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HomeMy WebLinkAbout01-0210WEBER GOLDSTEIN GREENBERG & GALLAGHER By: Kenneth M. Portner, No. 62194 The Belgravia, Suite 600 l 811 Chestnut Street Philadelphia, PA 19103 Pennsylvania National Mutual insurance Company Plaintiff Melvin Spotts, Mel Spotts d/b/a Mel Spotts Excavating, Elizabeth Spotts Orchard Hills Associates, Pocono Village Associates Defendant. Attorney for Plaintiff Pennsylvania National Mutual Insurance Company CUMBERLAND COUNTY COURT OF COMMON PLEAS COMPLAINT NOTICE You have been sued in court. If you wish to delimd against the claims set tbrth in the following pages, you must take action within twenty (20) days atler 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 thrther notice tbr any money claimed in the complaint or ibr 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 BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 AVISO Le hah demandado a usted en la torte. Si usted quiere defenderse de estas denlandas expuestas en las paginas siguientes, usted tiene veinte (20) dias de plazo al partir de la tkcha de la demahda y la notificaci6n. Hace thlta asentar una comparencia escrita oen persona o COIl un abogado y emregar a la cone ell tk)t'nla escrita sus de[~llsas o sus objecio~tes a las demandas en contra de su persona. Sea avisado que si usted no se defiende, hi torte tomarfi medidas y puede Ademfis, la corte puede decidir a lavor del demandante y requiere que usted. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. Sl NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO. VAYA EN PERSONA O LLAME POR TEL}~FONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABA JO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. SERVICIO DE REFERENCIA LEGAL 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA NATIONAL MUTUAL CASUALTY COMPANY Plaintiff, MELViN W. SPOTTS, MEL SPOTTS d/b/a MEL SPOTTS EXCAVATiNG, ELIZABETH SPOTTS, ORCHARD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES Defendants, CIVIL ACTION NO.: 0 } - c:~ {O COMPLAINT FOR DECLARATORY JUDGMENT AND OTHER RELIEF Pursuant to 42 Pa. C.S. §7531 et. seq., Penn National Mutual Casualty Insurance Company ("Penn National"), brings this action for declaratory judgment and other relief and in support thereof avers as follows: PARTIES l. Penn National is an insurance company organized and existing under the laws of the Commonwealth of Pennsylvania with a principal place of business located at Harrisburg, Pennsylvania. 2. Melvin W. Spotts is an individual who resides at 1296 Martin Street, East Earl, Pennsylvania. 3. Elizabeth Spotts is an individual who resides at 1296 Martin Street, East Earl, Pennsylvania and at all times relevant hereto was the wife of Mel Spotts. 4. Orchard Hills Associates ("Orchard Hills") is a general partnership. The partners are Robert E. Goodling of Carlisle, Pennsylvania, James T. Gibson of Mechanicsburg, Pennsylvania and Peifer & Gross, Inc. a Pennsylvania corporation with a principal place of business located at New Cumberland, Pennsylvania.. 5. Pocono Village Associates (~'Pocono Village") general partnership. The partners are Peifer & Gross, Inc., a Pennsylvania corporation with a principal place of business at Nexv Cumberland, Pennsylvania, AAA Quality Builders, Inc., a Pennsylvania corporation with a principal place of business at Mechanicsburg, Pennsylvania, and PVOHA, Inc., a Pennsylvania corporation located in Carlisle, Pennsylvania. 6. Orchard Hills and Pocono Village are named as parties whose interests may be affected by the declaration sought herein in accordance with 42 Pa. C.S. §7540. JURISDICTION 7. This Court has jurisdiction over this matter pursuant to the Pennsylvania Declaratory Judgment Act, 42 Pa. C.S. §7531 et. seq. VENUE 8. Venue is proper with this Court as defendants either reside or regularly conduct business in this County. FACTUAL BACKGROUND 9. Penn National issued four consecutive polices of Commercial General Liability Insurance to "Mel Spotts Excavating" and/or "Mel Sports t/a Mel Spotts Excavating" , policy no. CL90037516, with a policy periods of 09/26/93 to 09/26/94, 9/26/94 to 9/26/95, 9/26/95 to 9/26/96 and 9/26/96 to 9/26/97. Copies ofthe declaration pages of said policies are attached as Exhibit "A". 10. At all times relevant hereto, Sports and his wife Elizabeth were in the plumbing excavation business and operated a business known as Mel Sports Excavation. Sports maintains a business address at 45 Martin Street, East Earl, Pennsylvania. 11. In or about 1994, Orchard Hills was the owner of a mobile home park known as "Pocono Village Court" or "Pocono Mobile Home Park" (the "Park") located in Pocono Township, Monroe County, Pennsylvania. 12. Sewage disposal for the mobile homes located in the Park w'as provided by means of a septic system located on the Park premises. On or before August, 1994, Orchard Hills hired Spotts to perlbrm repairs on the Park' s 13. septic system. 14. 15. Sports performed the work between August, 1994 and December, 1994. In or about December, 1994, in the course of his work Spotts cut one of the septic system's gravity feed pipes. This pipe was connected to a dosing tank, and after it was cut, sewage which was supposed to pass through the pipe into the tank instead was released into the ground in and around the Park. 16. Spotts completed his work at the Park in December, 1994. 17. At sometime subsequent to December, 1994, it was discovered that sewage had escaped from the septic system and had contaminated the ground in and around the park. 18. Orchard Hills and Pocono Village commenced suit against Spotts in September, 1997 in the Court of Common Pleas of Cumberland County, Pennsylvania. Orchard Hills and Pocono Village filed a Complaint against Sports in this suit in or about March, 1998 and an Amended 3 Complaint in or about July, 1999. (the "Complaint" and ~'Amended Complaint") Copies of the Complaints are attached hereto as Exhibit "B'. 19. The Complaints allege that Spotts performed his work at the Park in a negligent careless and reckless fashion and that Orchard Hills and Pocono Village were damaged as a result. 20. In particular, the Amended Complaint alleges that Spotts "cut offa gravity feed pipe or line which connected eleven (11) mobile homes to a "dosing tank" without reconnecting that line to any other part of the septic system. As a result of this action, the sewage which emanated from those eleven (11) mobile homes was not deposited into the septic system Ibr the nrobile home park and was simply dumped into the ground". Amended Complaint, paragraph 8.a., F, xhibit "B" hereto. 21. The Amended Complaint further alleges that Sports acts ~caused the untreated waste from eleven (11) mobile homes to simply pass into the ground" and that this "violated tkderal and state environmental laws and the ordinances of Pocono Township in Monroe County and exposed the owners and representatives of Orchard Hills to criminal and civil penalties and sanctions ibr such violations." Amended Complaint, paragraph 9, attached hereto as Exhibit "B". 22. The Amended Complaint seeks damages representing the cost of repairing and/or remedying Sports' allegedly defective work (including costs incurred in identifying the source of the problem) and treating and removing soil in the Park that had been contaminated with untreated sewage. COUNT I -~ DECLARATORY JUDGMENT--POLICY COVERAGE 23. Penn National incorporates by reference the averments of paragraphs 1 through 22 hereof as if fully set forth at length herein. 4 24. The Penn National policies provide coverage for sums Spotts is legally obligated to pay on account of "property damage", as defined in the policies, which is not otherwise excluded. See General Liability Coverage Form, attached hereto as Exhibit 25. The Penn National policies exclude from coverage "property damage" to real property on which the Spotts is performing operations, or personal property that nmst be "restored, repaired or replaced" because Spotts' work was incorrectly performed on it (See CG 00 01 01 96, Section L Coverage A.2.J(5), 2.J(6), at 3). The Penn National policies also exclude coverage fbr "property damage" to Spotts' "work" as defined in the policies. (See CG 00 01 01 96, Section l.. Coverage A.2.1, at 4). 26. The claims asserted in the Complaint and Amended Complaint thll within the ambit of the exclusions cited in the preceding paragraph and theretbre are not covered under the Penn National policies. 27. In addition, the Penn National policies contain a Total Pollution Exclusion which provides that the "property damage" coverage does not apply to claims which would not have occurred in whole or in part but for the discharge, dispersal, seepage, migration, release or escape of "pollutants". "Pollutants" means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkali, chemicals and waste. (See CG 21 49 01 96) 28. The claims asserted in the Complaint and Amended Complaint fall within the ambit of the Total Pollution Exclusion and therefore there is no coverage for these clahns under the Penn National policies. 29. An actual controversy exists between the parties concerning the issue of whether Sports is entitled to coverage under the policies for the claims asserted in the Complaint and Amended Complaint. 30. Declaratory judgment is the only remedy by xvhich the liabilities of the parties can be determined. WHEREFORE, Pennsylvania National Mutual Casualty Insurance Company demands judgment in its favor and against defendants as follows: a. A declaration that under the terms of the Policies and applicable law', Penn National has neither a duty to defend nor a duty to indemnify Spotts for the claims asserted in the Complaint and Amended Complaint; and b. For such other and further relief this Court may deemj ust and proper, including attorneys' fees and cost of suit. COUNT II - REIMBURSEMENT OF ATTORNEYS FEES AND COSTS 31. Penn National adopts by reference the allegations of the preceding paragraphs and incorporates the same herein as if fully set forth at length. 32. Penn National is presently defending Spotts against the claims asserted in the Complaintand Amended Complaint pursuant to a reservation of its right to contest its obligations under its policies. 33. Pursuant to the terms and conditions of the Policies, Penn National is only obligated to defend Spotts against claims which are actually or potentially covered under the Policies. 34. In the event that this Court enters a declaration that Penn National has no duty to defend Spotts against the claims asserted in the Complaint and Amended Complaint, Penn National is entitled to recoup the fees and costs it has paid on Spotts' behalf in defense of the claims. WHEREFORE, Pennsylvania National Mutual Casualty Company demands judgment in its favor and against defendants as follows: (a) An order directing Spotts to reimburse Penn National for all fees and costs incurred by Penn National in defending Spotts against the claims asserted in the Complaint and Amended Complaint and; (b) For such other and further relief this Court may deem just and proper, including attorneys' fees and cost of suit. Respectfully submitted, WEBER GOLDSTEIN GREENBERG & GALLAGHER Kenneth M. Portner Attorneys tbr PlaintifL Pennsylvania National Mutual Casualty Insurance Company Date: VERIFICATION I, Kenneth M. Portner, hereby verify that the statements made in the tbregoing pleading are true and correct to the best of my knowledge, information and belief. The undersigned understands that the statements therein are made subject to the penalties o[' 18 Pa. C.S.A. 4904 relating to unsworn lhlsification to authorities. Kenneth M. Portner Date: Exhibit A TTI PENN NATIONAL INSURANCE COMMERCIAL LINES POLICY COM~ON DECL&RAT[0N$ NEY DECLARATZON$ CL9 003751M 09/28/93 09/28/94 NAMED INSURED AND ADDRESS MEI. SPOTTS EXCAVATING PO BOX 32 EAST EARL PA 17519 COVERAGE IS PROVIDED IN PA NAT]0NAL MUTUAL CAS INS AGENCY MURRAY ZNS ASS0C [NC P 0 BOX 1728 LANCASTER PA 17803 AGENCY IBR CO 00007S9~! POLICY PERIO~ POLICY COVERS PROM:. 12:01 A.M. STANDARD TIM~ AT THE ADDRESS OF THE INSURED STATED ABOVE. FORM OF BUSINESS: [ND]VIDUAL BUSINESS DESCRIPTION: RESIDENTIAL EXCAVATINO IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM I$ INDICATED. THIS PREMIUM MAY SE SUBJECT TO ADJUSTMENT. COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART $ S $ $ S $ $ $ PREMIUM 403.00 3,137.00 2,511.00 ZNSTALLMENT SER¥[CE FEE 10.00 FORMS APPLICABLETO A~ COVERAGEPART$: ZL0246 06/89 IL0910 01/61 701673J 08/87 IL0017 11/65 1L0172 04/93 2I 2 11 1794 COUNTERSIGNED BY: AuthorizEd ReprEsentative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE PORN AND FORMS, IF ANY. ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY, FORM 71-0025 (ED. 03/91) HOME OFFICE tSSUED 10/11/9 INSURANCE COMMERCIAL PROPERTY COVERAGE PART DECLARAT[OKS NEM DECLARkTZONS MEL SPOTTS ExcAYATzNG PO BOX 32 EAST EABL PA 17519 COVERAGE~S~.OV~D~N /A~NCY/.R PA NATIONAL MUTUAL CAB [NS CO ~00075~$1 A~NCY BURRAY [NS ASSOC [NC P 0 BOX 1728 LANCASTER PA tiaO3 POLICY PERIO0: POI. ICY COVERS FROM: 12:01 A.M. STANDARO TIME AT THE ADDRESS OF THE INSURED STATEO ASOV~. IN RET~ ~R PAY~NT OF T~ P~IUM, ~ S~JECT TO ALL ~ TERMS OF THIS POLICY, WE A~EE WITH Y~ TO PROVIDE THE INSTANCE AS STATED IN THIS POLICY, DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSUR~CE AT THE DESCRIBED PREMISES APPLIES ONLY FOR THE COVERAGES BHOWN: PREMZSES NO. t : 1296 MARTIN STREET DEDUCTIBLE: 6250 EAST EARL LANCASTER CO P& 1751g BUILDING NO.: 1 CONSTRUCTZON= FRAME OCCUPANGYt OFFICES, PROTECT[ON CLASS: OTHER THAN GOVERNMENTAL 06 COVERAGE= YOUR BUS[NESS PERSONAL PROPERTY LXMZT OF INSURANCE: 62,000 C0[NSURANCE= 80~ REPLACEMENT COST COVERED CAUSE OF LOSS: SPEC[AL FORM SEE SUPPLEMENTAL DECLARATIONS, FORM 71-0027S FORMS APPLICABLE TO THIS COVERAGE PART: CP001D 10/91 710218 01/92 CPOOaO 07/89 CPI030 10/91 2 ? t794 996 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FOF ANO FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0027 {E~ 03/93) HONE OFFICE ISSUE0 10/11, COMMERCIAL PROPERTY COVERAGE CLg OOS?SlR 09/2S/gl Og/~E/G4 PART SUPPLEMENTAL DECLARATIONS COVERAGE IS.PROVIDED IN PA NATZONAL MUTUAL CAS iNS CO DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DESCRIBED PREMISEE APPLIES ONLY FOR THE COVERAGES SHOWN: A~NCYJ BR 000075~$1, PREMISES NO. 2 : 1254 EAST EARL ROAD DEDUCTIBLE: $250 EAST EARL LANCASTER CO PA 17St9 RUZLDZN6 NO.: 1 PROTECTZON CLASS: CONSTRUCTION: dOZSTED MASONRY OCCUPANCY: CONTRACTORS EXCAVATZON EQUIPMENT STORAGE COVERAGE: BUiLDiNG LIMIT OF XNSUR&NGE: $?,200 REPLACEMENT COST OS COINSURANCE: COZ COVERED CAUSE OF LOSS: SPECIAL FORM BUILDING NO.: 2 PROTECTION CONSTRUCT/ON: dOISTED MASONRY OCCUPANCY: OFFXCES, OTHER THAN GOVERNMENTAL CLASS: 09 COVERAGE: BUZLDING L~MIT OF iNSURANCE: REPLACEMENT COST COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM BUILDING NO,z S CONSTRUCTION: FRAME OCCUPANCY: CONTRACTORS'EXCAVATZON COVERAGE: SUZLDXNG LIMZT OF iNSURANCE: REPLACEMENT COST $4,800 PROTECTION CLASS: EQUIPMENT STORAGE COINSURANCE: 80~ COVERED CAUSE OF Og LOSS: SPECI&L FORM FORM 71-0027S (Ed. 03/91) HOME OFFZCE iSSUED lO/ll/gS POL[CY SCHEDULE CC9 0037518 09/26/93 09/20/94 THE FOLLOWING ARE [NSUREDS ON THiS OF NAMES AND ADDRESSES COVERAGE IS PROVIDED IN PA NATIONAL MUTUAL CAS iNS CO POLICY AGENCY J IR 000075g151 COMMERCIAL PROPERTY NAMES AND ADDRESSES PREMZSES NO.: BLUE MALL NATIONAL BANK PO BOX 580 BLUE BALL PA 17508 MORTGAGEE FORM 71-0026 (ED. 03/91) HOME OFFICE iSSUED 10/11/93 fl PENN I~a, TIONAL COMMERCIAL eENERAL INSURANCE NON-ASSESSABLE POLICY NUMBER CLO 0037516 0g/26/93 Jog/2e/g4 NAMED INSURED AND ADDRESS MEL SPOTTS EXCAVATINQ PO BOX 32 EAST EARL PA 1751g LZAB[L[TY COVERAGE PART DECLARATIONS OCCURRENCE POLICY NEW DECLARATXQNS THIS POLICY IS SUBJECT TO A GENERAL AGGREGATE LIMIT I COVERAGEI$ PROVIDED IN AGBNCYIBR PA NATIONAL MUTUAL CAS INS CO 000075431 AOENCY UURflAY ZNS ASSOC INC P 0 BOX 1728 LANCASTER PA 17603 POLICY PERIOD: POLICY COVERS FR0td: 12:01 A.M, STANDARD TIM~ AT THE ADDRESS O~ TH~ INSL~RED STAT;O ABOVE. FORM OF euslaEs$: [ N D ! V ! 0 U A L BUS~NESS DESCRIPTION:, R E S ! D E N T [ A L E X C A V A T I N O IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUSJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS - COMPLETED OPERATIONS) PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT PERSONAL AN{:) ADVERTISING INJURY LIMIT EACH OCCURRENCE LIMIT FIRE OAMAGE LIMIT. ANY ONE FIRE MEDICAL EXPENSE LIMIT, ANY ONE PERSON 1,000 000 1,000 000 500 000 500 000 50 000 5 000 PREMIUM INFORMATION COOE PREMIUM BASIS PER RATES ADVANCE PREMIUM PREMS/OPS PRODUCTS PREMS/OPS PRODUCTS SEE SUPPLEMENTAL DECLARAT!ONS, FORM 71-002g$ FORMS APPLICABLE TOTH~S COVERAGE PART: IL0021 11/85 CG0001 11/68 C02503 11/86 C02504 11/85 CG2160 06/89 C02149 11/68 2 2 77 1294 998 COUNTERSIGNED ElY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(S), AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY, FORM 71-0029 (Ed, 03/93) HOME OFF[CE ISSUED 10/11/93 COMMERCIAL GENERAL L[ABZL;TY COVERAGE PART SUPPLEMENTAL DECLARATZONS POLICY NUMEER ~ poucv p;~oo ~o CLg 005751S Og/2s/g~ ] Og/26/g4 I COVERAGE I~ PROVIDED IN AGENCY lag PA NATIONAL YUTUAL CAS ZNS CD PREMISES NO. 1 : 1296 MARTIN STREET EAST EARL LANCASTER CO PA 17519 CODE 04007 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS 18,250 PAYROLL 1000 VARIOUS VARIOUS EXCAVATION ADVANCE PREMZUM PREMS/OPS PRODUCTS INCLUDED ZNCLUDED CODE 95410 RATES PREMZUM BASIS PER PREMS/OP$ PRODUCTS 18,250 PAYROLL 1000 VARIOUS VARIOUS GRADING OF LAND ADVANCE PREMIUM PREMS/OPS PRODUCTS INCLUDED ZNCLUDED PREMISES NO. 2 : 1254 EAST EARL ROAD EAST EARL LANCASTER CO PA 17519 CODE 81212 RATES PREMIUM BASIS PER PREMS/DPS PRODUCTS 4,83S SQUARE FEET 1000 VARIOUS ADVANCE PREMIUM PREMS/OPS PRODUCTS INCLUDED BUILDING OR PREMISES - SANK OR OFFICE MERCANTZLE OR MANUFACTURING (LESSORS RISK ONLY) OTHER THAN NOT FOR INCLUDING PRODUCTS-COMPLETED OPERATIONS PROFZT FORM 71-002gs (ED. 05/gi) HOME OFFICE ISSUED 10/11/g3 TIIPENN NATIONAL INSURANCE COMMERCIAL NON'ASSESSABLE POLICY NUMBER ~nou policy ~roo TO CLg 0037518 09/2~/g~ ~09/28/94 N~MED INSURED AND UEL SPOTTS EXCAVATING PO BOX ~2 PA 17019 iNLAND MARINE COVERAGE PART DECLARATIONS NEY DECLARATIONS COVERAGSIS PROVIDED IN PA NATIONAL MUTUAL CAS INS CO AGENCY MURRAY INS ASSOC INC P 0 BOX 1728 LANCASTER PA 17605 AGENCY ~R 0000759~1 POLICY PERIOD: POLICY COVERS mO~ 12:0! A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE. FORM O~ BUSINESS: Z ND I V ! DUAL BuSinEss DESCRIPTION: RE S i DENT I AL EXCAVAT I NG IN RETURN FOR PAYMENT OF THE PREMIUN1, AND SUBJECT TO ALL THE TERMS DP THIS POLICY, WE AC~EE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. CONTRACTOR°S EQUIPMENT ALL COVERAGE PARTS NOT OTHERYZSE 5PECIFZED PREMIUM 2.311.00 200.00 FORMS APPLICABLETOALLCOVERAGEPARTS: 710002 01/82 710371 08/92 702589 10/89 IM1DO 08/84 INS03 02/85 ZM4/ 04/86 1M259 01/87 710181 10/01 1M42 07/88 1M83 07/86 2 2 17 1704 908 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(S), AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-003! {ED. 03/93) HOME OFFICE ]SSUED 10/11/93 COMMERC[AL INLAND MARINE DECLARATTON$ CONTRACTOR'S EGUIPMENT CL9 0037518 09/25/93 09/~8/g4 PA NATIONAL MUTUAL CAS INS CO 000075 EACH iTEM THAT iS COVERED MUST BE DESCRIBED BELD¥ ,OR ON A SCHEDULE THAT iS A PART OF THiS POLICY. A COVERAQE AMOUNT MUST BE SHORN FOR EACH ITEM. THiS IS THE MOST THAT YE ¥1LL PAY FOR A LOSS TO THAT iTEM. DEDUCTIBLE : $500 THE ABOVE DEDUCTIBLE AMOUNT ~ILL APPLY SEPARATELY TO EACH iTEM iN EACH LOSS AFTER ALL OTHER ADJUSTMENTS HAVE BEEN MADE. INVOLVED ITEM DESCRIPTION OF EQUIPMENT 1 1988 JOHN DEERE EXCAVATOR 3 1989 CAT DSC BULLDOZER 3 1985 CAT 853 LOADER 4 1380 BOMAO 142D ROLLER COMPACTOR 5 t080 JOHN DEERE MOL 855 LANDSCAPE /TRACTOR ¥/80 YORK RAKE i 70 LOADER 5 STANLEY COMPACTOR (ATTACHMENT) 7 CONTENTS iN ITEM IS-dOB TRAZLER S IReS JOHN DEERE 4100 BACKHOE ITO410DQTO3722 COVERAGE AMOUNT $ 45,000 $ 34,000 $ 75,000 S 16,000 S 7,800 S 4,000 $ 2,000 $ 7t,ooo TOTAL AMOUNT OF INSURANCE S 258,600 FORM 71'0125 (ED, 11/91) HOME OFFZCE ISSUED 10/11/03 [Vl PF. NN NATIONAL INSURANCE P~msylva~i~ National Mutual Clsual~y I~s~a~ Company PO. 8ox 23G1 ~rri~uq, PA 17105-2~1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endoreement ohsnges the policy effective on the inception date of thc policy or as of the date Indicated below. 9/26/03 11/4/93 This endorsement modifies such Insurance as Is afforded by the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE Loss Payee applicable: A. Lender's Loss Payable S. Contract of sale Loss Payee Address jolm z)]~m,~ zl~ l~]~a~r~ co]u) BOX 6509O ~ DES HO~ ZA 50265-(X)90 APPLICABLE TO THE FOLLOWING PROPERTY Delorlpllon Location Manufacturer I Amount of Type of of properly Serial # Insurance Coverage 1993 30BN D~3L~ 410D TOalOOG793722 $71,000 For covered property In whlcrt both you and a Loss Payee shown In the schedule or In the Declarations have an insurable interest, we will adjust losses with you; and pay any claim for loss or damage jointly to you and Ihe Loss Payee, as interest may appear. Folm 71-0187 (Ed, Icol) This endorsement cha~H the' Inland M~dne covaraoe. If e coverage II Ihow~ on the line bMow, th~ eMom~me~t a~l~s o~[~ Io ~ha~ cove~ge. IM-47 (Ed. --PLIAII RL40 THI! CAIIF, FULLY-- (The ~nfofr~ fiqukld bMow rely be 8hQWn off I nplml k-hedul, or ~upo~ C)K~.) c~9 0 03 75 ~6DEDUCTIBLE The following deductible ~mount will Koply to each Io8.1 aaer all other adjustments h~ve been made, $ IMM7 AAIS © CO~YdlM 1966 AAIS ' This Inland Marine coverage is subject to the term shown below. The Inland Marine General Terms also apply. C~g 0 03 ?$ 16 ~ RFJW ~lll CAR~FUU.Y- MISCELLANEOUS PROPERTY COVERAGE (?M Itlfor~111tiol~ IlqUIlld blklw rely bi IIIowfl oll l I.1~11111 Ichldull Or lUpp4ementll Oecllratioal,) DESCRIBED PROF'~iT' The covered property consists mainly of: ~ND IM-g03 (Ed. Cevmage Amoust $ 8,000 The most that we will pay for all covered propertl/in the event of a lose is: DEDUC111LE The following deductible amount will apply to each loss after all other adjust- merits have been made. S ,mn COINSURANCE YOU must maintain a minimum coverage amount. This minimum coverage amount is the full actual cash value of all covered property. If the coverage amount at the time of loss is less than the minimum coverage amount, we will pay only a part of a less. Our part of the loss will be determined by dividing the coverage amount by the minimum coverage amount. This percent will be applied to the final ad. juated ~ to determine the amount that we will pay. I PROPEFITY COVERED I WI cove~ the desodhed property that belongs to you. Wa also cover similar prope~ that belongs to others and for which you are liable. I PERILS COVEREO I We cover direct physical loss to covered property unless the loss is caused by a pedl that is excluded. The loss must be due to an external cause. I PERILS EXCLUDED J WI do not pay for a loss If one or more of the following excluded padis apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the lose before, at the same Ume u, or after the excluded pedf. We do not pay for a loss that results from: 1. a dishonest or illegal act, alone or in collusion with another, by: a. you; b..others who have a~ interest in the property: c. others to whom you enb'ust the P~operty; or d. the employees or agents of a., b. or c., whether or not they are at work. We do cover loss caused by dishonest acts by carriers or other baJlees for hire. 2. swindling, fraud, trick or false pretense. 