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HomeMy WebLinkAbout01-0111COZEN AND O'CONNOR BY: KEVIN J. HUGHES Attorney ID # 50238 The Atrium- 3rd Floor 1900 Market Street Philadelphia, PA 19103 (215) 665-2739 Counsel for Plaintiff SUSAN L. PAYNE 2204 Merdmac Lane Mechanicsburg, Pennsylvania, 17055 and ENCOMPASS INSURANCE COMPANY a/s/o Susan L. Payne P.O. Box 908 Monmouth Junction, NJ 08852 Plaintiffs, UGI UTILITIES, INC. 460 North Gulph Road, King of Prussia, PA 19406, AMERI GAS, INC. 460 North Gulph Road, King of Prussia, PA 19406, UG1 CORPORATION 460 North Gulph Road, King of Prussia, PA 19406 Defendants. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY 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 (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 ONECE. 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 Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 AVISO Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las pfiginas siguientas, usted tiene veinte (20) dias de plazo al partir de la fecha de la demanda y la notificaci6n. Hace falta asentar una comparencia escrita o en persona o con un abogado y entregar a la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomarfi medidas y puede continuar la demanda en contra suya sin previo aviso o notificaci6n. A dem~s, la corte puede decidir a favor del demandante y requiere que usted cumpla con todas las provisiones de esta demanda. Usted puede perder dinero o sus propiedades u otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL D1NERO SUFICIENTE DE PAGAR TAL SERVICIO. VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. COMPLAINT COMES NOW Plaintiffs, Susan L. Payne and Encompass Insurance Company, as subrogee of Susan L. Payne, by and through its counsel, Kevin J. Hughes, and complaining of the Defendants, UGI Utilities, Inc., Ameri Gas, Inc. and UGI Corporation, alleges and says: PARTIES 1. Plaintiff Susan L. Payne is an adult individual and citizen of the State of Pennsylvania, (hereinafter "Payne") who, at all times material hereto, owned a residential dwelling located at 2204 Merrimac Lane, in Mechanicsburg, Pennsylvania, 17055. (Hereinafter "Payne Home"). 2. Plaintiff Encompass Insurance Company, ("Encompass") formerly known as CNA Personal Insurance Company, is foreign corporation duly authorized by the Commonwealth of Pennsylvania to engage in the business of, inter alia, issuing and providing insurance policies in this Commonwealth. 3. Defendant, UGI Utilities, Inc. is, upon information and belief, a Pennsylvania corporation having a principal place of business located at 460 North Gulph Road, King of Prussia, Pennsylvania 19406 and a business address at 2121 City Line Road, Lehigh Valley, Pennsylvania, 18002-5148 (Hereinafter "UGI"). At all times material hereto, UGI was engaged in the business of, inter alia, selling and distributing propane gas to the general public. 4. Defendant, Ameri Gas, Inc. is, upon information and belief, a Pennsylvania corporation having a principal place of business located at 460 North Gulph Road, King of Prussia, Pennsylvania 19406 and a business address located at 5400 Paxton Street, Harrisburg, Pennsylvania, 17105. (Hereinafter "AmeriGas"). At all times material hereto, AmeriGas was engaged in the business of selling and distributing propane gas to the general public. 5. Upon information and belief, UGI Corporation is a Pennsylvania corporation having a principal place of business located at 460 North Gulph Road, King of Prussia, Pennsylvania 19406. At all times material hereto, UGI Corporation was engaged in the business of, inter alia, selling and distributing propane gas to the general public. 6. Upon information and belief, UGI and AmeriGas are sister companies and/or subsidiaries of UGI Corporation. JURISDICTION AND VENUE 7. Jurisdiction and Venue properly lie with this Court as the events leading up to and causing the complained of damages occurred in Cumberland County and the defendants, by contxact and/or by their respective actions, have placed themselves under the j ut/sdiction of this Court. FACTS SURROUNDING CAUSE OF ACTION 8. Prior to January 9, 1999, Encompass, by and through its former subsidiary, Continental Insurance Company, issued to Payne an insurance policy affording certain protections for the Payne Home (hereinafter "Insurance Policy"). 