION The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual ea.qh value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with merchandise of like kind and quality. LIMIT OF LIABILITY The liability of these Assurers shall not exceed the lesser of the limits carried by each individual tracking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in thc case &partial or total loss, of any other costs and expenses, or all combined. VALUE AT I~JSK In the event that the total value at risk exceeds the applicable limit of Liability set forth herein, these Assurers shall nevertheless be entitled to receive premium on the full value at risk. The acceptance of such premiums by the Assurer shall in no way alter or increase the applicable Limits of Liability, but the Assurer shall be 1/able for the full mount of loss up to, but not exceeding such Limit of Liability. In the event of loss which exceeds the applicable Limit of Liability, any 06/02/2003 14:01 FAX 818 933 6352 RMIS ~007 6) deductible will be subtracted from the apphcable Limit of Liability and not from the full amount of loss. COVERAGE For account of whom it may concern. Loss, if any, payable to lusumd or order. Loss of or damage to lawful goods and merchandise in shipment consisting of GENERAL COMMODITIES caused by thc perils insured against herein, occurring whine in transit from POINT OF ORIGIN TO POINT OF DESTINATION. Within these I/mits this policy covers said property from the time of leaving the warehouse, store or factory of shipper and thereafter continuously, in ordinary course of transportation until same as delivered to warehouse, store or factory at destination, but in no event shall this policy cover property after the same has ceased to be at risk of the Insured, This pohcy insures thc property only while in, the custody of the motor track, air freight, or raikoad career(s) to whom the Insured has entrusted the shipment. This policy insures against ali risks of physical loss or damage to the insured property from any external cause, except as specifically excluded. However, tiffs policy is strictly a "Following Form" policy. In no event will this policy provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy. Thc liability of these Assureds shall not exceed the lesser of the limits carried by each individual trucking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in case of partial or total loss, or any other costs and expenses, or all combined. VALUATION: The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual cash value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with merchandise of like kind and quality. In thc event of loss or damage to machinery consisting of seven-al parts, Royal Insurance Company shall only be hable for the value of the part or parts lost or damaged, or the invoice cost of the machinery, whichever is less. 06/02/2003 14:01 FAX 818 933 6352 P.~IIS ~008 It is understood and agreed that this contingent insurance provides coverage for cargo only; restricted to RMIS approved common and contract carriers, when the carder is proven liable. EXCLUSIONS Shipments by mail, account, bills, deeds, evidence of debt, money, notes, Securities or salesman's samples or shipments of HOUSEHOLD GOODS; Against loss of market, business interruption, loss, damage or deterioration arising from delay, inherent vice, infestation, spoilage and loss fi:om changes in temperature, a change in climate condition or refrigeration breakdown. Against loss or damage caused by or resulting from strikes, lockout workmen, or persons taking part in labor disturbances, or riots or civil commotions; loss of nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to or aggravated by peril(s) insured against in this policy; however, subject to the foregoing and all provisions of this policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this policy. 'Any fraudulent, dishonest or criminal act done by or at the instigation of any Insured, partner or joint adventurer in or any Insured, au officer, director or trustee of any Insured; pilferage, appropriation or concealment of any property covered due to any fraudulent, dishonest or criminal act of any employee or agent of any Insured while working or otherwise, or any person to whom the property covered may be trusted; Shipments that have been either refused or are returned by the receiver thereof, tmless the same is the result of a peril covered by this policy. Loss or damage caused by or resulting from (I) hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending, or expected attack, (a) by any government or sovereign power ( de jure or de facto ), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or (c) by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by govennnvatal authority in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or Customs 06/02/2003 14:02 FAX 818 953 6352 RMIS ~009 9) lo) 11) 12) regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportation or trade; DEDUCTIBLE None CONSTRUCTIVE TOTAL LOSS CLAUSE No recovery for a Constructive Total Loss shall be hard hereunder unless the property insured is reasonably abandoned on account of its actual loss appearing to be unavoidable, or because it cannot be preserved from actual loss without an expenditure which would exceed its insured value when the expenditure had been inctwred. DECLARATIONS The ASSURED by the acceptance of this Policy warrants and agrees to report all exposures in respect of which insurance is provided hereunder to the Company as soon as known to the ASSURED, or as soon thereafter as may be practicable. The C. ompany or its agents shall be permitted to examine the books, accounts and records of the assured for the purpose &tabulating mad verifying all exposures in respect of which insurance is provided hereunder. NOTICE OF LOSS Warranted by the ASSURED that all claims for loss of, or damage to, the goods md/or merchandise insured hereunder shall be promptly reported to thc Company. PROOFS OF LOSS l:h'°ofs of loss and all bills for expenses must be approved by the Settling Agent of this Company, i£there be one at or near the place where the loss occurs or the expenses are recurred or, if there be none in the vicinity, by the Correspondent of the American Institute of Marine Underwriters, or the nearest accredited representative of Lloyd's, London, and such agent or correspondent must be represented on all surveys. NORMAL LOSS In the event of claim under this insurance for loss or and/or damage to merchandise and/or goods upon which there is a normal or usual loss, it is hereby mutually agreed that the claim shall be adjusted and the insured value oft/ac part or parts lost or damaged shall be arrived at in the adjustment of the claim on the 06/02/2003 14:02 FAX 818 933 6352 RMIS ~010 basis of expected outtura, whether or not the deduction of normal loss be provided in this insurance or be a trade custom. 16) PARTIAL LOSS In all oases of partial loss or damage caused by per/Is insured against, the loss shall be determined by a separation of the damaged portion of the insured property from the sound portion, and the mount of loss determined by: an agreed estimate (by sm-vey) oft he percentage of damage of such damaged portion, in which event the ASSURED will receive such percentage of the insured value of the damaged merchandise; or, i~ such agreement is not practicable. then such damaged portion shall be sold either at public auction or by private sale (whichever the Company shall deem most advisable) for the account of the owner of the property, in which event the amount of the loss shall be the difference between the net amount so realized by thc auction or sale and thc i~sured value of the portion so sold. PAYMENT OF LOSS In case of loss or other claim, such loss or claim to be paid in funds current in the United States to the ASSURED or order, or to baffle, or bankers as their interests may appear, within thirty (30) days after submission to the Company or its agent of proper proof of loss and proper proof of interest in the goods or merchandise so involved ( the amount of premium, if unpaid, and all other indebtedness due the Company by the ASSURED being first deducted). In thc event that payment is required in other than United States currency, the rate of exchm~ge shall be that in effect on the date the claim is settled. SUE AND LABOR CLAUSE In case of any loss or misfortune, it shall be lawful and necessary for the ASSURED, his or their factors, servants and assigns, to sue, labor and lravel for in and about the defense, safeguard and recovery of the goods and merchandise insured hereunder, or any part thereof, without prejudice to this insurance, to the charges whereof this Company will contribute according to the rate and quantity of thc sum hereby insured; nor shall the acts of the ASSLI~D or this Company in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of an abandonment. 06/02/2003 14:02 FAX 818 933 6352 RMIS ~011 17) 19) TEVIE FOR SUIT It is a condition preccdcnt to any action, suit or proceeding for thc recovery of any claim upon, under, or by virtue of this Policy that such action, suit or proceeding shall be commenced within twelve (12) months next after the date of the accident, disaster or event causing loss of damage to, thc insured goods or giving rise to a claim for suc and labor expenses or, in case of a claim for General Average contribution, salvage and/or special charges, next after thc date of actual payment thereof by the ASSURED. Provided however, that if by the laws &the state or other place within which this Policy or any certificate flmreund~ is issued or Where the action, suit or proceeding is instituted, such limitation Ln invalid, then any such claim shall become barred and void unless such action suit or proceeding shall be commenced w/thin the shortest limit of time permitted by thc laws of such Sate or place to bc fixed herein for tho bringing of such suit, action or proceeding- ASSIGNMENT VOID Warranted by the ASSURED that the assignment of this Policy or any insurable interest therein- or the subrogation of any rights thereunder, if any, to any party without the consent of the Company shall render the insurance affected by such assignment or subrogation void. SUBROGATION AND IMPAIRMENT OF SUBROGATION It is agreed that upon payment of any loss, the ASSURED shall assign and subrogate to this Company all their rights against carriers, ballets and other third parties to the extent of such payments and shall permit suit to be brought in the ASSURED's name (but at this Company's expense), and the ASSURED further agrees to render allmasonable assistance in the prosecution o said suit or suits. It is further a condition offlais insurance that if the ASSURED or their assigns have entered or shall enter into any agreement whereby any carrier, bailee or other third party is released from its l~ability for any loss, and/or waive, compromise, settle or othe~vise impair any right of claim against such third part),, to which this Company would be subrogated upon payment of a loss; then this Company shall be fi:ce from liability with respect to such loss, but premium shall not be affected. 20) OTHER INSURANCE If an interest insured hereunder is covered by other insurance, which attached prior to the coverage provided by th/s Pohcy, then this Company shall be liable only for the amount in excess of such prior insurance; and this Company shall return the premium upon so much of the stun by it insured as it shall be exonerated from by such prior insurance. 06/02/2003 14:03 FAX 818 933 6352 RMIS ~012 If an interest insured hereunder is covered by other insurance which attached subsequent to the coverage provided by this Policy, then this Company shall nevertheless be liable for the full amount of the insurance, without right to claim contribution from such subsequent insurers, and shall accordingly be entitled to retain the premium it received in the same manner as if no such subsequent insurance had been made. Other insurance upon the property with the same attachment date as the coverage's provided by this Policy, shall be deemed simultaneous, and this Company will be liable only for a ratable contr/bution to the loss or damage, in proportion to the amount for which this Company would otherwise be liable under this Policy, and will return to the ASSU~D au amount of premium proportionate to such reduction of hability. GOVERNING LAW Al! questions of liability arising under this Policy are to be governed by the law and customs of England, except in the United States and its temtories and possessions, where the law and customs of the United States will prevail. Policy No. POC102629 accepted by: Freight Express, Inc. 06/02/2003 14:00 FAX 818 933 6352 R~IS ~003 REGISTRY MONITORING INsURANC~-SERvlCKs, INC. Insurance Company Royal Insurance Company of America 999 3~ Ave., Suite 2700 Seattle, WA 98104 Insured Freight Express, Inc. P.O. Box 597 Mechanicsburg, PA 17055 Policy Number: POC 102629 Customer Number: 00-A304 Contingent Cargo Mechanical BreakdOwn Extension Coverage It is hereby understood and agreed that effective 9/1/00 and in consideration o£the rate and premium charged, this policy, subject otherwise to all of the terms, conditions, and limitations, is extended to insure loss or damage by spoilage or ~eezing of perishable freight only if such loss or damage shall be directly caused by fire, lighting, collision or overturn of the transporting conveyance, collapse of bridges or culverts, cyclone, tornado or windstorm, flood or by mechanical failure or mechanical brealcdo~x of the refi'igeration or heating milt. Excluding, however, all loss caused by or resulting from negligence on the part of Freight Express, Inc,, your employees, or transportation carners contracted by you. It is a condition of this coverage that the refrigeration or heating units will be regularly respected, at least once each month, by the transportation cardem contracted by Freight Express, Inc., and records maintained as to due result of such inspections by the Transportation carriers. Such records shall be open to the inspection of any of our authorized rcprcsentatives at ali times, during business hours. In no event will we be liable for loss or damage caused, or contr/buted to, by failure of you or your contracted transportation carriers to keep and maintain the above-described units in full state of repair. In the event of any recovery and/or salvage on loss, which has been, or is being or is about to be paid hereunder, such recovery and/or salvage will accrue entirely ro us until the sum paid by us has been recovered. 15030 Ventura Blvd., Suite 787 * Sherman Oaks, CA 91403 010)815.0100 * (800) 400.4924 · Fax: (310) 815-8765 EXHIBIT "B" VERIFICATION I, Hayden Landon, President of Registry Monitoring Insurance Service, Inc. acknowledge I have the authority to execute this Verification on behalf of Registry Monitoring Insurance Service, Inc. and certify the foregoing Answer With Cross Claim and New Matter is based upon information which has been gathered by my counsel in the preparation of the lawsuit. The language of this Answer With Cross Claim and New Matter is that of counsel and not my own. I have read the document and to the extent tlSe Answer With Cross Claim and New Matter is based upon information which I have given to my counsel, it is true and correct to the best of my knowledge, information and belief. To the extent the content of the Answer With Cross Claim and New Matter is that of counsel, I have relied upon counsel in making this Verification. This statement and Verification are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, which provides that if I knowingly make false averments, I may be subject to criminal penalties. F:\FILES\DATAFILE\GenerahDocuments\ 10892-1 ansi Registry Monitoring Insurance Service, Inc. Hay e~l~fi~n La~n, Pre(d~l~ent CERTIFICATE OF SERVICE I, Tricia D. Eckem'oad, an authorized agent for Martson DeardorffWilliams & Otto, hereby certify that a copy of the foregoing Answer With Crossclaim and New Matter was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Thomas A. Archer, Esquire P.O. Box 5056 Harrisburg, PA 17110 Thomas L. Isenberg, Jr., Esquire 305 North Front Street P.O. Box 1003 Harrisburg, PA 17108 Ram Toor d/b/a R.T. Transport 1254 Fedora Street Clovis, CA 93612 MARTSON DEARDORFF WILLIAMS & OTTO Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: June 3, 2003 F:\FILES~DATAFILE\Gen~ocuments\ 10892-1 .pra. 1/td¢ Created: 5/23/03 I0:35:55 AM Revised: 6/3/03 0:1:48 PM FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a/RT TRANSPORT, : ROYAL INSURANCE COMPANY OF : AMERICA and REGISTRY : MONITORING INSURANCE SERVICES, : INC., : Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 03-835 CIVIL ACTION - LAW JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Enter the appearance of MARTSON DEARDORFF WILLIAMS & OTTO on behalf of Defendant Registry Monitoring Insurance Services, Inc. in the above matter. Date: June 3, 2003 MARTSON DEARDORFF WILLIAMS & OTTO Thomas J. Willi~[l~is, Esquire Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Defendant Registry Monitoring Insurance Services, Inc. CERTIFICATE OF SERVICE I, Tricia D. Eckenroad, an authorized agent for Martson DeardorffWilliams & Otto, hereby certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Thomas A. Archer, Esquire P.O. Box 5056 Harrisburg, PA 17110 Thomas L. Isenberg, Jr., Esquire 305 North Front Street P.O. Box 1003 Harrisburg, PA 17108 Ram Toor dgo/a R.T. Transport 1254 Fedora Street Clovis, CA 93612 MARTSON DEARDORFF WILLIAMS & OTTO ~. Eckenroad Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: June 3, 2003 FREIGHT EXPRESS, 1NC. Plaintifl~ VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 03-835 Civil Term JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Thomas A. Archer, served the Complaint upon the following pursuant to Pa. 1LC.P. 404 via Ce~'flied Mail, Return Receipt Requested, by delivery on March 17, 2003. The original signed return receipt is attached hereto: Mr. Ram Toor d/b/a RT TRANSPORT 2595 Coventry Blvd Clovis, California 93612 Date: 6/3/03 Thomas A. Archer, Esquire · Comptete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: A. Signature [] Agsnt D. Is delivery address diffE.