3. the acceptance of: a. counterfeit money or fraudulent post office or express money orders; or b. checks or promissory notes which are not paid upon presentation. 4. mysterious disappearance. 5. any cause when the only proof b'mt a loss occurred is an inventory shortage. 6. breakage of glass or similar fragile items. We do cover breakage if it is caused by fire; lightning; windstorm, hall; earthquake; flood; smoke; explosion; aircraft, apace- craft, serf-propelisd missiles or objects that fall from these items; vehicles, including an accident to a tranapofling vehicle; strike; riot; civil commotion; vandalism; theft; affempted theft; aprtnlderisakage;or colispse oftwildinos. 7. a process to repair, adjust, sedco or maintain covered property, ff a firs or explosion results, we do cover the lose caused by the fire or explosion. mechanical breakdown or failure. If a fire or explosion re- suits, we do cover the loss caused by the fire or explosion. + © hpyrlgU 1~ AAIE INSURANCE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Tide endor~ment ehmtg~ the pollW effective on the Im~)tlon date ef the polity'or is of the date Indicted below, CLg 002 75 18 Thll endorsement modifies such Insurance as Is afforded by the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY TOOLS AMENDATORY ENDORSEMENT Coverage Is amended as follows: PROPERTY COVERED We covered your portable tools and equipment valued lass than $ 1,000 per item or let. Thil includes their containers, spare parts, and accessorial. We also cover similar properly that belongs to others and for which you are liable. {Ed. 10~891 INSURANCE National Idvlu~ Cak~ty I~;ame CmWaW IgOOOe~y~t~e~t · Hgm~PA17104 9ox 2361 Zi~ 171~-2361 THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. INLAND MARINE POLICY CHANGES POLICY CHANGE NUMBER DOC #1 POLICY NUMAR CL9 0 03 75 16 t, OUCY CHANGE8 EFFECTIVE 09/26/93 POLICY I~RIOG 09/26/93 TO 09/~'6/9~ NAME INSURE;) AUTHORIZED RE~ESENTATIVE NFL SPOTTS EXCAVATING MURRAY INS ASSOC INC 000 0759 COVERAGE PART9 A~FECTED CO~rRACTOR$ E~UZPMERT CHANGES IT IS HEREBY AGREED FORM 71-0125 IS REVISED TO REFLECT THE FOLLOWING: ITEM #7 - CONTENTS IN ITEM #6 JOB-TRAILER IS AMENDED TO READ CONTENTS CONTAINED IN THE 1987 WELLS CARGO TRAILER VALUED AT $2,000. ITEM #8 - 1993 JOHN DEERE #IOD BACKHOE #TO~10D0793722 AMENDED TO A VALUE OF $65,500. REVISED LIHZT - $251,300. PR V PR;M. $6.o5i 71-O161 led. 10~{I) PR~ 10o REV PP~M S6.001 0~/12/9~ TLS Authofiz~ Reflfe~n~l~ ~neture INSURANCE COMMERCXAL LXNE5 POLXCY COMMON OECLARATXON5 RENEWAL OF CL9 0057016 NON-A. SSESSABLE POLICY NUMBER I PR~ P~j'l~oo TO CL6 0057518 00/26/~4 09/26/95 NAMED ~SURfD AND ADD.fi MEL SPOTTS EXCAV&TXN8 P0 BOX 52 EAST EARL FA 17610 COVERAGE IS PROVIDED IN PA NATIONAL MUTUAL CAS INS CC) AGENCY MURRAY XNS ASSOC ZNC p O BOX 1728 LANCASTER P& f7506 AGENCY ~R 0000755~1 POLICY PERIOD: POLICY COVERS FRO~ 12:07 A.M, STANOARO TIME AT THE AOORESS OF THE INSURED STATED ABOVE. FORM OF aUStNE$$: 1rNDZVZDUAL BUSINESS DESCRIPTION; RESIDENTIAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY, THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTE FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT, COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART INSTALLMENT SERVICE FEE PREMIUM S 422.00 $ $ $, 154.00 $ 2,481.00 $ $ $ $ ' · .' .'...: "'.' '. '.:' :'::'::h S 10.00 FORMS APPLICABLE TO ALL COVERAGE PARTS: ZL00f7 II/ES 1L0248 05/8E 710477 05/95 702290 12/08 ]LOEI0 01/81 ]L0172 11/05 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(S; AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM ?l-O02S (ED. 03/91) HOME 0FFXCE XSSUED 10/14/g4 PENN NATURAL INSURANCE COMMERCIAL NON-ASSESSABLE POLICY NUMBER ~R~ ~lc~ ~m~ ~e N~ED IN~URED AND ADDRE~ ~EL SROTTS EXCAVATING P0 BOX 32 EAST EARL PA tTSlO PROPERTY COVERAGE pART DECLARATIONS REHEYAL OF CL9 0037618 COVERAGE IS PROVIDED IN PA NATIONAL MUTUAL CAS ]RS AGENCY MURRAY INS ASSOC INC P 0 BOX 1728 LANCASTER PA 17808 ! AGENCY ~BR co boooTso POLICY PERIOD: POLICY COVEmS FROI~ 12=01 A,M. STANDARD TIM; AT THE ADDRESS OF THE INSURED STATED ABOVE. FORM OF BUS,NESS: ]NDIVIDUAL BUS.S5 DESCRIPTIOf~ RESIDENTIAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIU/~ AND SUBJECT TO ALL THE TERMS OF THIS POLICY. WE AGREE WITH YOU TO PROVIDE THE iNSURANCE AS STATED ~ THIS POLICY, DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DESCRIBED PREMISES APPLIES ONLY FOR THE COVERAGES SHOWN: PREMISES NO. 1 : 1298 MARTIN STREET EAST EARL LANCASTER CO PA 17519 DEDUCT]aLE: $250 BUILDING NO.: I CONSTRUCTZON: FRAME OCCUPANCY: OFF~CES, OTHER PROTECTION CLASS: THAN GOVERNMENTAL COVERAGE: YOUR BUSINESS PERSONAL PROPERTY LIMIT OF INSURANCE: $2,000 COINSURANCEJ REPLACEMENT COST COVERED CAUSE OF 0g LOSS: SPEC]AL FORM SEE SUPPLEMENTAL DECLARATZONS, FORM 71-00279 FORMS APPLICABLE TO TKS COVERAGE PART: CPO010 t0/91 710218 lO/ge CP00g0 07/88 CPl0S0 I0/gi 2I 2 7 1 7E4 gg8 COUNTERSIGNED BY: Authorized Reprel~ive THESE ~C~RATI~S TOGE~R WITH T~ CO~ON POLICY CONDITIONS, COVERA~ PART COVERA~ F~ AND ~RMS, IF ~Y, ISSUED TO F~ A PART THEREOF, C~L~E THE ~OVE N~RED P~ICY. F~M 71-0027 ~ 03/91) HOME OFF]CE iSSUED I0/14/g~ COMMERCIAL PROPERTY CLO OOS?5IB 09/28/S4 00/26/95 COVERAGE PART SUPPLEMENTAL DECLARATIONS COVERAGE IS PROVIDED IN PA NATZONAL MUTUAL CAS iNS CO DESCRIP~ON.OF PREMISES AND COVERAGES PRO~DED INSU~ANCEATTH~DE$CRIBID ~iMISE$ APPLIES ONLY FORTHECOVSRAQE$ S~OW~ PREMISES NO. 2 : 1254 EAST EARL ROAD DEDUCTIBLE: EAST EARL LANCASTER CO PA IT519 AGENCY J IRI BUILDINGNO.: 1 PROTECTION CLASS: CONSTRUCT:ON: UOZSTED MASONRY OCCUPANCY: CONTRACTORS EXCAVATION EQUIPMENT. STORAGE COVERAGE: BUiLDiNG LIMIT OF INSURANCE: REPLACEMENT COST Og $1,200 COINSURANCE: BOX COVERED CAUSE DF LOSS: SPEC:AL FORM BUILDING NO,: 2 PROTECTION CLASS: CONSTRUCTION: UOiSTED MASONRY OCCUPANCY: OFFICES, OTHER THAN GOVERNMENTAL COVERAGE: BUILDING LiMiT' OF iNSURANCEi REPLACEMENT CDST og $ge.500 COXNSURANCE: MOX COVERED CAUSE OF LOSS: SPECIAL FORM BUILDING NO.: 'S PROTECTION CLASS: CONSTRUCTION; FRAME OCCUPANCY: CONTRACTORS EXCAVATION EQUIPMENT STORAGE COVERAGE: BUILDING LiMiT OF iNSURANCE: REPLACEMENT COST og $4,800 COINSURANCE: BOX COVERED CAUSE OF LOSS: SPECIAL FORM FORM 71-0027S (Ed. 03/91) HOME OFFICE ISSUED 10/14/94 POLZCY SCHEDULE OF NAMES AND ADDRESSES CLB 0037518 00/28/R4 09/28/95 THE FOLLO¥1NG ARE PA NATXO"AL MUTUAL CA3 ~NS CD ~000~1 INSUREDS ON THIS POLICY COMMERCIAL PROPERTY NAMES AND ADDRESSES PREMXSES NO.: 2 BLUE BALL NATIONAL BANK PO BOX 480 BLUE BALL PA 17500 MORTGAGEE ALL BUXLDXNGS FORM 71-0028 (ED. 03/91) HOME OFFXCE XSSUED ~0/14/g4 Pr:MN NAT L INSURANCE NON-A~81:RRAILR POLICY NUMRER OLD 0037516 COMMERCZAL GENERAL LIABILZTY COVERAGE PART OECLARATZONS OCCURRENCE POLICY RENEYAL OF CLD 0037516 THIS POLICY IS SUBJECT TO A GENERAL AGGREGATE LIMIT 09/22/04 100/20/05 PA NATIONAL MUTUAL CAS INS CO 00075 1 AGENCY MURRAY INS ASSOC INC P 0 g0X 1728 LANCASTER PA 17908 N~MED INSURED AND ~DDRSSR MEL SPOTTS EXCAVATING PO BOX 32 EAST EARL PA 17519 POLICY PERIOD: IK)t&CY COVERS FROM: 12:01 A.M. STANDARD TIME AT THE ADDRESS OF TH~ INSURED STATED ABOVE. FO~M OD' BusiNess: INDIVIDUAL, BUSINESS DESCRIPTION: RESIDENTIAL, EXCAVAT IN(] tN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF. THIS POLICY, V~E AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER 'THAN PRODUCTS - COMPLETED OPERATIONS) PRODUCTS - COMPLy-i~-O OPERATIONS AGGREGATE LIMIT PERSONAL AND ADVERTISING INJURY LIMIT EACH OCCURRENCE LIMIT FIRE DAMAGE LIMIT, ANY ONE FIRE MEDICAL EXPENSE LIMIT, ANY ONE PERSON 1,000 000 1,000 000 $00 000 600 000 SO 000 S 000 PREMIUM INFORMATION RATES CODE PREMIUM BASIS PER PREMS/OPS PRODUCTS ADVANCE PREMIUM PREMS/OPS PRODUC SEE SUPPLEMENTAL DECLARATIONS, FORM 71-00296 FORMS APPLICABLE TO THIS COVERAGE PART: IL0021 11/85 C00001 11/88 CG2503 11/65 C82504 11/85 CG2tSO 09/89 C0214g 11/66 2 2 77 1794 / N/996 COUNTERSIGNED BY: Authorized RepreSentative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORN AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0029 (Ed. 03/91) HOLE OFFICE ISSUED 10/14/9 COMMERCIAL OENERAL LIABiLiTY COVERAGE PART SUPPLEMENTAL DECLARATIONS CL9 DOS?S18 09/2S/94 09/29/95 COVERA~ I$ PROVIDED IN AGENCY ]BR PA NATZONAL MUTUAL CAS iNS .CO PREUISES NO. 1298 MARTIN STREET EAST EARL LANCASTER CO PA 17519 CODE 94007 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS 18,500 PAYROLL ' 1000 VARIOUS VARIOUS EXCAVATZON ADVANCE' PREMIUM PREMS/OPS PRODUCT! iNCLUDED iNCLUDEI CODE 95410 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS le,500 PAYROLL 1000 VARIOUS VARIOUS GRADING OF LAND ADVANCE PREMIUM PREMS/OPS PRODUCT: iNCLUDED ZNCLUDEI PREMISES NO. 1254 EAST EARL ROAD EAST EARL LANCASTER CO PA 17519 CODE 81212 PREMIUM BASIS 4,G$S SQUARE RATES ADVANCE PRE#ZUG PER PREM~/DPS PRODUCTS PREMS/OPS PRODUCT FEET 1000 VARIOUS iNCLUDED BUiLDiNG OR PREMZSES - SANK OR OFFICE MERCANTILE OR MANUFACTURING (LESSORS RISK ONLY1 OTHER THAN NOT FOR iNCLUDING PRODUCTS-COMPLETED O~ERATIONS PROFIT FORM 71-00~0S (ED. 03/01) HOME OFFICE iSSUED 10/14/g; INSURANCE CDEEERCZAL iNLAND NARINE COVERAGE FART DECLARATIONS RENEtfAL OF CLg 0087518 NON-ABSESEABLE POLICY NUMBER .,nu POUCY NmOD gLO O0STS1E 09/26/84 i0s/2e/gs NAMED INSUREO ANO ADDRESS NEL SPOTTS EXCAVATZNG F0 BOX S~) EAST EARL PA 17518 COVERAGE IS PROVIDED IN PA NATXONAL MUTUAL CAS iNS CO AGENCY MURRAY iNS ASSOC ZNC P 0 BOX 1728 LANCASTER PA 1780S AGENCY IBR 000750~11 POLICY PERIOD: POLICY COVERS FROIV~ 12:01 A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE. FCXRM OF BUSINESS; INDIVIDUAL BUSINESS DESCRIPTION: RESiDENTiAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. PREMIUM CONTRACTOR'S EQUIPMENT $ 2,281.00 ALL COVERAGE FARTS NOT DTHERVZSE SPECiFiED $ 200.00 FORMS APPLICABLETO ALL COVERAGE PARTS: 710082 01/92 71087! 0S/g2 IM42 07/86 XMBS 07/88 ZMg03 02/85 Zi4/ 04/68 XM259 OI/O? 710167 10/01 lUlO0 06/84 2 77 ,.4 |.joo8/ cou. s o D Authorized RepreEentative F~S, IF ~, ISSUED TO F~M A PART ~REOF. CO~LE~ ~E ABOVE N~BERED POUCY. 71-0031 (~. 03/9~) HOlE OFFICE ]SSOEO 10/14/94 COMMERCIAL iNLAND MARINE DECLARATIONS - CONTRACTOR'S EQUIPMENT CL9 00S751G 05/28/94 Og/~O/g5 COVERAGE I$ PROVIDED IN PA NATIONAL ~MUTUAL CAS iNS CO 'OE"Cy I' I ODD,EVil EACH iTEM THAT iS COVERED MUST BE DESCRIBED BELOM OR ON k SCHEDULE THAT XS A PART OF THiS POLICY. A COVERAGE AMOUNT MUST BE SNOYN FOR EACH iTEM. THiS XS THE MOST THAT ME MiLL PAY FOR A LOSS TO THAT iTEM. DEDUCTIBLE : $500 THE ABOVE DEDUCTIBLE AMOUNT ¥iLL APPLY SEPARATELY TO EACH iTEM iNVOLVED iN EACH LOSS AFTER ALL OTHER ADUUSTMENTS HAVE BEEN MADE. B 7 iTEM DESCRXPTZON OF EQUIPMENT 1 1688 dOHN DEERE EXCAVATOR 2 1989 CAT D3C BULLDOZER $ 1998 CAT 953 LOADER 4 1989 BOMAG 142D ROLLER'COMPACTOR $ 1989 dOHN DEERE MOL 85S LANDSCAPE /TRACTOR ¥/89 YORK RAKE & 79 LOADER STANLEY COMPACTOR (ATTACHMENT) CONTENTS CONTAINED ZN THE 1987 VELLS /CARGO'TRAiLER 1993 JOHN DEERE 410D BACKHOE ITO410DGTD3722 COVERAGE AMOUNT $ 45,000 $ 34,000 $ T5,O00 $ 18,000 $ 7,600 4,000 2,000 $ 86,500 TOTAL AMOUNT OF INSURANCE $ 2SI,300 HOME OFFICE ISSUED 10/14/64 FORM 71-0125 (ED. 11/91) POLZCY SCHEDULE DF NAMES AND ADDRESSES POLICY NUMBER CLg OOS~51E ~ POLmV PI~mO ~ ~ COVERAGE IS PROVIDED iN 00/26/94 I 00/2~/05I PA NATIONAL MUTUAL CAS INS CO THE FOLLOVINO ARE INSURED$ ON THIS POLICY 000075~I COMMERCIAL INLAND MARINE NAMES AND ADDRESSES PREMISES NO,: 1BUZLDZNG NO.: dOHN DEERE ZND EQUIPMENT CORP PO BOX e50SO VEST DES VOINES ZA SO,SS LOSS PAYEE SEE 71-0187 10/91 FORa 71-0020 (ED. 03/01} HO~E OFF;CE ISSUED 10/14/94 PENN NATIONAL INSURANCE Pemlyl'alnia Natio~ll Mulual Casualty Insurance Company Pe~ NatcP, ai Sm:u~ity Insume~e C~pa~y P, 0, 8ox 2361 Hwfistx~g. PA 17105-2381 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endoraement ohlngel the policy effective on the in=option date of the policy or Ii of the date Indicated below. NumlAlr ZltS ~ ~C 0000139 This endorsement modifies such Insurance as is afforded by the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE X Loss Payee applicable: A. Lender's Loss Payable B. Contract of sale Loss Payee .Tl~llll ~ ZIID IgtU~ C0~1' Address PO ~ &~90 b,-..z DI3 RO.LJIi~ TA APPLICABLE TO THE FOLLOWING PROPERTY Deacrlptlon Location Manufacturer I of property Serial # Amount of Type of Insurance Coverage 165,500 CXXITIMGTC~ For covered property in which both you and a Loss Payee shown in the schedule or in the Declarations have an Insurable interest, we will adjust losses with you; and pay any claim for loss or damage jointly to you and the Loss Payee, as interest may appear, Fcm~ 71.0187(E,'1 1(~gl) Page Iof2 This endorsement changes the Inland Marine coverage. If e coverage i~ $~wn o~ t~e line below, th~ e~or~ment Wplles only to that covereg,~. DEDUCTIBLE The following deductible amount will apply to each loss after all other adjustments have been made. $ IM47 (Ed. 44a) IM47 AAiS © ~pydold 106~ Ants This Inland Ma~e coverage is subject to me tarm~ shown below. The Inland Msdna Genera Terms also apply. MISCEL NEOU8 PROPE COVER E ~e Info,on mquirN ~w may ~ sho~ on DF. SCRIBED PROPERTY IM-gQ3 led, 246) The most that wa will pay for all covered property in the event of a lose is: DEDUCTIBLE The following deductible amount wiJf apply tO each loss after all other adjust- ments have been made. COlN$URANCE Coverage Amount $ 8,000 $ 5OO Yoe mum maintain a minimum coverage amount. This minimum coverage amount is the full actual cash value of all covered pro~erly. If the coverage amount at the time of loss is less than t~e minimum coverage amount, we will ~ay only a ~rt of a loss. Our part of the loss will ~e determined by dividing the coverage amount by the minimum coverage amount. This percent wilt be applied to the final ad- justed loss to determine the amount that we will pay. PROPERTY COVERED I We cover the described property t~at belongs to you. Wa also cover similar property that belongs to others and for which you are liable. [PERILS COVERED I We cover direct phys~aJ loss to covered property unless t~ loss is caused by a peril that Is excluded. The loss must be due to a~ external cause. { PERILS EXCLUDED J We do not pay for a loss If one or more of the fo~lowing excluded perUs apply to t~a loss, regardless of ob~er causss or events that cont~bute to or aggravate tha loss, whether such causes or events act to produce the lose before, at the same Ume as, or attar the excluded pedl. We do not pay for a loss t~,at resu~ from: 1, a dishonest or illei~aJ act, alone or in collusion with another, by: a. you; b. others who have an interest in the property; c. others to whom you entrust the property; or d. the employees or agents of a., b. or c., whether or not they are at work. IM-903 We dO cover loss caused by dishonest acts by carriers or other bailees for hire. 2. swindling, fraud, trick or false pretense. 3. the acceptance of: a. counter/sit money or fraudulent post office or express money orders; or b. checks or ~'omissory notes which are not paid upon presentation, 4. mysterious disappearance. 5. any cause when the only proof that a lose occurred is an inventory shortage. 6. breakage of g/asa or similar fragile items. We do cover breakage if it is caused by fire; lightning; windstorm, hail; earthquake; flood; smoke; explosion; airoraff, space- cra/t, self-propelled missiles or c~jects Itmt fall from these items; vehicles, including an accident to a transporting vehicle; strike; dot: civil commotion; vandalism; theft; attempted ~eff; spdnlder leakage; or coJlapse of buildings. 7. a process to repair, adjust, service or maintain covered properP/, ~f a fire or explosion reaults, we do cover the loss caused by the fire or explosion. mechanical breakdown or failure. If a fire or explosion re- suits, we do cover the lose caused by the fire or explosion. © CaQydoht 198~ AAIS INSURANCE P~n Nadon~ SEa~ri~ In~Jrar, ce Compeny I900gE~f Stm~ · ~PA171~ Mli~ P,0. ~ ~1 Zip 17T~1 THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ iT CAREFULLY. INLAND MARINE ,POLICY CHANGES POLICY CHANGE NUMBER POLICY NUMSER POLICY CHANGES EFFECTIVE POLICY PERIOD CL9 0 03 75 16 NAME INSURED ~ ~ ~XCAVATING 9/26/9& g/26/9~ ~ 9/26/95 AUTHORIZED REPflE~ENTATIVE I¢,m,R~T IRS ,kSSOC ZNC 000 0759 COVERAGE FARTS AFFECTED CHANGES THE COVE~ ANOUtI~ O~l I~llN 71-0125 ARE h'I~:Y,I~T .I.NI~DED ~ ~.t~: 1, ~ ~,~ ~ $~,~ 2. ~ $~,~ ~ $~,~ 3. ~ $75,~ ~ $65,~ ~ "L'OT,4L ,kHOUN'I' OF Z~ISUY,.ARC;. IS X'P.,.f,~3T U,~XDED 'I'O $231,3OO IX T.'rEu OF $251,300 x'uu, I ~7 D~SC~IPTIORS TS X]E~E~T A14EWDED TO tq~kD: CORTgRX'S COBTJL_TX~) XH ~ 1989 ~ CiItGO T~tlI,~ $179 ~'I'URR PE]~G'UN n/xo/ PENN NA*nONAL COMMERCIAL LINES POLICY COlllO# DECLARATIONS ANENDIlENY DF POLICY EFFECTIVE: SEPT IgC4 CLD 0017118 OD/IS/G1 OS/IS/CS UEL SPOTTS EXCAVATING ~EL SPDTTS T/A PO BOX 3~ EAST EARL PA COVERAGE IS PROVIDED IN PA NATI'DNAL IlUTUAL CAS INS CO AGENCY IlURRAY INS ASSO¢ lNG P 0 BOX LANCASTER PA 17S08 A~NCY IBR 00078J~1 agreed ti'mt l~ie policy Is hereby amended as indicated below:. THE NANED iNSURED AND/OR IlAiL:rNG ADDRESS iS CHANGED. FOR ALL COVERAGE PARTS, THE FOLLD¥ING COVERAGE PART VAS AMENDED YZTH A PREIlIUI CHANGE: PREMIUll I NEW ANNUAL PREMIUtVt S5,83a.00 TOTAL PREMIUM THIS ENDORSEMENT ADDiTiONAL .L. THIS ENOOR~EMENT IS SUBJECT TO THE DECLARATIONS, CONDITIONS AND OTHER TERM~ OF POLICY VVHICH ARE ~OT I~ON~I~T~ HEREWITH AND WHeN CO~SlG~ ~Y RE~ATI~ OF ~ CO~Y, FORM~ A ~ART OF ~ P~ICY DE~IB~ PRO-RATA ~RCE~A~ I 0 O, 0 ~ SIGNORE OF AU~ORJZED REPRESENTATIVE INSURANCE POLICY NUMBER CL9 0 03 75 16 THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. INLAND MARINE POLICY CHANGES POLICY CHANGE~ EFFECTIVE 9126194 POLICY CHANGE NUMBE~ 2 POLICY PERIOO 9/26/9~ TO 9/26/9~ NAME INSURED ~ SIt'OTTS T/d, 1~ BOX 32 LtST rAIL PA 17519 COVERAGE PARTS AF~EGTED AUTHORIZED REPRESENTATIVE l, mllA! Ills AS$0C lllC 000 0759 CHANGES FORN 70-2589 10/89, 'fOOLS AHEIDATOIY EMD'r, ~ &TYAC~D TO T~ FOLIC7. ~10 ~ Ill IS HEIEBY ADDED Authc~rlZod Ril~'e~ent~tive SigM~Jre INSURANCE THIS ENDORSEMENT CHANGES THE POUCY. PLEASE READ IT CAREFUlly. Thb aedo.ament Obanil~e the ~ ~.'tfva on the In~eption da~ ~ the p~l~y ¢w ~t ~ th~ dm indicted ~. ~L SPO'I'T$ rrC&VATI~O, ~ SFOTTS ' ' ' T~A ......... Ed ~ ............... )J~.~A! I~$ A.~$OC I~C 000 0759 This endorsement modifies such Insurance as ia afforded by the provlsionl of the polis¥ rslsting to the following: COMMERCIAL'INLAND MARINE POUCY TOOLS AMENDATORY ENDORSEMENT Coverage'ia amended a~ follows: PROPE R'/'Y COVERED We Covered your portable tools and equipment valued less than $ ~,.000 per item or set, This includes their containers, spare parts, and accessories, Wa also cover similar property that belongs to others and for which you are liable. Form 70-2~ ~Ecl. lO~JI INSURANCE NON - ASSE,I~SASLE P~ICY N~BER CL~ 003751~ COMMERCIAL L2NES POL2CY COMMON DECLARAT2ONS REHEVAL OF CL8 0037519 09/26/95 NAMED ~$URED AND ADD.SI EEL SPOTT$ EXCAVATZNG EEL SPOTT$ T/A PO BOX 32 EAST EARL PA 17510 COVERAGE I$ PROVIDED IN PA NAT2ONAL MUTUAL CAS TN$ CO MURRAY 2NS ASSOC ZN¢ F o BOX 1728 LANCASTER PA I7808 AGENCY POLICY PERIOD:. P~LICY COVERS FROM 12:0! ~.IVL STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE. r-C~M OF BUS.ESS: 2ND]V,~DU&L EUSJNE$S DE.fCRIPTION; RESZDENTZAL EXCAYAT]N(] iN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THrS POLICY, WE AGREE WITH YCXJ TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART 2NSTALLMEHT SER¥[CE FEE PREMIUM 485.00 ~,389.00 2,3?9.00 18.00 FORMS APPLICABLE TOALL COVERAGE PARTS: ZL0017 11/85 2L0249 06/89 710411 05/05 71057S 05/94 ZL0gl0 01/S1 ]L0172 11/93 2 2 77 17 g 4 g 0 ? COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WI'IH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORMIS) AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. POLZC¥ SCHEDULE OF NAMES AND ADDRESSES [P~ICY NUMBER I ~ ~oc~ ~l~ TO THE FOLLO¥iND ARE COVERAGE I$ PROVIDED IN PA NATiOnAL MUTUAL CAS INS CO /NSUREDS ON THIS POLICY AGENCY / ER COMMERCIAL LINES POLICY COMMON NAMES AND ADDRESSES MEL SPDTTS T/A NEL SPOTTS EXCAVATING &/OR #EL SPOTTS BETTE SPQTTS, ATXMA CONTINUED NAMED INSURED INSURANCE COlJIJERCZAL PROPERTY COVERAGE PART DECLARATIONS RENEYAL OF CLg 00S7E18 CLg OOST$1e og/2e/g5 NAMED INSURED AND ADDRF.~E NEL SPOTTS IEL SPOTTS PO BOX 3~ EAST EARL PA 17619 COVERAGE IS PROVIDED IN PA NATIONAL IUTUAL CAS iNS CO AGENCY RURRAY iNS ASSOC P 0 BOX 1726 LANCASTER PA 17608 AGENCY OOOOTEg~ll POLICY PERIOO: POLICY COVERS FROM; 12:01 A.M. STANDARD TIM;= AT THE AI~iDRES$ OF THE INSURED STATED ABOVE. FORM OF BUSINESS: ]NDIVZDUAL BUSINESS DESCRIPTION= RESIDENTZAL EXCAVATZNG IN RETURN FOR PAYMENT OF THE PREMIUM. AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DESCRIBED PREMISES APPLIEE ONLY FOR THE COVERAGES ~=HOWN: PRENISES NO. 12gs IJARTJN ST DEDUCTIBLE: $250 EAST EARL LANCASTER ¢0 PA 1751g BUXLOZNG NO,: CONSTRUCTION: FRAljE OCCUPANCY: OFFICES, OTHER PROTECTION THAN GOVERNMENTAL CLASS: OB COVERAGE: YOUR SUSZNESS PERSONAL LZljZT OF iNSURANCE: $2,200 REPLACEljENT COST PROPERTY COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORlj SEE SUPPLEljENTAL DECLARAT]ONS, FORR 71-0027S TOTAL"PRF. MIUM pon THIS CO~GE':P,;kRT ". ' '. '?' FORMS APPLICABLE TO THIS COVERAGE PART: CP0010 10/91 110216 10/03 CPOOgO 07/88 CP1030 t0/gi 2 2 71 1194 gg? COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORMiS), AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY, PROPERTY COVERAGE PART SUPPLEMENTAL DECLARATIONS POLICY NUMBER CLg 0037515 og/2EIg5 I Og/2E/g8 COVERAOE I$ PROVIDED IN PA NATIONAL liUTUAL CAS /NS CO DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DBSCRIBBD PREMISES APPLIES ONLY FOR 'rile COVERAOES SHOWN: oao'ss s11 PREMISES NO. 1S54 E EARL RD DEDUCTIBLE: I250 EAST EARL LANCASTER CO PA 17510 3UILDZNG NO,: I PROTECTION CLASS: CONSTRUCTION: dOISTED MASONRY OCCUPANCY: CONTRACTORS EXCAVATION EQUIPMENT STORAGE OS COVERAGE: BUILDING LIMIT OF iNSURANCE: REPLACEMENT COST $7,500 COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM BUILDING NO,: 2 CONSTRUCTJON: UOZSTED MASONRY OCCUPANCY: OFFICES, OTHER THAN COVERAGE: BUILDING LIMIT OF INSURANCE: REPLACERENT COST S118,500 PROTECTION CLAS5: og GOVERNMENTAL COINSURANCE: BOZ COVERED CAUSE OF LOSS: SPECIAL FORM BUiLDiNG NO,: 3 CONSTRUCTION: FRAME OCCUPANCY: CONTRACTORS EXCAVATION COVERAGE: BUILDING LIMIT OF iNSURANCE: REPLACEMENT COST PROTECTION CLASS: EQUIPMENT STORAGE og $S.OO0 COINSURANCE: 60~ COVERED CAUSE OF LOSS: SPECIAL FORM FORM 71-0027S (Ed. 0~/.C111 ..................... POLZCY SCHEDULE C~9 0037516 Og/2B/95 09/28/98 THE FOLLOWING ARE OF NA~ES AND ADDRESSES COVERAGE I$ PROVIDED IN PA NATZONAL MUTUAL CAS ZNS CO ZNSUREDS ON THXS POLICY COIMERGZAL PROPERTY NAMES AND ADDRESSES PREMISES NO.: BLUE BALL NATIONAL BANK PO BOX 580 BLUE BALL PA 17508 MORTGAGEE ALL BUZLDZNGS INSURANCE C0MMERCZ&L GENERAL LIABILITY COVERAGE PART OECLARATZ0NS OCCURRENCE POLICY RENEYAL OF CLg 00~7518 NON-A~SESSAB~ POCICY N~4IER ~. ~J~ ~Em~ ?