9. The Payne Home is located in a residential neighborhood/development known as Creek Stone Manor. 10. Upon information and belief, prior to January 9, 1999, UGI and/or UGI Corporation (hereinafter collectively referred to as "UGI Defendants") entered into a contractual relationstfip with Payne whereby, in return for certain consideration, UGI Defendants agreed to monitor, service, fill, and maintain the propane tank for the Payne Home (hereinafter "Payne Contract"). The Payne Contract is, upon information and belief, in the custody and control of UGI Defendants. 11. Upon information and belief, prior to January 9, 1999, UGI Defendants entered into contracts similar to that of the Payne Contract with other residents in Creek Stone Manor. 12. Upon information and belief, UGI Defendants entered into a written contract and/or oral agreement with AmeriGas whereby, in return for certain consideration, AmeriGas agreed to monitor and fill propane tanks of houses located in Creek Stone Manor, including that propane tank that supplied fuel to the Payne Home. (Hereinafter UGl/AmeriGas Contract"). 13. Upon information and belief, on or about January 3, 1999, propane tanks providing fuel to homes in Creek Stone Manor began to and/or did run out of propane gas. 14. The pilot light of a home furnace fueled by propane gas will go out, i.e., be extinguished, once its fuel tank runs out of propane gas. As a result, in order to render a furnace operable once it is deprived of propane fuel, it becomes necessary to not only refill the fuel tank with propane gas, but to relight the furnace's pilot light. 15. On or about January 3, 1999, residents of houses that neighbored the Payne Home advised UGI Defendants employees responding to their complaints of fuel outages of the fact the Payne Home was unoccupied and was, like their homes, most probably out of propane fuel. 16. In response to the concerns expressed by the Payne Home neighbors, UGI Defendants employee(s) assured them that UGI Defendants would refill the Payne Home propane tank and relight the dwelling's furnace pilot light. 17. Upon information and belief, UGI Defendants had in their possession Payne's work and home telephone numbers as well as that of the Payne's real estate agent. 18. On January 9, 1999, Payne discovered that a water pipe in the Payne Home had frozen, thawed, and subsequently ruptured, causing severe damage to the dwelling (hereinafter "Water Damage"). 19. The subject water pipe froze due to the fact the fuel tank that provided gas to the Payne Home furnace had run out of propane, the tank had not been refueled, and the Payne Home furnace pilot light had not been relit, thereby depriving the Payne Home of heat. 20. Pursuant to the Insurance Policy, Payne subsequently submitted a claim to Encompass or its predecessor company for, inter alia, the Water Damage. 21. Encompass and/or its predecessor company paid to Payne monies in excess of $10,000.00 under the Insurance Policy for the Water Damage. Encompass is now legally and equitably subrogated to the rights of its insured to the extent of those payments. COUNT I PLAINTIFFS V. UGI DEFENDANTS 22. Plaintiffs incorporate by reference paragraphs 1-21 as fully as if set forth at length herein. 23. By agreeing to monitor, maintain, supply, and refill the Payne Home propane tank and by subsequently undertaking to perform those services, UGI Defendants became legally obligated to perform their services in a prudent, proper, and workmanlike manner. that they: a. 24. UGI Defendants negligently and carelessly breached its duties owed Payne in failed to properly monitor the propane tank providing fuel to the Payne Home (Hereinafter "Payne Propane Tank") to ensure that it contained appropriate levels of propane gas; b. failed to properly supply the Payne Propane Tank with propane gas on a timely basis; c. failed to refill the Payne Propane Tank with propane gas on a timely basis; d. failed to relight the pilot light to Payne Home furnace; e. failed to promptly notify Payne and/or her real estate agent that the Payne Propane Tank had run out of propane gas; f. failed to promptly notify Payne and/or her real estate agent that the Payne Home furnace pilot light had been extinguished, depriving the Payne Home of heat; and g. failed to ensure that Defendant AmeriGas had properly monitored the Payne Propane Tank and had supplied and/or refilled said tank with propane gas in a timely and appropriate manner. 