~ent ~TOm item 17 [] Yes If YES, enter delivery addreSS below; [] No Mr. Ram Toot 2595 Coventry Bird Clovis, California 93612 2. Article Number PS Form 3811, August 2001 Service Type [] Certified Mail [] Registered ~] insured Mai~ I"i C.O.D. 4. Restricted Delivery? (Extra Fee) 7002 2030 0000 2111 014fi Express Mail Return Receipt fo~ Merchandise [] Yes Thomas A. Archer Attorney at Law P.O. Box 5056 Harrisburg, PA 17110-0056 FREIGHT EXPRESS, INC., Plaimiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, 1NC. In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED TO: Registry And Monitoring Insurance Services, InC. NOTICE TO PLEAD Thomas J. Williams, Esq. Martson Deardorff Williams & Otto 10 East High Street Carlisle, PA 17013 You are hereby notified to file a written response to the enclosed document within twenty (20) days from service hereof or a judgment may be entered against you. Dated: July 16, 2003 ~homas L. Isenberg, Jr.,~. DUANE MORRIS LLP 305 North Front Street, 5th Floor P. O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 Attorneys for Defendant Royal Insurance Company of America FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED DEFENDANT ROYAL INSURANCE COMPANY OF AMERICA'S REPLY WITH NEW MATTER TO DEFENDANT REGISTRY MONITORING INSURANCE SERVICES~ INC.'S NEW MATTER/CROSSCLAIM PURSUANT TO PA. R.C.P. 2252{d) Royal Insurance Company of America, by and through its counsel, Duane Morris, LLP, respectfully files this Reply with New Matter to Defendant Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim, and in support thereof states as follows: 40. Denied. No response is deemed necessary to Paragraph 40 of Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim inasmuch as the same does not set forth any factual allegations. 41. Denied. The allegations contained within Paragraph 41 of Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Defendant Royal Insurance Company of America specifically denies the same. 42. Denied. The allegations contained within Paragraph 42 of Registry Monitoring Insurance Services, Inc.'s New Matter/Crossclaim are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Defendant Royal Insurance Company of America specifically denies the same. 43. Denied. The allegations contained within Paragraph 43 of Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Defendant Royal Insurance Company of America specifically denies the same. 44. Denied. The allegations contained within Paragraph 44 of Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Defendant Royal Insurance Company of America specifically denies the same. WHEREFORE, Defendant Royal Insurance Company of America respectfully demands judgment to be entered in this matter against Plaintiff, Freight Express, Inc. However, if it is determined that Plaintiff is entitled to recover for any or all of the damages alleged in the Complaint, said right to recovery is specifically denied, Defendant Royal Insurance Company of America respectfully demands judgment to be entered against the other named Defendants, Ram Toor, dgo/a RT Transport and Registry Monitoring Insurance Services, Inc. NEW MATTER CROSSCLAIM PURSUANT TO PA. 1LC.P. 2252{d'} AGAINST DEFENDANT RAM TOOR d/b/a R.T. TRANSPORT 45-49. Denied. No response is deemed necessary for Paragraphs 45-49 inasmuch as the same are directed to a Defendant other than Royal Insurance Company of America. NEW MATTER 50-69. Denied. No further response is deemed necessary inasmuch as the allegations contained within Paragraphs 50 through 69 are directed to a party other than Royal Insurance Company of America. 2 ROYAL INSURANCE COMPANY OF AMERICA NEW MATTER TO REGISTRY MONITORING INSURANCE SERVICES~ INC.'S RULE 2252(d) CROSSCLAIM 70. Paragraphs 40-44 of Royal Insurance Company of America's Reply to Registry Monitoring Insurance Services, Inc.'s Rule 2252(d) New Matter Crossclaim are incorporated herein by reference as if set forth in full. 71. Registry Monitoring Insurance Services, Inc.'s, ("RMIS") claims are barred in whole or in part by the doctrine of estoppel. 72. RMIS's claims are barred in whole or in part by the failure of consideration. 73. RMIS's claims are barred in whole or in part by the doctrine of justification. 74. RMIS's claims are barred in whole or in part by the doctrine of payment. 75. RMIS's claims are barred in whole or in part by the doctrine of waiver. 76. RMIS's claims are barred in whole or in part by the doctrine of release. 77. RMIS has failed to state a claim upon which relief can be granted. 78. RMIS's claims are barred in whole or in part by the applicable statute of limitations, laches or other time bar. RMIS failed to provide proper, timely notice to Royal Insurance Company of 79. America. 80. RMIS failed to perform its obligations as required in its relationship with Royal Insurance Company of America. 81. RMIS failed to perform and satisfy conditions precedent to the coverage. 82. RMIS breached the policy terms. 3 83. Royal Insurance Company of America's liability, the same of which is expressly denied, is secondary and passive to the liability of RMIS and/or Ram Toor, d/b/a R.T. Transport, whose liability is primary and active. WHEREFORE, Defendant Royal Insurance Company of America respectfully demands judgment to be entered in this matter against Plaintiff, Freight Express, Inc. However, if it is determined that Plaintiffis entitled to recover for any or all of the damages alleged in the Complaint, said fight to recovery is specifically denied, Defendant Royal Insurance Company of America respectfully demands judgment to be entered against the other named Defendants, Ram Toor, d/b/a RT Transport and Registry Monitoring Insurance Services, Inc. Dated: July 16, 2003 Respectfully submitted, DUANE MORRIS, LLP Newark, NJ 07102-3889 (973) 424-2000 Thomas L. Isenberg, Jr., Esq. Attorney I.D. No. 76652 305 North Front St., 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 Attorneys for Defendant Royal Insurance Company of America 4 CERTIFICATE OF SERVICE On this 16th day of July, 2003, I, Patricia Z. Glusko, a secretary with the law finn of Duane, Morris LLP, hereby certify that a true and correct copy of the foregoing document was served upon the following individual at his respective address by U.S. first class mail, postage prepaid, at Harrisburg, Pennsylvania: Thomas A. Archer, Esquire P.O. Box 5056 Harrisburg, PA 17110 Attorney for Plaintiff Ram Toor d/b/a RT Transport 2595 Coventry Boulevard Clovis, CA 93612 Thomas J. Williams, Esq. Martson Deardorff Williams & Otto 10 East High Street Carlisle, PA 17013 Attorneys for Registry Monitoring Insurance Co. Patricia Z. ~i~sko FREIGHT EXPRESS, 1NC. : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUlVIBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION- LAW : No. 03-835 Civil Term RAM TOOR, dib/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: 1NC. : JURY TRIAL DEMANDED Defendants. : PLAINTIFF'S REPLY TO NEW MATTER OF DEFENDANT. REGISTRY MONITORING INSURANCE SERVICES~ INC. Freight Express, Inc., by and through its counsel, Thomas A. Archer, Esquire, replies to New Matter of Defendant, Registry Monitoring Insurance Services, Inc. ("RMIS"), as follows: NEW MATTER CROSS-CLAIM PURSUANT TO Pa. ILC.P. 2252{d} AGAINST DEFENDANT~ ROYAL INSURANCE COMPANY OF AMERICA 40.-44. Denied. No response is necessary for Paragraphs 40-44 inasmuch as the same are directed to a party other than Plaimiff. NEW MATTER CROSS-CLAIM PURSUANT TO Pa.R.C.P. 2252{d} AGAINST DEFENDANT~ RAM TOOR~ d/b/a RT TRANSPORT 45.-49. Denied. No response is necessary for Paragraphs 45-49 inasmuch as the same are directed to a party other than Plaintiff NEW MATTER 50. Denied. The allegations contained in Paragraph 50 of RMIS's New Matter are legal conclusions to which no responsive plead'rog is reqtfired. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations, as Plaintift'has no basis for belief as to the factual allegations therein. 51. Denied. The allegations contained in Paragraph 51 of RM/S's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations.. By way of further response, the documents speak for themselves. 52. Denied. The allegations contained in Paragraph 52 o£RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 53. Denied in pan; admitted in pan. The allegations contained in Paragraph 53 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies same, except Plaintiff admits that in addition to insuring Plaintiff's loss, Defendant RIVIIS served as agent/broker for Defendant Royal Insurance Company of America. 54. Denied. The allegations contained in Paragraph 54 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 55. Denied. The allegations contained in Paragraph 55 of RM~S's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, the language of the policy speaks for itsel£ 56. Denied. The allegations contained in Paragraph 56 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 57. Admitted. 58. Denied. The allegations contained in Paragraph 58 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 59. Denied. The allegations contained in Paragraph 59 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 60. Denied. The allegations contained in Paragraph 60 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations;. By way of further response, Defendant RMIS has at ail times regularly conducted business within the Commonwealth of Pennsylvania. 61. Denied. The allegations contained in Paragraph 61 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plaintiffis without sufficient information to form a belief as 'to the allegations of this paragraph. 62. Denied. The allegations contained in Paragraph 62 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plaintiffis without sufficient information to form a belief as to the allegations of this paragraph. 63. Denied. The allegations contained in Paragraph 63 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 64. Denied. The allegations contained in Paragraph 64 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 65. Denied. The allegations contained in Paragraph 65 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. 66. Denied. The allegations contained in Paragraph 66 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plalntiffis without sufficient information to form a belief as to the allegations of this paragraph. 67. Denied. The allegations contained in Paragraph 67 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plalntiffis without sufficient information to form a belief as 'to the allegations of this paragraph. 68. Denied. The allegations contained in Paragraph 68 of RMIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plaintiffis without sufficient information to form a belief as to the allegations of this paragraph. 69. Denied. The allegations contained in Paragraph 69 of RIVlIS's New Matter are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Plaintiff specifically denies the allegations. By way of further response, Plalntiffis without sufficient information to form a belief as to the allegations of this paragraph. WHEREFORE, Plaimiff requests this Honorable Court to enter a judgment in Plaimiff's favor and against Defendant, Registry Monitoring Insurance Services, Inc., in the amoum of $47,742.25, plus interest thereon, costs of suit, attorney's fees and any other relief to which the Plaintiffmay be entitled as a matter of law. Respectfully Submitted: Th~o~ma~s~~quire ~ 73293 P.O. Box 5056 Harrisburg, PA 17110 Phone: 233-8676 Attorney for Plaintiff, Freight Express, Inc. Dated: July 22, 2003 FREIGHT EXPRESS, 1NC. : IN THE COURT OF COMMON PLEAS OF Plaimiff, : CUMBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION - LAW : No. 03-835 Civil Term RAM TOOR, dgo/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendants. CERTIFICATE OF SERVICE I, Thomas A. Archer, Esquire, hereby certify that I served a copy of the foregoing documem upon the following via First-Class Mail, postage prepaid: Mr. Ram Toor, d/b/a RT TRANSPORT 2595 Coventry Blvd. Clovis, CA 93612 Registry Monitoring Insurance Services, Inc. C/o Alan J. Cohen, Esquire TYRE KAMINS KATZ & GRANOF 1880 Century Park East Suite 300 Los Angeles, CA 90067-1666 Royal Insurance Company of America C/o Thomas L. Isenberg, Jr. DUANE MORRIS 305 N. Front Street, 5~ Floor P.O. Box 1003 Harrisburg, PA 17108-1003 Dated: ~o~ T{aom~ts-A Archer, Esquire FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a/RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLANT) cOUNTY, PENNSYLVANIA NO. 03-835 CIVIL ACTION - LAW JURY TRIAL DEMANDED DEFENDANT REGISTRY MONITORING SERVICES, INC.'S ANSWER TO DEFENDANT ROYAL INSURANCE COMPANY OF AMERICA'S NEW MATTER/CROSS CLAIM PURSUANT TO Pa. R.C.P. 2252(d) 70-83. Denied as conclusions of law. If an answer is required, the allegation is denied as a matter of fact. MARTSON DEARDOREF WILLIAMS & OTTO Thomas J. Williar~, Esquire Ten East High Street Carlisle, PA 17013 (717) 243-3341 Date: July 18, 2003 Attorneys for Defendant Registry Monitoring Insurance Services, Inc. CERTIFICATE OF SERVICE I, Tricia D. Eckenroad, an authorized agent for Martson DeardorffWilliams & Otto, hereby certify that a copy of the foregoing Answer was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Thomas A. Archer, Esquire P.O. Box 5056 Harrisburg, PA 17110 Thomas L. Isenberg, Jr., Esquire 305 North Front Street P.O. Box 1003 Harrisburg, PA 17108 Ram Toor d/b/a R.T. Transport 1254 Fedora Street Clovis, CA 93612 MARTSON DEARDORFF WILLIAMS & OTTO Tficia D. Eckenroa-d Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: July~~, 2003 FREIGHT EXPRESS, INC. Plaintiff, VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE: SERVICES, INC. Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 03-835 Civil Term JURY TRIAL DEMANDED PRAECIPE TO ENTER DEFAULT JUDGMENT TO THE PROTHONOTARY: Please enter Judgmem of Default upon the Defendant, RAM TOOR, d/b/a RT TRANSPORT, in the amount of $49,842.25 for failure to file and Answer or otherwise plead to Plaintiff's Complaint. Attached hereto is a copy of the Ten-Day Notice and Certificate of Service (Exhibit "A"), as well as a copy of the U.S. Mail Remm Receipt indicating original service of process pursuant to Pa.R.C.P. 404 (Exhibit "B"). DATED: 7/21/03 BY: ~Archer ~'~ P.O. Box 5056 Harrisburg, PA 17110-0056 (717) 233-8676 Attorney for Plaintiff FREIGHT EXPRESS, INC. Plaintiff, RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and RFN~ISTRY MONITORING I~SURANCE SERVICES, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA : CIVI~ ACTION-LAW No. 03-835 Civil Term JURY TRIAL DEMANDED fMPORTANT NOT/CE Mr. Ram Toor d/h/a RT TRANSPORT 2595 Coventry Blvd Clovis, California 93612 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLF. SS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTE~ AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LWAYER AT ONCE. IF YOU'DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP: CUMBF. RI.,AND COUNTY LAWYER REFERRAL SERVICE Cumberland County B~r Association 2 Liberty Awnue (717) 249-3166 DATED: 4~'24/03 BY: Thomas A. Archer P.O. Box 5056 Harrislmrg, PA 17110-0056 (717) 233-8676 Attorney for Plaintiff FREIGHT EXPRESS, INC. Ptaintif~ VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA : CIVIL ACTION-LAW No. 03-835 Civil Term ~URY TRIAL DEMANDED CERTIFICATE OF SERVICE ~ Thomas A. Archer served the foregoing Notice of Default upon the following via deposit in Fha-Class Mail: Mr. Ram Toot d/Wa RT TRANSPORT 2595 Coventry Blvd C/ov/.s, Ca/ifornia 93612 Date: 4/24/03 · Print your name and address ~ the reverse so that we can ~turn the card to you. · Attach this card to the back of the mailpiece, or on the f~ont ff space permits, 1, A~cle A~dmssed to: D. Is deli~ addms~ differe~ from item l? [~] Yes if YES, e~te~ detive~ addr~s beio~q [~ No Mr. Ram Toor 2595 Coventry Blvd Clovis, California 93612 PS Form 3811, August 2001 7002 2030 0000 21tl 0t48 FREIGHT EXPRESS, 1NC. Plaht~ RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. IN THE COURT OF C~MMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 03-835 Civil Terra JURY TRIAL DEMANDED CERTIlqCATli'. Olr 8RRVICE I, Thomas A. Archer, served the Complaim upon the following pursuant to Pa. R.C.P. 404 via Certified Moil, Return Receipt Requested, by delivery on March 17, 2003. The original signed r~urn receipt is a~mche~ hereto: Mr. Ram Toor d/b/aRT TRANSPORT 2595 Coventry Blvd Clovis, California 93612 Date: 6/3/03 Thomas A. Archer, Esquire · Complete Iter~ls 1, 2, and 3. Also complete ffem 4 if Restricted Delsey is de~ired. · Pri~ your name and addres~ o~ the ~everse ~o lflat we can return the card to you. ,. Attach this card to the ba~k of the mailplece~ or on the front ff apace permits. 1. Artk:/e ~dressed to: D. ts O~e~ive~y address d/fferwr~t from ~t~m 1 ? Mr. Ram Toor 2595 Coventry Bird Clovis, California 93612 PS form 3811. August 2ool 7002 2030 0000 21tl 0146 FREIGHT EXPRESS, INC. VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE: SERVICES, INC. Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 03-835 Civil Term JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Thomas A. Archer served the foregoing Praecipe to Enter Default upon the following via deposit in First-Class Mail: Mr. Ram Toor d/b/a RT TRANSPORT 2595 Coventry Blvd Clovis, California 93612 Registry Monitoring Insurance Services, Inc. C/o Alan J. Cohen, Esquire TYRE KAMINS KATZ & GRANOF 1880 Century Park East Suite 300 Los Angeles, CA 90067-1666 Royal Insurance Company of America C/o Thomas L. Isenberg, Jr. DUANE MORRIS 305 N. Front Street, 5t~ Floor PO Box 1003 Harrisburg, PA 17108-1003 Date: 7/22/03 FREIGHT EXPRESS, INC. : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION - LAW : No. 03-835 Civil Term RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendants. To Defendants: NOTICE TO PLEAD Royal Insurance Company of America C/o Thomas L. Isenberg, Jr., Esquire DUANE MORRIS 305 N. Front Street, 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 YOU ARE HEREBY NOTIFIED to file a written response to the enclosed AMENDED COMPLAINT within twenty (20) days from service hereof or a judgment may be entered against you. BY: Respectfully submitted: Thbmas A. Archer, Esquire Attorney I.D. ~No. 73293 3747 Derty Street P.O. Box 5056 Harrisburg, PA 17110 (717) 233-8676 Attorney for Plaintiff Dated: // ~o, O? FREIGHT EXPRESS, 1NC. : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION - LAW : No. 03-835 Civil Term RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendants. To Defendants: NOTICE TO PLEAD Registry Monitoring Insurance Services, Inc. C/o Thomas J. Williams, Esquire MARTSON, DEARDORFF, WILLIAMS &OTTO 10 East High Street Carlisle, PA 17013 YOU ARE HEREBY NOTIFIED to file a written response to the enclosed AMENDED COMPLAINT within twenty (20) days from service hereof or a judgment may be entered against you. BY: Respectfully submitted: Thomas A. Archer, Esquire Attorney I.D. No. 73293 3747 Deny Street P.O. Box 5056 Harrisburg, PA 17110 (717) 233-8676 Attorney for Plaintiff Dated: //, 2~. ~ FREIGHT EXPRESS, INC. VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY : OF AMERICA and REGISTRY MONITORING INSURANCE: SERVICES, INC. : 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PA CIVIL ACTION-LAW No. 03-835 Defendants. JURY TRIAL DEMANDED COMPLAInt AND NOW, comes the Plalnfi~, FREIGHT EXPRESS, INC., who brings this Complaint against Defendants, and in support thereof avers as follows: 1. Plaintiff, FREIGHT EXPRESS, INC. ("Plaintiff"), is a Pennsylvania Corporation with its principal place of business at P.O. Box 597, Mechanicsburg, Cumberland County, Pennsylvania 17055. 2. Defendant, RAM TOOR, d/b/a RT TRANSPORT ("RT Transport"), is an adult individual, residing at 2595 Coventry Blvd., Clovis, California 93612, with a principal place of business at all times herein located at 1254 Fedora Street, Clovis, California 93612. 3. Defendant, REGISTRY MONITORING INSURANCF, SERVICES, INC. ("RMIS'), is licensed to sell and broker insurance in the Commonwealth of Pennsylvania and maintains a principle place of business located at 1600 Ventura Boulevard, Suite 814, Encino, California 91436. 4. Defendant, ROYAL INSURANCE COMPANY OF AMERICA, ("Royal") is a licensed insurance carder authorized to do business in the Commonwealth of Pennsylvania and is a 10. By the time the track and trailer were retrieved by Del~ndant RT Transport, the frozen cargo in it was destroyed. 11. By loss claim form dated April 2, 2001, the purchaser of the cargo carried by RT Transport, United Natural Foods, Inc. ("United") notified Plaintiff of the failure of delivery and made claim of Plaintiff for the full value of loss in the amount of $47,742.25. April 2, 2001 Loss or Damage Claim Form is attached hereto and made a part hereof as Exhibit "B." 12. As a result of said loss, Plalntiffwas required to pay for the loss of the shipment in the amount of $47,742.25, and has incurred the shipping charges paid to RT Transport in the amount of $2,100.00. 13. By loss claim form dated Aril 2, 2001, Plaint~notitied RT Transport of its claim for indenmification of the damages incurred by Plaintiff as a result of Defendant's actions aforesaid. April 2, 2001 Loss or Damage Claim Form :is attached hereto and made a part hereof as Exhibit "C.' 14. Despite Plaintiff's repeated demands for indenmificntion, RT Transport has refused to indemnify Plaintiff for its losses. 15. At all relevant times, Plaintiff maintained a policy of insurance with De~ndant RMIS, and underwritten by Defendant Royal, insuring Plaintiff against loss involving cargo, entitled "Limited Contingent Cargo Policy" and bearing the policy number POC103258 (the "policy"). The policy is attached and made a part heretffas Exhibit "D.' 16. At all times herein, Defendants RMIS and Royal acted as agent for each other with respect to their relationships to Plaintifi~ VERIFICATION I, Thomas A. Archer, attorney for the Plaintiff in the within matter, hereby verify that the statements made in this AMENDED COMPLAINT, as reported to me by Paul M. Wirier, are true and correct to the best of my knowledge, information and belief. I understand that any false statements herein are made subject to the penalties of 42 Pa. CS.A. §8371, et seq., relating to unsworn falsification to authorities. Date: TH~S'~A. ARCI-I~ER, ESQUIRE PAGE 7177900800; Jan-f?-01 ~:52PM; Page 3/15 A PAGE 05 '/'1~7900~00; J~n-t~-flt 3:~4PM; 'Page Camp Hill PA 17011 .?.,S-1111364 .. I * ~ sent By: FREIGNT EXPRESS I~C; 7177g00600i Jan-17-oi 3:57PU; Page 14/15 '~brlra~ Compemation Imurance k mandatory by the S~te of ~nnaylvanla in the nmounU requirad b7 ~t~tute in th~ {u '.nf,~icdon~ ~ the ~dces h~t'~under will be .... - B~r a~ ~ Cm~mer~ ah~ ha~ no ~bi~ ~ ei~ defend ~ ~m~ian ~ ~ ~ ~ ~ ~r or C~$ ~lo~ ~rmi~ ~d ~u~ s~ n~ Dm~ u m ~ ~r~ md ~ pm~ foz Carx~r agre~ m hold harmJe~ ~ indcmni~ FREIGHT F.t, XP~-_e.$ ~C ~d anr of i~ a~ bo~ ~ ~m of I~, ~ out of clai~ by my ~pby~ of ~ far R. T: TRANSPORT 1254 FEDORA AVE CLOVIS, CA 936'12 Invoice DATE INVOICE # 2/5/01 2363 BILL TO FREIGHT EXPRESS,INC. P.O.BOX 597 MECHANICSBURG,PA. 17055 DESCRIPTION LOAD FROM CORONA,CA. TO ATLANTA,GA. PARTIAL PMT. ON LOAD DRIVER-LEE : 'b' v,,.,- EIb. ,."L- -.?..~ r.~ P.O. NO. TERMS PROJECT FR4716 QTY Duc on receipt RATE AMOUNT 2,020.00 -600.00 2,020.00 -600.00 Total Subj: RE: NEED RA# FOR LOAD# a53 Date: 1/25/2001 10:37:08 AM Eastern Standard'13me From: BGarrity@unfi.com (Bdan Garrity) To: F'1"~SCAC@aol.com ('F'T'XRSCAC@aoI.com') auth # 407atl 1/25 Original Message--- From: F'1'~{SCAC@aol.com [mailto:F~SCAC@aol.com] Sent: Thursday, January 25, 2001 9:35 AM To: BGarfity@unfi.com Subject: NEED RA# FOR LOAD~ a53 HELLO BRIAN: NEED PA# FOR LOAD~ A53 FR#4716 FOR $150 LUMPER @ ATLANTA-GA THANKS, PAUL M. WINER -- Headers Return-Path: <BGarfity@unfl.com> Received: from dy-yg05.mx.aol.com (dy-yg05.maikaol.com [172.18.147.5]) by air-yg03.maiLaoLcom (v77.31) with ESM'FP; Thu, 25 Jan 2001 10:37:07 -0500 Received: from ftp.unfi.com (208.144.216.226.inverse.cw. net [208,144.216.226]) by dy-yg05.mx.aol.com (v77.27)with ESMTP; Thu, 25 Jan 2001 10:36:53 -0500 Received: from nav-mail.unfi.com by ftp.unfi.com ~ia smtpd (for dy-yg05.mx.aol.com [205.188.156.229]) with SMTP; 25 Jan 2001 15:36:24 UT Received: by oregano, unfi.com with Intemet Mail Se~ce (5.5.2650.21) id <ZZW5VG6J>; Thu, 25 Jan 2001 10:33:10 -0500 Message-ID: <4E490C292CBDD411BC6A0008CT09F5611C1889@oregano. unl~. corn> From: Bdan Garfity <BGarrity@unfi.com> To: "'FT'XRSCAC@aokcom"' <FTXRSCAC@aoLcom> Subject: RE: NEED PA# FOR LOAD~ a53 Date: Thu, 25 Jan 2001 10:33:09 -0500 MiME-Version: 1.0 X-Mailer. Intemet Mail Se~ce (5.5.2650.21) Content-Type: text/plain; charset="iso-8859-1" DISPATC"#800-303-0044 (i~#~0~5) /'~ .... /~JCud BONNIE'S HOME # (717)528-8473 ......... EMERGENCIES ONLY AFTER HOURS 6PM-7AM 717-554-1461 ......... LOAD CONFIRMATION FAX 559-459-0245 PHONE: TO: RT TRANSPORT DATE: ATTN: RAM FROM: (OFFICE USE ONLY) LOAD # FR4716 DRIVER NAME LOAD DATE PO # SHIPPER FOOD FOR LIFE BAKING ORIGIN CORONA CA (559)45%0244 1/19/2001 GREG ..... LOAD NUMBER MUST SHOW ON ALL FREIGHT INVOICES ...... 1/19/2001 ~'3~ c~ :00 PJ~ COMMODITY FROZENLOAD AA-15200-AI6 PU # 36579 TEMP PER B.O.L IF NOT SHOWN RUN THE FOLLOWING DEGREES: PALLET EXCHANGE ~ 0 # OF PALLETS DATE 1/23/2001 TIME 4:30AM RECEIVER UNITED NATURAL FOODS ['NC/CORNUCOPIA DESTINATION ATLANTA GA CONF # $2,020.00 RATE LOADED MILES R.P.M. DEADHEAD MILES R.P.M. CONFIRMATION COMMENTS /~ DRIVER MUST CALL FOR DISPATCH, SIGN/N AS FREIGHT EXPRESS, AND HAVE A CLEAN TRAILER. TIME S~[NSITIVE FOOD PRODUCTION INGREDIENTS - MUST DELIVER ON APPT. DATE $100.00 late delivery fine/day DRIVER IS RESPONSIBLE FOR BOX COUNT AND MAINTAINING CORRECT TEMPERATURE DRIVER TO CALL DAILY BY 08:30AM 800.393-0044, NO CALL OR LESS THAN 24 HR NOTICE WILL RESULT IN A $100.00 FINC- COMCHECK FEE- $10. PER COMCHECK ISSUED. FEE OF 3% OF GROSS REVENUE CHARGED FOR ANY ADVANCE OR COMCHECK SETTLEMENT. Driver responsible for unloading unless otherwise noted. Pallet receipt to prove exchange or charge will be incurrred. REFRIGERATED LOADS NEED PULP TEMPERATURE TAKEN AT LOADING PLEASE SIGN ACKNOWLEDGEMENT AND FAX PLEASE SEND ALL APPROPRIATE PAPERWORK TO ATTENTION: PAUL. All bills and receipts must be turned in together. Reimbursement for expenses after the fact will be denied. PLEASE SEND ALL BILLS TO FREIGHT EXPRESS, INC. P. O. BOX 597 MEC~ANICSBURG, PA 17055 S~nt lty: FREIGHT EXPR~ ING; 7t77900§00~ Jan.t7-Ol 4:1~Pi~l; Page 'm""I~M~G~K~II~ ONLY AFl ER flOUR~ ~PM. 7AM 7tI~,1461~-~ .... LOAD D~TE DESTMATION A~,,~ TIME RATE LI~ED MII.~ R,P,M. DF-&DNI~D MILE8 R,P,M LOSS OR DAMAGE CLAIM FORM Claim # Internal use only Claim in the amount of $ foi' (Check one) Loss ' Claimants Claim No. UNFI Release # Bill of Lading No. Carrier Pro No. Damage Full Value Date Del Date Mail Claim To:: CARRIER NAME STREET & NO, OR P.O. BOX CITY OR '~OWN & S'~ATE ZIP CLAIM PAYABLE TO: United Natural Foods 260 Lake Road Dayville, CT 06241 ATTN: Alan Babbin, Logistics Manager CITY&STATE ~-,R ZIP CITY&STATE ~':t'(~',,~l t'~"~ ~.~"~ ZIp a~3, ~ PROD ~ QTY ~ PAC~SIZE DESCRIPTION COST COST TOTAL C~IM ¢~ ? ~, ~ ~$0.00 NOTE: Claim should be supported by the following documents. Failure to include sufficient documentation may delay conclusion of the claim, Documentation of transportation contract Documentation that loss or damage occurred F----~Copy of freight bill Noted consignee copy of bill Documentation of value/amount claimed Other documents of support claim r--"~Complete vendor invoice or photocopy __ Copy of bill of lading showing all discounts Inspection report ['~--lPictures Attached how many? -- Weight of lost or damaged article Remarks: Be sire to attach letter or'explanation if there are special circumstances we should know about. This form must be completed within 24 hours of receipt of product. The foregoing statement of facts is hereby c,~rtJfied,~as~correct. ,~ ,,~..~.-.~ 4 Date ¥/ 1o Te,epho eNo. p( O Claimant's Signature ~¢,~'~ ' '~ PO COST i Release# $ 2,419.20 36874 $ 2,832.00 36914 $ 3,002.40 3690.~ $ 7,788.12 35907 $ 3,040.20 36924 $ 10,257.53 36936 $ 766.0036901 $ 9,169.26 36932 $ 2,020.00 3569~ $ 676.053634~ $ 4,980.20 4980.3 $ 359.5533371, $ 185.9036904 $ 245.85 33533 $ 47,742.26 Claim in the amount of $ for (Check one) Loss ~Damage ~Full Value Date Filed )q/2-,/OI Claimants Claim No. Release # Bill o~' Lading No. Carrier Pro No~ SHIPPER LOSS OR DAMAGE CLAIM FORM Claim # ~nternal use only Date Del Date Mail Claim T,3: ADDRESS CARRIER NAME[ STREET & NO. OFLP.O. BOX CO~O~TE O~ICE 20 SO. 36~ S% Suite ~0 Camp H~ PA l?01I C~TY & STATE TOTAL CLAIM NOTE: Claim should be supported by the following documents. Failure to include sufficient documentation ma)/delay/conclusion of th, e claim· Documentation of tra,~sportation contract [ ICopy of freight bill · Documentation of value/amount claimed ~------~Complete vendor invoice or photocopy showing all discounts ~Pictures Attached howmany? [ DocumentatiOn that loss or damage occurred ~ Noted consignee copy of bill Other documents of support claim ~----'"~ Copy of bill of lading [._...__Jlnspectio n report b___JWeight of lost or damaged article l" Telephone No. Claima~rs Slgnatur~ This form must be completed within 24 hours of receipt of product. · '~ 412000 L~i~l~ge Form ~$u~ALLIAN~ POLICY NUMBER: POC103258 Royal Insurance Company of Amedca PRODUCER CODE: 3499100 9300 ArroWpoint Blvd. Charlotte, NC 28201 Named Assured REGISTRY MONITORING INSURANCE SERVICES AND/OR INSURANCE REGISTRY COMPANY 15030 VENTURA BLVD., SUITE 787 SHERMAN OAKS, CA 91403 Producer Name and Address MARSH RISK INSURANCE SERVICES CITICORP PLAZA 777 SOUTH FIGUEROA STREET LOS ANGELES, CA 90017-5822 LIMITED CONTINGENT CARGO POLICY (FOLLOWING FORM) POLICY PERIOD: From: MARCH 1, 2000 UNTIL CANCELLED POLICY LIMIT: $250,000 in any one place at any one time or in any one disaster ON: As Per Policy LOSS PAYEE: Loss if any payable to Registry Monitoring Insurance Services and/or Insurance Registry Company or Order Authorized Representative TERMS & CONDITIONS 1) A TTA CttMENT AND CANCELLATION This policy and the coverage granted hereunder attaches on and covers in respect of all insured goods on and after March 1, 2000 and will continue in force until March 1, 2001 or until cancelled by either party giving the other, or its agent, thirty (30) days written notice, or unless otherwise mutually agreed upon or otherwise provided for herein, or unless otherwise voided by reason of breach of warranty, misrepresentation or congealment. Notwithstanding anything herein to the contrary, the Company may effect immediate cancellation of this Policy by giving written notice thereof at any time when any premium has been due and unpaid for a period of thirty (30) days. 2) GOODS INSURED Lawful goods and merchandise in shipment consisting of general commodities. 3) VALUATION The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual cash value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with merchandise of like kind and quality. 4) LIMIT OF LIABILITY The liability of these Assurers shall not exceed the lesser of the limits carried by each individual trucking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in case of partial or total loss, of any other costs and expenses, or all combined. 