~ CLg OO~?518 oe/2e/i5 ]og/2e/ge NMED INSURED AND A~SS MEL SPOTTS EXCAVATING MEL SPGTTS T/A PO BOX $2 EAST EARL PA l?Slg THIS POLICY IS SUBdECT TO A GENERAL AGGREGATE LIMIT COVERAGE IS ,ROVlD~O IN NATIONAL MUTUAL CAS INS C0 AGENCY MURRAY IN5 ASSOC ZNC P O BOX 1728 LANCASTER PA I?B08 POLICY PERKED:. POLICY COVERS FRO~V~ 12:01 A,M. STANDARD TIME AT 'THE ADDRESS OF 11-1E INSURED STATED ABOVE. r-OFW OF BUSINESS: INDIVIDUAL aus~ess DESCRi~ON: RE$][DENTZAL EXCAVATIN(I IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS - COMPLETED OPERATIONS) PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT PERSONAL AND ADVERTISING INJURY LIMIT EACH OCCURRENCE LIMIT FIRE DAMAGE LIMIT, ANY ONE FIRE MEDICAL EXPENSE LIMIT, ANY ONE PERSON '$ 1,000,000 1,000,000 $ 500,000 $ $00,000 $ SO,O00 s 5,000 PREMIUM INFORMATION RATES CODE PREMIUM BASIS PER PREMS/OPS PRODUCTS ADVANCE PREMIUM PREMS/OPS PRODUCTS SEE SUPPLEMENTAL DECLARATIONS, FORa 71-oo2gs 'roT^L VANCE ....EMIUM C0V A p rr ': ..: .ss; .'0G :ORMS APPLICABLE TO THIS COVERAGE PART: ]L0021 11/85 CG0001 11/88 CG2505 11/85 CG2504 11/85 CG2150 0g/Eg CG214g 11/88 2 2 ? ? 1 ? g 4 2 g 7 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS. COVERAGE PART COVERAGE FORM(SI, AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOI:, COMPLE'J'E THE ABOVE NUMBERED POLICY. COMMERCIAL QENERAL LIABILITY COVERAGE PART SUPPLEMENTAL DECLARATIONS CLg OOSTS18 00/28/B5 OS/28/gS ¢OV~AGEIS PROVIO~ IN ~AGENCYI.R PA NATIONAL MUTUAL CAS ~N5 CO ~00075l~1 PREMISES NO. I : l~gB MARTIN ST EAST EARL LANCASTER CO PA 1751S RATES ADVANCE PREMIUM CODE PREMIUM BASIS PER PREMS/OPS PRODUCTS PREMS/OPS PRODUCTS 94007 18,000 PAYROLL tOOO VARIOUS VARIOUS INCLUOEO INCLUOEO EXCAVATXON RATES ADVANCE PREMIUM CODE PREMIUM BASIS PER PREMS/OPS PRODUCTS PREMS/OPS PRODUCTS 95410 18,000 PAYROLL 1000 VARIOUS VARIOUS INCLUDED iNCLUDED GRADING OF LAND PREMISES NO. 2 : 1254 E EARL RD EAST EARL LANCASTER CO PA l?Sfg CODE PREMIUM BASIS PER 81212 4,838 SQUARE FEET 1000 RATES PREMS/OPS PRODUCTS VARIOUS ADVANCE PREMIUM PREMS/OPS PRODUCTS INCLUDED BUILDING OR PREMISES - BANK OR OFFICE - MERCANTILE OR MANUFACTURING (LESSORS RISK ONLY) OTHER THAN NOT - FOR INCLUDING PRODUCTS-COMPLETED OPERATIONS - PROFIT INSURANCE COMMERCIAL iNLAND MARINE COVERAGE PART DECLARATIONS RENEYAL OF CL9 0037510 NON-AB$1E$GABLE POLICY NUMBIER ~,.o. N~ ~BURED ~D EEL $PDTTS EXCAVATING UEL 5POTTS T/A PO BOX ~2 EAST EARL PA 17510 CO~RAOE IS PROVIDED IN PA NATIONAL MUTUAL CAS iNS CO AGENCY UURRAY INS ASSDC P 0 60X 1728 LANCASTER PA 17608 AGENCY ~R POLICY PERIOD: POLICY COVERS FROM: t2:01 A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED AeOVE. FORM O~ B~$,,a~$S: iNDiViDUAL BusiNeSS DE$CRiPTIO~: RESiDENTiAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. CDNTR~CTOR'S EQUIPMENT LEASED PROPERTY ALL COVERAGE PARTS NOT OTHERYZSE SPECiFiED PREMIUM 1,92G.00 100.00 350.00 · TOTAL ADVANCE'PREMIUM :'FOR ':TIll..S 'COVERA(~* PART. :(I . " ~ FORMS APPLICABLETOALL COVEERAGE PAJ:~TS: iME50 01/61 102589 10/89 710167 10/91 lia1013 10/85 iilO0 06/84 iN42 07/56 ZM903 02/85 iN4? 04/80 710371 06/92 ?10062 01/62 ZM61014 t0/85 70168 11/63 JUG3 07/66 2~ 7 ? 1 ? 9 4 9 9 ? COUNTERSIGNED BY: Aufl~orized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM[SI, AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. CONMERCIAL INLAND MARINE DECLARATIONS - CONTRACTOR'S EQUIPMENT POLICY NUMBER CLg 00S7518 og/2B/g5 J 09/28/98 COVERAGE I,~ PROVIDED IN PA NATIONAL MUTUAL CAS INS CO AGENCY I ERI 0000759~31 I EACH ITEl THAT IS COVERED lUST SE DESCRIBED BELOV OR ON A SCHEDULE THAT IS A PART OF THIS POLICY. A COVERAGE AMOUNT MUST BE SHOYN FOR EACH ITEM. THIS IS THE MOST THAT ¥E ¥ILL PAY FOR A LOSS TO THAT ITEM. DEDUCTIBLE : $500 THE ABOVE DEDUCTIBLE AMOUNT ¥ILL APPLY SEPARATELY TO EACH IN EACH LOSS AFTER ALL OTHER AOdUSTMENTS HAVE BEEN MADE. ITEM INVOLVED ITEM DE5CRIPTION DF EQUIPNENT 1 1988 UDHN DEERE EXCAVATOR 2 1989 CAT DSC BULLDOZER 3 1988 CAT 953 LOADER 4 1989 BOMAG 142D ROLLER COMPACTOR 5 1989 dOHN DEERE MOL 855 LANDSCAPE ITRACTOR ¥/G9 YORK RAKE 4 79 LOADER $ STANLEY COMPACTOR (ATTACHMENT] ? CONTENTS CONTAINED IN THE 1989 YELLS ICARO0 TRAILER 8 1993 UOHN DEERE 410D BACKHOE ITO410DG?93722 COVERAGE AMOUNT $ 38°000 $ 25,000 $ 85,000 $ 18,000 $ 7,800 S 4,000 $. 1,200 $ 55,000 TOTAL AMOUNT OF INSURANCE $ 214,000 1t POLICY SCHEDULE OF NARES AND ADDRESSES POLICY NUMBER CL9 0037518 ;~oM P~ P.R~o To i COVERAGE IS PROVID~ IN 09/28/95 I 09/26/96I PA NATIONAL MUTUAL CAS XNS CO THE FOLLDYZNQ ARE JNSUREDS ON THiS POL;CY COMMERCIAL INLAND MARINE NAMES AND ADDRESSES PREMISES NO.: I BUZLDINO NO.: UOHN DEERE ZND EQUIPMENT CORP PO BOX S5090 WEST DES WOZNES ZA 50255 LOSS PAYEE SEE 71-0187 lO/gl PENN NA ONAL INSURANO£ P.O BO~ 2:~1 H~n~ZI~1. I~A 171~'~'~1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorlement =bengal the policy elfiGtlve on the Inc4ptlon date of the polioy ar aa of the date indkmted below. 9.--26-95 M.m.~,m~.Y. INs. ~$~o.c. ~c ..... ;)q0. i)T59. ...... Thlsen~mementmod~iessuchi~ura~e ~isaffo~ bythepmvisionsof~epolicyrel~ing~thefol~: COMMERCIALINLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE Loss Payee applicable: X A. Lencler's Loss Payable B. Contra=t of sale Loss Payee ~OHN DEEP~E IND EQUZPMEN? COP~ Addres~ ?O BOX b~O~O WEST DES MOINE$ IA 50265-0090 APPLICABLE TO THE FOLLOWING PROPERTY Deac~'iptlon Manufacturer I of property Location Serial # 1993 JOH~ DEERE ~10D BACKHOE Amount of Type of Insurance Coverage TO~lODGT~3722 $55,000 CONTP. ACTOI~' E~U.T..~U~T For covered property In which both you and a Loss Payee shown in the schedule or In the Declarations have an i~surable interest, we will adjust losses with you; and pay any claim for loss or damage jointly to you and the Loss Payee, as interest may appear. F.o~m 71-01e7 (Ed. ID91) AJ~I8 ThiS endorsement changes the Inland Marine coverage. If a ct3v~rsgs is shown on the ins below, this sndo~semant a~)plies only to that covsrags. IM.47 (Ed, 44e) --PI.EA3E READ Tl118 CAF.£FUI.~.Y-- ~ i~o~ required below rniy be show~ o~ a sapirate schedule or .~pleme~ Dacla~a~n~,) DEDUCTIBLE The foliowlflg deductible art~ount will apply to each loss after all other adjustments haYe been made. $ 5OO IM-.47 A~IS © Copyfltlht 1986 AAIS IM-gO3 0 03 T~ 3,6 (Ed. 246) This Iniaod Marine coverage is subject to the terins shown below. The tniand Marine General Terms also apply. --PI.F..4~E RE~O 11418 CAREFULLY- MISCELLANEOUS PROPEITrY COVERAGE (The tnformatio~ required below may be sJ~wn on a separate schedule o~ supplemental Declarations.) DESCRIBED PROPERTY The covered property consists mainly of: ,-- ,,~ --- CovuraQn Amount $ to~O The most that we will pay for all covered property in the event of a loss is: DEDUCTIBLE The following deductible amount will apply to each loss after ail other adjust- ments have been made, $ 500 COINSURANCE YOu must maintain a minimum coverage amount, This minimum coverage amount is the full actual cash value of ail covered property, if the coverage amount at the time of loss is less than the minimum coverage amount, wu will pay only a part of a loss. Our part of the loss will be determined by dividing the coverage amount by the minimum coverage amount. This percbnt will be applied to the final ad- justed loss to determine the amount that wa will pay. t PROPERTY COVERED I We cover the described property that belongs to you. Wa also cover similar property that belongs to others and for which you are liable. I PERILS COVERED ] We cover direct physical loss to covered property unlsss the loss Js caused by a peril that is excluded. The loss must be due to an external cause. [ PERILS EXCLUDED We do not pay for a toss if one or more o! the following excluded perils apply to the loss, regardless of other causes or events that contribute to or aggravate the toss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded peril. We do not pay for a loss that results from: 1. a dishonest or illegal act, alone or in collusion with another, by: a. you; b, others who have an interest in the property; c. others to whom you entrust the property; or d. the employees or agents of a., b. or c., whether or not they are at work. IM-go3 We do cover loss caused by dishonest acts by carriers or other bailees for hire. 2. swindling, fraud, tdck or false pretense. 3. the acceptance of: a. counterfeit money or fraudulent post office or express money orders; or b. checks or promissory notes which are not paid upon presentation. 4. mysterious disappearance, 5. any cause when the only proof that a loss occurred is an inventory shortage. 6. breakage of glass or similar fragile items. Wa do cover breakage if it is caused by fire: lightning; windstorm, hail; earthquake; flood; smoke; explosion; aircraft, space- craft, self-propelled missiles or objects that fell from these items; vehicles, including an accident to a transporting vehicle; strike; dot; civil commotion; vandalism; theft; attempted theft; sprinkler leakage; or coflapss of buildings. 7. a process to repair, adjust, service or maintain covered property. If a fire or explosion results, wi do cover the loss caused by the Iire or explosion. mechanical breakdown or failure. If a fire or explosion re- sults, we do cover the loss caused by the fire or explosion. © Copyright 1985 A.41S ~V~ PENN NATIONAL INSURANC~ Box 2361 HarrLs~rg, PA 17105-2361 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement changes the policy effective on the Inoeptlon date of the policy or ea of the date Indicated below. RUlUM~r ~ ~ ~ QQO OYS! This endcrlement modiflel such insurance es is afforded by the provleione of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY TOOLS AMENDATORY ENDORSEMENT Coverage Is emended as follows: PROPERTY COVERED We covered your portable tools end equipment valued lees then $ ]..000 per item or eat. Thle includes their containers, spare parts, and accessories. We alee cover aimilor propertv that belonge to others and for which you are liable. Form 70-25~1 (Ed. Exhibit B ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiffs VS., MEL SPOTTS, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM JURY TRIAL DEMANDED COMPLAINT AND NOW come the above-named Plaintiffs, by their attorney, Samuel L. Andes, and make the following Complaint in this matter: 1. The Plaintiff, Orchard Hills Associates, is a general Pennsylvania partnership consisting of Robert E. Goodling of Carlisle, Pennsylvania, James T. Gibson, of Mechanicsburg, Pennsylvania and Peifer& Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania. Orchard Hills Associates is referred to hereinafter as "Orchard Hills." ' 2. The Plaintiff, Pocono Village Associates, is a Pennsylvania general partnership consisting of Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania, AAA Quality Builders, Inc., a Pennsylvania business corporation of Mechanicsburg, Pennsylvania, and PVOHA, Inc., a Pennsylvania business corporation of Carlisle, Pennsylvania. Pocono Village Associates will be referred to hereinafter as "Pocono." .. 3. The Defendant, Mel Spotts, is an adult individual who, to the best of Plaintiffs' knowledge, resides or maintains an office at 45 Martin Street in East Earl, Pennsylvania. 4. In 1994 Orchard Hills owned a Mobile Home Park situate in Pocono Township, Monroe County, Pennsylvania, which Mobile Home Park was known variously as "Pocono Village Court" or "Pocono Village Mobile Home Park" and which was improved with facilities for 32 mobile homes, which facilities were leased to tenants and which facilities included a septic system to lawfully dispose of sewer and other wastes on the property. 5. In 1994 and at all other times relevant to this action, Defendant was engaged in the business of excavation and plumbing work and held himself out to Orchard Hills and its representatives, and to various other members of the public, as an expert in such work. 6. During the summer and fall of 1994, Orchard Hills engaged Defendant Sports to do certain work on the Pocono Village Mobile Home Park. During the process of that engagement, representatives of Orchard Hills and Sports took the following actions: a. Sports visited the Pocono Village Mobile Home Park to inspect the problem; and ~ b. Spotts determined what work was necessary to correct the problem and make the improvements which Orchard Hills requested; and c. Spotts met with representatives of Orchard Hills at offices they maintained at that time at 4740 Delbrook Road in Mechanicsburg, Pennsylvania, to discuss the work he proposed to do, to explain to Orchard Hills' representatives how that work would correct the problems at Pocono Village Mobile Home Park, and to propose payment terms for the work he was to do. 7. At various meetings held at Orchard Hills' office in Mechanicsburg, Orchard Hills engaged Spotts to do work on the septic and sewer system at the Pocono Village Mobile Home Park. The terms of the engagement were that Sports would do the work he had verbally described to the representatives of Orchard Hills in a good and workmanlike manner, in exchange for which Orchard Hills would pay Spotts his normal and customary charges, on a time and material basis, for such work. Although no formal written agreement was prepared between the parties, Brian Gross, one of the principals in Peifer & Gross, Inc. who represented Orchard Hills at the meetings with Spotts, prepared a Memorandum outlining the nature of the work to be done and said Memorandum was signed by representatives of Orchard Hills and by Spotts. A copy of that Memerandum is attached hereto and marked as Exhibit A. 8. Thereafter, Spotts did various wbrk on the plumbing and septic systems at the Pocono Village Mobile Home Park, between August of 1994 and the early part of 1995. Spotts performed his work on the Pocono Village Mobile Home Park in a negligent, careless, and reckless fashion. Specifically: a. Spotts and his workers cut off a gravity feed pipe or line which connected eleven (11) mobile homes to a "dosing tank" without re-connecting that line to any other part of the septic system. As a result of this action, the sewage which emanated from those eleven (11) mobile homes was not depoSi~!ed into the septic system for the mobile home park and was simply dumped into the ground· b. Spotts and his workers re-filled the hole which they had excavated to cut off the gravity feed pipe described in sub paragraph a and refilled that hole without correcting the problem created by their mistake and thus concealed the problem from Orchard Hills. c. Spotts failed to advise Orchard Hills or it representatives of the wrongful action he or his employees had taken in cutting off the gravity feed pipe. (_~ As a direct result of the negligence, carelessness, and recklessness of SP0tts, the sewer system at the Pocono Village Mobile Home Park was rendered ineffective, incomplete, illegal, and dangerous. The acts of Sports by cutting off.the gravity feed pipe and causing the untreated waste from eleVen (11) mobile homes to simply pass into the ground violated federal and state environmental laws and the ordinances of Pocono Township in Monroe County and exposed the owners and representatives of Orchard Hills to criminal and civil penalties and sanctions for such violations. 10. Because Spotts refilled the excavation in which Sports did the defective wot1( ' and failed to report and disclose to Orchard Hills and its representatives the defective work he had done, Orchard Hills was unaware of the problem and the violation of law which that problem created. 11. In June of 1996, still unaware of the problem caused by Spotts' defective work, Orchard Hills sold the Pocono Hills Mobile Home Park to a third party purchaser for $645,000.00. 12. In late 1996, the third party purchaser complained to Orchard Hills about problems he was experiencing with the plumbing and sewer system at the Pocono Village Mobile Home Park. During the investigation of those problems, by the third party purchaser and his representatives and by Orchard Hills and its representatives, the gravity feed pipe which Spotts had improperly cut and disconnected was uncovered and discovered. Upon discovery of the problem, the third party purchaser rescinded his purchase of the Pocono Village Mobile Home Park, threatened suit against Orchard Hills and its representatives, and demanded a refund of all monies paid by him for the purchase of the Pocono Village Mobile Home Park and all expenses incurred by him in the attempts to solve and remedy the problem caused by Spotts' defective work. 13. Following several months of negotiations with the third party purchaser, and several months of further investigation into the problem caused by Sports' defective work, the principals of Orchard Hills formed a new partnership, Pocono Village, to re-purchase the Pocono Village Mobile Home Park from the third party purchaser and negotiated a settlement agreement, on behalf of Orchard Hills and Pocono Village, with the third party purchaser to pay and reimburse the third party purchaser his losses and expenses incurred as a result of the problem at Pocono Village Mobile Home Park with the plumbing . and i ,' As part of that agreement and settlement, Orchard Hills and Pocono .. , ~"~ili~ge in~urre:d :~1i® f°i'10Wing eXPenses and had to pay the following items: a. Reimbursement of the third party purchaser's out of pocket expenses for plumbing repairs incurred in an attempt to correct the problem $3,185.00 b. Reimbursement of the third party purchaser's engineering fees incurred in an attempt to solve the problem $2,853.00 c. Reimbursement of the third party purchaser's attorney's fees $15,151.00 Total $21,189.00 All of these expenses were paid by Orchard Hills and Pocono Village as a direct result of the negligent, reckless, and careless actions of Sports as described herein above. 14. In addition t° the above reimbursements and expenses, Pocono Village and Orchard Hills incurred other expenses of their own as a result of the negligence, carelessness, and recklessness of Sports. Those expenses and losses are: a. Settlement costs at Orchard Hills' original sale to the third party purchaser, which sale was later reversed $16,675.00,~ b. Fees paid to All State Septic Systems to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to correct the problem caused by Sports' improper actions $14,692.00 c. Engineering and related professional fees and expenses to identify and correct the problem caused by Spotts' improper work $11,864.00 d. Attorney's fees $7,736.00 Total $50,967.00 All of these expenses and losses were caused to the Plaintiffs as a direct result of the negligence, carelessness, and recklessness of Spotts. 15. In addition to the damages and losses described in the foregoing two paragraphs, the Plaintiffs incurred other expenses and losses, including the following: a. The interruption of the activities and business effort of its owner,, employees, and representatives to address and resolve the problem caused by Spotts' defective work. ~ b. Public scorn, approbation and humiliation resulting from their owning and operating a mobile home park with a defective and illegal septic and plumbing system. c. The loss of the bargain they enjoyed from the sale'of the mobile home park to the third party purchaser, which sale had to be set aside and reversed upon the discovery of the conditions and problems caused by Sports' defective and improper work. The above damages are not liquidated. Plaintiffs believe that they have suffered damages, as a result of these items, in a sum in excess of $25,000.00. 16. All of the damages listed above are a direct result of the negligence, carelessness, and recklessness of the Defendant. All of these damages have been suffered by one or both of the Plaintiffs. The Defendant, by his conduct, has injured Plaintiffs in an amount substantially in excess of $25,000.00. WHEREFORE, Plaintiffs demand judgment against the Defendant, Mel Spotts, in an amount in excess of $25,000.00, plus interest from and after 1 December 1995, plus costs of suit. Attorney for Plaintiffs Supreme Court ID # 17225 525 N. 12th Street Lemoyne, Pa 17043 (717) 761-5361 COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) Robert E. Goodling, being duly sworn according to law, says that he Is the President of PVOHA, Inc. and as a partner in Omhard Hills Associates and deposes and says that the facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information, and belief. Robert E. Goo~i'n~g ~' ' ~ Sworn to and subscribed before me this I J.l~3 day of f"r~L.,~.C_J~ ,1.998. Notary 'E~blic SEP-29-1997 ~ MURRay INS CLAIMS DEPT Commonwealth of Pe~n~ylv~ia County of Cumberland TRUE COPY FROM RECORD ~.... ~ ~~' East Earl, }A. 17519 (SEAr.,) ', TOTP~_ P. B4 ORCHARD HILLS ASSOCIATES and/~ )';~¢~/--~N THE COURT Of COMMON POCONO VILLAGE ASSOCIATES, Plaintiff vs. MELVIN W. SPOTTS and ELIZABETH B. SPOTTS, t/d/b/a MEL SPO'l-i'S EXCAVATING, Defendants ) ) ) ) ) ) ) ) ) PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM JURY TRIAL DEMANDED ST:IPULAT/ON AND NOW come the above-named Plaintiffs and Melvin Spotts, by their attorneys who have signed below and stipulate and agree that Plaintiff may file an Amended Complaint, in the form attached hereto and marked as Exhibit A, without formal leave of Court. ]:N WZTNESS WHEREOF, the above~named parties have authorized their attorneys to execute this Stipulation. Attorney for Plaintiffs ~lo~F~lou nlacker Attorney for Defendants ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiff vs. MELVIN W. SPOTTS and ELIZABETH B. SPOTTS, t/d/b/a MEL SPOTTS EXCAVATING, Defendants ) ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM JURY TRIAL DEMANDED NOT[CE TO DEFENDANT NAMED HEREIN: 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 WRI-I-FEN 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 .