25. In failing to properly discharge its duties in a good, prudent, and non- negligent manner, UGI Defendants proximately caused and/or permitted the Payne Home to be deprived of heat during a period of ambient freezing temperatures. 26. UGI Defendants knew or should have known that, if left without heat, the water pipes in the Payne Home would be subjected to freezing temperatures and thus could freeze and subsequently rupture, causing severe water damage to the dwelling. 27. The negligent acts and omissions by UGI Defendants, as hereinbefore averred, was the direct and proximate cause of the Water Damage. WHEREFORE, Plaintiffs request that judgment be entered in their favor and against Defendants UGI Utilities, Inc. and UGI Corporation, and that they be awarded their compensatory damages for the Water Damage and related losses in an amount in excess of $10,000.00, together with prejudgment interest and the costs associated with this action. COUNT II PLAINTIFFS V. AMERIGAS 28. Plaintiffs incorporate by reference paragraphs 1-21 as fully as if set forth at length herein. 29. Upon information and belief, by agreeing to monitor, maintain, supply, and refill the Payne Home propane tank, and by undertaking to perform those services, AmefiGas became legally obligated to perform its services in a prudent, proper, and workmanlike manner. 30. Upon information and belief, AmefiGas negligently breached its duties owed Payne in that they: a. failed to properly monitor the propane tank providing fuel to the Payne Home (Hereinafter "Pa3me Propane Tank") to ensure that it contained appropriate levels of propane gas; b. failed to properly supply the Payne Propane Tank with propane gas on a timely basis; c. failed to refill the Payne Propane Tank with propane gas on a timely basis; d. failed to relight the pilot light to Payne Home furnace; e. failed to promptly notify Payne and/or her real estate agent that the Payne Propane Tank had run out of propane gas; and f. failed to promptly notify Payne and/or her real estate agent that the Payne Home furnace pilot light had been extinguished, depriving the Payne Home of heat. 31. In failing to properly discharge its duties owed Payne in a good, prudent, and non-negligent manner, AmeriGas proximately caused and/or permitted the Payne Home to be deprived of heat during a period of ambient freezing temperatures. d. 36. Damage. 32. AmeriGas knew or should have known that, if left without heat, the water pipes in the Payne Home would be subjected to freezing temperatures and thus could freeze and subsequently rapture, causing severe water damage to the dwelling. 33. The negligent acts and omissions by AmeriGas, as hereinbefore averred, was the direct and proximate cause of the Water Damage. WHEREFORE, Plaintiffs request that judgment be entered in their favor and against Defendant AmeriGas and that they be awarded their compensatory damages for the Water Damage and related losses in an amount in excess of $10,000.00, together with prejudgment interest and the costs associated with this action. COUNT III BREACH OF CONTRACT PLAINTIFFS V. UGI DEFENDANTS 34. Plaintiffs incorporate by reference paragraphs 1-21 as fully as if set forth at length herein. 35. UGI Defendants breached their contractual duties and obligations owed to Payne under the Payne Contract in that they: a. failed to properly supply the Payne Propane Tank with propane gas on a timely basis; failed to properly monitor Payne Propane Tank to ensure that it contained appropriate levels of propane gas; failed to refill the Payne Propane Tank with propane gas on a timely basis; and failed to relight the pilot light to Payne Home furnace. The breach by UGI Defendants of the Payne Contract caused the Water 37. The Water Damage is the type of damage that would necessarily be expected to flow from a breach of the Payne Contract during periods of freezing temperatures. 