5) VALUEATRISK In the event that the total value at risk exceeds the applicable Limit of Liability set forth herein, these Assurers shall nevertheless be entitled to receive premium on the full value at risk. The acceptance of such premiums by the Assurer shall in no way alter or increase the applicable Limits of Liability, but the Assurer shall be liable for the full amount of loss up to, but not exceeding such Limit of Liability. In the event of loss which exceeds the applicable Limit of Liability, any deductible will be subtracted from the applicable Limit of Liability and not from the full amount of loss. 6) COVERAGE A. For account of whom it may concem. Loss;, if any, payable to Insured or order. Loss of or damage to lawful goods and merchandise in shipment consisting of GENERAL COMMODITIES caused by the perils insured against herein, occurring while in transit from POINT OF ORIGIN TO POINT OF ' DESTINATION. Within these limits this policy covers said property from the time of leaving the warehouse, store or factory of shipper and thereafter continuously, in ordinary course of transportation until same as delivered to warehouse, store or factory at destination, but in no event shall this policy cover property after the same has ceased to be at risk of the Insured. This policy insures the property only while in the custody of the motor truck, air freight, or railroad carrier(s) to whom the Insured has entrusted the shipment. The policy insures against all risks of physical loss or damage to the insured . property from external cause, except as specifically excluded. This policy is strictly a "following form" policy. In no event will this policy provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy. Fo The liability of these Assureds shall not exceed the lesser of the limits carded by each individual tracking line, at the time of loss or $250,000 in any one place at any one time or in any one disaster, either in case of partial or total loss, of any other costs and expenses, or all combined. VAL UA TION: The valuation of all goods and merchandise insured shall in no event exceed the invoice value of such merchandise at point of shipment, on date of loss, or there being no invoice, then for not more than the actual cash value of such merchandise at point of shipment, on date of loss, with proper deductible for depreciation, however, caused, and shall in no event exceed what it would then cost to repair or replace the same with memhandise of like kind and quality. In the event of loss or damage to machineW consisting of several parts, R_MIS shall only be liable for the value of the part or parts lost or damaged, or the invoice cost of the machinery, whichever is less. It is understood and agreed that this contingent insurance provides coverage for cargo only; restricted to RMIS approw~.d common and contract carriers, when the carrier is proven liable. 7) EXCLUSIONS - This policy does not insure: A. Shipments by mail, account, b~lls, deeds, evidence of debt, money, notes, securities or salesman's samples or shipments of HOUSEHOLD GOODS; Against loss of market, business interruption, loss, danmge or deterioration arising from delay, inherent vice, infestation, spoilage and loss from changes in temperature, a change in climate condition or refrigeration breakdown. Against loss or damage caused by or resulting from strikes, lockout workmen, or persons taking part in labor disturbances, or riots or civil commotions; loss of nuclear reaction or nuclear radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote, or be in whole or in part caused by, contributed to or aggravated by peril(s) insured against in this policy; however, subject to the foregoing and all provisions of this policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive contamination is insured against by this policy. Any fraudulent, dishonest or criminal act done by or at the instigation of any Insured, parmer or joint adventurer in or of any Insured, an officer, director or trustee of any Insured; pilferage, appropriation or concealment of any property covered due to any fraudulent, dishonest or criminal act of any employee or agent or any Ifisured while working or otherwise, or any person to whom the property covered may be trusted; E. Shipments that have been either refused or are returned by the receiver thereof, unless the same is the result of a peril covered by this policy. Fo Loss or damage caused by or resulting from (1) hostile or warlike action in time of peace or war, including action in hindering, combating or defending against an actual, impending, or expected attach, (a) by any government or sovereign power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or © by an agent of any such government, power, authority or forces; (2) any weapon of war employing atomic fission or radioactive force whether in time of peace or war; (3) insurrection, rebellion, revolution, civil war, usurped power, or action taken by governmental authority in hindering, combating or defending against such an occurrence, seizure or destruction ander quarantine or Customs regulations, confiscation by order of any government or public authority, or risk of contraband or illegal transportation or trade; 8) PREMIUM The Assured shall report to these Assurers a monthly list of clients and pay monthly premium of $22.50 per client per 500 registered carriers or part thereof. 9) DEDUCTIBLE None. 1 O) CONSTRUCTIVE TOTAL LOSS CLA USE No recovery for a Constructive Total Loss shall be had hereunder unless the property insured is reasonably abandoned on account of its actual loss appearing to be unavoidable, or because it cannot be preserved from actual loss without an expenditure which would exceed its insured value when the expenditure had been incurred. 11)PREMIUMPA YMENTS Premiums at the rates specified in the schedule attached hereto or as otherwise agreed shall be paid in cash and due immediately upon attachment of the risk; and the Company shall be entitled to premium on all shipments covered by the Policy, whether reported or not. 12) DECLARATIONS The ASSURED by the acceptance 0fthis Policy warrants and agrees to report all exposures in respect of which insurance is provided hereunder to the Company as soon as known to the ASSURED, or as soon thereafter as may be practicable. The Company or its agents shall be permitted to examine the books, accounts and records of the ASSURED for the purpose of tabulating and verif3,ing all exposures in respect of which insurance is provided hereunder. 13 ) ERR ORS AND OMISSIONS It is agreed that this insurance shall not be prejudiced by any unintentional delay or inadvertent omission in reporting hereunder, or any unintentional error in the description of the interest, vessel or voyage, if prompt notice be given the ASSURERS in all such cases as soon as said delay and/or omission and/or error becomes known to the ASSURED and adjustment of premium be made if and as required. 14) BROKERS AS A GENT FOR ASSURED If the laws of the state in which this policy is issued permit, it is agreed that the Assured's Brokers Marsh Inc. of Los Angeles, who caused this insurance to be written, or any substituted broker, shall be deemed to be and continue to be the Agent of the ASSURED for all purposes in connection with this insurance, including but not limited to, receiving notice of cancellation or for accepting or rejecting any proposed modification or alteration in the terms of this Policy. Any such notice given to the said Agent of any such cancellation, modification or alteration agreed to be the said Agent shall have the same effect as if given to, or agreed to by, the ASSURED. This agency shall continue until written notice of revocation by the ASSURED shall have been received by the ASSURERS, or by the office of the Royal & Sunalliance Ins. Co. this policy. If the laws of the state in which this policy is issued do not recognize the Broker as Agent for the Assured, then all such notices of cancellation, modification or alteration shall be mailed by the Assurers directly to the last known mailing address of the Assured with copies tot he Agent of record. 15) NOTICE OFLOS8 Warranted by the ASSURED that all claims for loss of, or damage to, the goods and/or merchandise insured hereunder shall be promptly reported to the Company. 16) PROOFS OF LOSS Proofs of loss and all bills for expenses must be approved by the Settling Agent of this Company, if there be one at or near the place where the loss occurs or the expenses are incurred or, if there be none in the vicinity, by the Correspondent of the Royal & Sunalliance Ins. Co., or the neareast accredited representative of Lloyd's London, and such agent or correspondent must be represented on all surveys. 17) NORMAL LOSS In the event of claim under this insurance for loss of and/or damage to memhandise and/or goods upon which there is a normal or usual loss, it is hereby mutually agreed that the claim shall be adjusted and the insured value of the part or parts lost or damaged shall be arrived at in the adjustment of the claim on the basis of expected outturn, whether or not the deduction of normal loss be provided in this insurance or be a trade custom. 18) PARTIAL LOSS In all cases of partial loss or damage caused by perils insured against, the loss shall be determined by a separation of the damaged portion of the insured property from the sound portion, and the amount of loss determined by: an agreed estimate (by survey) of the percentage of damage of such damaged portion, in which event the ASSURED will receive such percentage of the insured value of the damaged merchandise; or if such agreement is not practicable, then such damaged portion shall be sold either at public auction or by private sale (whichever the Company shall deem most advisable) for the account of the owner of the property, in which event the amount of the loss shall be the difference between the net amount so realized by the auction or sale and the insured value of the portion sold. 19) .PA YMENT OF LOSS In case of loss or other claim, such loss or claim to be paid in funds current in the United States to the ASSURED or order, or to bank, or bankers as their interests may appear, within thirty (30) days after submission to the Company or to its agent of proper proof of loss and proper proof of interest in the goods or merchandise so involved (the amount of premium, if paid, and ail other indebtedness due the Company by the ASSURED being first deducted). In the event that payment is required in other than United States currency, the rate of exchange shall be that in effect on the date the claim is settled. 20) SUE AND .LABOR CLA USE In case of any loss or misfortune, it shall be lawful and necessary for the ASSURED, his or their factors, servants and assigns, to sue, labor and travel for in and about the defense, safeguard and recovery of the goods and merchandise insured hereunder, or any part thereof, without prejudice to this insurance, to the charges whereof this Company will contributed according to the rate and quantity of the sum hereby insured; nor shall the acts of the ASSURED or this Company in recovering, saving and preserving the property insured, in case of disaster, be considered a waiver or an acceptance of an abandonment. 21) TIME FOR SUIT It is a condition precedent to may action, suit or proceeding for the recovery of any claim upon, under, or by virtue of this Policy that such action, suit or proceeding shall be commenced within twelve (12) months next after the date of the accident, disaster or event causing loss of, or damage to, 'Ihe insured goods or giving rise to a claim for sue and labor expenses or, in case of a claim for General Average contribution, salvage and/or special charges, next after the date of actual payment thereof by the ASSURED. Provided however, that if by the laws of the State or other place within which this Policy or any certificate thereunder is issued or where the action, suit or proceeding is instituted, such limitation is invalid, then any such claim shall become barred and void unless such action, suit or proceeding shall be commenced within the shortest limit of time permitted by the laws of such State or place to be fixed herein for the bringing of such suit, action or proceeding. 22) ASSIGNMENT VOID Warranted by the ASSURED that the assignment of this Policy or any insurable interest therein or the subrogation of any rights thereunder, if any, to any party without the consent of the Company shall render the insurance affected by such assignment or subrogation void. 23) SUBROGATIONAND IMPAIRMENT OFSUBROGATION It is agreed that upon payment of any loss, the ASSURED shall assign and subrogate to this Company all their rights against carriers, bailees and other third parties to the extent of such payments and shall permit suit to be brought in the ASSURED's name (but at this Company's expense), and the ASSURED further, agrees to render all reasonable assistance in the prosecution of said suit or suits: It is further a condition of this insurance that if the ASSURED or their assigns have entered or shall enter into any agreement whereby any carder, bailee or other third party is released from its liability for any loss, and/or waive, compromise, settle or otherwise impair any right of claim against such third party, to which this Company would be subrogated upon payment of a loss; then this Company shall be free from liability with respect to such loss, but premium shall not be affected. 24) OTHER INSURANCE A. If an interest hereunder is covered by other insurance, which attached prior to the coverage provided by this Policy, then this Company shall be liable only for the amount in excess of such prior insurance; and this Company shall return the premium upon so much of the sum insured as it shall be exonerated from by such prior insurance. B. If an interest insured hereunder is covered by other insurance which attached subsequent to the coverage provided by this Policy, then this Company shall nevertheless be liable for the full amount of the insurance, without right to claim contribution from such subsequent insurers, and shall accordingly be 7 C. Other insurance upon the property with the same attachment date as the coverage's provided by this Policy, shall he deemed simultaneous, and this Company will be liable for a ratable contribution to the loss or damage, in proportion to the amount for which this Company would otherwise be liable under this Policy, and will return to the ASSURED an amount of premium proportionate to such reduction of liability. 25) GOVERNING LAFF All questions of liability arising under this Policy are to be governed by the law and customs of England, except in the United States and its territories and possessions, where the law and customs of the United States will prevail. Authorized Representative REGISTRY MONITORING INSURANCE SERVICES, INC. February 20, 2002 Paul Winer Freight Express P.O. Box 597 Mechanicsburg, PA 17055 Re: RSA Claim#: 1080004877 Trucking Co.: Ramm Toor DBA R T Trucking Dear Mr. Winer: Royal Insurance Company of America has reviewed the documents on the above referenced claim. This claim has been fully investigated by Hambich & Evans LLP, on behalf of the motor truck cargo insurer for R T Trucking, North American Specialty Insurance Company. Freight Express, acting as the cargo broker, retained R T Trucking to transport the cargo. It has been reported that on or about February 7, 2001, an employee of R T Trucking abandoned his truck and trailer at the Flying J. Travel Truck Shop located in Albuquerque, New Mexico. The trailer contained approximately $47,742.25 worth of various frozen food products. By the time the truck and trailer were retrieved, the cargo was destroyed. It has been determined that coverage for this occurrence is not present under cargo policy POC103258 issued by Royal Insurance Company of America (RSA) for the period 3/1/00 to 3/1/01. Therefore, Royal Insurance Company of America declines indemnification for this loss. At this time, and based upon the information obtained as of the date of this letter, the denial consists of the following: · Coverage was denied by the trucking company's primary insurance due to violations of the policy conditions. Attached is a copy of their denial letter. 16000 Ventura ~' "~ Suite 814 * Encino, CA YJ ~16 5 (3~033-6350 · (800) ,,,;. ;'~?,t * Fax: (818) 933-635z Policy No. POC102629 is strictly a "following form "policy which in no event will provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy. Attached is a copy of the policy. RSA issued policy POC103258 that states in part: TERMS AND CONDITIONS: 2) GOODS INSURED Lawful goods and merchandise in shipment consisting of general commodities .... 