~UDGMENT MAY BE ENTERED AGAINST YOU BY THE COURT WITHOUT FURTHER NOTICE FOR ANY MONEY CLAIMS 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 BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiff vs. MELVIN W. SPOTTS and ELIZABETH B. SPO'I-FS, t/d/b/a MEL SPO'I-FS EXCAVATING, Defendants ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM ) .]URY TRIAL DEMANDED AMENDED COMPLA]:NT AND NOW comes the above-named Plaintiffs, by their attorney, Samuel L. Andes, and makes the following Complaint in this matter: 1. The Plaintiff, Orchard Hills Associates, is a general Pennsylvania partnership consisting of Robert E. Goodling (~f Carlisle, Pennsylvania, ]ames T. Gibson, of Mechanicsburg, Pennsylvania and Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania. Orchard Hills Associates is referred to hereinafter as "Orchard Hills." 2. The Plaintiff, Pocono Village Associates, is a Pennsylvania general partnership consisting of Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania, AAA Quality Builders, Inc., a Pennsylvania business corporation of Mechanlcsburg, Pennsylvania, and PVOHA, Inc., a Pennsylvania business corporation of Carlisle, Pennsylyanla. Pocono Village Associates will be referred to hereinafter as "Pocono." 3. The Defendants are Melvin W. Sports and Elizabeth B. Sports, his wife, adult individuals who trade and do business, jointly, as "Mel Sports Excavating" and which maintain offices for the conduct of that business at 45 Martin Street in East Earl, Pennsylvania. Both Mr. and Mrs. Sports are collectively referred to hereinafter as "Defendant." 4. In :~994 Orchard Hills owned a Mobile Home Park situate In Pocono Township, Monroe County, Pennsylvania, which Mobile Home Park was known variously as "Pocono Village Court" or "Pocono Village Mobile Home Park" and which was Improved with facilities for 35 mobile homes, which facilities were leased to tenants and which facilities included a septic system to lawfully dispose of sewer and other wastes on the property. 5. In 1994 and at all other times relevant to this action, Melvin W. Sports and Elizabeth B. Spotts were engaged in the business of excavation and plumbing work, trading as "Mel Spotts Excavating" and held themselves and their business out to Orchard Hills and its representatives, and to other members of the public, as being experienced and experts in such work. Melvin W. Sports operated as an authorized agent and representative of both Defendants in the operation of the excavating the plumbing business. 6. During the summer and fall of 1994, Orchard Hills engaged Defendant to do certain work on the Pocono Village Mobile Home Park. During the process of that engagement, representatives of Orchard Hills and Defendant took the following actions: A. Defendant visited the Pocono Village Mobile Home Park to Inspect the problem~ and B. Defendant determined what work was necessary to correct the problem and make the improvements which Orchard Hills requested; and C. Defendant met with representatives of Orchard Hills at offices they maintained at that time at 4740 Delbrook Road In Mechantcsburg, Pennsylvania, to discuss the work he proposed to do, to explain to Orchard Hills' representatives how that work would correct the problems at Pocono Village Mobile Home Park, and to propose payment terms for the work he was to do. 7. At various meetings held at Orchard Hills' office in Mechanicsburg, Orchard Hills engaged Defendant to do work on the septic and sewer system at the Pocono Village Mobile Home Park. The terms of the engagement were that Defendant would do the work it had verbally described to the representatives of Orchard Hills in a good and workmanlike manner, In exchange for which Orchard Hills would pay Defendant its normal and customary charges, on a time and material basis, for such work. Although no formal written agreement was prepared between the parties, Brian Gross, one of the principals In Peifer & Gross, )'nc. who represented Orchard Hills at the meetings with Defendant, prepared a Nlemorandum outlining the nature of the work to be done and said Memorandum was signed by representatives of Orchard Hills and Defendant. A copy of that Memorandum Is attached hereto and marked as Exhibit A. 8. Thereafter, Defendant did various work on the plumbing and septic systems at the Pocono Village Mobile Home Park, between August of 1994 and the early part of 1995. Defendant performed his work on the Pocono Village Mobile Home Park In a negligent, careless, and reckless fashion. Specifically: a. Defendant cut off a gravity feed pipe or line which connected eleven (:11) mobile homes to a "dosing tank" without re-connecting that line to any other part of the septic system. As a result of this action, the sewage which emanated from those eleven (1:1) mobile homes was not deposited into the septic system for the mobile home park and was simply dumped into the ground. b. Defendant re-filled the hole which It had excavated to cut off the gravity feed pipe described in sub paragraph a and refilled that hole without correcting the problem created by their mistake and thus concealed the problem from Orchard Hills. c. Defendant failed to advise Orchard Hills or its representatives of the wrongful action It had taken in cutting off the gravity feed pipe. 9. As a direct result of the negligence, carelessness, and recklessness of Defendant, the sewer system at the Pocono Village Mobile Home Park was rendered Ineffective, Incomplete, illegal, and dangerous. The acts of Defendant by cutting off the gravity feed pipe and causing the untreated waste from eleven (11) mobile homes to simply pass into the ground violated federal and state environmental laws and the ordinances of Pocono Township In Monroe County and exposed the owners and representatives of Orchard Hills to criminal and civil penalties and sanctions for such violations. 10. Because Defendant refilled the excavation in which Defendant did the defecUve work and failed to report and disclose to Orchard Hills and Its representatives the defective work it had done, Orchard Hills was unaware of the problem and the violation of law which that problem created. · ~.1. In June of 1996, still unaware of the problem caused by Defendant' s defective work, Orchard Hills sold the Pocono Hills Mobile Home Park to a third party purchaser for $645,000.00. ~.2. In late 1996, the third party .purchaser complained to Orchard Hills about problems he was experiencing with the plumbing and sewer system at the Pocono Village Mobile Home Park. During the investigation of those problems, by the third party purchaser and his representatives and by Orchard Hills and its representatives, the gravity feed pipe which Defendant had improperly cut and disconnected was uncovered and discovered. Upon discovery of the problem, the third party purchaser rescinded his purchase of the Pocono Village Mobile Home Park, threatened suit against Orchard Hills and its representatives, and demanded a refund of all monies paid by him for the purchase of the Pocono Village Mobile Home Park and all expenses Incurred by him in the attempts to solve and remedy the problem caused by Defendant's defective work. 13. Following several months of negotiations with the third party purchaser, and several months of further investigation into the problem caused by Defendant's defective work, the principals of Orchard Hills formed a new partnership, Pocono Village, to re-purchase the Pocono Village Mobile Home Park from the third party purchaser and negotiated a settlement agreen~ent, on behalf of Orchard Hills and Pocono Village, with the third party purchaser to pay and reimburse the third party purchaser his losses and expenses Incurred as a result of the problem at Pocono Village Mobile Home Park with the plumbing and sewer system. As part of that agreement and settlement, Orchard Hills and Pocono Village incurred the following expenses and had to pay the following items: a. Reimbursement of the third party purchaser's out of pocket expenses for plumbing repairs incurred in an attempt to correct the problem $3,185.00 b. Reimbursement of the third party purchaser's engineering fees Incurred In an attempt to solve the problem $2,853.00 c. Reimbursement of the third party purchaser's attorney's fees $15.:L51.00 Total $21,189.00 All of these expenses were paid by Orchard Hills and Pocono Village as a direct result of the negligent, reckless, and careless actions of Defendant as described herein above. 14. In addition to the above reimbursements and expenses, Pocono Village and Orchard Hills incurred other expenses of their own as a result of the negligence, carelessness, and recklessness of Defendant. Those expenses and losses are: a. Settlement costs at Orchard Hills' original sale to the third party purchaser, which sale was later reversed $16,675.00 b. Fees paid to All State Septic Systems to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to correct the problem caused by Defendant's Improper actions $:1.4,692.00 c. Engineering and related professional fees and expenses to Identify and correct the problem caused by Defendant's improper work $11,864.00 d. Attorney's fees $7.736.00 TOTAL $50,967.00 All of these expenses and losses were caused to the Plaintiffs as a direct result of the negligence, carelessness, and recklessness of Defendant. :[5. in addition to the damages and losses described in the foregoing two paragraphs, the Plaintiffs Incurred other expenses and losses, Including the following: a. The interruption of the activities and business effort of Its owner, employees, and representatives to address and resolve the problem caused by Defendant's defective work. b. Public scorn, approbation and humiliation resulting from their owning and operating a mobile home park with a defective and illegal septic and plumbing system. c. The loss of the bargain they enjoyed from the sale of the mobile home park to the third party purchaser, which sale had to be set aside and reversed upon the discovery of the conditions and problems caused by Defendant's defective and improper work. The above damages are not liquidated. Plaintiffs believe that they have suffered damages, as a result of these items, in a sum in excess of $25,000.00. 16. All of the damages listed above are a direct result of the negligence, carelessness, and recklessness of the Defendant. All of these damages have been suffered by one or both of the Plaintiffs. The Defendants, by their conduct, have Injured Plaintiffs tn an amount substantially In excess of $25,000.00. WHEREFORE, Plaintiffs demand judgment against the Defendants, Melvin W. Spotts and Elizabeth B. Sports, jointly and severally, in an amount In excess of $25,000.00, plus Interest from and after :~ December :1.995, plus costs of suit. Attorney for Plaintiffs Supreme Court ID # ~.7225 525 N. ::[2'" Street Lemoyne, Pa 17043 (7~.7) 76:[-536! COMMONWEALTH Of PENNSYLVANIA ) ( SS.: COUNTY Of CUMBERLAND ) Robert E. Goodling, being duly sworn according to law, says that he Is the President of PVOHA, Inc. and as a partner In Orchard Hills Associates and deposes and says that the facts set forth In the foregoing Amended Complaint are true and correct to the best of his knowledge, Information, and belief. Sworn to and subscribed gefore me this J~/-)l day ~f /L)OL/~/')'?~./" , 1998. ~lotary ~ubllc. Investment Management Services, Inc. 4740 DELBROOK ROAD MECIIANICSBURG, PA 17055 (717) 737.5440 FAX:(717) 737.4524 August 22, 1994 To: FROM: lie: Paul Loprestl, Bob Ooodling, Mol Sports, Irvtn Peifer Brian Gross Actiol~ plan ~or resollltJon o~ sewage IllanagsmellL and repairs at Pocono Village The followin,q plan u~as agreed to by all parties at a meeting at ~t?~10 Delbrook Road, Mechanlcsburg, PA. on August 22, 199q, according t:o tl~e following sequence: 1. Mol will lnunedtatel~/ begin construction of the curtain drain for failing septic bed. = In conjunction with Paul's advice, Mol will begin installation of grease traps according to plans approved by Bob Goodling. 3. Mol will trench two or more short lines from tile front beds across the park street, After t. he above has been co~nanced, Paul will be.qin designing a new septic bed on the undeveloped portion of the property in conjunction with the Township SEO. During that process, Paul will explore Uqe fe~stbitil:y of tnsl'allinD a treatment plant on the property t:o treat 5. All parties'will cormnunicate t:hr(~u!]h Bob Goodltng throughout tile processes. Exhibit C 330 COMMERCIAL GENERAL LIABILITy CG 00 01 01 M COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declara- tions, and any other person or organization qualifying as a Named Insured under this policy. The words "we", "us" and "our" refer to the company providing this insurance. The word "insured" means any person or organization qualifying as such under WHO IS AN iNSURED (SECTION II). Other words and phrases that appear in quotation marks have special meaning. Refer to DEFINITIONS (SECTION V). SECTION I - COVERAGES COVERAGE A, BODILY INJURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement a, We will pay those sums that the insured be- comes legally obligated to pay as damages because of "bodily injury" or "property dam- age" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those da. mages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result. BUt: (1) The amount we will pay for damages is limited as described in LIMITS OF INSUR- ANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insur- ance in the payment of Judgments or set- tlements under Coverages A or B or medi- cal expenses under Coverage C. No other obligation or liability to pay sums or perform acts or servlcas is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to "bodily injury" "property damage" only if: (1) The "bodily injury" or "property damage" caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property damage" occurs during the policy period, c. Damages because of "bodily injury" include damages claimed by any person or organiza- tion for care, loss of services or death resulting at any time from the "bodily injury". 2. Exclusions This insurance does not apply to: a. Expected or Intended Injury "Rnrii~v inlurv" or "property damage" expected o;~n-te'nd~d f'rom th'e s'tandpoint of the Insured, This exclusion does not apply to "bodily Injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a con- tract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Ass~,med in a contract or agreement that Is an "insured contract", provided the "bodily injury" or .property damage" occurs subse- quent to the execution of the contract or agreement. Solely for the purposes of II- ability assumed in an "insured contract", reasonable attorney fees and necessa~/ litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Pagelof 13 :~; CGL Coverage Form 331 ,BILITy I 01 96 ~ry" and Iago. is place ~mage" nclude laniza- suiting ected ~ured, ~jurT" ce to /hich s by COn- not ~nce dily or li- e to or (b) Such attorney fees and litigation ex- penses ere for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are al- leged. Liquor Llablllt~ "Bodily injury" or "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing to the Intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or un- der the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alco- holic beverages. This exclusion applies only if you are In the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. Workem Compensation and Similar Laws Any obligation of the insured under a workers compensation, disability benefits or unem- ployment compensation law or any similar law. Employer's Liability "Bodily Injury" to: (1) An "employee" of the insured arising out of and in the course of: ia) Employment by the insured; or (b) Performing duties related to the conduct of the insured's business; or (2) The spouse, child, parent, brother or sister of that "employee" as a consequence of paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable es an employer or In any other capacity; and (2) To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. This exclusion does not apply to liability as- sumed by the insured under an "insured con- tract". f. Pollution (1) "Bodily injury" or "property damage" arising out of the actual, alleged or threatened dis- cha~e, dispersal, seepage, migration, lease or escape of pollutants: ia) At or from any premises, site or location which is or wes at any time owned or occupied by, or rented or loaned to, any Insured; (b) At or from any premises, site or location which Is or was at any time used by or for any Insured or others for the han- dling, storage, disposal, processing or treatment of waste; (c) Which are or were at any time trans- ported, handled, stored, treated, dis- posed of, or processed as waste by or for any insured or any person or organi- zation for whom you may be legally re- sponsible; or (d) At or from any premises, site or location on which any insured or any contractors or subcontractors working directly or In- directly on any insured's behalf are performing operations: (I) If the pollutants are brought on or to the premises, site or location In con- nection with such operations by such Insured, contractor or subcontractor; or (11) If the operations are to test for, monitor, clean up, remove, contain. treat, detoxlfy or neutralize, or in any way respond to, or assess the effects of pollutants. Subparagraph id)ii) does not apply to "bodily injury" or "property damage" arising out of the escape of fuels, lubri- cants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions nec- essary for the operation of "mobile equipment" or Its parts, if such fuels, lu- bricants or other operating fluids escape from a vehicle part designed to ho~d, store or receive them. This exception does not apply if the fuels, lubricants or other operating fluids are intentionally discharged, dispersed or released, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent to be dis- charged, dispersed or released as part of the operations being performed by such insured, contractor or subcontrac- tor, 2 of 13 Copyright, Insurance So.ices Office, Inc., 1994 CG 00 01 01 96 332 CGL Coverage Form Subparagraphs (a) and (d)(I) do not apply to "bodily injury" or "property damage" arising out of heat, smoke or fumes from a hostile fire. As used in this exclusion, a hostile fire means one which becomes uncontrollable or breaks out from where it wes intended to be. (2) Any loss, cost Or expense arising out of any: (a) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxlfy or neutralize, or in any way respond to, or assess the effects of pollutants; or (b) Claim or suit by or on behalf of a gov- ernmental authority for damages be- cause of testing for, monitoring, clean- ing up, removing, containing, treating, datoxifylng or neutralizing, or In any way responding to, or assessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, Including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materi- als to be recycled, reconditioned or reclaimed. g. Aircraft, Auto or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or an- trustmant to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". This exclusion does not apply to: (1) A watercraft while ashore on premises you own or rent; (2) A watercraft you do not own that is: (a) Less than 26 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured con- tract" for the ownership, maintenance or use of aircraft or watercraft; or (5) "Bodily injury" or "prope. rty damage" arising out of the operation or any of the equip. ment listed In paragraph f.(2) or f.{3) of the definition of "mobile equipment". h. Mobile Equipment "Bodily Inju~" or "property damage" arising of: {1) The transportation of "mebile equipment, by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition, or stunting activity. L War "Bodily injur~" or "properb/ damage" due to war, whether or not declared, o,r any act or condition incident to war. War ~ncludes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed un- der a contract or agreement. J. Damage to Property "Property damage" to: {1) Property you own, rent, or occupy; (2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises; (3) Property loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractors or subcon- tractors working directly or indirectly on your behalf are performing operations, if the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced cause "your work" wes incorrectly per- formed on It. Paragraph {2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. CG 00 01 01 96 Copyright, Insurance Services Office, inc., 1994 Page 3 of 13 CGL Coverage Form 333 Paragraphs (3), (4), (5) and (6) of this exclu- sion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "prod- ucts..completed operations hazard", k. Damage to Your Product "Property damage" to "your product" arising out of it or any part of it. I. Damage to YourWork "Property damage" to "your work" arising out of it or any part of it and included in the "prod- ucts-completed operations hazard", This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a sub- contractor. m. Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dan- gerous condition in "your product" or "your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out oi' sudden and accidental physical injury to "your product" or "your work" a~ter it has been put to its intended n. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, Inspection, repair, re- placement, adjustment, removal or disposal of: (1) "Your product"; (2) "Your work"; or (3) "Impaired property"; if such product, work, or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. Exclusions c, through n. do riot apply to damage by fire to premises while rented to you or ter~p~- rarily occupied by you with permission of the owner, A separate limit of insurance applies to this coverage as described in LIMITS OF INSUR- ANCE {Section Ill). COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement a, We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal Injury" or "advertising injury" to which this Insurance applies, We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal injury" or "advertising injury" to which this insurance does not apply, We may, at our discretion, investigate any "occurrence" or of- fense and settle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF INSUR- ANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insur- ance in the payment of judgments or set- tlements under Coverages A or B or medi- cal expenses under Coverage C, No other obligation or liability to pay sums or perform acts or services is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "Personal injury" caused by an offense arising out of your business, excluding ad- vertising, publishing, broadcasting or tele- casting done by or for you; (2) "Advertising injury" caused by an offense committed in the course of advertising your goods, products or services; but only if the offense was committed in the "coverage territory" during the policy period. 