38. Upon discovery of the breach of the Payne Contract, UGI Defendants were given prompt and reasonable notice of the Water Damage. WHEREFORE, Plaintiffs request that judgment be entered in their favor and against Defendants UGI Utilities, Inc. and UGI Corporation, and that they be awarded their compensatory damages for the Water Damage and related losses in an amount in excess of $10,000.00, together with prejudgment interest and the costs associated with this action. COUNT IV BREACH OF CONTRACT PLAINTIFFS V. AMERIGAS 39. Plaintiffs incorporate by reference paragraphs 1-21 as fully as if set forth at length herein. 40. Payne was and would have been a third party beneficiary of the UGI/AmeriGas Contract. 41. Defendant AmeriGas breached its contractual duties and/or obligations owed to Payne under the UGI/AmeriGas Contract in that they: a. failed to properly supply the Payne Propane Tank with propane gas on a timely basis; b. failed to properly monitor Payne Propane Tank to ensure that it contained appropriate levels of propane gas; c. failed to refill the Payne Propane Tank with propane gas on a timely basis; and d. failed to relight the pilot light to Payne Home furnace. 42. The breach by AmeriGas of the UGI/AmeriGas Contract directly and proximately caused the Water Damage. 43. The Water Damage is the type of damage that would flow from a breach of the UGl/AmeriGas Contract during periods of freezing temperatures. 44. Upon discovery of the breach of the UGl/AmeriGas Contract, AmeriGas was given prompt and reasonable notice of the Water Damage. WHEREFORE, Plaintiffs request that judgment be entered in their favor and against Defendant AmeriGas and that they be awarded their compensatory damages for the Water Damage and related losses in an amount in excess of $10,000.00, together with prejudgment interest and the costs associated with this action. COZEN AND O'CONNOR VlhlrJ. HUGHES, ESQUIRE OF COUNSEL: T. DAVID HIGGINS, JR., ESQ. HIGGINS MINSKER, P.L.L.C. 1208 South Tryon Street Charlotte, NC 28203 (704) 370-7700 JAM. $.8001 18:~TPM CMA IMSURAMCE CO M0.393 VERIFICATION Susan Taibbi, of Encompass Insurance Company, avers that the allegafior~ contained/n the foregoing Complaint are true and correct to the b~st of her knowledge, information and belief; and that the statements in the said Complaint are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unswom fals/fications ~o authorities. day of Sanuary, 2001. 215 665 2013 JA~.05'2001 12:47 RECEIVED FROM: #6340-002 SHERIFF'S RETURN ~AS~ ~O: 2001-00111 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND PAYNE SUSAN L ET AL VS UGI UTILITIES INC ET AL - OUT OF COUNTY R. Thomas Kline duly sworn according to law, and inquiry for the within named DEFENDANT ANERI GAS INC but was unable to locate Them in his bailiwick. deputized the sheriff of MONTGOMERY County, serve the within COMPLAINT & NOTICE , Sheriff or Deputy Sheriff who being says, that he made a diligent search and to wit: He therefore Pennsylvania, to On February 5th , 2001 attached return from MONTGOMERY Sheriff's Costs: Docketing Out of County Surcharge 6.00 .00 10.00 .00 .00 16.00 02/05/2001 COZEN & O'CONNER Sworn and subscribed to before me this '?~ day 22a~o/ A.D. / ProthOnotary this office was in receipt of the Sheriff of Cumberland County lin The Court of Common Pleas of Cumberland County, Pennsylvania ": Su's~n L. Payne, et. al. VS. UGI Utilities, Inc,, et. al. Serve: Ameri Gas, Inc.'Q~-- '~ ~o. 2001-111 b' NOW, 1/1.7/01 hereby deputize the Sheriff of ,20 0 ~, I, SHERI2~I;' OF CLTMBEP,_LAN'D COI/NTY, PA, do MontGomery COURty to execute Lhis Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA ~0'~/~ within ~oon o':Iock ~ · cop5' of the odfnal and made known to Swora and subscrit;~;i before COSTS SERVICE .TvffLEAGE .AFFIDAVIT