6) COVERAGE E. This policy insures against all risks of physical loss or damage to the insured property from any external cause, except as specifically excluded. However, this policy is strictly a 'following form "policy. In no event will this policy provide coverage.for loss or damage caused by any peril not covered by each trucker's primary insurance policy." (Underlying added}. Should North American Specialty Insurance Company reconsider their denial for policy violations, please submit this information to RMIS so that we can forward it to RSA for reviewal and possible reconsideration of the current position. If you have knowledge o; information that could or would have bearing on this matter~ we encourage you to furnish us with this information. 'While RSA is willing to maintain a continuing dialogue with you and will certainly consider and evaluate whatever additional comments or futher information that you might present, il: should be recognized that such ongoing communications will be without prejudice to RSA's position as outlined in this letter. By identifying certain terms, conditions, provisions and exclusions of the RSA policy, RSA does not intend to and does not waive any other term, condition, provision or exclusion of the RSA policy or at law that may be applicable to this occurrence. RSA explicitly incorporates each and every term, condition, provision, and exclusion of the RSA policy in this denial and at law. Please do not hesitate to contact the undersigned if you have any questions. Sincerely, Registry Monitoring Insurance Services, Inc. Hayden Landon President 'P. OYAL & i/'/ SUNALLIANCI www.royalsu nalliance-usa.com Seattle Office Ocean Marine Claims Suite 2700 999 Third Avenue Seattle WA 98104-4000 CERTIFIED MAIL Phone 206 622-7791 Fax 206 689-0308 February 7, 2002 Hayden ~ Regis~-y'Monitoring Insurance Services, Inc. 1/5030 Ventura Blvd., Suite 787 ./"Sherman Oaks, Califomia 91403 Re: Claim #: 1080004877 Trucking Co.: Ramm Toor DBA R T Trucking Your Client: Freight Express Dear Mr. Landon: We have reviewed the documents on the above referenced claim. This claim has been fully investigated by Hambich & Evans LLP, on behalf of the motor truck cargo insurer for R T Trucking, North American Specialty Insurance Company. Your client, Freight Express, acting as the cargo broker, retained R T Trucking to transport the cargo. It has been reported that on or about February 7', 2001, an employee of R T Trucking abandoned his truck and trailer at the Flying J. Travel Truck Shop located in Albuquerque, New Mexico. The trailer contained approximately $47,742.25 worth of various frozen foods products. By the time the truck and trailer were retrieved, the cargo was destroyed. It has been determined that coverage for this occurrence is not present under cargo policy POC103258 issued by Royal Insurance Company &America (RSA) for the period 3/1/00 to 3/1/01. We must decline indemnification for this loss. At this time, and based upon the information obtained as of the date of this letter, our denial consists of the following: · Coverage was denied by the trucking ,' ' compan) s prtmary insurance due to violations of the policy conditions. Attached is a copy of their denial letter. · Policy No. POC102629 is strictly a 'following form "policy which in no event will provide coverage for loss or damage caused by any peril not covered by each truckers primary insurance policy Attached is a copy of the policy.. Page 2 ·" Registry Monitoring Services RSA issued policy POC 103258 that states in part: ,TERMS AND COIFDJ7701¥S: GOODS IIYSURED Lawful goods and merchandise in shipment consisting of genera/ commodities ..... COVERAGE E, This po/icy insures against all r/sk~ of physical Ios~ or damage to the /esured property from any extema/ cause, except as spec/fica//y exc/uded. However, this ~o//cv is strictly a "fo//ow/na fon-n#Do/Icy. .rn no event w/II this oo//c~ orov/de coveraae for/ess or damaae caused by a.y l~er/I not covered by each trucker's or/map/insurance DO#CF. "I'Und~t/~/nq added) Should North American Specialty Insurance Company reconsider their denial for policy violations, please forward this information to RSA so that it can be reviewed for possible reconsideration of our current position. If you have knowledge or information that could or would have beating on this matter, we encourage you to furnish us with this information. While we are willing to maintain a continuing dialogue with you and will certainly consider and evaluate whatever additional comments or further information that you might present, it should be recognized that such ongoing communications will be without prejudice to RSA's position as outlined in this letter. By identifying certain terms, conditions, provisions and exclusions of the RSA policy, RSA does not intend to and does not waive any other term, condition, provision or exclusion of the RSA policy or at law that may be applicable to this occurrence. RSA explicitly incorporates each and every term, condition, provision and exclusion of the RSA policy in this denial and at law. Please do not hesitate to contact the undersigned if you have any questions. Sincere}y, ~ Maria Frams~d Ocean Marine Claims Representative Marsh USA Inc/Bob Rappaport 777 South Figueroa St. Los Angeles, CA 90017 Freight Express 20 South 36th'Street Camp Hill, PA 17011 Ma~ 14 O1 12:34p robison johnson in~ svcs 816 ?BO 5?23 AAIS IM-7455 Ed 1.0 Page 1 of I MOTOR TRUCK CARGO LIABILITY BTN0000180-00 (The entries required to complete this endorsement will be shown below or on the "declarations".) COVERED PROPERTY Covered properly consists of: Only produce, oaoer oroducts, and canned qoeds. SCHEDULED LIMITS Vehicle Limit $100,O00Any one vehicle Terminal Limits Location No. Terminal Locations Not Covered Not Covered Limit Not Covered Newly Acquired Terminals Limit SNot Covered Any one newly acquired terminal location Freight Charges Limit SNot Covered Freight charges, any one occurrence Catastrophe Limit $200,000Any one catastrophe DEDUCTIBLE Deductible Amount $1,000 IM-74S5 Ed '1.0 Copyright MCMXCV, Arnencan Association of Insurance Sen'ices ~01/09/02 ~ED 14:56 FAX 707 426 241~ ~ichael Smith -~, :?70 October 22, 2001 Mr. Pu~m Toor :R.T. Tracking, ! 2~5 Fe. dora'Sueet Clovis, CA 93612 Re: ]in Re Claim ~R.T. Tr~nspm,': Insured : Ibm Toor dba ~ T. Trn~ N~ Poficy No. : ~BTN~OOOI~ ~11810~911~I) N~ Oa~ N~ ~ ,~106 Our ~le No. : ~46 On br. balfo£No~ American Speciali~k~ l~sur~c~ Company ("NAS"), this letter witl serve to a~knowled~e I!~ Claim of Loss 0~crc~mi~er "Claim') filed by the i~sured, Ram Teor d~ E.T. Trm~pott (botelnat~r '?..T. Tren~rt+' or "d:,~ b~red~) under Po{icy Numbor BTN-0000! BnsM ~lmn our rev~w and inve.~nfion oftbb CMIm, and as he~einuft~ dbcnsscd in more d~tn~, we regret to iuf~rm you that NAS muSt declinc your request for c~vern~ with top, ct to this St~.,iit~dly, ~a' investigation of the pies(lings end ~t~s pm~ '~ ~ CI~, ~ a. ~ N~ Poli~ d~ ~t p~H~ cov~e for ~a~ w~h ~ ~ ~ b. ~c NAS Policy do~ not ~e ~Sc ~or ~udule~ ~ of ~ i~m~ or ~ ~p~ oC~o ~. .01/09/02 WED ~4:56 ]FAX 707 ~2'6 2412 Michae} Smlch FR~F1:5~t~st C{.aims F6~ NO. :7~ '931 .]an. ~9 ~ 04:46P1'1 P2 Mt. Ram Too~ In ~e Claim of R. T. ~an~ort Octolga' 22, P~ 2 O~ ~ abo., Fdmamy 18. 2001. a Glai~n ~ fil~ by Uni~ Na~ml ~s~ ~ ~ ~c~, I~. ~i~t E~t~ for m~{.~ ~ F~ ~ ~ ~ H~ F~y Two ~11~ ~ Tw~ty~ ~am (~7,742.~. o~ li~ ~ ~s claim i~lMes ~ t~ of ~ f~ i~lu~Gg a ~m with S~ C~, ]~-, ~ ~ ~i~-~ Mm~i~l~ for ~, ~r thc I~ of~is i~ to tm~ ~'~8~ o~ by ~ ~m~t ~m ~ ~d for ~c ~ ~ was nut ~liv~ dmi~ion. Ou~ ~ut A~I 9, 2~1, ~ ~ ~t~ ~fs of Loss for ~e all~ t~R of a .~ ~ [~] ~ ~ ~ load, ~k, and t~tI~" in F~ ~ ~ ~'~ F~ ~Fwo ~t~ ~ T~ty-S~ ~ ~ ~i~ to ~ ~ ~ ~ ;~tmtial loss f~ t~ ~L Two ~1~ ~ ~ix ~ (S133,7a.2.2~. · WC ~c ~ ia~ ~ ~ or ~i P~ 7, 2~1, thc ~v~ oft~ ~. Stevcu N~ M~. ~u~, ~ ~e ~ ~s~ t~ ~ ~ck and Il. No~'th Amai~.Si~t~ Ilas~e Comity Poh~ BTN.O000180-00, d/'ccl/ve $~mb~ F~Z NO. : 77/) 531 1974 .Tan. ~J 2~Og. /~4:4~:~ P3 : TIg Motor Track Ca,go Liability COv~'~ge (Form IM-?4~O) provides, tn ~ ~ ~ ~11~: u~ 'yo~' ~, ~Y. m~ ~n~l that '~' b~ I~ obli~t~ ~ p~y ~ a ~ or ~n~t ~ und~ a bill of ~lfi~ ~ '~r' ~ol~ca of~y I~ or ~ula~on ~afl~ ~ ~ dehy in pe~mg d~i~ or s~tl~ of any ~m.~ "{!) Vchides_ ,We covcr tir~ctphysic~d ions e,~used bY ~, covered peril to pmpcr~ of oCacrs de~bed on the decleretio~s. desc~'~gt proper~ wbila in duc course of transit on or in vchiclc.'" Thc Policy also l~ovides: '"We' covc~ exi~l risks ofdi~ ph~al 1~ unl~ t~ !o~ is ~ ~ ~1 ~ a ~l that is ~clu~." Thc Poli~y e, ol~m the following FRX NO. : 770 ~)~.1. 1~37.~ ~] 004 following ex~lum{ons a~ply to tl~ Io~: Contamination or Dete~'iot~on -- 'We' do not pay for Io~s eause~[ by ~outnminatlon o~ deimlorntion inelad}ng cm~usion; deoay; thngu~; rnikt~v; mold; mt; ru~t; or a~l~ quality, timll, or weakness in ~he eov~r~l prope,y that ~t~_.~-s it to d~uu~8e or d~sttoy itt. elf. Criu~inal, Framiulent. or Dishonest Aetm -. 'Wa' do not pay for loss caused by or resulting fn~n criminal, fmud,~l~nt, disho~'~ o~ illcg~{ acts slo~c · or in ~ollusion with ~uothor by: 1) 'you'; 2) oth~ who have an tn~t in the property; 3) o~hcm to whom 'you' c,,tm~ the propcrly; ~t) your par~ ufli~o~, directors, trustees, or joint S) 1h¢ eml, lo,~oes or ,{~nt~ of tX 2), 3), ot 4) above, whether or not they are at work." Ltms of Use -- 'We' do not pay for loss caused by or resultin~ from ~he loss of use. bu~n~s inm'mptk~ dml.~ry, or loss ofmark~" IlL The, Motor Track Cargo [,ia~illty Co',.nn~ (Fo,n~ IM-7450) lX~O~d~ cov~tSe fe~ the lesal HabiHt~ of ~ ~ ~r Io~ ~ "~ ~' wMle ~ ~ ~ ~ ~i ~1 of ~ ~ ~{~ ~c ~ b~]~ legally obli~ ~ ~y ~ · ~ or ~n~t ~. Wc ha~ d~ ~ ~,: o~ of ~e c~. Na~ Foo~. ~ a elam 01/09/02 WED J4:58 FAX 707 426 24t2 {~ichael Sr.!,~b FIqX NO, :'r'/la 931 1974 ~l~ '/~U 57~3 p.5 Jar,. 09 '2'~;' 04:4'?f~ 1=5 Mr. RamToor In Re Claim of ~ ~ 22, ~1 Page 5 liability for tho los~ of Natio~al ]Foods' Pursuant to tl~ Policy exclu~ons ~ f~'th above, thc Policy docs not affgrd cayenne fro* dam~es "caused by or resulting f~om the ~ of uae, business intcnuplio~, delay, or 1o~ of market." Based on our C°vcragc inve. ali~ttimt, i~ is o~t under--rodin8 th~ Mr. Corona sufl~rad fi'om a health cmldi~io~ whloh impe~ld Itil ~llJli~ to timely ddlvet the cargo ta the the cargo att~l~ achadul~ d~tte~ Mt. Corona da~ve ~be car.-back Iow~a,d t~e WeM ~oast. addition, it is ottt understanding that the ~'go was left in the pa~ked Imile~ JR Nm M~ for seveta~ weeks ~ to rctr~ul by thc jnau~d, A~;ordin~ly, ar~y datlmge to tho car~ which occurred as a result of Mr. Comna's delay in deUve~ of the Seeds, or the {nsmed'a delay in retrieval of the truck and trsiler, would not be covete~ under me S bject Pelicy. Acoordfvt~y, ~AS ~ denies coverage ~ot this Cla~ putmant to thc "Loss et*Use" fi'audul~lL ~ ~ ~ Of~e ~ m ~y ~bye~ oft~ i.~. ~t to ~ in~ ~d Mr, ~ ~y, m ~e cxt~l ~ this Ires was ~us~ ~, or ~It~ GEHIiI. RA!. R£.qliIIVATlftN I)~' C. ROIINI)~ The -bovo apeoific'dls~usiion o£ t'aala and Policy provisions is rot intended to be an exl~uS~Tv~ list of the~easotm for dmiy~n8 coverage for thc Claim filed by ibc lrlmnl~ bat rather are the specific reasons known to NAS at this time. NAS expressly rcservea the right to further supplement the reasons far de. al. of cayuSe in the event that additional facts be, ca~e available or it is necessary to amend, m0dlF/, supplcmmt or expand ~'~ denial, and NAS expresslyreserves thc 01/09/02 ~/ED 14:5& F~ ?07 426 24J2 ~ichaeJ SmtLh Mr. Ram TOOt In Re Claim of iC~'. Transport O~tober 2Z. 2001 Pa~ 6 Ve CONCLUSIONS AND RRCOMMENDATIONS Shoulg you have other information e¢ dolmen~lion which l/ou hellene woukl allot the conolusions eon~l h~-'in, we lmst t~ yc~l wi{l immediatel~ lbnvani mh informatkm Via th[~ Offi~, hi tb.e event that ~ addlttor~! infonuatjon o~ ~l;mt~ti~ would sugg~ thai eom-ailS would bo afforded raider h~o terms and conditioas of thc poli~y, NA~ hereby z~erves the right to arum other ami fmthcr i:munds in response to su~ Claim. Ca!t~omia Ca~d~ o. fRe~atlom, Title 10, Chapter 5, Set. lion 2695.7(b) requir~ that we adviae you t~a you may I~ve this ~ reviewed by the California Depat~,eut of~, which may be ~ea~hed a~ (800) ~27-HBLP or (213) 897'$961- Tiw Dcpamnent'$ add~ess is CaJilbraia Departmeet of )n~lmn~ Co, s~ Services Division, 300 South gp~g Stm~t, I Ith'l;~oo~, Los A~elca. Cali~a 90013. C~e yo~ hlw~ r~c~iv~ this letter, pkme do not hesitatc to ¢ontsol me sheuki !a~ h~ any quesiious Oe ~ ~ lh~ foregoing martin. Very tndy yourm, M~ ~ Moore North Americaa 8p~oisliy lasma~ Company 650 B~ Su~ ~,~ 0310i Ma~ 1~ Oi 12:35p robi~on johnson"ins svcs 916 ?80 5?23 ' p.S AAIS IM-7461 Ed t.0 Page ~1 of I This endorsement changes the policy - PLEASE READ THIS CAREFULLY - REFRIGERATION BREAKDOWN ENDORSEMENT BTN0000180.00 (The entdes required to complete this endorsement will be shown below or on the "declarations".) SCHEDULE Limit for refrigeration breakdown: any one conveyance any one catastrophe Refrigeration Deductible $100,000 $200,000 $2,500 ADDITIONAL COVERAGES ADDITIONAL CONDITIONS Refrigeration Breakdown -- When the refrigeration or heating unit of a vehicle transporting covered property has a sudden or accidental breakdown or malfunction, "we" cover direct physical loss to covered property caused by spoilage or contamination including decay, fungus, mildew, mold, or rot. "We" do not pay for loss caused by breakdown or malfunction that results from the failure to maintain adequate fuel levels for the refrigeration or heating unit, Inspection and Records - This coverage is void if "you" or a service representative do not inspect a vehicle's refrigeration or heating unit at least once each month. "You" must maintain a record of each inspection and retain the records for at least one year. "You" must provide "us" with all records that relate to a loss and permit copies and abstracts to be made from them. IM-7461 Ed 1.0 CopYright MCMXCV Amedcan Association of insurance Sen, ices In Witness Whereof, the issuing Co~ppany has caused this policy to be signed officially below and countersigned on the Declarations psge by a duly authorized representative of said Company. Assistant Secretary Robert M. So'litro President North American Specialty Insurance Company NA~-POL-O0 ; .