2. Exclusions This insurance does not apply to: a. "Personal injury" or "advertising injury": (l) Arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; Copyright, Insurance Services Office, Inc., 1994 CG 334 CGL Coverage Form (2) Arising out of oral or written publication of material whose fimt publication took place before the beginning of the policy period; (3) Arising out of the willful violation of a penal statute or ordinance committed by or with the consent of the Insured; (4) For which the insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the insured would have in the absence of the contract or agreement; or (5) Arising out of the actual, alleged or threat- ened discharge, dispersal, seepage, migra- tion, release or escape of pollutants at any time. b. "Advertising injury" arising out of: (1) Breach of contract, other than misappro- priation of advertising ideas under an im- plied contract; (2) The failure of goods, products or services to conform with advertised quality or per- formance; (3) The wrong description of the price of goods, products or services; or (4) An offense committed by an insured whose business is advertising, broadcasting, pub- Ilshlng or telecasting. c. Any loss, cost or expense arising out of any: (1) Request, demand or order that any insured or others test for, monitor, clean up, re- move, contain, treat, detoxify or neutralize, or in any way respond to, or assess the ef- fects of pollutants; or (2) Claim or suit by or on behalf of a govern- mental authority for damages because of testing for, monitoring, cleaning up, re- moving, containing, treating, detoxifying or neutralizing, or In any way responding to, or assessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste Includes materials to be recycled, reconditlonsd or reclaimed. COVERAGE C. MEDICAL PAYMENTS 1. Insuring Agreement a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that: (1) The accident takes place in the "coverage territory" and during the policy period; (2) The expenses are incurred and reported to us within one year of the date of the acci- dent; and (3) The injured person submits to examlnstlon, at our expense, by physicians of our choice as often as we reasonably require. b. We will make these payments regardless of fault. These payments will not exceed the ap- plicable limit of Insurance. We will pay reason. able expenses for:. (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic de- vices; and (3) Necessary ambulates, hospital, profes. slonal nursing and funeral services, 2. Exclusions We will not pay expenses for "bodily inJury": a. To any insured. b. To a person hired to do work for or on behalf of any insured or a tenant of any insured, c. To a person injured on that part of premises you own or rent that the person normally occu- pies. d. To a person, whether or not an "employee" of any insured, if bensflts for the "bodily injury" are payable or must be provided under a workers compensation or disability benefits Isw or a similar law. s. To a person Injured while taking part In athlet- ics. f. Included within the "prnducts-completad Ol3- stations hazard". g. Excluded under CoverageA. h. Due to war, whether or not declared or any act or condition incident to war. War Includes civ I war, Insurrection, rebellion or revolution. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 5 of 13 CGL Coverage Form 335 nt; ]e to · SUPPLEMENTARY PAYMENTS - COVERAGES A AND B We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: 1. All expenses we Incur. 2. Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Coverage applies. We do not have to fur- nish these bonds. 3. The cost of bonds to release attachments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds, 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work, 5. All costs taxed against the insured in the "suit". 6. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the applicable limit of Insurance, we will not pay any prejudgment interest based on that period of time after the offer. 7. All Interest on the full amount of any judgment that accrues after entry of the judgment and be- fore we have paid, offered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insur- ance. If we defend an insured against a "suit" and an demnltee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met: e. The 'suit" against the Indemnitee seeks damages for which the insured has assumed the liability of the Indemnitee in a contract or agreement that is an "insured contract"; b. This insurance applies to such liability assumed by the insured; ¢, The obligation to defend, or the cost of the de- fense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the Insured and the interests of the indemnitee; e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the Indemnitee; and , f. The indemnitee: (1) Agrees in writing to: (a) Cooperate with us in the investigation, settlement or defense of the "suit"; (b) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the "suit"; (c) Notify any other Insurer whose coverage is available to the indemnitee; and (d) Cooperate with us with respect to coordi- nating other applicable insurance available to the indemnitee; and (2) Provides us with written authorization to: (a) Obtain records and other information re- lated to the "suit"; and (b) Conduct and control the defense of the Indemnitee in such "suit". So long as the above conditions are met, attorneys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indem- nitee at our request will be paid as Supplementary Payments, Notwithstanding the provisions of para- graph 2.b.(2) of COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I - Coverages), such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insured's indemnitee and to pay for attorneys fees and necessary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in paragraph f. above, are no longer met. 336 CGL Coverage Form SECTION II -WHO IS AN INSURED 1, If you are designated in the Declarations as: a. An individual, you and your spouse are sureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or Joint venture, you are an In- sured. Your members, your partners, and their spouses are also Insureds, but only with spect to the conduct of your business, c. A limited liability company, you are an insured, Your members are also Insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, Joint venture or limited liability company, you ara an Insured. Your "executive officers" and directors are insureds, but only with respect to their du- ties as your officers or directors, Your stock- holders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: e. Your "employees", other than either your "ex- ecutive officers" (if you are an organization other than a partnership, joint venture or lim- ited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" is an insured for: (1) "Bodily Injury" or "personal injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited ii- ability company), or to a co-"employee" while that co-"employee" Is either in the course of his or her employment or performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a conse- quence of paragraph (l)(a) above; (c) For which there Is any obligation to share damages with or repay someone else who must pay damages because of the injury described In paragraphs (l)(a) or (b) above; or (d) Arising out of his or her providing or failing ~o provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or con- trol of, or over which physical COntrol being exercised for any purpose by you, any of your "employees", any Partner or member (if you are a partnership or joint venture), or any member (if you ars a lira. ired liability company). b. Any person (other than your "employee"), Or any organization while acting as your real tare manager. c. Any person or organization having proper temporary custody of your property If you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d, Your legal representative if you die, but only with respect to duties as such, That represen- tative will have ali your rights and duties under this Coverage Part. 3. With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your Par- mission. Any other person or organization respon- sible for the conduct of such person is also an In- sured, but only with respect to liability arising out of the operation of the equipment, end only if no other insurance of any kind is available to that person or organization for this liability. However, no person or org~nization is an Insured with re- spect to: a, "Bodily injury" to a co-"employee" of the per- son driving the equipment; or b, "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an In- sured under this provision, 4, Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify as a Named In- sured if there is no other similar insurance avail- able to that organization. However: a. Coverage under this provision Is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 7 of t3 CGL Coverage Form 337 m- or )er le, he en in =h n- n- lo at )r, e- lU fl- 9r ty ip 1- il- ly b. Coverage A does not apply to "bodily Injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal injury" or "advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, Joint venture or limited liability company that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE t. The Limits of Insurance shown In the Declarations and the rules below fix the most we will pay re- gardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. The General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; b. Damages under Coverage A, except damages because of "bodily injury" or "property dam- age" included in the "products-completed op- erations hazard"; and c. Damages under Coverage B. 3. The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included In the "products-completed op- erations hazard". 4, Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay under Cover- age B for the sum of all damages because of all "personal injury" and all "advertising injury" sus- tained by any one'person or organization. $. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b. Medical expenses under Coverage C because of all "bodily injury" and "property dam- age" arising out of any one "occurrence". 6. Subject to 5. above, the Fire 13.~mage Limit is the most we will pay under Co~e~age A for damages because of "property damage'to premises, while rented to you or temporarily occupied by you with permission of the owner, ari~;ing out ef any one fire. 7. Subject to 5. above, the Medi,::at Expense Limit is the most we will pay under Coverage C for all medical expenses because or "bodily Injury" sus- tained by any one person, The Limits of insurance oi' this (;;overage Part apply separately to each consecutive er~nual period and to any remaining period of leas than 12 months, starting with the beginning of the policy ;3eriod shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV -COMMERCIAL GENERAL LIABILITY CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relie~,e us of our obliga- tions under this Coverage Part, 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we sre notified as soon as practicable of an "occurrence" or an offense which may result in a claim, To the extent pos- sible, notice should include (1) How, when and where the "occurrence" or offense took place; (2) The names and addre~;ses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. If a claim is made or "suit" is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the dste received; and (2) Notify us as soon as practicable. You must see to it that we receive written no- tice of the claim or "suit" ~s soon as practica- ble. 338 CGL Coverage Form c. You and any other involved Insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- peru received In connection with the claim or "suit"; (2) Authorize us to obtain records and other Information; (3) Cooperate with us in the investigation or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, In the en- foroement of any right against any person or organization which may be liable to the Insured because of injury or damage to which this Insurance may also apply. d. No Insured will, except at that Insured's own cost, voluntarily make a payment, assume any obligation, or Incur any expense, other than for flint aid, without our consent, Legal Action Against Us No pemon or organization has a right under this Coverage Part: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Part unless all of its terms have ~en fully complied with. A person or o~ganlzation may sue us to recover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insur- ance. An agreed sefflemant means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal represen- tative. Other Insurance If other valid and collectible insurance Is available to the insured for a loss we cover under Cover- ages A or B of this Coverage Part, our obligations are limited es follows: a. Primary Insurance This insurance is primary except when b. be- low applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below, b. Excess Insurance This insurance Is excess over any of the othe~ insurance, whether primary, excos~, contingent or on any other basis: (1) That is Flra, Extended Coverage But!dele Risk, Installation Risk or s milar COverage for "your work"; (2) That is Fire insurance for premise~ rented to you or temporarily occupied by you with permission of the owner; or (3) If the loss arises out of the malntensnce or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Cov- erage A (Section I). When this insurance is excess, we will have no duty under Coverages A or B to defend the sured against any "suit" if any other insurer has a duty to defend the Insured against that "suit", If no other Insurer defends, we will undedake to do so, but we will be entitled to the Insured's rights against all those other insurers. When this insurance is excess over other in- surance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insur- ance would pay for the loss in the absence of this Insurance; and (2) The total of all deductible and self-Insured amounts under all that other insurance. We will share the remaining loss, If any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part, c. Method of Sharing If all of the other insurance permits contribu- tion by equal shares, we will follow this method also, Under this approach each Insurer con- tributes equal amounts until it has paid its ap. plicable limit of insurance or none of the loss remains, whichever comes first. If any of the other Insurance doss not permit contribution by equal shares, we will contribute by limits. Under this method, each Insurer's share Is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all Insurers. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 9 of 13 CGL Coverage Form 339 6. premium Audit s. We will compute all premiums for this Cover- age part In accordance with our rules and rates. b. Premium shown in this Coverage Part es ad- vance premium is a deposit premium only, At the close of each audit period we will compute the earned premium for that period. Audit premiums are due and payable on notice to the first Named insured. If the sum of the ad- vance and audit premiums paid for the policy period Is greater than the earned premium, we will return the excess to the first Named In- sured, c. The first Named Insured must keep records of the Information we need for premium compu- tetlon, and send us copies at such times es we may request. 6. Representations By accepting this policy, you agree: a. The statements in the Declarations are accu- rate and complete; b. Those statements are based upon representa- tions you mede to us; and c, We have issued this policy in reliance upon your representations. 7, Separation Of Insureds Except with respect to the Limits of Insurance. and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: s. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought. 8. Transfer Of Rights Of Recovery Against Others To Ua If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are transferred to us. The In- sured must do'nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enfome them. 9. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown In the Declarations written notice of the nonrenewal not less than 30 days before the expi- ration date. If notice is mailed, proof of mailing will be suffi- cient proof of notice. SECTION V - DEFINITIONS 1. "Advertising Injury" means injury arising out of one or more of the following offenses: a. Oral or written publication of material that slanders or libels a person o~ organization or disparages a person's or organization's goods, products or services; b. Oral or written publication of material that violates a person's right of privacy; c. Misappropriation of advertising Ideas or style of doing business; or d. Infringement of copyright, title or slogan. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, in- cluding any attached machinery or equipment. But "auto" does not include "mobile equipment", 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person, including death re- sulting from any of these at any time. 4. "Coverage territory" means: a. The United States of Afar[ca (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if: (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a. above; or 340 CGL Coverage Form lb} The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; and {2) The insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settlement we agree to. "Employee" includes a "leased worker", "Em- ployee" does not include a "temporary worker". "Executive officer" means a person holding any o! the officer positions created by your charter, con- stitution, by-laws or any other similar governing document, "lmpaked property" means tangible property, other than "your product" or "your work", that can- not be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, defi- cient, Inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a, The' repair, replacement, adjustment or re- moval of "your product" or "your work"; or b. Your fulfilling the terms of the contract or agreement. "insured contract" means: a. A contract for a lease of premises, However, that portion of the contract for a lease of premises that indemnifies any person or or- ganization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "in- sured contract"; b. A sidetrack agreement; c. Any easement or license agreement, except in connection with construction or demolition op- erations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except in connection with work for a municipality; e. An elevator maintenance agreement; f. That ,part of any other contr .a?t or agreement perta~ning to your bus ness lincludlng an demniflcation of a municipality In connection with work performed for a munlc!pall.ty) under which you assume the tort tiabilky ct another party to pay for "bodily injury" or "prope~ damage" to a third person or organization. Tot[ liability means a liability that would be Imposed by law In the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily In- Jury" or "property damage" arising out of construction or demolition oparatlon~, within 50 feet of any railroad property and affecting any railroad bridge or trestle tracks, road-beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engineer or surveyor for injury or damage arising out of: la) Preparing, approving, or failing to pre- pare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifi- cations; or lb} Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an architect, engineer or surveyor, assumes llabitity for an Injury or damage arising out of the sured's rendering or failure to render fesslonal.sarvices, including those liste~ In (2) above and supervisory, inspection, ar- chitectural or engineering activities, "Leased worker" means a person leased to you hy a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not Include a "temporary worker", 10."Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an air- craft, watercraft or "auto"; CG 00 01 01 96 Copyright, insurance Services Office, Inc. 1994 Page 11 of 1:3 I~ CGL Coverage Form 341 ~ment ~n in- action Jnder other party Tort esed :t or any / in- It of ons, and stle, or r or out :iff- Or ~ct, for in* in 3y ~n ~f iS r- b. While it is in or on an aimraft, watercraft or "auto"; er c. While it is being moved from an aircraft, wa- tercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, that Is not at- tached to the aircraft, watercraft or "auto". 11."Mobile equipment" means any of the following types of land vehicles, including any attached ma- chinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use sclely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, main- rained primarily to provide mobility to perma- nently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; e, Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f, Vehicles not described in a,, b., c. or d. above maintained primarily for pu~1:mses other than the transportation of persons or cargo. However, self-propelled vehicles with the fol- lowing types of permanently attached equip- ment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; lb) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, Including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment. 12."Occurrence" means an accident, including con- tinuous or repeated exposure to substantially the same general harmful conditions. 13."Personal injury" means injury, other than "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry Into, or invasion of the right of private occu- pancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels 'a person or organization or disparages a person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. 14."Products-completed operations hazard": a. Includes all "bodily injury" and "property dam- age" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physical pos- session; ar (2) Work that has not yet been completed or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to its Intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated es completed. Page 12 of 13 Copyright, Insurance Services Office, Inc., 1994 CG 00 01 01 96 342 CGL Coverage Form b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition wes created by the "loading or unloading" of that vehicle by any Insured; (2) The existence of tools, uninstalled equip- ment or abandoned or unused materials; or (3) Products or operations for which the classi- fication, listed in the Declarations or In a policy schedule, states that products- completed operations are subject to the General Aggregate Limit. 15. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that Is not physically injured. All such loss of use shall be deemed to occur at the time of the "occur- rence" that caused it. 16. "Suit" means a civil proceeding in which damages because of "bodily injury", "property damage", "personal injury" or "advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such dam- ages are claimed and to which the insured must submit or does submit with our consent; or b, Any other alternative dispute resolution pro- ceedlng in which such damages are claimed and to which the insured submits with our con- sent. 17."Temporary worker" means a person who i~ fur. nished to you to substitute for a permanent "em- ployee" on leave or to meet seasonal or abort. term workload conditions. 18. "Your product" means: a. Any goods or products, other than real Pml> arty, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materials, parts or equipment furnished In connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your product"; and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the uss of others but not sold. 19. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a, Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your work"; and b. The providing of or failure to provide warnings or instructions. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 13 of 13 13 SHERIFF'S RETURN - CASE NO: 2001-00210 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERI~ND PENNSYLVANIA NATIONAL MUTUAL C VS SPOTTS MELVIN W ET AL R. Thomas Kline duly sworn according to law, says, that he made and inquiry for the within named DEFENDANT PEIFER & GROSS INC but was unable to locate Them in his deputized the sheriff of YORK serve the within COMPLAINT & NOTICE OUT OF COUNTY Sheriff or Deputy Sheriff who being a diligent search and , to wit: bailiwick. He therefore County, Pennsylvania, to On February 1st 2001 attached return from YORK Sheriff's Costs: Docketing Out of County Surcharge Dep. York Co 18.00 9.00 10.00 29.80 .00 66.80 02/01/2001 WEBER, GOLDSTEIN, Sworn and subscribed to before me this 3' ~L~- day of f~ Prothonotary' , this office was in receipt of the R./~homas Kline Sheriff of Cumberland County GREENBERG SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2001-00210 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND PENNSYLVANIA NATIONAL MUTUAL C VS SPOTTS MELVIN W ET AL R. Thomas Kline duly sworn according to law, and inquiry for the within named DEFENDANT SPOTTS MELVIN W but was unable to locate Him in his bailiwick. deputized the sheriff of LAiqCASTER County, serve the within COMP & NOT, DECLARATORY J Sheriff or Deputy Sheriff who being says, that he made a diligent search and to wit: He therefore Pennsylvania, to On Pebruary 1st , 2001 attached return from LANCASTER Sheriff's Costs: Docketing 6.00 Out of County 9.00 Surcharge 10.00 DEP. LANCASTER CO 58.54 .00 83.54 02/01/2001 WEBER, GOLDSTEIN, Sworn and subscribed to before me th±s day of f! Prothonotar~ this office was in receipt of the R./ZThomas K1 ine Sheriff of Cumberland County GREENBERG SHERIFF'S CASE NO: 2001-00210 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND PENNSYLVANIA NATIONAL MUTUAL C VS SPOTTS MELVIN W ET AL RETURN - OUT OF COUNTY R. Thomas Kline , duly sworn according to law, says, that he made and inquiry for the within named DEFENDANT SPOTTS ELIZABETH but was unable to locate Her in his bailiwick. deputized the sheriff of LANCASTER County, serve the within COMPLAINT & NOTICE Sheriff or Deputy Sheriff a diligent , to wit: who being search and He therefore Pennsylvania, to On February 1st , 2001 , this office was in receipt of the attached return from LANCASTER Sheriff's Costs: Docketing Out of County Surcharge 6.00 .00 10.00 .00 .00 16.00 02/0z/2001 WEBER, So answea~S: ., -~ .~ -/ R. Thomas Kline Sheriff of Cumberland County GOLDSTEIN, GREENBERG Sworn and subscribed to before me this ~d~ day of J~7 ~,3t A.D. Prothonotary' - COUNTY OF YORK OFFICE OF THE SHERIFF 28 EAST MARKET ST., YORK, PA 17401 SERVICE CALL (717) 771-9601 SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN 1. PLAINTIFF/S/ 2. COURTNUMSER 01-210 Civil Pennsylvania National Mutual Insurance Company 4. TYPEOFWRITORCOMPLAINT 3. DEFENDANT/S/ Notice & Complaint Melvin Spotts, et. al. Declaratory Judgement SERVE - S. NAME OF INDIVIDUAL, COMPANY, CORPORATION, ETC. TO SERVE OR DESCRIPTION OF PROPERTY TO BE LEVIED, ATTACHED, OR SOLD. Peifer & Gross, ;[nc o ~1 S. ADDRESS (STREET OR RFD WITH BOX NUMBER, APT NO., CITY, BORO, TWR, STATE AND ZIP CODE 7. INDICATE SERVICE: QI PERSONAL r~ PERSON IN CHARGE [~DEPUTIZE ~;]IBI:]~]~I~IL ~ 1 ST CLASS MAIL -- ~[3 POSTED yr~rJ~ COUNTY to exCjii~'~ tl~f~'_~ ~..;.,~&~ r~~ccording to law. This deputation being made at the request and risk of the plaintiff. SHERIFF O'F ~ COUNTy 8. SPECIAl. INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: C~ber~.and OTHER ADVANCE FEE PAID BY CUMBERLAND COUNTY SHERIFF NOTE ONLY APPUCABL~ ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN - Any deputy sheriff levying upon or attaching any property under within writ may leave same without a watchman, in custody of whomever is found in possession, after notifying person of levy or attachment, without liability on the part of such deputy or the sheriff to any plaintiff herein for any loss, destruction, or removal of any property before sheriff's sale thereof. 9. TYP DB RN .~GINATOR and SIGNATURE 19103 ,O. TELEPHO,E.UMSER ,f. DATEF,LED THE BELGRAVIA, STE. 600, 1811 CHESTNUT ST., PH[LAD~.PHIA, PA (215) 972-7900 1/12/01 12. SEND NOTICE OF SERVICE COPY TO NAME AND ADDRESS BELOW: ~Fhls area must be completed if notice Is to be mailed). 13. I acknowledge receipt of the writ or complaint as iedicated above. J. LUDWIG 16. HOW SERVED: PERSONAL( ) RESIOENCE ( ) POSTED ( ) POE ( ) SHERIFF'S OFF ( ) OTHER ( ) SEE REMARKS 17~l~[.hereby certify and return a NOT FOUND because I am unable to locate the individual, company, corporation, otc, named above. (See remarks below.) 18. NAME AND TITLE OF INDIVIDUAL SERVED I UST ADDRESS HERE IF NOT SHOWN ABOVE (Relationship t~ Defendant) 19. Date of Service 20. '~me of Service ~2.REMARKS: MOVED, LEFT NO FORWARDING ADDRESS .,lk ~. For~n C~n~ Cos~ ~. A~an~ ~s~ ~. Sewi~ ~s 37. No~ Ce~. ~. Mileag~Pos~.E 39. T~I Cos~ ~. Cost Due or Refund ~ ANSWER. 41. AFFIRMED ~ su~ ~o ~ me ~s ~ 0~ ~. Sig~m ~ 47. Date 45. ~gnctum ~ Yo~ ~. Date ay coaaSs u.w sbe SHF:RIFF'S OFFIC 1 SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN ,~LAINTIFF/S/ Pennsylvania National Mutual Insurance Co. DEFENDANT/S/ Melvyn sports, et. al. 50 NORTH DUKE STREET, P.O. BOX 83480, LANCASTER, PENNSYLVANIA 17608-3480 · (717) 299-8200 SERVE ~" 5 NAME OF iNDIVIDUAL, COMPANY, CORPORATION, ETC. TO RE SERVED Melvin Sports d/b/a Hel Spotts Excavatin9 6. ADDRESS (Street or RFP, Apartment NO, City, Boro, Twp, State and ZIP Code) AT 1296 Martin St, East Earl, PA 17519 7 INDICATE UNUSUAL SERVICE: ~ DEPUTIZE ~ OTHER Cumberland NOW, ]/18/01 20 , I, SHERIFF OF~ ~anc~,~ County to execute this ~l~it a~,~'~Ee-return lh~i'elYf-according to law. This deputation being made at the request and risk of the plaintiff. 8. SPECIAL INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: C~nberland PLEASE TYPE DO NOT DETACH ANY COPIES. 2 COURT NUMSER 01-210 Civil 4_ _TYp£ OF W_RIT~)R CQMPLAI~/ ~ ~omp±amn~ IOTE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIYER OF WATCHMAN - Any deputy sheriff levying upon or attaching a,~y property under ~ithin writ may leave same without a watchman, in custody of whomever is found in possession, after notifying person ol levy or attachment, without liability on le pad of such deputy or the sheriff to any plaintiff herein for any loss, destruction or removal of any such property before sheriff's sale thereof ~. SIGNATURE of ATTORNEY or other ORIGINATOR ] 10 TELEPHONE NUMBER 11 DATE K~EI~ M Pf~;JN~R ] (215) 972-7900 1/10/01 !. SEND NOTICE OF SERVICE COPY TO NAME AND ADDRESS BELOW: (This area must be completed if notice is to be mailed). ~{E BELGPJ%VIA SUITE 600 ;~I-C~-.E~ ~ ~ PA 19103 SPACE BELOW FOR USE OF SHERIFF ONLY -- DO NOT WRITE BELOW THIS LINE I acknowledge receipt of the writ{ NAME of Authorized LCSO Deputy or Clerk 14 Date Received 15 Expiration/Hearing date orcomplaintasindicatedabove. [ ~"~l~'J.'J.'~; ~'/~,~'~ 717-295--3609 1/19/01 2/20/01 I hereby CERTIFY and RETURN that~ve personally served. I~e legal evidence of service as shown in "Remarks" ~ have executed as shown in "'Remarks", the writ or complaint d e s%"d~ e d On the Jndivid[JaL company, corporation, etc. at the address sh own above or on the individual, company, cor- poration, etc, at the address inserted below by handing a TRUE and ATTESTED COPY thereof []1 hereby certify and return a NOT FOUND becauselem unable to locate the individual, company, corporalion, etc, named above. (See remarks below) Name and title of individual served (if not shown above) (Relationship ID Defendant) 19. ~,dd ress of where served (complete only if different than shown above) (Street or RFP, Apartment No., City, Boro, Twp Stale and Zip Code) %TTEMPTS D te Miles Pep. Int. Dele Miles Date Milee 3£ o.p.,.t, o.p.l.,. 12722 100.00 47.50 IEMARKS: ~21~/'~ BO ANBWER. :FlRMED a~sc.,ribed fo before methis ~2e DS ~t[neart~lufr ' ~ 3s si~.~,u~ ol Sh*r,f~. - )MMISSION EXPIRES FE- Issuing Authority 2. PINK- Atlorney 3. CANARY- Sheriff's Office 4. SLUE- Sheriff's Off~c~ 2 o~ 2 S-HF:RIFF'S OFFIC 50 NO ~TH DUKE STREET, P.O. BOX 83480, LANCASTER, PENNSYLVANIA 17608-3480 · (717) 299-8200 SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN ~? PLAINTIFF/S/ Pennsylvania National Mutual Insurance Company 3 DEFENDANT/S/ Melvin sports, et. al. SERVE ~' 5 NAME or~ INDIVIDUAL, COMPANY, CORPORATION, FTC, TO BE SERVED Elizabeth Sports PLEASE TYPE DO NOT DETACH ANY COPIES. 2 COURT NUMDER 01-210 Civil 13~rl aral-nr~ ,lt]dc3Pm~nt 6 ADDRESS (Street or RFD, Apartment No, City, Sore, Twp, State and ZIP Code) AT 1296 M~Lrtin St, East Earl, PA 17519 r INDICATE UNUSUAL SERVICE ~] DEPUTIZE [] OTHER CL%q~er~ ~r~(~ Now, 1/18/01 20 _ _ , I, SHERIFF O~::R COUNTY_~'ff,/~411~by de.puti~"eri, f! of Lancaster County to execute th,~,'~Trit,,J~l~~ to law. This deputation being made at the request and risk of the plaintiff. ' ' ____.~_. ~ - I. SPECIAL INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: Cumberland IOTE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN - Any deputy shedff levying upon or attaching any property under ~ithin wPl may leave same wit hour a watch man, in custody of whom ever is fo und in possession, after notifying person of tevy or attach me nt, wiff~out liabihty on le part of such depuly or the sheriff to any p[aintgf herein for any loss, destruction or removal of arty such property before sheriff's sale thereof 9. SIGNATURE of ATTORNEY or other ORIGINATOR 10 TELEPHONE NUMBER 1 I DATE ~ M ~ ( 215) 972-7900 1/10/01 2. BEND NOTICE OF SERVICE COPY TO NAME AND ADDRESS BELOW: (This ares must be completed if notice is to bs mailed). THE B~I~RAVIA ~3ITE 600 1811 ~ ~ ~ PA 19103 SPACE BELOW FOR USE OF SHERIFF ONLY -- DO NOT WRITE BELOW THIS LINE NAME of Authorized LCSO Deputy or Clerk 14. Date Received 15 Expirstion/Hearing date I acknowledge receipt of th e writ 2/20/01 orcornplaimtasindicatedabove. } A~ WALTQ~ 717-295-3609 1/19/01 I hereby CERTIFY and RETURN that I II'ave personslly served, [3 have legal evidence of service as shown in "Remarks", [] have executed as shown in "Remarks", the writ or complaint described or1 the indiwdual, company, corporation, etc., at the add ress shown above or on the individual, company, cor- poration, etc, at the address inserted below by handing a TRUE end ATTESTED COPY thereof. Et I hereby certily and return a NOT POUND because I am unable to locate Ihe individual, company, corporation, etc, named above (See remarks below) Name and title et individual served (if not shown above) (Relationship to Defendant) 19 Address Of where served (complete only if different than sh own above) (Street or RFD, Apartment No, Ci/y, Bore, Twp State and Zip Code) ATTEMPTS Date Miles Dap. Int. Data Miles Date Miles AdvanceR112722Costs 25. Service, Costs 26 Nota~ Ce~ 27 Mileage/Postage/N.F_6 REMARKS: 22 Time 0/- ~z.- ol =2 ,'17 Miles Dap. Int. I Date Miles 28 Total COSTS 29 COST DUE PM EST Dep. Int. OR REFUND day of COMMISSION EXPIRES $0 A WER. tHITE - Issuing Authority 2. PINK - Attorney 3, CANARY - Sheriff's Office 4. SLUE - Shedff's Office WEBER GOLDSTEIN GREENBERG & GALLAOHER By: Kenneth M. Portner, No. 62194 The Belgravia, Suite 600 ' 1811 Chestnut Street Philadelphia, PA 19103 Attorney for Plaintiff Pennsylvania National Mutual Insurance Company Permsylvania National Mutual Insurance Company Plaintiff Melvin Spotts, Mel Sports d/b/a Mel Sports Excavating, Elizabeth Sports Orchard Hills Associates, Pocono Village Associates Defendant. CUMBERLAND COUNTY COURT OF COMMON PLEAS COMPLAINT TRUE COPY FROM m Tmtt ¥ wnermol, I here unto NOTICE AVISO You have been sued in court. If you wish to defend against the claims set tbrth in the following pages, you must take action within twenty (20) days atler this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your det~nses or objections to the claims set tbrth 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 tbr 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 OFF[CE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue CarIis~e~ PA 17013 (717) 249~3166 Le ban demaodadn austed en la cone. Si usted quiere det'enderse de estas demandas expuestas en las pagmas siguientes, usted tiene veinte (20) dias de plazo al partir de la fecha de la demanda y la notificaci6n. Hate falta asentar una comparencia escrita oen persona o con un abogado y entregar a la cone e~l ~k)l'ma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avisado que si usted no se defieode, la corte tomarfi medidas y puede continuar la demanda en cmm'a suya sin prevJo aviso a ootificacifin. Ademais, la torte puede decidir a favor del demandante y mquiere que usted cumpla con todas las provisiones de esta demanda, Usted puede perder dinero a sus propiedades u otms derechos itnportantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO T1ENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO. VAYA EN PERSONA O LLAM E POR TELgFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCR1TA ABA JO PARA AYERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. SERVICIO DE REFERENCIA LEGAL 2 Liberty Avemm Callisle. PA 170k3 (717) 249-3166 IN THE COURT OF COMMON PLEAS OF CI~MBERI,ANI) ('OIINTY PENNSYLVANIA NATIONAL MUTUAL CASUALTY COMPANY Plaintiff; MELVIN W. SPOTTS, MEL SPOTTS d/b/a MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS, ORCHARD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES Defendants, ('IVII. ACT[()N COMPLAINT FOR DECLARATORY JU'DGMENT AN[) ()TI II';R RI'~I,II~,F Pursuant to 42 Pa. C.S..{7531 et. seq., Penn Nation,'tl Mutnal Casualty hlstu'allcc Company ("Penn National"), brings this action tbr declaratory.judgment and other relicl'and in support thereof avers as tbllows: PARTIES 1. Penn National is an insurance company organized and existing ufidcr thc laws of thc Commonwealth of Pennsylvania with a principal place of business located at I larrisburg, Pennsylvania. 2. Melvin W. Spotts is an individual who resides at 1296 Martin Street, East Earl, Pennsylvania. 3. Elizabeth Spotts is an individual who resides at 1296 Martin Street, East Earl, Pennsylvania and at all times relevant hereto was the wile o[~ Mel Sports. 4. Orchard Hills Associates ('~Orchard Hills") is a general partnership. I'hc parmcrs arc Robert E. Goodling of Carlisle, Pennsylvania, James T. Gibson of Mcchanicsburg, Pcnnsylwmia and Peifer & Gross, Inc. a Pennsylvania corporation with a prir~cipal place o1' business located at New Cumberland, Pennsylvania.. 5. Pocono Village Associates ("Pocono Village") general p:u'tncrship. Thc p:n-mcrs arc Peifer& Gross, Inc., a Pennsylvania corporation with a principal place o1' busincss at New Cumberland, Pennsylvania, AAA Quality Builders, Inc., a I>crmsylvmfia corpor~ltion with a principal place oi-'business at Mecbanicsburg, Pennsylvania~ and PVO}IA, lnc.. a I~cnnsylvania corporation located in Carlisle, Permsylvania. 6. Orchard tlills and Pocono Village are nanlcd ;.is parties whose interests may bca fl'coted by the declaration sought herein in accordance with 42 Pa. C.S. 37540. ,IURISDICTION 7. This Court has jurisdiction over this n'tatter pursuant to the Pcnnsylwmia l)cclaratory Judgment Act, 42 Pa. C.S. §7531 et. seq. VENUE 8. Venue is proper with this Court as defendants either reside or regularly conduct business in this County. FACTUAL BACKGROI/NI) 9. Penn Natiorml issued tbur consecutive polices ol' Commercial (}cncral l,iability Insurance to "Mci Spotts Excavating" and/or "Mci Sports t/a Mci Npotts l~;xcavating'' , policy no. CL90037516, with a policy periods of 09/26/93 to 09/26/94.9/26/94 to 9/26/95, 9/26/95 Itl 9/26/96 and 9/26/96 to 9/26/97. Copies of the declaration pages of said policies arc attached as F~xhibit "A". 2 10. At all times relevant hereto, Spotts and his wife Elizabeth were in thc plunfl~ing excavation bosiness and operated a bosiness known as Mel Sports Excaw~tion. Spotts maintains a business address at 45 Martin Street, East Earl, Pennsylvania. 1l. In or about 1994, Orchard Hills was the owner of a mobile home park known as ~Pocono Village Court" or "Pocono Mobile Home Park" (the "Park") located in Pocmm Townshil*, Monroe County, Pennsylvania. 12. Sewage disposal fbr the mobile homes located in thc Park was provided by means of a septic system located on the Park premises. On or be~bre August, 1994, Orchard Hills hired Sports to pcrlbrm repairs on thc I'ark's 13. septic systern. 14. 15. Sports perfbrmed the work between August, 1994 and I)cccmbcr, 1994, In or about December, 1994, in the coarse of his work Sports el. it one o1' thc septic system's gravity feed pipes. This pipe was connected to a dosing tank, and alicr it was cut, sewage which was supposed to pass through the pipe into the tank instead was released into tile ground ill and around the Park. 16. Spotts completed his work at the Park in Dccember. 1994. 17. At sometime subsequent to December, 1994, it was disc{~vered that sewage had escaped from tile septic system and had contaminated tile ground in and around thc park. 18. Orchard Hills and Pocono Village commenced suit against Sports in September, 1997 in the Court of Common Pleas of Cumberland County, Pennsylwmia. ()rchard I lills and P~)cono Village filed a Complaint against Sports in this suit ill or abotlt March, 1998 alld an Amended Complaint in or about July, 1999. (tile "Complaint" and "Amended Cumplaint") Copies o1' tile Complaints are attached hereto as Exhibit "B". 19. The Complaints allege that SpeLts performed his work at the I~al'k in a negligent careless and reckless fashion and that Orchard Hills and Pocono Village were damaged as a result. 20. In particular, the Amended Complaint alleges that Spotts "cut ol'l'a gravity Ii:cd pipe or line which connected eleven (11) mobile homes to a "dosing tank'~ without recolmccting that line to any other part of the septic system. As a result of this action, tile sewage which cmanated li't)nl those eleven ( 11 ) mobile homes was not deposited into the septic system l'or thc mobile home park and was simply dumped into the ground". Amended Complaint, paragraph 8.;~.. I;xhibit ~'W' hereto. 2 I. The Amended Complaint further alleges that SpeLts acts '~caused thc untreated waste from eleven (1 I) mobile homes to simply pass into tile groulld" and that this "violated lbdcral and state environmental laws and the ordinances of Pocono Township in Monroe County and exposed thc owners and representatives of Orchard Hills to criminal and civil penalties and sanctions I~,r such violations.". Amended Complaint, paragraph 9, attached hereto as Exlfibit 22. Tile Amended Complaint seeks damages representing thc cost el' repairing and/or remedying SpeLts' allegedly defective work (including costs incurred in idcntil},ing thc source el'thc problem) and treating and removing soil in the Park that had been contaminated with tmtre:ltcd sewage. COUNT I -- DECLARATORY JUDGMENT--POLICY COVERA(;E 23. Penn National incorporates by reference the averments el' paragraphs I through 22 hereof as if ft, lly set forti~ at length herein. 24. The Penn National policies provide coverage t~r sums Sports is legally obligated to pay on account of "property damage", as defined in the policies, which is not otherwise excluded. See General Liability Coverage Form, attached hereto as Exhibit 25. The Penn National policies exclude l'rom coverage ~)*ropcrty damage" to real property on which the Sports is pertbrming operations, or personal property that musl bc "restored, repaired or replaced" because Sports' work was incorrectly performed on it (See CG 00 0l 01 96, Section 1, Coverage A,2,J(5), 2,J(6), at 3). The Penn National policies also exclude coverage lbr "property damage" to Sports' "work" as defined in tile policies, (See CG 00 01 01 96, Section I., (.'over;igc A,2.k at 4). 26. The claims asserted in the Complaint and Anlended Compkfint litll within thc amhit o~' the exclusions cited in the preceding paragraph and therel'bre arc not covered under the Penn National policies. 27. In addition, tile Penn National policies contain ;~ Total Pollution I:Xclusion which provides that the "property damage" coverage does not apply to claims which would m)l havc occurred in whole or in part but i-hr tile discharge, dispersal, sccp,'tge, migration, release "pollutants". "Pollutants" means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkali, chemicals and waste. (Sec C(; 21 49 01 96) 28. Tile claims asserted in the Complaint and Amended Complaint Ihll within the ambit of the Total PolbJtion Exclasion and therefbre there is no coverage Ibr these claims under thc Penn National policies. 29. An actual controversy exists between thc parties conccrniug the issue of whether Sports is entitled to coverage under the policies for the claims asserted in thc Ut~mplaint aud Amended Complaint. 30. Declaratory judgment is the only remedy by which the liabilities ot'the parties eau be determined. WHEREFORE, Pennsylvania National Mutual Casualty h~st~ram~cc (;ompzli~y dcmm~ds judgment in its thvor and against defendants as tbllows: a. A declaration that under the terms of thc Policies a~d appficz~blc [a~. I~cnu National has neither a duty to detbnd nor a duty to indemnily Sports lYr the claims asserted in thc Complaint and Amended Complaint; and b. For such other and t~rther relief this Court may deem.iust and prot~er, includ ing attorneys' tbes and cost o f shit. COUNT Il - REIMBURSEMENT OF ATTORNEYS FEES AND COS'rS 31. Penn National adopts by retbrence the allegations of the preceding paragraphs and incorporates the same herein as if tktlly set tbrth at length. 