~ AAIS CL 0162 10 98 Page 1 of 3 This endorsement changes the policy - PLEASE READ THIS CAREFULLY - AMENDATORY ENDORSEMENT CALIFORNIA The following applies to all risks except those described in paragraph 2. Under the Common Policy Conditions, the Cancellation condition is deleted and replaced by: Cancellation and Nonmnewal -"You" may cancel this policy by returning the policy to "us" or by giving "us" written notice and stating at what future date coverage is to stop. Dudng the first 60 days this policy is in effect, "we" may cancel it or one or more of its parts fur any reason. "VVe" will give "you" notice at least ten days befure cancellation is effective. After this policy has been in effect 60 days, or if it is a renewal of a policy issued by "us", "we" may cancel only fur one or more of the following reasons: a. the premium has not been paid when due; a judgment by a court or an adrn, inistrefive tribunal that "you" have violated a law of this state or the United States involving an act that materially increases a hazard insured against; discovery of fraud or material misrepmsectafion committed by an insured or an insurecrs representative in: 1) obtaining this insurance; or 2) pursuing a claim under this policy; discovery of willful or grossly negligent acts or omissions, or of violations of state laws or regulations establishing safety standards by "you" or "your' representative, that materially increase a hazard insured against; failure by "you" or "your" representative to implement reasonable loss control requirements to which "you" agreed to as a condition of the issue of this policy, or which were required in order to qualify for a particular rate or rating plan, if the failure materially increases a hazard insured against; a determination by the Insurance Commissioner that the loss of, or changes in, "our" reinsurance would threaten "our" financial integrity or solvency; a determination by the Insurance Commissioner that a continuation of this policy would place "us" in violation of the, law or that continuation of coverage would threaten "our" solvency;, or h. a change made by "you" or "your' representative in the activities or property which results in a materially added, increased, or changed hazard that is not included in the policy. If the premium has not been paid when due or if fraud is discovered, "we" will give "you" notice at least tan days before cancellation is effective. If "we" cancel this policy for any other reason, "we" will give "you" notice at least 30 days before cancellation is effective. "We" may cancel this policy by delNering or mailing written notice to the producer of record and to "your" mailing address last known to "us", The notice will state the data that the cancellation is effective and include the reason for cancellation. "Your" return premium, if any, will be calculated according to "our" rules. It will be refunded to "you" with the cancellation notice or within a reasonable time. Payment or tender of the unearned premium is not a condition of cancellation, r~a~ lq O1 12:36p robiso~, johnson ins Svcs S1G 780 5723 ' p.8 AAIS CL 0162 10 98 Page 2 of 3 "We" may elect not to renew or continue this policy by delivering or mailing written notice to the producer of record and to "your" mailing address shown in the policy. "We" will give "you" notice at least 60 days, but not more than 120 days, before the expiration or anniversary date, The notice will include the reason for "our' action. '1Ne" will give "you" the same number of days notice if "we" offer to renew this policy subject to a reduction of limits, elimination of coverages, an increase in deductibles, or an increase of more than 25% in the rate upon which the premium is based. '~/Ve" are not required to send a notice of nonrenewal if: this policy is transferred to or renewed by another "insurer' in "our" insurance group without changing policy "terms" or the rate on which the premium is based; the policy has been extended for 90 days or less after notice was given in accordance with the requirements of this condition; "you" have obtained replacement coverage or have agreed in writing to obtain replacement coverage within 60 days of the termination of this policy; this policy was issued for a term of 60 days or less and "you" ware notified when the policy was issued that it would not be renewed; "you" request a change in "terms" or hn~=rds covered within 60 days of the end of the policy period; or in accordance with the requirements of this condition, "we" have made a wdtfen offer to renew the policy with changed "terms" or at a change to the rate on which the premium is based. The following condition applies to 1-4 family dwellings used only for:rasidential purposes. Under the Common Policy Conditions, the Cancellation condition is deleted and replaced by: Cancellation and Nonrenewal - "You" may cancel this policy by retuming the policy to "us" or by giving "us" written notice and stating at what future date coverage is to stop. Dudng the first 60 days this policy is in effect, "we" may cancel it or one or more of its parts for any reason. Except in cases in which "you" terminate the policy, "we" may not cancel this policy solely because: 1) "you" have accepted "our" offer of earthquake coverage; or 2) of corrosive soil conditions, if this policy contains an exclusion for payment of loss for that peril. '".Ne" will give "you" notice at least ten days before cancellation is effective. After this policy has been in effect 60 days or more, or if it is a renewal of a policy issued by 'us", '~ve" may cancel only for one or more of the following grounds: 1) the premium has not been paid when due; 2) "you" have been convicted of a crime involving an act that increases a hazard insured against; 3) discovery of fraud or material misrepresentation by an insured or an insured's representative in: a) obtaining this insurance; or b) pursuing a claim under this policy;, AAIS CL 0162 10 98 Page 3 of 3 4) discov, e~ of grossly negligent acts or omissions committed by "you" or "your' representative that increase a hazard insured against; or 5) physical changes in the property which result in the property becoming uninsurable. If the premium has not been paid when due, 5ye" will give "you" notice at least ten days before cancellation is effective. If "we" cancel this policy for any other reason, '~ve" will give "you" notice at least 30 days before cancellation is effective. If this policy is written for a term longer than one year, "we" may cancel for any reason by giving "you" notice at least 45 days before the anniversary date. Except in cases in which "you" terminate the policy, "we" may not cancel this ' policy solely because "you" have accepted "our~ offer of earthquake coverage or because of corrosive soil conditions, if this policy contains an exclusion relating to that peril. 'We" may cancel this policy by delivering or mailing written notice to "you" at the address shown in the policy, "Our" notice will show the grounds for cancellation. "We" will provide "you" with the specific reason(s), in writing, within 20 days of "your" written request. '3'ou" must request the specific reason(s), in writing, within 15 days of the date of cancellation. If 5ye" decide not to renew or to renew with changes in policy "terms", "we" will deliver or mail written notice to "you" at the mailing address shown in the policy. '1Ne" may not refuse to renew this policy solely because "you" have accepted "our" offer of earthquake coverage or. because of corrosive soil conditions, if this policy contains an exclusion relating to that pe~l. "We" will give "you" notice at least 45 ,:lays before the policy expires. "We" will provide "you" wfth the reason(s), in writing, within 20 days of "your" whtten request. If this policy is written for a term of less than one year, ~ve" will not refuse to renew until the end of the one-year period that begins with the original or renewal effective date. '~'our" return premium, if any, will be refunded at the time of cancellation or within 25 days after cancellation is effective. Payment or tender of the unearned premium is not a condition of cancellation. CL 0162 10 98 Cot:~tght, American As~tJon of Insurance Sewices, 1998 Ma~ 1~ O1 l~37p robis~n johnson ins s~os ~lG ?80 S723 polo / AAIS CL 0100 03 99 Page I of I COMMON POLICY CONDITIONS Assignment -'This policy may not be assigned without "our" written consent. Cancellation - "You" may cancel this policy by retuming the policy to "us" or by giving "us" a written notice and stating at what future date coverage is to stop. "VVe" may cancel this policy, or one or more of its parts, by written notice sent to "you" at "your' last mailing address known to "us". If notice of cencellation is mailed, proof of mailing will be sufficient proof of notice. If "we" cencel this policy for nonpayment of premium, '~ve" will give "you" notice at least ten days before the cancellation is effective. If 'we' cancel this policy for any other reason, 'we' will give 'you' notice at least 30 days in advance of cencellation. The notice will state the time that the cancellation is to take efft~ct. 'Your' return premium, if any, will be celculated according to 'our' rules. It will be refunded to *you' with the cancellation notice or within a reasonable time. Payment or tender of the unearned premium is not a condition of ~ncellation. Change, Modification, or Waiver of Policy Terms - A waiver or change of the "terms" of this policy must be issued by "us" in writing to be valid. Inspections - "We" have the dght, but are not obligated, to inspect "your' property and operations at any time. This inspection may be made by 'us" or may be made on "our" behalf. An inspection or its resulting advice or report does not warrant that "your' property or operations are safe, haa/thful, or in compliance with laws, rules, or regulations. Inspections or reports are for "our" benefit only. Examination of Books and Records - "We" may examine and audit "your" books and records that relate to this policy during the policy beried and within three yearn after the policy has expired. CL 0100 03 99 AAIS IM-7450 Ed 1.0 Page 1 of 8 MOTOR TRUCK CARGO LIABILITY COVERAGE AGREEMENT In return for "your" payment of the required premium, "we" provide the coverage described herein subject to all the "terms" of the Motor Truck Cargo Liability Coverage. This Coverage is also sut~ject to the "declarations" and additional policy Conditions relating to assignment or transfer of rights or duties, cancellation, changes or mociifications, inspections, and examination of books and records. Endorsements and schedules may also aPl~y. They are identified on the "declarations". Refer to Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or boll DEFINITIONS 8~ 5. "Limit" means the amount of Coverage that applies. 6. "Pollutant~ means: any solid, liquid, gaseous, thermal, or radioactive irrffant or contaminant. including acids, alkalis, Chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be disposed of as wall as recycled, reclaimed, or reconditioned. electhcal or magnetic emissions, whether visible Or invisible, arid sound emissions. "Specified perils" means fire; lightning; windstorm; hail; collision, overturn, or derailment of a transporting conveyance; collapse of a bridge or culvert; and theft. "Terms" means all provisions, limitations. exclusions, conditions, and definitions that apply. The words "you" and "your" mean the persona or organizations named aa the insured on the "declarations'. The words 'we", "us", and "our" mean the Company providing this coverage. "Any one vehicie" means any one vehicle, truck, lmiler, semitrailer, or combination of these pulled by one power unit. "Declarabons" means all pages labeled Declarations, Supplemental Declarations, or Schedules, which pertain to this Coverage. COVERAGE '1Ne" cOver "your" legal liability for loss to covered property while under "your" care, custody, and control that "you" become legally obligated to pay as a Common or Contract carder under a bill of leding, Contract of carriage, or shipping receipt issued by "you". 'l/Ve" do not pay for costs, expenses, fees, fines, panalfies, or damages resulting from "your" violation of any law or regulation relating to any delay in payment, denial, or settlement of any claim. ~ l~ ui l~:d~p ro~lson jo~nso~ ln~ svcs ~16 780 5~3 p.12 AAIS IM-7450 Ed '1.0 Page 2 of 8 PROPERTY COVERED Vehicles - "We" cover direct physical loss caused by a covered peril to property of others described on the "declarations". '~/Ve" cover described property while in due course of transit on or in "any one vehicle". Terminal Locations - When a "limit`. is indicated for a terminal location, "we" cover direct physical Iosscaused by a covered peril to described property while at a terminal location described on the "declarations" or within 100 feet of the described terminal. PROPERTY NOT COVERED 10. Property Not Under a Bill of Lading - ~ "We" do not cover property for which no bill of lading or shipping receipt has been issued. Property On Vehicles - ''we" do not cove~: property in or on ~'any one vehicle" if the~ vehicle is under "your'' control and has remained at any dock, depot, station, terminal, or other location for more than 72 hours after arrival. Storage - ''we" do not cover property in due course of transit that is held in storage unless storage ia specified in a bill of lading, shipping receipL or contract of carriage. Vehlcte~ - "We" do not cover transporting vehicles including tarpaulins. Art - "We" do not cover objects of art including paintings and statuary. Contraband - "We" do not cover contraband or property in the course of illegal transportation or trade. Jewels/, Stonee, and Metals - "We" do not Cover jewelry, precious or semi-precious stones, gold, silver, platinum, or other preciou~ metals or alloys. Live Anlmal~ - "we" do not cover live animals including cattle or peurm/unisys death is caused or made necessary by a "sp~ peril". 5.. Money and 8ecu/ilMI - "we" do not cover accounts, bills, currency, food stamps, or other evidences of d~bt. lottery tickets not held for sale, money, notes, or securities. Other Cardem - '~Ne" do not cover property while in the custody of any other carder if "you" have waived or othemnse made unenforceable "your'' subrogation dghts. ADDITIONAL COVERAGES DebH~ Removal - ''we" pay the cost to remove the deb~ of covered ~roperty that is caused by a covered peril This coverage does not include costs to: a. extract "pollutants" from land or water;, or b. remove, restore, or replace polluted land or water. "We" will not pay any more under this coverage then 25% of the amount "we" pay for the direct loss. "We" will not pay more for loss to property and debris removal coml~ined ~ lhe "limit' for the damaged However, "we" pay an additional amount of debris removal expense up to $5,000 when the debds removal expense exceeds 25% of the amount "we" pay for direct loss or when the loss to property and debris removal combined exceeds the "limit" for the damaged property. Ma~ 14 O1 12:38p roDl$on jot~nson ins svcs ~l~ */80 5'z~3 p. i3 AAIS IM-7450 Ed 1.0 Page 3 of 8 *'We" do not pay any expenses unless they are reported to "us" in writing within 180 clays from the date of direct physical loss to covered property. Freight Charges - ''we" pay freight charges that are due "you" which become uncollectible because of a diract physical loss to covered property caused by a covered peril. The most ''we" pay under this additional coverage for all freight charges in any one loss is the lesser of:. a. the I'mit" ndicated on the "declarations" for freight charges; or b. $2,500. 3. Newly Acquired Termlual~ - When coverage is indicated for terminal locations, "we" cover terminal locations that "you". acquire dudng the policy period. This coverage applies for 60 days from the date "you" acquire the terminal or until "you" report the newly acquired location to "us", whichever comes first. "You" must pay any additional premium due from the date 'you" acquira the terminal location. The most "we" pay for any newly acquired terminal in any one Io-~ is the lesser of:. a. the "limit" indicated on the "declarations" for Newly Acquired Terminals; or b. $50,000. 4. Pollutant Cleanup and Removal -"We" pay "your" expense to exlmct 'pollutants" from land or water if the discharge, dispema/, seepage, m/gration, release, or escape of the "pollutants' is caused by a covered peril that occum during the policy period. The expenses are paid only if they are reported to "us" in writing within 180 days from the date the covered peril occurs. "We" do not pay the cost of testing, evaluating, observing, or r~.cording the existence, level, or effects of "pollutants". However, "we" pay the cost of tasting which is necessary for the extraction of "pollutants" from land or watar. The most"we" pay foreach site or Ioca~n is .$ ! 0,000 for the sum of all such expenses arising out of a covered pedl occurring dudng each separate 12 month period of this PERILS COVERED "We" cover external risks of direct physical loss unless the loss is limited or caused by a peril that is excluded. PERILS EXCLUDED 1. "We" do not pay for loss if one or more of the following exclusions apply to the toss, regardless of other causes or events that loss before, at the same time as, or after the excluded causss or events. a. Civil Aul~orlty - "We" do no~ pay for loss caussd by order of any civil authority, indudlng seizure, confiscatfon, destmcl~on, or quarantine of property. "We" do Pay for Iosa resu#ing from acts of dsslruct~ by the civff authority to prevent the spread of firs, unless the fire is caused by a peril excluded under Ibis coverage. Ma~ 14 01 1~:33~ robison johnson ins svos 916 ?80 57~3 $$.14'~ AAIS IM-7450 Ed 1.0 P~ge 4 of 8 Nuclear Naz~ - '~Ne" do not pay for loss caused by or resulting from a nuclear reaction, nuclear radiation, or radioacbve contamination (whether controlled or uncontrolled; whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. "VVe" do pay for direct lose by fire resulting from the nuclear hazard. c. War - '~Ve" do not pay for loss caused by war. This means: 1) decl~,ed war, undeclared war, civil war, insurrection, rebellion, or revolution; 2) a warlike act by a militay force or by military personnel; 3) the destm~on, seizure, or use of the property for a military purpose; or 4) the discharge of a nuclear weapon even if it is accidental. "VVe" do not pay for loss or damage if one or more of the following exclusions apply to ttm loss. Contamination or DeteC, oralion - "~Ne" do.not pay for lose mused by contamination or deterioration including corrGsion; decay;, fungus; mildew;, mold; mt; mst; or any quality, fault, or weakness in the covered property that causes it to damage or destroy itself. b. Criminal, Fraudulent, or Dbhoneat Acta -"We"do not pay for loea caused by or resulting from criminal, ~udulont dishonest, or il~jal acts alone or in collusion ~ another by:. "yOu": 2) o~,ers who have an interest in the property; 3) others to whom "you" entrust the property; 4) "your" partners, officers, directors, trustees, or joint adventurers; 5) the employees oragents of 1), 2), 3), or 4) above, whether or not they are at work. This exclusion does not apply to acts of deslzucfion by "your' employees, but '~ve" do not pay for theft by employees. Lae~ of Use - "We" do not pay for loss caused by or resulting from loss of use, business interruption; delay, or ~ of markeL Pollut~nt~ - "We" do not pay for lose caused by or resulting from release, discharge, seepage, migration, dispersal, or escape of "pollutants" unless the release, dLsc..