32. Penn National is presently defending Spotts against the claims asserted in the Complzfintand Amended Complaint pursuant to a reservation of its right to contest its obligz~tions under its policies. 33. Pursuant to the terms and conditions of the Policies, Penu Nz~tkmzfl is ouly obligated to defend Sports against claims whicl~ are actually or potentially covered under thc l'olicics. 34. In thc event that this Court enters a declaration that Penn National has no clL~ty to dclLud Sports against the claims asserted in the Complaint and Amended Complaint, I'cun National is entitled to recoup tl~e tbes and costs it has paid on Sports~ behalf in dclbnsc of thc cltfims. WHEREFORE, Pennsylvania National Mutual Casualty Company demands judgment in its favor and against defi~ndants as tbllows: (a) An order directing Sports to reimburse Penn National Ibr all tbes and costs incurred by Penn National in detknding Sports against thc claims asscrlcd in thc Complaint and Amended Complaint and; (b) For such other and thrther reliefthis Court may deem just and proper, including attorneys' t~es and cost of suit. Respectfully submitted. WEBER GOLDSTEIN (iI~,I'!I;~NBI£R( & GALLAGIIER Kenneth M. Pormer Attorneys lbr Pmmsylvania National Mutual Casualty Insurance Company /"/O- Date: 7 VERIFICATION I, Kenneth M. Portner. hereby verify that the statements made in the lbregoing plcadhlg are true and correct to tile best of my knowledge, in~brmation and belief. Thc undersigned understands that tile statements therein are made subject to the penalties of I 8 Pa. C.S.A. 4904 mlatir~g to tmswom i'~flsificafion to authorities. Kenneth M. [)ortner Exhibit A INSURANCE COMMERCIAL LINES POLICY COMMON DECLARATIONS NEY DECLANATZONS NON- ASSii$~ASLE. POL. ICY NUMBER 'Og/26/g3 I0g/26/64 CL9 0037516 NAMED INSURED ANO ADDRESS MEL SPOT?$ EXCAVATING PO BOX 32 EAST EARL PA 17519 COVERAOE IS PROVIDED IN PA NATIONAL NUTUAL CAS INS CO AGENCY MURRAY INS AS$OC INC P 0 BOX 1728 LANCASTER PA 17803 AGENCY 0000756~1 POI.ICY PER,CID: POLICY COVE~S f:ROM:, 12.:01 A.M. STANDARO TIME AT TH~= ADD,ESS OF TH~ ~NSURED STATE0 ABOVE. ;0;~ O~ gUStS& INDIVIDUAL eu$~ss DESCR}PTION: RESIDENTIAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL. THE TERMS OF THiS POLICY, WE AC.~REE WITH YOU TO PROVIDE THE INSURANCE AS STATED iN TH~S POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. COMMERCIAl. PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART PREMIUM 403.00 3,137.00 2,511,00 INSTALLMENT SERVICE FEE $ 10.00 FOflMSAPPLICABLETOALL COVERAGE PARTS: IL024S 06/S9 IL0010 01/81 701672~ 09/67 IL0017 !1/65 IL0172 04/93 COUNTERSIGNED BY: AuthorizEd Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(Si. AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF. COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0025 {ED, 03/91) HOME OFFICE iSSUED 10/11/93 INSURANCE COMMERCIAL PROPERTY COVERAGE PART DECLARATIONS DECLARATIONS NON-ASSESSABt. E CLg QQSTS16 0612RI63 [06126164 I NAMED INSURED AND AOORESS NEL SPOTTS EXCAVATING PO SOX 32 EAST EARL PA 11619 COVERAGE I$ PROVIDED IN PA NATIONAL MUTUAL CAS INS CO AGENCY MURRAY INS ASSOC P O S0X 1,//26 LANCASTER PA 17603 AGENCY / BR 0000'/59131 POLICY PERIOD: POLICY COVERS FROM: 12:01 A.M, STANDARD TIME AT THE ADDRESS OF THE INSURED STATED AEOVE. FORM OF ~USINE$,$: INDIVIDUAL ~JS~ESS DESCRIPTION: RESIDENTIAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THiS POLICY, WE AGREE WiTH YOU TO PROVIDE THE INSURANCE AS STATED iN THIS POLICY, DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE OESCRISED PREMI~E APPLIES ONLY FOR THE COVERAGES SHOWN: PREMISES NO, 1296 MARTJN STREET. DEDUCTIBLE: $250 EAST EARL LANCASTER CO PA 1751.6 BUILDING NO.: 1 CONSTRUCTION: FRAME OCCUPANCY: OFFICES, OTHER THAN PROTECT[ON CLASS: GOVERNMENTAL og COVERAGE: YOUR BUSINESS PERSONAL LIMIT OF INSURANCE: 62,000 REPLACEMENT C0ST PROPERTY COINSURANCE: 80Z COVERED CAUSE OF LOSS: SPECIAL FORM SEE SUPPLEMENTAL DECLARATIONS, FORM ,/1-0027S FORMS APPLICABLE TO THIS COVERAGE PART: CPO010 10/91 710218 01/92 CPOQSO 07/68 CPIQ30 10/91 2 2 7 1794 gg8 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORI~SI AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE TH~ ABOVE NUMBERED POLICY. FORM 71-0027 {Ed. 03/93I HOME OFF ICE ZSSUED 10/11/93 COMMERCIAL PROPERTY COVERAGE PART SUPPLEMENTAL DECLARATIONS POLICY NUMBER CL9 005751E COVERAGE tS-~OVtDED tN PA NATIONAL MUTUAL CAS INS CO DESCRiPTiON OF PREMISES AND COVERAGES PROVIDED iNSURANCE AT THE DE~)CR~REO PREMISES APPLIE~, ONLY FOR THE COVERAGES eHOWN: AG~NCY }ER 000751~1 , PREMISES NO. 1254 EAST EARL ROAD DEDUCTIBLE: EAST EARL LANCASTER CO PA 17519 BUILDING NO,: 1 PROTECTION CLASS: CONSTRUCTION: UOISTEO MASONRY OCCUPANCY: CONTRACTORS EXCAVATION EQUIPMENT STORAQE COVERAGE: BUILDING LIMIT OF INSURANCE: REPLACENENT COST OR $?,2oo COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM BUILO1NG NO.: 2 CONSTRUCTION: dOISTEO NASONRY OCCUPANCY: OFFICES, OTHER THAN COVERAGE: BUILOINO LIMIT OF INSURANCE: REPLACEMENT COST PROTECTION CLASS: GOVERNMENTAL og $gB,500 COINSURANCE: 80X COVERED CAUSE OF LOSS: SPECIAL FDRN BUILDING NO.: S PROTECTION CLASS: og CONSTRUCTZON: FRAME OCCUPANCY: CONTRACTORS'EXCAVATION EQUIPMENT STORAGE COVERAGE: BUILDING LIMIT OF INSURANCE: $4,800 REPLACEMENT COST COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM FORM 71-0027S (Ed, 03/91) HOME OFF ICE I$SUEO 10/!1/93 POLICY SCHEDULE OF NAMES AND ADDRESSES POLICY NUMBER CLg 0057516 FROM POLICY P~RIQO TO ~ COYERAi~E IS PROV~ED IN og/25/gB I og/25/g4I PA NATIONAL MUTUAL CAS iHS ¢0 THE FOLLO¥1MG ARE INSUREDS ON THIS POLICY 000075~31} PNEMZSES NO.: ~ BLUE BALL NATIONAL BANK PO BOX 580 BLUE BALL PA 17508 MORTGAQEE FORM 71-0026 (ED. Q3/gl) HOME OFFICE ~SSUEO I0/11/g3 flPENNNATIONAL COMMERCIAL GENERAL LIAR~LZTY COVERAGE PART INSURANCE OCCURRENCE POL NEW DECLARAT [0NS NON-ASSESSAbLE POLICY NUMBER CL9 DECLARATZON$ THIS POLICY IS SUBJECT TO A GENERAL AGGREGATE LIMIT ~Roa .o~<v ~e~,oO ~ ] COVERAGE I$ PROVIDED IN Og/2e/ga 109/20184 I PA NATIONAL UUTUAL CAS [NS CO A~BNCY MURRAY IN$ A$SOC P 0 BOX 1128 LANCASTER PA t?SOS NAMED INSUREO ANO ADDRESS MEL SPOTT$ EXCAVATING PO BOX $~ EAST EARL PA 17519 AGENCY POLICY PERIOD: POLICY COVERS FROM: 1'2:01 A.M, STANDARD T}ME AT THE ADDRESS O6 THE INSURED STATEO ABOVE. FORM O~ BUSINESS: [ND[V[OUAL BUSINESS D~SCRIPTlOl~. RES[DENT[AL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED tN THiS POLICY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS - COMPLETED OPERATIONS) S 1,000. 000 PRODUCTS -COMPLETEO OPERATIONS AGGREGATE LiMiT $ 1.000,000 PERSONAL AND ADVERTISING INJURY LIMIT s 500. 000 EACH OCCURRENCE LIMIT $ 500. 000 FIRE DAMAGE LIMIT, ANY ONE FIRE $ 80,000 MEDICAL EXPENSE LIMIT, ANY ONE PERSON $ 5,000 PREMIUM iNFORMATION COOE PREMIUM BASTS PER RATES ADVANCE PREMIUM PREMS/OPS PRODUCTS PREMS/OPS PRODUCTS SEE SUPPLEMENTAL DECLARATIONS, FORM 11-0029S FORMS APPLICABLETO THiS COVERAC~PART: [L0021 11/B5 CGOO01 11/88 CG2503 11/85 CQ~504 11/85 C02150 09/89 C02149 11/88 2 2 11 I194 998 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORMIS), AN~ FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0029 (Ed. 03/93I HOME OFF[CE ISSUED 10/11/93 COMMERCIAL GENERAL LIABILITY POLICY NUMBER r~ p~LIC~EmO~ rD COVERAGE PART SUPPLEMENTAL cov ,o. P ov o = PREMISES EAST EARL LANCASTER CO PA 1?SIP CODE 94007 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS 18,25D PAYROLL 1000 VARIOUS VARIOUS EXCAVATION ADVANCE PREMIUM PREMS/OPS PRODUCTS IHCLUDED INCLUDED CODE 95410 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS 1G,250 PAYROLL tO00 VAR]OUS VARIOUS GRAD]HQ OF LAND ADVANCE PREMIUM PREMS/OPS PRODUCTS ZNCLUDED ZNCLUDEO PREMISES NO. 1264 EAST EARL ROAO EAST EARL LANCASTER CO PA 17519 CODE PREMIUM BASIS PER 61212 4,SSi SQUARE FEET 1000 RATES PREMS/OPS PRODUCTS VARIOUS ADVANCE PREMIUM PREMS/OPS PRODUCTS INCLUDED BUILDING OR PREMISES - BANK OR OFFICE MANUFACTURING (LESSORS RISK ONLY) OTHER INCLUDING PRODUCTS-COMPLETED OPERATIONS MERCANTILE OR THAN NOT FOR - PROFIT FORM ?l-OO2gS (EO. 03/91) HOME OFFZCE ISSUED tO/ll/g3 INSURANCE COMMERCIAL INLAND MARXNE COVERAGE PART NEY DECLARATIONS POliCY 1'AUMBER r~u .mlCv ~q~ To ¢L0 0037516 09/28/93 ]09/28/94 NAMED INSURED AND ADDRESS EEL SPOTTS EXC~VATXNG PO aOX 32 EAST EARL PA 17510 COVERAGE IS PROVIDED IN PA NATXONAL MUTUAL CAS AOENCY MURRAY ZNS ASSOC /NC P 0 BOX 1728 LANCASTER PA 17803 DECLARATIONS AGENCY JBR co OoooTs, , POLICY PERICI~ POLICY COVERS FROM: 12.:01 A.M. STANDARD TiME AT THE ADDRESS OF THE iNSURED STATED ABOVE, FORM OF BUSINESS: [NDIVIDIJAL BUSINESS DESCRIPTION: RESIDENTIAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SL~JECT TO ALL THE TERMS OF THiS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED tN THiS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. CONTRACTOR'S EGUIPMENT ALL COVERAGE PARTS NOT OTHERWISE SPECIFXED PREMIUM 2,311.00 200.00 FORMS APPLICABLETO ALL COVERAGE PARTS: 710082 01/g2 710311 OE/g2 702580 10/Bg ]¥tO0 06/84 IMg03 02/85 X~47 04/88 IM25g 01/8T 71018T 10/01 1M42 o7/8e IM8$ 07/80 2 11 1704 gg8 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WiTH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(SI AND FORMS, iF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0031 (ED. 031931 HOME OFF ICE ISSUED 10/11193 COMMERCIAL iNLAND MARINE DECLARATIONS - CONTRACTOR'S EQUIPMENT ¢L8 DD3TB18 09/28/88 0SlX. B/SA PA NATIONAL. IUTUAL CAS INS CO 0000789~31 EACH 1TEN THAT IS COVERED MUST BE DESCRIBED BELOW ,OR ON A SCHEDULE THAT I$ A PART DF THIS POLICY. A COVERAGE AMOUNT MUST BE BHOYN FOR EACH ITEM, THiS IS THE MOST THAT YE ¥1LL PAY FOR A LOSS TO THAT iTEM. DEDUCTIBLE : THE ABOVE DEDUCTIBLE AMOUNT ¥1LL APPLY SEPARATELY TO EACH iN EACH LOSS AFTER ALL OTHER ADdUSTME#TS HAVE BEEN MADE. ITEM iNVOLVED iTEM DESCRiPTiON OF EQUZP#ENT COVERAGE AMOUNT 1 1988 UOHN DEERE EXCAVATOR $ 45,000 2 1999 CAT D3C BULLDOZER' $ 34,000 ~ 1988 CAT 983 LOADER $ 7B,OO0 4 1989 BOMAG 142D ROLLER COMPACTOR $ 19,000 5 1989 dOHN DEERE MDL 855 LANDSCAPE ~TRACTOR W/BB YORK RAKE BTB LOAOER STANLEY COMPACTOR (ATTACHMENT! CONTENTS IN ITEM dB-MOB TRA?LER 19R~. UOHN OEERE 4100 BACKHOE ~TO410DG?93722 4,000 2,OD0 TI,OOO TOTAL AMOUNT OF iNSURANCE $ 256,800 FORM 71-0t25 [ED. 18/91) HOME OFFXCE XSBUED 10111183 TVl PENN NATIONAL INSURANCE Pennsylvania National ML~ual Claullly I~su~ance ~o~ PO. Box~G1 ~ri~urg, Pk 17~05,~ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, This endorlement ehangee thl polley efleotlve on the Inception data of the policy or el of the date Indicated below. g/26/g$ ~ lsd. ]]:X,C.,AY4T,~IiG ................ . .~JX~. T .~8. ~.~.~ .ILO. . . O~ ~75~t ....... This endorsement modifies such insurance as Is afforded by the provisions of the policy relating to the Ioliowlng: COMMERCIAL INLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE Loss Payee apptioable: XX A. Lender's Loss Payable B. Contract of sale Loss Payee Address BOX 65090 APPLICABLE TO THE FOLLOWING PROPERTY Detcrlptlon Location Manufacturer I Amount of Type of of proparty Serial it Insurance Coverage 1993 410D TO~lOI~G793722 $71,O00 For covered property In which both you and a Loss Payee shown in the schedule or In the Declarations have en insurable Interest, we will adjust losses with you; and pay any claim for loss or damage lolntly to you and the Loss Payee, as Interest may appear. ~ 7t.0187 [Ed. Page lo~2 ~ an~mement ch&'t;~ t~e' inland Mmt~ coverage. If =, COVer~ ~ ~hOW~ on t/re ~ I~w, IM-47 led. ~g o 03 ?$ ]e DEDUCTIBLE IM47 AAiS AAIS ' This Inland Marine coverage is subject to the terms ~own below. The Inland Marine General Terms dso apply. CZ,9 00~ 75 16 ~ IqBO 11,S CAImqJU.Y- MISCELLANEOUS PROPERTY COVERAGE (The in~rmati~ ~lUlmt be,ow may be ~ oaa .!~'m ~lule or supplememal Oeciaratlms,) IM.603 (Ell. Cevaraga Amount $ 8,000 The moot that we will pay for ail covered property in the event of a loss Is: OEDUCTIBLJ The following dedoctlbie amount wilt apply to each Joss after ail other ediuet- merits have been ma:la. S ~ COIliBURANCE You must maintain a minimum coverage amount. This minimum coverage amount is the full actual cash value of ail covered property. If the coverage amount at the time of loss is less than the minimum coverage amount, we will pay only a part of a loss, Our part of the ices will be determined by dividing the coverage amount by the minimum coverage amount. This percent will be applied to the final ad- lusted k~s to detemdne the amount that we will pay. I PROPERTY COVERED We cover the de~ril3ed propeRy that belongs to you. We also cover aiml~r proper'q that belongs to others and for which you ars liable. ! PERIL8 COVERED I We cover direct physical loss to covered property unless the loss is caused by a peril that is excluded, The loss must be due to an extsmai cause. I PERIL8 EXCLUDED I We do not pay for a loss ff one or more of a~e tollowing excluded perils apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time u, or after the excluded peril, We do not pay for a loss that results from: 1, s dishonest or illegal ~ct, alone or in collusion with another, by: a. you; b. others who have an interest in the property; c, others to whom you entrust the property; or d. the employees or agents of a., b. or c., whether or not they are at work. We do cover loss caused by dishonest acts by carriers or other bailees for hire. 2. swindling, fraud, trick or false pretense. 3. the acceptance of: a. counterfeit money or fraudulent post office or express money orders; or b. checks or promissory notes which are not paid upon presentation. 4, mysterious disappearance. 5. any cause when the only proof that a loss occurred is an Inventory shortage. 6. breakage of glass or similar fragile items. We do cover breakage if it is caused by fire; lightning; windstorm, hail; eartl~luake; flood; smoke; explosion; ~crafl, apace- items; vehicles, Indiudln9 an accident to a transporting vehicle; strike; riot; civil commotion; vaxlalism; theft; attempted theft; apr~lder leakage; or collapse of buildings. 7. a process to repair, adlust, service or maintain covered property, ff a firs or explosion results, we do cover the loss caused by the fire or explosion. 8. mechanical breakdown or faiiura. If a fire or explosion re- suits, we do cover the loss caused by the fire or explosion. -1- © Cepydgkt 1966 AAIS PENN NATIONAL INSURANCE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ rr CAREFULLY. ~his aflclomement .hang8~ the policy effect+ye on tho Ino~tkm date of the I)Oll~y'or as of the date Indkmted below, CZ,9 0 O2 75 18 ................~4~w ~..v~,i~ ........... ~Di;~.~ ' ' This endorsement modifies such insurance aa ia afforded by the provlalona of the poliCy relating to the following: COMMERCIAL INLAND MARINE POLICY TOOLS AMENDATORY ENDORSEMENT Coverage is emended ee follows: PROPERTY COVERED We covered your portable tools and equipment valued leas then $ 1,{XX) per item or let. Thil in~ludel their containers, spare parts, and accessorial. We also cover similar property that belongs 10 othem and for which you are liable, Foal 70-2~8~ (Ed. 10/99) INSURANCE THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. INLAND MARINE POLICY CHANGES POLICY CHANGE NUMBER DOC #1 POLICY NUMAR CC9 0 O3 75 16 POLICY CHANGES 09/26/93 POL~Y I~RIOD 09/26/93 TO 09/26/9~ HAME INSURED AUTHORIZEO REPRESENTATIVE I~EL SPOts EXCAVATING HURRAY iNS ASSOC ~NC 000 0?59 COVERAGE PARTS AI~ECTED COI~RACTORS ~gUIP~T CHANGES IT I$ HEREBY AGREED FORM 71-O125 IS REVISED TO REFLECT THE FOLLOWING: ITEM #7 - CONTENTS IN ITEM #6 JOB-TRAILER IS AMENDED TO READ CONTENTS CONTAINED IN THE 1987 ~ELLS CARGO TRAILER VALUED AT $2.000. ITEM #8 - 1993 JOHN DEERE 41OD BACKHOE #TO~lODO?93722 [S AMENDED TO A VALUE OF $65,§00. REVISED LIMIT - $251,300. FREV PREM, $6,051 FRS 100 REV PR~M $6.001 0U/1~/9~ TLS INSURANCE C0MMER¢]AL LINES P0L[CY C0.MON 0ECLARA?[0N$ RENEVAL OF CL$ NON-AJ~$ESSAllLE POLICY NUMBER ~ PO~ ~B~oo ~o CL0 00~7618 00/2~/04 100/~6/05 EEL SPOTT8 EXCAVATING COVERAGEIS PROVIDED IN PA NATZONAL MUTUAL CAS ZN$ CO AGENCY MURRAY ZN$ ASSOC ZNC P O BOx I728 LANCASTER PA 17008 AGENCY 0000750~1 POLICY Pffi~IOD: POLICY COVERS FRC~t 12:01 A.~ STANOARO TIME AT T~ ~ESS ~ T~ INS~ED STATED ABOVe. F~ OF ~usl~S: ~ND~Y]~U~L aus~$s D~SCRIPTI~ RE~DENT~AL EXC&V&T]N~ IN REiN FOR PA~ENT ~ T~ PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS P~ICY, WE AGREE WI~ Y~ ~0 PROVIDE T~ INS~CE AS STA~D ~ THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLANO MARINE COVERAGE PART ZNSTALLMENT PREMIUM 422.00 $ $ $ s 2,4E1.00 $ $ $ · To?AL'.::~:' '.'::' · . .':i :: .' ... '." ' .:"?.::F::: SEEVZCE FEE $ 10,00 FORMS APPLICABLE TOALL COVERAGE PART~ ILO01? 11/85 IL0246 710477 05/g3 102290 ZL0gl0 01/81 ]L0172 12/66 11/63 2 2 ?? 1764 /N lEE6 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM($', AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0026 (ED. 03/91) HOME OFFZCE iSSUED 10/14/94 ~SURANCE COMMERCIAL NON-A~SESSABLE CLg 0037515 0g/IS/gl 0g/~s/gS NAMED ~IURED AND ADDRlll NEL SPOTTS EXCAVATING PO BOX 32 EAST EARL PA 1151g PROPERTY COVERAGE pART OECLARATIONS RENEVAL OF cLg 0037513 COVERAGE IS PROVI~D IN PA NATIONAL MUTUAL CAS INS C0 AGENCY MURRAY INS ASSOC ZNC P 0 BOX 172B LANCASTER PA 17S08 OGO075g~l POL. ICY PERIOD: POliCY CO.RS FROf~ 12101 ~M. 5TAND~D TrUE AT ~ A~ES6 OF ~ INS~ED sTATED ABO~ ~M ~ WmNESS: INDIVIDUAL 8~sS ~SCRIPT~ RESIDENTIAL EXCAVATING SN ~N FOR PA~ OF ~ PREM~ AND SUB.CT TO A~ ~ ~RMS ~ T~S POLICY, WE A~EE ~ YOU TO PROWOE ~ ~S~CE AS S~ATED ~ ~IS POLICY. DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DESGRIIED PREMISES APPLIES ONLY FOR 71~ COVERAGES SHOWN:. PREMISES NO. 1295 MARTIN STREET DEDUCTIBLE: $250 EAST EARL LANCASTER CO PA 1751g SUZLDING NO.: 1 CONSTRUCTION: FRAME OCCUPANCYI OFFZCES, OTHER THAN PROTECTZON CLASS: GOVERNMENTAL og COVERAGE: YOUR BUSINESS PERSONAL LIMIT OF INSURANCE: S2,000 REPLACEMENT COST PROPERTY COZNSURANCEz COX COVERED CAUSE OF LOSS: SPECIAL FOR5 SEE SUPPLEMENTAL DECLARATIONS, FORM 71-0027S =ORMS APPLICABLE TO THIS COVERAGE PART: CP0010 10/91 110215 10/23 CP00g0 07/88 CP1030 10/gl 2 I 7 1794 gg8 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM( ANO FORMS, IF ANY. ISSUED TO FORM A PART THEREOF. COMPLETE THE ABOVE MJMBERED POLICY. FORM 71-0027 ~ 03/gl) HOME OFFICE ISSUED 10/14/gJ COMMERCIAL PROPERTY COVERAGE PART SUPPLEMENTAL DECLARATIONS I'OUCY NUMBER I "~ '°~'i~"~° '° I COYER.GE iS PROVIDED iN DESCRIPTION.OF PREMISES AND¢OYERAGES PRODDED INSURANCE &T?~ OES~RIIED FREMISES APPLIES ONLYFORT~ COVERAGES PREMISES NO. 2 : 1254 EAST EARL ROAD DEDUCTIBLE: EAST EARL LANCASTER CO PA 17512 BUILDING NO.: 1 CONSTRUCTION: dOiSTEO MASONRY OCCUPANCY: OONTRACTORS EXCAVATION COVERAGE: BUILOINQ LIMIT OF INSURANCE: REPLACEMENT COST $7,200 PROTECTION CLASS: 09 EQUIPMENT STORAGE COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM SUILOING NO.: 2 PROTECTION CLASS: CONSTRUCTION: dOISTEO MASONRY OCCUPANCY: OFFICES, OTHER THAN GOVERNMENTAL COVERAGE: BUILBZNO LIMIT* OF INSURANCE: REPLACEMENT COST COINSURANCE: GO~ COVERED CAUSE OF OS LOSS: SPECIAL FORM BUILDING NO.: '4 PROTECT/ON CLASS: CONSTRUCTZON: FRAME OCCUPANCY: CONTRACTORS EXCAVATION .EQUIPMENT STORAGE COVERAGE: BUILDING LIMIT OF INSURANCE: REPLACEMENT COST S4,800 COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPECIAL FORM FORM 71-0027S (Ed 03/91) HOME OFFICE ISSUED 10/14/94 POLICY SCHEDULE OF POLi~Y NUMIER ] ,nm P~i~n~a ~o CLB 0037618 6g/2E/g4 THE FOLLO¥ING ARE NAMES AND ADDRESSES ~OVE~AGE 19 PROVIOGO PA NATIONAL MUTUAL OAS INS CO INSUREDS ON THIS POLICY COMMERCIAL PROPERTY NAMES AND ADDRESSES PREMISES NO.: BLUE BALL NAT%ONAL BANK PO BOX 560 BLUE BALL PA 17506 MORTGAGEE ALL BU/LD]NGS FORM 11-0029 (ED, 03/91) HOME OFFICE ISSUED 10/14/94 Pa N N TX AL INSURANCE COMMERCIAL GENERAL LIABILITY ¢0VERAOE PART OCCURRENCE POLICY RENEWAL OF CLS 0037516 GL9 0037518 00/26/84 NAMED INSURED a.~lD MEL SPOTTS EXCAVATING EAST EARL PA 1?51R THIS POLICY IS SUBJECT TO A GENERAL AGGREGATE LIMIT PA NATIONAL MUTUAL CAS INS CO O000?5'lip1 AQ~CY MURRAY [NS ASSOC INC P 0 BOX 1?28 LANCASTER PA 1?SOS POi.iCY I~RtO~ POLICY COVERS FROM: 12:01 &,M, STANOARD Tilv~ AT THE AOORES$ OF THE INSURED STATEO AT]0VE. r~R~ ~ eu$1Nes& iNDIViDUAL eUSINESS C)E$CmP~O~ RESiDENT[AL EXCAVATIN0 IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUSJECT TO ALL THE TERMS OF, THiS POLICY, ~VE AGREE WITH YOU TO PROVIOE THE INSURANCE AS STATED iN THIS POL1CY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS - COMPLETED OPERATIONS) $ I, 00(], 000 PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT $ 1,000,000 PERSONAL AND ADVERTISING INJURY LIMIT $ $ 00.000 EACH OC~CE LIMIT $ 800, FIRE OAMAGE LIMIT, ANY ONE F~RE $ 50, O00 MEDICAL EXPENSE LIMIT, ANY ONE PERSON s S, 000 PREMIUM INFORMATION RATES CODE PREMIUM BASIS PER PREMS/OPS PRODUCTS ADVANCE PREMIUM PREMS/OPS PROOUC' SEE SUPPLEMENTAL DECLARATIONS, FORM 11-00206 FORMS APF%ICABLE TO THIS COVERAGE PART: [L00~I 11/85 C0000t 11/88 CG2503 11/65 ¢G2804 tl/85 C02160 09/89 C02149 11/88 COMMERCIAL GENERAL LIABiLiTY COVERAGE PART SUPPLEMENTAL DECLARATIONS POt. ICY NUMBER I ~=" P~c~in~= ~= CLD DOS?E15 09128/94 Dgl25/05 COVERAGE IS PROVID~ IN AGENCY ~ER PREMISES NO. 1 : 1296 MARTIN STREET EAST EARL LANCASTER CO P& 17515 CODE 9400? PREMIUM BASIS PER 18,500 PAYROLL' 1000 EXCAVATION RATES PREMS/OPS PRODUCTS VARIOUS VARZDUS ADVANCE PREMIUM PREMS/OPS PRODUCT! iNCLUDED iNCLUDEI CODE D$410 RATES PREMIUM BASIS PER PREMS/OPS PRODUCTS 18,500 PAYROLL 1000 VARIOUS VARIOUS GRADING OF LAND ADVANCE PREMIUM PRSMSIOPS PRODUCT, iNCLUDED INCLUDEI PREMISES NO. 1254 EAST EARL ROAD EAST EARL LANCASTER CO PA 17519 CODE 61212 PREMIUM. BASiS 4,5~6 S~UARE RATES ADVANCE PREMIUM PER PREM~/OPS PRODUCTS PREMS/OPS PRODUCT FEET 1000 VARIOUS INCLUDED BUILD~NG OR PREBISES - RANK OR OFFICE MANUFACTURING (LESSORS RISK ONLY) OTHER INCLUDING PRODUCTS-COMPLETED OpERATiONS MERCANTILE OR THAN NOT FOR PRO;IT FORM 71-0029S (ED. 03/91) NOME OFFICE iSSUED PENN NATIONAL INSURANCE COMMERCXAL XNLAND MARXNE COVERAGE PART DECLARATIONS RENEWAL OF CLg 00275t8 NON-A~GESBA~LE POLICY NUMBER ] ..~ ~¢~ ~"~ ?~ CLG 0027518 09/28/84 09/28/95 NAMED INDURED AND ADDRESS EEL SPOTTS EXCAVATXNQ EAST EARL PA 1751E PA NATIONAL MUTUAL CAS INS CO AGENOY MURRAY iNS ASSOC XNC P O BOX 1728 LANCASTER PA 17508 AGENCY POLICY PGRIOO: POLICY COVENS FR~ 1'):01 A.M..STANDARD T~v'lE AT THE ADDRESS OF: THE INSURED STATED ABOVE. FORM OF BUSINESS: XNDXVIDUAL BUSINESS DESCRIPTION: RES]OENTXAL EXCAVATING IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT, PREMIUM CONTRACTOR'S EQUIPMENT e 2,201.00 ALL COVERAGE PARTS NOT 0THERWZSE SPEGXFXED $ 200.00 $ $ FORMS APPLICABLETO A~ COVERAGE PARTS: 710080 01/92 71037! 