~rge, seepage, migration, dlapersel, or escape la caused by a "specified peril". "We" do pay for any resulting loss caused by a "specified padr'. e. Temperature/Humidity - "We" do not pay for m caused by humidity, . dampness, dryness, or changes in or extremes of temperature. Volunlary Pitting - "We" do not pay for loss caused by or resulting from voluntary par'dng with ti'de to or possession of any property because of pretense. na~ 1.~ u1 I~-'~P ro~ls~: johnson iKN~ SVOS ~iS 780 5~3 p.15 AAIS IM-7450 Ed 1.0 Page 5 of 8 WHAT MUST BE DONE IN CASE OF LOSS 1. Notice - in case of a loss "you" must' g e us or our' agent prompt nol~,e including a description of the property involved ("we" may request written notice); and b. give notice to the police when the act that causes the loss is a crime. Protect Property - "You" must take all reasonable steps to protect cove~::l property at and after an insured loss to avoid further !oss. 'INe" do pay the reasonsbie costs recurred by "you" for necasse~/repairs or emergency measures performed solely to protect Covered property fi'om further ~amage by a podl insured against ifa peril insured against has already caused a loss to Covered property. "you" must keep an accurate record of such costs. However, 5ye" do not pay for such repairs or emergency measures performed on property which has not been damaged by a peril insured against. This does not increase "our" "limit". Proof of Los~ - "you" must send "us", within 60 days after "our" request, a signed, sworn proof of bea. This must incJude the following information: a. the time, place, and droumstances of the loss; b. other ~ of insurance tflat may Cover the loss; c. your" interest and the ~ntoresta of all others in the property involved, incJuding ail mortgages and liens; estimates, specifications, inventories, and other reasonable information that "we" may require to set~e the loss. Examination - "You" must submit to examination under oath in matters Connected with the loss as often as reasonably request and give "us" sworn statements of the answers. If more than one person is examined, "we" have the dght to examine and mcaive stetoments separately and not in the presence of others. 5. Reco~la - "You" must produce records, including tax returns and bank microfilms of all cancelled checks relating to value, loss, and expense and permit Copies and ex,acta to be made of them as often as "we" reasonably request 6. Damaged Property - If the damaged and undamaged property is in "your" care, custody, or Control, "you" must exhibit the property as often as "we" reasonably request' and allow "us" to inspect or take samples of the property. 7. Volunteer Payment- - "You" must not, except at "your" own expense1 voluntarily ~ake any payments, assume any .obligations, pay or offer any rewards, or ~ncur any other expenses except as respects protecting property from further damage. 8. Abandonment - "You" may not abandon the property to "us" without "our" written conearff. 9. Cooperation - "you" must cooperato with "us" in pedorming all acts required by this po /. AAIS IM-7450 Ed 1.0 Page 6 of 8 VALUATION Invoice - The value of covered properS/is bas~'~d on .the amount indicated on the invoice. No Invoice - If there is no invoice, the value of covered property will be based on the actual cash value at the time of the loss (with a deduction for depreciation): The value will not exceed the value, if any, stated in bills of lading or shipping receipts. HOW MUCH WE PAY 1. Ineureble Interest - '%Ye" do not Cover more than "your" insurable interest in any property. Deductible - "We" pay only that part of "your" loss over the deductible amount indicated on the "declarations" in any one OCCUITenca. Lue~ Settlement Terme - Subject to paragraphs 1. 2,4., and 5, under How Much We Pay, "we" pay the lesser o~. a. the amount determined under Valuation; the cost to repair, replace, or rebuild the property with material of like kind and quality to the extent practicable; or the "limit" that applies to "any one vehicie" or terminal location indicated on the "declarations". In no event will "we" pay more than the catastrophe "limit' indicated on the "declarations" regardless if a loss involves: 1) one or more terminal locations; or 2) any c6mbinafion of "any one vehicle" or terminal locations. When a truck, trailer, or semi-trailer is s~tuated within a terminal building or within 100 feet of a terminal building, the "limit" for terminal locations applies, in no event will "we" combine the "limit" for "any one vehicle" with the "limit" for terminal locations. 4. Insurance Under More Than One ' Coverage - If more than one coverage of this policy insures the same loss, "we" pay no more than the actual claim, loss, or damage sustained, Ineuranca Under More Than One Policy - "You" may have'another policy Subject to the same "terms" as this policy. If "you" do, "we" will pay "our" share of the covered loss. "Our" share is the propo~on that the applicable "limit" under this policy bears to the "limE' of all policies covering on the same ~esle. If there is another policy covedng the same loss, other than that described above, "we" * pay only for the amount of covered loss in excess of the amount due from that other policy, whether "you' can collect on it or not. Rut "we' de not pay more than the applicable "limit", LOSS PAYMENT 1. Our Op~ona - 'I/Ve" have the following optlone: a. pay the value of the loss; b. pay the cost of repairing or replacing the loss; rebuild, repair, or replace with prop~ of like kind and quality, to the extent practicable, within a reasonable time; d. take all or any part of the damaged property at the agreed value. ,'1~ l~ Il l~: ~up ro~lson jonnson ins ~¥os S16 ?BO 5?23 p. 17 ' AAIS IM-7450 Ed 1,0 Page 7 of 8 "We" must give "you" notice of "our" intent to rebuild, repair, or molace within 30 days after receipt of a duty executed prOOf of loss. 2. Payment of Los~ - An insured loss will be payable 30 days after a satisfactory proof of loss is received or a final judgment award has been entered. It a loss has been paid or made good by others "we" will not be liable for any part of the loss. OTHER CONDITIONS Apprafael - If"you" and "we" do not agree on the amount of the Iosa or the actual cash value of covered property, either par~ may demand that these amounts be determined by appraisal. If either makes a written demand for appraisal, each will select a COmpetent, independent appraiser and notify the other of the appraiser's identity within 20 days of receipt of the written demand. The two appraisers will then select a competent, Jmpa~al umpire. If the two appraieem are unable to agree upon an umpire within 15 days, "you'! or "we" can ask a judge of a court of record in the state Where the property, is located to select an umpire. The appraisem will then determine and state separately the amount of each loss, The appraisers will also determine the value of covered pmparty items at the time of the loss, if requested. If the appraisem submit a written report of any uponagreemant to "us", the amount agreed will be the amount of the loss. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. Wdttan agreement se itemized and signed by any two of these three sets the amount of the loss. Each appraiser will be paid by the party selecting that appraiser. Other expenses of the appraisal and the compensation of the umpire vail be paid equally by "you" and "us". Conformity With Statute - When a condition of this Coverage is in conflict {vith an applicable law, that COndition is amended to conform to that lew. .Estatee - This provision applies only if the ~nsurad is an individual. On "your" death, 5~e" cover "your" legal rapresefltative as an insured. This person or organization is an insured only with respect to property covered by this coverage. This COverage does not extend past the policy period indloated on the #d ectarations. 4. Mleral~ssentatlon, Concealment, or Fraud - This Coverage is void as to "you" and any other insured if, before or after a loss: "Or * a. "you any other Insured have willfully concealed Or misrepresented: 1) a material fact orcimumstance that relates to this insurance or the subject thereof;, or 2) ''your" interest herein; or b. there has been fraud or false swearing by "you" Or any other Insured with regard to a matter that relates to this insurance Or the subject thereof. 5, P°#eY Pen~xl - "We' pay for a coverad loss that occurs dudng the policy period. 6. Reeove~ee _ If "we" pay for a loss an~l lost or damaged property is recovered, or payment is made by those responsible f~r the loss, the following provisions apply: a. "you" must notify "us" promptly if "you" recover property or receiVe payment; AAIS IM-7450 Ed 1.0 Page 8 of 8 "we" must notify 'you" promptly if "We" recover property or receive payment; any recovery expenses incurred by e~ther are reimbursed first;, if the claim paid is less than the agreed loss due to a deductible or other limiting "terms" of this policy, any recovery will be pro rated between "you" and "us" based on "our" respeclNe interest in the loss. Restoretlon of Limits - ^ loss '~- pay under this Coverage does not reduce the applicable "limits". Subrogation _ If"we" pay for a loss, "we" may require "you" to assign to "us" "your" dght of recovery against others. "You" must do all that is necessary to secure "our" fights. "We" do not pay for a loss if"you- impair this right to recover. Suit Agalnet Us - No one may bring a legal action against "us" under this Coverage unless all of the "terms" of this coverage have been complied ~ and the suit has ~ brought w~thin two years 10. ,a, fter "you" first have knowt~l,,e -,, ,,-- ,------' ~r any applicable law mak~ this limitation invalid, then suit must begin within the shortest period permitted by law. No one has the right under this Coverage to !o!n "u.s" as a party or otherwise bring "us" into a legal aclton asking for damages from "you". Legal action may be brought against "us" to recover an agreed upon settlement on a final judgment award, subject to the "terms" of this Coverage. Territorial Llmlt~ - "We" cover proparty while it is in the UnIred Stst~ of America, its territories and possessions, Canada, and Puerto Rico. 11. Your Relmbumement To U~ - "You" will reimburse "us" if "we" pay a loss because of any endomemant to this policy:. a. that is required by law or any regulatory authority;, and · b. which extends "our" liability for loss. IM*.7,1.SO Ed t.0 C.,op,,,t~ MC44XCV ~nef~ln ~ Of In~uranc~ Senn~ AAIS IM-7462 Ed 1.0 Page.__._.~l of I This endorsement changes the policy - PLEASE READ THIS CAREFULLY - · LOADING AND UNLOADING ENDORSEMENT ADDITIONAL COVERAGES Loading and Unloading - "VVe" pay for loss Caused by a COvered property while it is being loaded into or covered peril to .... unloaded from y one vehicle. "an · · 'VVe only provide Coverage under this provision if the Covered property is loaded from or unloaded onto a sidewalk, street, loading dock, or similar area that is adjacent to "any one vehicle". IM-7462 Ed 1.0 Copyright MCMXcv, Amedcan ASsoclalJon of Insurai~ca Services AAIS This endorsement changes IM-7466 Ed 1.0 the policy Page 1 of 1 - PLEASE READ THIS CAREFULLY - PROPERTY EXCLUDED PROPERTY NOT COVERED "We" do not cover the property described below (indicate by checking below): IX] 1. livestock or poultry IX] 2. liquor IX] 3. tobacco products [X] 4. furs or fur trimmed garments Ix] s. eggs We" do not Cover the following property for loss caused by or resulting from theft: IX] 1. non-ferrous metal in scrap and or ingot form, silks, garments, ammunition, firearms, cameras, toys, seafood, Cosmetics, drugs, rubber tires, computers and Computer parts or related components, and electronics consisting of but not limited to video game players, cartridges and accessories, televisions, VCR's, video recorders, stereos, DVD and CD players. cop~ MCMXCV, Amatcan Asax~t~n ~ Ineu~an~e SenSes FREIGHT EXPRESS, 1NC. : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION - LAW : No. 03-835 Civil Term RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendams. CERTIFICATE OF SERVICE I, Thomas A. Archer, Esquire, hereby certify that I served a copy of the foregoing document upon the following via First-Class Mail, postage prepaid: Mr. Ram Toor, d/b/a RT TRANSPORT 2595 Coventry Blvd. Clovis, CA 93612 Registry Monitoring Insurance Services, Inc. C/o Thomas J. Williams, Esquire MARTSON, DEARDORFF, WILLIAMS &OTTO 10 East High Street Carlisle, PA 17013 Royal Insurance Company of America C/o Thomas L. Isenberg, Jr., Esquire DUANE MORRIS 305 N. Front Street, 5t~ Floor P.O. Box 1003 Harrisburg, PA 17108-1003 Dated: /L go. ~'~ ~ oma~A. Archer~, Esquire FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a/RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 03-835 CIVIL ACTION - LAW jURy TRIAL DEMANDED ANSWER OF DEFENDANT REGISTRY MONITORING INSURANCE SERVICES, INC,a TO PLAINTIFF'S AMENDED COMPLAINT. AND NOW, comes DEFENDANT REGISTRY MONITORING INSURANCE SERVICES, INC. (hereinafter sometimes referred to RMIS), by and through its attorneys, MARTSON DEARDORFF WILLIAMS & OTTO and incorporates herein by reference thereto its previously filed Answer with Cross Claim and New Matter to Plaintiff's Complaint, with the addition of the following: 5. It is denied that Defendant RMIS regularly conducts business in Cumberland County, Pennsylvania. WHEREFORE, Defendant Registry Monitoring Insurance Services, Inc. demands judgment against Plaintiff. MARTSON DEARDORFF W1LLIAMS & OTTO Thomas Esquire I.D. No. 17512 Ten East High Street Carlisle, PA 17013 (717) 243-3341 Attorneys for Registry Monitoring Insurance Setw'ices, Inc. Date: December ank , 2003 VERIFICATION Thomas J. Williams, Esquire, of the firm of MARTSON DEARDORFF WILLIAMS & OTTO, attorneys for Registry Monitoring Insurance Services, Inc., in the within action, certifies that the statements made in the foregoing Answer to Plaintiff' s Amended Complaint are true and correct to the best of his knowledge, information and belief. He understands that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. Thomas J. Will~ms, Esqui C~ERTIFICATE OF SERVICE. I, Jody L. Boore, an authorized agent of Martson DeardorffWilliams & Otto, hereby certify that a copy of the foregoing Answer to Plaintiff's Amended Complaint was served this date by depositing same in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows: Thomas A. Archer, Esquire 3747 Derry Street P. O. Box 5056 Harrisburg, PA 17110-0056 Thomas L. Isenberg, Jr., Esquire 305 N. Front Street, 5th Floor P. O. Box 1003 Harrisburg, PA 17108-1003 Mr. Ram Toor, d/b/a RT Transport 2595 Coventry Blvd. Clovis, CA 93612 MARTSON DEARDORFF WILLIAMS & OTTO Jod~. Boc~re Ten East High Street Carlisle, PA 17013 (717) 243-3341 Dated: December ~ , 2003 FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING iNSURANCE SERVICES, INC. In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED NOTICE TO PLEAD TO: Freight Express, Inc. and Thomas A. Archer, Esq. P. O. Box 5056 Harrisburg, PA 17110 You are hereby notified to file a written response to the enclosed ANSWER WITH NEW MATTER AND NEW MATTER/CROSSCLAIM within twenty (20) days fi.om service hereof or a judgment may be entered against you. Dated: /qhomas L. Isenberg, Jr.,~E, ~. ' DUANE MORRIS LLP 305 North Front Street, 5th Floor P. O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 Attorneys for Defendant Royal Insurance Company of America FREIGHT EXPRESS, INC., Plaintiff RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES, INC. In the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action - Law No. 03-835 Civil Term JURY TRIAL DEMANDED ROYAL INSURANCE COMPANY OF AMERICA'S ANSWER WITH NEW MATTER AND NEW MATTER/CROSSCLAIM AND NOW, Defendant, Royal Insurance Company ot'America, by and through its counsel, Duane Morals, LLP, respectfully files this Answer with New Matter and New Matter/Crossclaim to Plaintiff's Amended Complaint and in support thereof states the following: 1. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 1. Strict proof thereof is demanded at time of trial. 2. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 2. Strict proof thereof is demanded at time of trial. 3. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 3. Strict proof thereof is demanded at time of trial. 4. Admitted. 5. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 5 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 6. Denied. The allegations within Paragraph 6 of PlaintiW s Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. 7. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 7 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 8. Denied. The allegations within Paragraph 8 of Plaintiff's Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary Royal Insurance Company of America specifically denies the same. By way of further answer, the allegations contained within Paragraph 8 of PlaintiWs Amended Complaint relate to or reference a document, the contents of which speak for itself. No further response is necessary. 9. Denied. The allegations contained within Paragraph 9 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company specifically denies the same inasmuch as after reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a 2 belief as to the truth of the remaining allegations contained within Paragraph 9 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 10. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 10 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 11. Denied. The allegations contained within Paragraph 11 relate to or reference a document, the contents of which speak for itself. No further response is deemed necessary. 12. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the troth of the allegations contained within Paragraph 12 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 13. Denied. The allegations contained within Paragraph 13 of Plaintiff's Amended Complaint relate to or reference a document, the contents, terms and conditions of which speak for itself. No further response is deemed necessary. 14. Denied. After reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained within Paragraph 14 of Plaintiff's Amended Complaint. Strict proof thereof is demanded at time of trial. 3 15. Denied. It is admitted only that Royal Insurance Company of America issued a policy, the contents, terms and conditions of which speak for itself. No further response is deemed necessary. 16. Denied. The allegations contained within Paragraph 16 of Plaintiff's Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of ~Mmerica specifically denies the same. 17. Denied. The allegations contained within Paragraph 17 of Plaintiff's Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. 18. Denied. It is admitted only that RMIS forwarded a claim to Royal Insurance Company of America. The remaining allegations contained within Paragraph 18 of Plaintiff's Amended Complaint are denied inasmuch as after reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein. Strict proof thereof'is demanded at time of trial. 19. Denied. The allegations contained within Paragraph 19 contain legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. By way of further answer, the allegations contained within Paragraph 19 also relate to or reference a document, the contents, terms and conditions of which speak for itself. No further response is necessary. 20. Denied. The allegations contained within Paragraph 20 relate to or reference a document, the contents of which speak for itself. No further response is deemed necessary. By way of further answer, it is admitted only that Royal Insurance Company of America denied the claim made by Plaintiff. 21. Denied. The allegations contained within Paragraph 21 of Plaintiff's Amended Complaint relate to or reference a document, the contents, terms and conditions of which speak for itself. No further response is deemed necessary. 22. Denied. The allegations contained within Paragraph 22 of Plaintiff's Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of,~merica specifically denies the same. 23. Denied. The allegations contained within Paragraph 23 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same inasmuch as after reasonable investigation, Royal Insurance Company of America is without knowledge or information sufficient to form a belief as to the truth of the allegations contained therein. Strict proof thereof is demanded at time of trial. 24. Denied. The allegations contained within Paragraph 24 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. 5 25. Denied. The allegations contained within Paragraph 25 of Plaintiff's Amended Complaint are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of ~nerica specifically denies the same. COUNT I - BREACH OF CONTRACT Freight Express~ Inc. v. Ram Toor~ d/b/a RT Transport 26 - 28. Denied. No response is required to Paragraphs 26 through 28 of Plaintiff's Amended Complaint inasmuch as the same are not directed at Royal Insurance Company of America. WHEREFORE, Defendant Royal Insurance Company of America demands judgment to be entered in its favor and against that of Plaintiff Freight Express, Inc. COUNT II - NEGLIGENCE Freight Express~ Inc. v. Ram Toor~ d/b/a RT Transport 29 - 33. Denied. No response is required to Paragraphs 29 through 33 of Plaintiff's Amended Complaint inasmuch as the same are not directed at Royal Insurance Company of America. WHEREFORE, Defendant Royal Insurance Company of America demands judgment to be entered in its favor and against that of Plaintiff Freight Express, Inc. COUNT III - DECLARATORY JUDGMENT Freight Express~ Inc. v. Registry, Monitoring Insurance Services~ Inc. and Royal Insurance Company of America 34. Denied. No further response is deemed necessary to Paragraph 34 of Plaintiff's Amended Complaint inasmuch as the same fails to set forth any factual allegations or assertions. 35. Denied. The allegations contained within Paragraph 35 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. 36. Denied. It is admitted only that Royal Insurance Company of America has denied Plaintiff's demand for indemnification, it is denied, however, Royal Insurance Company of America is otherwise required or obligated to honor Plaintiff s demand for indemnification. WHEREFORE, Defendant Royal Insurance Company of America demands judgment to be entered in its favor and against that of Plaintiff Freight Express, Inc. COUNT IV - BREACH OF CONTRACT Freight Exl)ress, Inc. v. Registry Monitoring Insurance Serviees~ Inc. and Royal Insurance Company of America 37. Denied. No further response is deemed necessary to Paragraph 37 of Plaintiff's Amended Complaint inasmuch as it fails to set forth any factual allegations or assertions. 38. Denied. The allegations contained within Paragraph 38 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. 39. Denied. The allegations contained within Paragraph 39 are legal conclusions to which no responsive pleading is required. To the extent a response is deemed necessary, Royal Insurance Company of America specifically denies the same. WHEREFORE, Defendant Royal Insurance Company of America demands judgment to be entered in its favor and against that of Plaintiff Freight Express, Inc. 7 in full. 40. NEW MATTER Paragraphs 1 through 39 above are incorporated herein by reference as if set forth 41. 42. 43. 44. 45. 46. 47. 48. Plaintiff's claims are barred in whole or in part Plaintiff's claims are barred in whole Plaintiff's claims are barred in whole Plaintiff's claims are barred in whole or m Plaintiff's claims are barred in whole or in Plaintiff's claims are barred in whole or by the doctrine of estoppel. or ~n pan: by the failure of consideration. or ~n pan by the doctrine of justification. pan by the doctrine of payment. part by the doctrine of waiver. ~n part by the doctrine of release. Plaintiff has failed to state a claim upon which relief can be granted. Plaintiff's claims are barred in whole or in part inasmuch as they are not covered by the terms and conditions of the insurance policy at issue. 49. Plaintiff s claims are barred in whole or in part by the applicable statute of limitation, latches or other time bar. 50. America. 51. Plaintiff failed to provide proper, timely notice to Royal Insurance Company of Plaintiff failed to perform its obligations under the insurance policy. 8 52. Plaintiff's claim is barred in whole or in part inasmuch as the same is excluded from coverage under the policy. 53. Plaintiff's claims are barred in whole or in part inasmuch as the claims are not of the type covered by the policy. WHEREFORE, Defendant Royal Insurance Company of America demands judgment to be entered in its favor and against that of PlaintiffFreight Express, Inc. NEW MATTER CROSSCLAIM PURSUANT TO RULE 2252{d) 54. Paragraphs 1 through 53 above are incmporated herein by reference as if set forth in full. 55. If Plaintiff is entitled to recover from any party, the same of which is expressly denied, then Defendants Ram Toor, d/b/a RT Transport and/or Registry Monitoring Insurance Services, Inc. are alone liable Plaintiff or liable over to Royal Insurance Company of America by way of contribution and/or indemnity or are jointly and/or severally liable to Plaintiff on account of their own negligence or other liability producing conduct as alleged in the pleadings. 56. If Defendant Royal Insurance Company of America is found liable to Plaintiff, the same of which is expressly denied, its liability is secondary and passive to the liability of Defendants, Ram Toor, d/b/a RT Transport and/or Registry Monitoring Insurance Services, Inc. whose liability is primary and active. 57. If the Plaintiffis entitled to recover any or all of the damages set forth in his Complaint, which right to recovery is expressly denied, Defendant, Royal Insurance Company of America avers that the liability for said damages rests solely 'with Defendants Ram Toor, d/b/a 9 RT Transport and/or Registry Monitoring Insurance Services, Inc. In the alternative, if Plaintiff is entitled to recovery, then Defendant Ram Toor, d/b/a RT Transport is jointly and severally liable with Defc~ndant Registry Monitoring Insurance Services, Inc. and other parties determined liable to Plaintiff. 58. If it is determined that Defendant Royal Insurance Company of America is liable for any or all damages set forth in Plaintiff's Complaint, which liability is expressly denied, in that event, Defendant Registry Monitoring Insurance Services, Inc. is jointly and severally liable with Defendant Ram Toor, d/b/a RT Transport, to Plaintiff or liable to Plaintiff for contribution and/or indemnity. WHEREFORE, if it is determined that Plaintiffis entitled to recover for any or all of the damages alleged in his Complaint, which right to recovery is expressly denied, then liability and responsibility for these damages rests solely with Defendant Registry Monitoring Insurance Services, Inc. and/or Ram Toor d/b/a RT Transport. If, however, it is determined that Defendant Royal Insurance Company of America is liable and responsible for any and all of the damages in Plaintiff's Complaint, which liability or responsibility is expressly denied, then Defendants, Registry Monitoring Insurance Services, Inc. and/or Ram Toor d/b/a RT Transport are jointly and severally liable with Defendant Royal Insurance Company of America and other parties 10 determined to be liable to Plaintiff or liable over to Defendant Royal Insurance Company of America for contribution and/or indemnity. Respectfully submitted, DUANE MORRIS, LLP Attorney I.D. No. 76652 305 North Front St., 5th Floor P.O. Box 1003 Harrisburg, PA 17108-1003 (717) 237-5500 James W. Carbin, Esq. 744 Broad S~e~,Suite 1200 Newark, NJ 07102-3889 (973) 424-2000 Date: Attorneys for Defendant Royal Insurance Company of America HBG\112553.1 11 VERIFICATION I, Thomas L. Isenberg, Esquire, hereby depose and state that I am an associate with the law firm of Duane Morris LLP, Counsel to Royal Insurance Company of America, in this matter, and make this Verification on behalf of said Royal Insurance Company of America, whose representatives are outside the jurisdiction of the Court and the verification of none of them can be obtained within the time allowed for filing this Answer with New Matter and New Matter/Crossclaim. I further state that the facts set forth in the foregoing Answer with New Matter and New Matter/Crossclaim are true and correct based upon knowledge or information and belief which I have obtained through my own investigation in representing Royal Insurance Company of America in this case. This Verification is made subject to the penalties of 18 Pa. C.S.A. § 4904, relating to unsworn falsification to authorities. CERTIFICATE OF SERVICE And now, this 31st day of December, 2003, I, Marcy McPherson, a secretary with the law firm of Duane Morals, LLP, do hereby certify that I have served a true and correct copy of the foregoing document on the person(s) listed below at their respective addresses, via first-class mail, postage prepaid. Thomas A. Archer, Esq. P. O. Box 5056 Han-isburg, PA 17110 Ram Toor 2595 Coventry Blvd. Clovis, CA 93612 Thomas J. Williams, Esq. Martson, Deardorf, Williams & Otto 10 E. High Street Carlisle, PA 17013 ~arcy McP~er~on FREIGHT EXPRESS, INC. : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA VS. : CIVIL ACTION - LAW : No. 03-835 Civil Term RAM TOOR, dPo/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendants. PLAINTIFF'S REPLY TO NEW MATTER OF DEFENDANT~ ROYAL INSURANCE COMPANY OF AMERICA Plaintiff, by and through its undersigned counsel, replies to the New Matter of Defendant, Royal Insurance Company of America, and states as follows: 40. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 41. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 42. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 43. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 44. 45. 46. 47. 48. 49. 50. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 51. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 52. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety 53. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required. To the extent a response is required, the allegations contained herein are denied in their entirety WHEREFORE, Plaintiff demands judgment in its favor and against Defendant, Royal Insurance Company of America, together with attorneys fees, costs of suit and such other relief as the Plaintiff may be entitled as a matter law or which the Court deems appropriate. Respectfully submitted: Thomas A. Archer, Esquire Attorney I.D. No. 73293 3747 Derry Street P.O. Box 5056 Harrisburg, PA 117110 (717) 233-8676 Dated: / g,). ,,~, Attorney for Plaintiff CERTIFICATE OF SERVICE I, Thomas A. Archer, Esquire, hereby certify that on the date set forth below I served a true and correct copy of the foregoing document upon the person(s) stated below, by depositing the same First Class, postage prepaid, with United States Postal Service, addressed as follows: Thomas L. Isenberg, Jr., Esquire Duane Morris LLP 305 North Front Street, 5~ Floor P.O. Box 1003 Harrisburg, PA 17108-1003 Ram Toor 2595 Coventry Boulevard Clovis, CA 93612 Thomas J. Williams, Esquire Martson, Deardorf, Williams & Otto 10 E. High Street Carlisle, PA 17013 Attorney for Plaintiff FREIGHT EXPRESS, INC. Plaimiff, VS. RAM TOOR, d/b/a RT TRANSPORT, ROYAL INSURANCE COMPANY OF AMERICA and REGISTRY : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION- LAW : No. 03-835 Civil Term MONITORING INSURANCE SERVICES,: INC. : JURY TRIAL DEMANDED Defendants. PRAECIPE TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please mark the above action settled and discominued as t,o Defendants, Registry Monitoring Insurance Services, Inc. and Royal Insurance Company of America only. Dated: September 10, 2004 BY: Respectfully submitted: Thomas . Archer, Esquire Attorney I.D. No. 73293 3747 Derry Street Harrisburg, PA 17111 (717) 561-2677 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a tree and correct copy of foregoing document was served via U.S. first-class mail, postage prepaid, upon the following: Dated: ':[/t'o ,2004 Mary Pat Patterson, Esquire Duane Morris 305 N. Front Street, 5ta Floor P.O. Box 1003 Harrisburg, PA 17108-1003 Thomas W'flliams, Esquire Martson, Deardorff, et al. 10 East High Street Carlisle, PA 17013 Coumel for the Plaintiff