08/02 [M4R 07/86 ZM83 07/86 XUO03 02/85 1M47 1B269 01/07 710187 IUlOO 06/84 04/88 10/01 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM(! AND FORMS, iF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. FORM 71-0031 (ED. 03191) HONE 0FFZCE /SSUEO 10/14/94 COMMERCIAL INLAND MARINE DECLARATIONS ~ CONTRACTOR'S EQUIPMENT CL9 00~75t6 09129/M4 09198195 COVERAGE IS PROVIDED IN PA HATIOHAL*MUTUAL CAS iNS CO EACH iTEM THAT IS COVERED MUST BE DESCRIBED BELOM OR ON A SCHEDULE THAT iS A PART OF THiS POLICY. A COVERAGE AMOUNT MUST BE SHOYN FOR EACH ITEM. THiS ZS THE MOST THAT ME MiLL PAY FOR A LOSS TO THAT iTEM. DEDUCTIBLE : $S00 THE ABOVE DEDUCTIBLE AMOUNT YZLL APPLY SEPARATELY TO EACH iTEM /NVOLVED IN EACH LOSS AFTER ALL OTHER &DUUSTMENTS HAVE BEEN MADE. 8 ? S ;TEN DESCRIPTION OF EQUIPMENT 1 1gob dOHN DEERE EXCAVATOR 2 1989 CAT DSC BULLDOZER S 1988 CAT MSS LOADER 4 1989 SOMAG t42D ROLLER'COMPACTOR 5 1989 dOHN DEERE MOL 855 LANDSCAPE /TRACTOR ¥/89 YORK RAKE 4 79 LOADER STANLEY COMPACTOR [ATTACHMENT) CONTENTS CONTAINED ZN THE 1987 YELLS /CARGO'TRAILER $gg3 UOHN DEERE 410D BACKHOE ITO41OOGT93722 COVERAGE AMOUNT $ 45,000 $ 34,000 $ ?E,O00 $ 16,000 $ T,SO0 $ 4,0QO $ 2.000 $ 86,500 TOTAL AMOUNT OF iNSURANCE S 251,300 FORM 71-0126 (ED. 11/91) PeEM UM .Fo CO. OR HOME OFFICE ISSUED 10/14/94 SCHEDULE DF NAMES AND ADDRESSES POLI~Y NUMBER CL~ 0037SI0 09/26/94 I 0S/2e/95 COVERAGE IS PROVIDED IN PA NATIONAL MUTUAL CAS THE FOLLOWN~ ARE ZNSUREOS ON THZS POLICY INS CO 000075W~31 COMMERCIAL INLAND MARZNE NAMES AND ADDRESSES PREMISES NO,: 1 BUZLDING NO.: UOHN DEERE ZND EQUZPMENT CORP PO BOX 65090 MEST DES MOZNES ZA 50~65 LOSS PAYEE SEE 71-0187 10/91 FORM 71-0026 (ED. 03/91) HOME OFFZCE ~SSUEO 10/14/94 PENN NATIONAL INSURANCE THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Thio endorsement changes the polloy otfe~lve on the inception data of the polloy ar ne o! the date IntiMated below, CL90 03 T5 X6 g-~t~gl~ g-26-95 .... .,,~;, ............................ ~. ~,,~ 9-26-9~ #~- L~3TTS KXCAVATXI~ II~IlqP. AY XMS ~ UIC 0~00739 Thls endorsement modifies such insurance u is afforded by the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE Loss Payee applicable: A. Lender's Loss Payable .. B. Contract of sale Loss Payee ,J'0WI D~ ~ ~I;I,U[~ COB1" Address fO aOX 65~O APPLICABLE TO TIlE FOLLOWING PROPERTY Description of property Location Manutacturer/ Amount of Type of Serial e Insurance Coverage TOII3.01XII93722 t6~, 500 CCIl~lk4O~ffJ ~X0O For covered property in which both you and a Loss Payee shown In the schedule or in the Oeclarations have an insurable interest, we will adjust losses with you; and pay any claim for loss or damage Iointly to you and the Loss Payee, as Interest may appear, Fern171.0187 {Ed, Page lof2 C~O 0 03 75 16 This endorsement changes the Inland Marine coverage. If a coverqe is shown o~ the line I~low, this endorsement aoolies only to ~'~t coverage. The following deductible amount will apply to each loss after ail other adjustments have been made. --I~1[ lt, FJ~ 'rills CAILqULLY-- ~e iflfom~ require~ IMiow may be sho~m on a sea,rata schedul~ or sul3~lemaflt~l Declarations.) DEDUt31'IBLE $ IM.,47 (F.d. 448) IM.47 AAiS © CopyrllM lg86 AAIS This Inland Marine coverage is subject to the terms shown below. The inland Marine General Terms also apply. Ct,9 0 03 T5 16 -PLEAI~ READ T~IS CAREFULLY-- MISCELLANEOUS PROPERTY COVERAGE ("the Informedon required below may be shown on a separate schedule or supplemental Oeclarat~ns,) DE$CRInEO PROPERTY The covered prope~ consists mainly of: CON~AC'L'ORS AND (Ed. 24S) The most that wi will pay for all covered property in the event of a loss is: DEDUCTIBLE The following deductible amount will apply to each Joss after ail other adjust- ments have been made. COINSURANCE Coverage Amount $ 8,0~0 S 5OO You must maintain a minimum coverage amount. This minimum coverage amount is the full actual cash value of all covered proper'r/, It the coverage amount at the time of loss is less than the minimum coverage amount, we wlJI pay only a part of a loss. Our part of the loss will be determined by dividing the coverage amount by the minimum coverage amount. This percent will be applied to the final ad- justed loss to determine the amount that we will pay, [ PROPERTY COVERED I We cover the described property t~at belongs to you. We also cover similar property that belongs to others and for which you are liable, I PERILS COVERED I We cover direct phys~ai loss to oovered property unless the loss is caused by a peril that ~s excluded. The loss must be due to an external cause, [ PERILS EXCLUDED J We do not pay for a loss if one or more of the following exrJuded perils apply to ~ loss, reg~'dless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded peril. We do not pay for a loss that results from: 1. a dishonest or illegal act, alone or in collusion with another, by: a. you; b. others who have an interest in the property; c. others to whom you entrust the prope~; or d. the employees or agents of a,, b. or c., whether or not they are at w~rk. IM-903 We do cover loss caused by dishonest acts by carriers or other bailees for hire. 2. swindling, fraud, trick or false pretense. 3. the acceptance of: a. counter/eit money or fraudulent post office or express money orders; or b. checks or promissory notes which are not paid upon presentation. 4. mysterious disappearance, 5. any cause when the only proof that a loss occurred is an inventory shortage, 6, breakage of glass or similar fragile items. We do cover breakage if it is caused by fire; lightning; windstorm, hail; earthquake; flood; smoke; explosion: aircraft,, space- craft, self-propelled missiles or objects ~at fall from these items; vehicles, including aA accident to a tr~sporting vehicle; strike; riot: civil commotion; vandalism; theft; attempted theft; sprinkler leakage; or collapss of buildings. 7. a process to repair, adjust, service or maintain covered property, tfa fire or explosion results, we do cover the loss caused by the fire or explosion. mechanical breakdown or failure. If a fire or explosion re- sults, we do cover the lose caused by the fire or explosion. © Capyrlght 1~8~ A~IS INSURANCE 1~ * ~i~PAI?IM THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. INLAND MARINE ,POLICY CHANGES POLICY CHANGE NUMBER I POLICY NUMSER POLICY CHANGES EFFECTIVE POUCY I~RIOD CL9 0 03 75 t6 NAME INSURED 9/2e/9~ 9/26/9~ 'fO 9/26/95 AUTHORIZED REPRESENTATIVE I'IU]LRXT /RS A..qSOC ZIIC 000 0759 COVERAGE PARTS AFFECTED CHANGES ~ COY~AGE AgOl]gTS 0~1 I~1~ 71.-'0125 A1t~ 2. ~ ~,~-~ ~ TOT/d., .U'~0Uk'T OF ~Sb'~UICE IS ~.3t* .U'g~DE.D ~ $231,300 I1~ Z,ZEU OF $251,300 $179 ~rt~ll ]'lt~q:F,~ COMMERCIAL LINES POLICY COMMON DECLARATIONS AMENDMENT OF POLICY EFFECTIVE: SEPT 29, 1994 NON-ASSESSABLE CLG 0031518 09/~0/M4 09/29/95 NAMED INSUREO AND ADDRESS MEL SPOTTS EXCAVATING MEL SPDTTS T/A PO BOX S2 EAST EARL PA 1/SIR COVERAOE IS PROVIDED IN PA NATIONAL MUTUAL CAS iNS CO AGENCY MURRAY ZNS ASSOC P 0 BOX 172R LANCASTER PA I?~OB 00015g~il It is Egreed that ~ie policy ie hereby amended el indicated bllo~, THE NAMED iNSURED AND/OR MAiLiNG ADDRESS iS CHANGED. FOR ALL COVERAGE PARTS. THE FOLLD¥ZNG COVERAGE PART YAS AMENDED WiTH A PREMIUM CHANGE: PREMIUM I NEVV ANNUAL PREMIUM: $$,8~8.00 TOTAL PREMIUM THIS ENDORSEMENT ADDiTiONAL PREMZUM SO.O0 .L PRO-RATAPERCENTAGE THIS ENDORSEMENT IS SUBJECT TO THE DECLARATIONS, CONDITIONS AND OTHER TERN~ O~ THE m::)uc¥ WHICH ~E ~OT ~co~s~sTa~rr HEREWITH ~ WHEN CO~S~a~ REPRE~AT~ OF ~ CO~Y. FORMS A PART OF ~E P~ICY DES~IBED 100.0~ SIGNORE OF AU~ORiZED REPRESENTATIVE INSURANCE Mi~ P.O. 8ol 23~1 Zip I71~-23E1 2/22/95' ~[ POLJCY NUMBER CL9 0 03 75 l& THIS ENDORSEMENT CHANGES THE POLICY PLEASE READ IT CAREFULLY. INLAND MARINE POLICY CHANGES POL~"Y CHANGES EFFECTIVE 9/26194 POLICY CHANGE NUMBER 2 POLICY P~RIOD 9/26/94 TO 9/26/95 NAME INSURED HK~ S]~Tt'TS EXCAVATXI{G, HEL Slat'tS T/A PO BOX 32 gAS7 gA~L PA 17519 COVERAGE PARTS AFFECTED AUTHORIZED REPflESENTATIVE HtJlRA! ZIIS ASSOC TIIC 000 0759 CHANGES ffO]~i' 70-2589 10/89. TOOL,S AHEII~TOIY X:X~, TS HKIEBY ADDED ~ ATYACB~ 'I~T~ POLZCY. AuthorLtod Reprts~nt~vo Signore INSURANCE PO Be. ~J~l ~lf ~m~rg, PA 1710~-Z361 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement changes the pelIw effective on ~he Ifl~ep~on dete of the polk:y ~' a~ of the date Indicated below, GLO 0 03 75 16 g/26/9 9/:26/95 .... ~ ~,,'~ ........................ Em,s,. 9/26/94 '''T~A ......... ~ ............... ]f~J.A! IHS AS$OC IHC 000 0759 This endorsement modifies ouch Insurance as il afforded by,the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POUCY TOOLS AMENDATORY ENDORSEMENT Coverage is amended aa follows: PROPERTY COVERED We covered your portable tools and equipment valued leas than $ ],,000 per item or set. This includes their containers, spare parts, and accessories. W0 also cover similar property that belongs to others and for which you ere liable. PENN ISLAllONIU. INSURANCE COM#ERCIAL LINES POLICY COMMON DECLARATIONS RENEMAL OF CL5 0057515 NON-ABSES$~SLE POLICY NUMBER r.n- CLO ooa7516 De/ac/es NAMED INSURED&NOADDR~RI MEL SPOTTS EXCAVATING SEL SPOTTS T/& PO BOX 32 EAST EARL PA 17516 PA COVERAGE IS PROVIDED IN NATIONAL MUTUAL CAS INS C0 AGENCY MURRAY INS ASSOC P O BOX 1728 LANCASTER PA 17606 AGENCY ~R 0000755p1 IK3L}CY ]=ERIOO: POliCY COVERS FRO/~ 12:01 ~-M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE. FO~M OF 9U$1,%~ES$: INDIVIDUAL mUSINESS DESCRIPTION: RESIDENT]AL EXCAVATIN0 IN RETURN FOR PAYMENT Of: THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THiS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. COMMERCIAL PROPERTY COVERAGE PART COMMERCIAL CRIME COVERAGE PART COMMERCIAL GENERAL LIABILITY COVERAGE PART COMMERCIAL INLAND MARINE COVERAGE PART INSTALLMENT 8 8 $ $ $ $ $ $ PREMIUM 465.00 3,366.00 2,31E.00 SERVICE FEE $ 15.00 FORMS APPLICABLE TO ALL COVERAGE PARTS: IL001? 11/85 1L0245 06/89 710471 05/93 710570 05/94 IL0010 01/81 IL01?2 11/93 77 1704 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORMISI AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POMCY. POLICY SCHEDULE OF HAMES AND ADDRESSES POLICY NUMBS CLQ 00S?$1M DM/MM/g5 J OM/MS/MD I THE FOLLDIIII#G ARE COVERAGE I~, PROVIDED IN PA NATIONAL IIUTUAL CAS INS CD INSUREDS ON THIS POLICY COMMERCIAL LINES POLICY COUPON NAMES AND ADDRESSES IEL SPOTTS T/A #EL SPOTTS EXCAVATING 4/OR IEL SPOTTS t BETTE SPOTTS, &TXM& CONTINUED NAMED INSURED I~URANCE CO..ERCIAL PROPERTY COVSRAGE PART DECLARATIONS RENEWAL 0~ CL; o0~?515 NON-ASeI=SSAJLE WED ~U~ED A~ ~DDAE~ M~L ~POTTS EXCAVATZN~ IEL SPOTTS T/~ PO BOX 32 ~&ST EARL P& 17510 I COVERAGE IS P~OVIDED IN /AOENCY ISA PA NATIONAL IUTUAL CAS ]NS CO ~000T59~1 AGENCY NURRAY INS ASSOC INC P O BOX 1?28 LANCASTER PA 17508 POLICY PERIOD: POLICY COVERS FROM 12:01 AM. STANDARD TIME AT THE ADDRESS OF THE INSLARED STATED ABOVE. FORM C~ ~$1NESS: INDIVIDUAL eUS~NE$S ~ESCRiPT~C~ RESIDENTIAL EXCAVATINa IN RETURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY, DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INSURANCE AT THE DE~qCRISEO PREMISE.S APPUE8 ONLY FOR THE COVERAGES SHOWN: PREMISES NO. I : 1296 MARTIN ST DEDUCTIBLE: $250 EAST EARL LANCASTER CO PA 17510 EUILDINB NO.: I CONSTRUCTION: FRANE OCCUPANCY: OFFICES, OTHER THAN PROTECTION CLASS: 90VERNMENTAL 09 COVERAge: YOUR BUSINESS PERSONAL LIMIT OF INSURANCE: $2,200 REPLACEIENT COST PROPERTY COINSURANCE: 80Z COVERED CAUSE OF LOSS: SPECZAL FORE SEE SUPPLEMENTAL DECLARATIONS, FORM 71-0027S .............. $485~0o TOTAl.: P~,q~LJ~ PO~ THiS co~i~Al~'r"...:~:". :ORM$ APPLICABLE TO THIS COVERAGE PART: CP0010 10/01 110218 10/g3 CPOOgO 07/88 CP1050 10/01 2 2 77 1794 N gg? COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORM{S), AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLICY. COMMERCIAL PROPERTY COVERAGE PART SUPPLEMENTAL DECLARATIONS POL:CY NUMBER CLg OCS?SI6 06/26105 I 00126166 COVERAGE I$ PROVIDED IN (AG£NCY PA NAT/ONAL MUTUAl. CAS iNS CO DESCRIPTION OF PREMISES AND COVERAGES PROVIDED INHURANCE AT THE DEHCRIBED PREMIHES APPLIES ONLY FOR '11,1E COVERAGES SHOWN: PREM/SES NO. 1254 E EARL RG DEDUCTIBLE: $250 EAST EARL LANCASTER CO PA 17510 BUZLDING NO.: 1 PROTECTION CLASS: CONSTRUCTION: UOZSTED UASONRY OCCUPANCY: CONTRACTORS EXCAVATION EQUIPMENT STORAGE 06 COVERAGE] gUiLD/NO LIMIT OF iNSURANCE: REPLACERENT COST 67,500 COINSURANCE: COVERED CAUSE OF LOSS] SPEC/AL FORM SUILDZNO NO.: 2 CONSTRUCTION: UOJSTED MASONRY OCCUPANCY: OFFICES, OTHER THAN COVERAGE: BU/LDZNG LiMiT OF /NSURANCE: REPLACERENT COST PROTECTION CLASS: OS GOVERNMENTAL $119,500 CO/NSURANCE: COVERED CAUSE OF LOSS] SPEC/AL FORR BU/LDZNG NO.: 3 CONSTRUCTION: FRAME OCCUPANCY: CONTRACTORS EXCAVATION COVERAGE: BUiLDiNG L/MZT OF /NSURANCE: REPLACERENT COST $5.000 PROTECTION CLASS: EQUIPMENT STORAGE 09 COINSURANCE: 80~ COVERED CAUSE OF LOSS: SPEC/AL FORM FORM 71-0027S POLICY NUMBER CLg 0037516 POLZCY 09/26/;510g/28/98 THE FOLLO¥~NG ARE SCHEDULE DF NAMES AND ADDRESSES COVERAGE IS PROVIDED IN PA NATIONAL MUTUAL CAS 1NSUREDS DN THIS PDL;CY AGENCY / ER C0 000075~3! CO#MERCZAL PROPERTY NANES AND ADDRESSES PREIISES NO.: BLUE BALL NATIONAL BANK PO BOX 580 BLUE BALL PA 1750e BORTaAGEE ALL BU/LDI#GS PlaIN NATIONAL C0MMERCZAL GENERAL LZ&BXLZTY COVERAGE PART DECLARATZONS INSURANCE OCCURRENCE POLXCY RENEYAL OF CL9 0037516 NON-~SBSSABLE THIS POLICY IS SUBJECT TO A GENERAL AGGREGATE LIMIT COVERAGE IS PROVIDED IN PA NATZONAL MUTUAL CAS INS CO AGENCY MURRAY ZNS ASSOC ZNC P 0 BOX 1728 LANCASTER PA 17808 POLICY NUMBER p~- ~ ~moo Te CL9 0037518 02/20/e5 0;/25/05 NAMED INSURED AND A~S8 MEL SPOTTS EXCAVATING EEL SPOTTS T/A P0 S0X 32 EAST EARL PA 17519 AGENCY 000075~1 POLICY PERIOD:. POLICY COVERS FROM: 12:01 A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE. FORM OF BUSINESS: ZND[VIDUAL BUSINESS DESCRIIVI'ION: RESZDENTXAL EXCAVATZNG IN RETURN FOR PAYMENT OF TNB PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. LIMITS OF INSURANCE GENERAL AGGREGATE LIMIT (OTHER THAN PRODUCTS - COMPLETED OPERATIONS) S 1,000,000 PRODUCTS - COMPLETED OPERATIONS AGGREGATE LIMIT $ I, 000,000 PERSONAL AND ADVERTISING INJURY LIMIT $ 500,000 EACH OCCURRENCE LIMIT $ 500,000 FIRE DAMAGE LIMIT, ANY ONE FIRE $ 50,000 MEDICAL EXPENSE LIMIT, ANY ONE PERSON $ 5,000 PREMIUM INFORMATION CODE PREMIUM BASIS PER RATES ADVANCE PREMIUM PREMS/OPS PRODUCTS PREMS/OPS PRODUCTS SEE SUPPLEMENTAL DECLARATZONS, FORR 71-00295 · TOTAL' J~DVANCE P,R. EMIUM FOR THIS COVERX~ p.ad~- .... . ....-..,, . .!.., .... . ;.;. .. . . ... : :. '.. :ORMS APPLICABLE TO THIS COVERAGE PART: ]L0021 11/85 CG0001 11/68 CQ2503 11/85 C02504 11/55 CG2150 Og/Bg Ca214g 11/68 2 2 77 1794 997 COUNTERSIGNED BY: Authorized Representative THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE PART COVERAGE FORMiS), AND FORMS, IF ANY, ISSUED TO FORM A PART THEREOF. COMPLETE THE ABOVE NUMBERED POLICY. COMMERCIAL GENERAL LiABiLITY COVERAGE PART SUPPLEMENTAL DECLARATIONS GL9 0027518 D9/25/95 0g/28/20 PA NATIONAL UUTUAL CAS iNS CO 00075 21 PREMISES NO. 1 : 1298 ~ARTZN ST EAST EARL LANCASTER CO PA 1751R RATES ADVANCE PREMIUM CODE PREMXUM BASIS PER PREMS/OPS PRODUCTS PREM$/OPS PROOUCTS 94007 18,000 PAYROLL 1000 VARIOUS VARIOUS iNCLUDED INCLUDEO EXCAVATION RATES ADVANCE PREMiU# CODE PREMIUM BASIS PER PREMS/OP$ PRODUCTS PRE#S/DPS PRODUCTS 95410 18,000 PAYROLL 1000 VARIOUS VARIOUS ZNCLUOEO INGLUOED GRADZNG OF LAND PREMZSES NO, 2 : 1254 E EARL RD EAST EARL LANCASTER CO PA 1TS19 RATES CODE PREMIUM BA5iS PER PREMS/OPS PRODUCTS 61212 4,9~8 S~UARE FEET 1000 VARIOUS ADVANCE PREMIUM PREMS/OPS PRODUCTS iNCLUDED BUZLDZNa OR PREMisES - BANK DR OFFICE - MERCANTILE OR BANUFACTUR[N~ (LESSORS RiSK ONLY) OTHER THAN NOT - FOR INCLUDIN~ PRODUCTS-COMPLETED OPERATIONS PROFIT PENN NATK AL INSURANCE COMEERCZAL iNLAND UARIHE COVERA(~E PART DECLARATIONS RENEYAL OF CLg 0037510 NON-ABSEBSABLE CL6 0037516 08/28/85 08120108 PA NAMED INBUI~DANDADDRa~B MEL SPOTTS EXCAVATING MEL SPOTTS T/A PO BOX 32 EAST EARL PA 17510 COVERAGE IS PROVIDED IN NATIONAL MUTUAL CAS iNS CO AGENCY MURRAY ]NS ASSOC 1NC P O BOX 1728 LANCASTER PA 17008 AGENCY JBR OOO07S$~ I POLICY PERIOD:. POLICY COVERS FROM: 12:01 A.M. STANDARD TIME AT THE ADDRESS OF THE INSURED STATED ABOVE, FORM OF BUSINESS: iNDiViDUAL BUSINESS DESCRIPTION: RESiDENTiAL EXCAVATWN(S IN R~FURN FOR PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT. C0NTR~CTOR'S EQUIPMENT LEASED PROPERTY ALL COVERAGE PARTS NOT OTHER¥iSE SPECZFZED $ $ $ 8 $ $ $ PREMIUM 1,928.00 100,00 350,00 316 ..0.0. FORMS APPLICABLETOALL COVERAGE PARTS: ZM255 01/87 702589 10/89 710167 10/91 ]S81013 10/85 IilO0 06/84 iN42 07/86 ZM903 02/85 IM47 04/88 710371 00/82 710062 01/92 ZM81014 10/65 70106 11/03 1M83 07/86 2 2 77 1794 997 COUNTERSIGNED BY: Au~orizod Roprosen~tive THESE DEC~RATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS, COVERAGE P~T COVERAGE FORM(S), ~D FORMS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE ~MBERED POLICY, .................... ~nu~ ncctrc teetlcn ~n/qalQR OORUERCIAL INLAND MARINE DECLARATIONS -. CONTRACTOR'S EQUIPMENT CLg 0037511 OB/lB/05 Ot/lS/gS PA NATIONAL UUTUAL CAB 1NB CO 00075 EACH ITEM THAT IS COVERED MUST BE DESCRZBED SELOV OR ON A SCHEDULE THAT I$ A PART OF THIS POLICY. A COVERAGE AMOUNT MUST BE SHOYN FOR EACH ITEM. THIS I$ THE lOST THAT YE ¥1LL PAY FOB A LOSS TO THAT ITEl. DEDUCTIBLE : $500 THE ABOVE DEDUCTIBLE AMOUNT #ILL APPLY SEPARATELY TO EACH IN EACH LOSS AFTER ALL OTHER ADUUSTMENTS HAVE SEEN ~ADE. ITEM INVOLVED ITE¥ DESCRIPTION OF EQUZPNEHT ~ lg88 dOHN DEERE EXCAVATOR 2 lggg CAT D3C BULLDOZER B lgBg CAT gsB LOADER 4 lgBg BDYAG 1420 ROLLER COMPACTOR 5 lgBg dOHN DEERE MOL 855 LANDSCAPE /TRACTOR ¥/89 YORK RAKE & ?g LOADER $ STANLEY COMPACTOR (ATTACHMENT} 7 CONTENT8 CONTAINED XN THE lgBg YEL~S #CARQO TRAILER 19SS dOHN DEERE 4100 BACKHOE JTO410DoTg$722 COVERABE AMOUNT 25,000 65,000 18,000 7,800 $ 4,000 $ ~,200 55,000 TOTAL AMOUNT OF INSURANCE $ 214,000 J',o2i.ob SCHEDULE OF NAMES AND ADDRESSES POLICY NUIVIBER F~ ~cY .R~o ~o J COVERAGE I$ PROVIDED IN 0912&/95 I OD/2D/96I PA NATIONAL MUTUAL CAS INS CO THE FDLLO¥INQ ARE ]NSURED$ ON THiS POLICY COMMERCIAL INLAND MAR]NE NAMES AND ADDRESSES PREMISES NO.: I BUILDING NO.: dOflN DEERE iNO EQUZPUENT CQRP PO BOX ~090 VEST DES MOINES ZA 5028$ LOSS PAYEE SEE 71-0187 PENN NAllONAL INSURANCE P.O. 8o% 2361 ~nidx~g, PA 1711~.2381 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endoreamJnt r. Jtanoee the policy effective on the Inception date ef the poll,.-/er aa of the dat~ Indicated below. Thlsan~mame~mod~lassuchi~ura~e ~isaffo~ bythepmvision$offfiepolicyrel~i~g~thafol~M~: COMMERCIALINLAND MARINE POLICY LOSS PAYABLE PROVISIONS SCHEDULE Loss Payee a,oplicable: X A, Lender's L~SS Payable B. Contract of sale Loss Payee JO}~ DEw. R~ IND F~UIPM~N? COR? Address. ?o BO;( ~ogo " WE$~ DES MOIN~$ ZA 50265-0090 APPLICABLE TO THE FOLLOWING PROPERTY Deec~'iptlon Location Manufacturer I of property Serial # 1993 JO~¢ DiDE~%E ~10D BACKHOE Amount of Insurance TOQZ0DC~?937Z2 $55.000 Typa of Coverage For covered property in which both you and a Loss Payee shown In the s=hedule or in the Dectaratlons ~ave an insurable interest, we will adjust losses with you; and pay any claim for loss or damage jointly to you and the Lose Payee. as interest may appear. Page 1 c~2 AAIS This endorsemeflt changes the Inland Marine coverage, If a coverage Is shown ~fl the line below, this endorsement applies only to that coverage. IM.47 (Ed, 4-86) --PL, I, ASE READ THIS CAREFULLY-- (The ~ r~qub'~ ~kM may ~ shown off a ~ep~r~te schedule ~ s~piementaf Declarations.) DEDUCTIBLE The lollowlng deductible amount willapply to each loss after ail other adjustments have been made, $ 5O0 IM.,47 AAIS © C.Ilyflght 1986 .............. -l]r-~, lliJ i l '; ",c ;'T---T- iii I I[ This inland Marina coverage is subject to the terme shown below. The Inland Marine General TBrms also apply. -PL]b~ ~O THIS r~Rr:FULLY-- MISCELLANEOUS PROPERTY COVERAGE (The tntormatto~ tequl~d below may be ~hown on a separate schedule M aupplemema~ Oeclarations.I DESCRIBED PROPERTY The covered property consists mainly of: ,-- ~ ! IM403 led. 24S) Coverall Amount $ ia p~OO The most that we will pay for all covered property in the event of a loss is: DEDUCTIBLe The following deductible amount will apply to each loss after all other adjust. merits have been made, $ 500 COINSURANCE YOu must maintain a minimum coverage amount. This minimum coverage amount is the full actual cash value of all covered ~'operty. If the coverage amount at the time of loSs is tess than the minimum coverage amount, we will pay only a part of a loss. Our part cf the loss will be determined by dividing the coverage amount by ~e minimum coverage amount, This percent will be applied to the final ad- justed toss to determine the amount that we will pay. J PROPEFITY COVEREO J We cover the described property that belongs to you. We also cover similar pmpe~ that belongs to others and for which you are liable, LPERILS COVERED j We cover direct physical loss to covered property unless ~e loss is caused by a peril that is excluded, The loss must be due to an external cause. [ PERILS EXCLUDED I We do not pay for a loSs if one or more of the following excluded p~ls apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded peril. We do not pay for a loss that results from: 1. a dishonest or illegal act, alone or in collusion with another, by: a. you; b. others who have an interest in the property; c. others to whom yea en~st the prope,,'~; or d. the employees or agents of a., b. or c., whether or not they are at work. IM-903 We do cover loss caused by dishonest acts by carriers or other ballses for hire. 2. swindling, fTaUd, trick or false pretense, 3. the acceptance o1: a. counterfeit money or fraudulent post off~e or express money orders; or b, checks or promissory notes which are not paid upon presentation. 4. mysterious disappearance, 5. any cause when the only proof that a loss occurred is an inventory shortage, 6. breakage of glass or similar fragile items. We do cover breakage if it is caused by fire; lightning; windstorm, hail; earthquake; flood; smoke; explosion; aircraft, space- craft, seif-propsiled missiles or objects that fall from these items; vehicles, including an accident to a transporting vehicle; strike; riot; civil commotion; vandalism; theft; attempted theft; spdnklerleakage; or collapse of buildings, 7, a process to repair, adjust, semite or maintain covered property. If a fire or explosion results, we do cover the loss caused by the tire or explosion. mechanical breakdown or failure. If a fire or explosion re- suits, we do cover the loss caused by the fire or explosion. ~) Capydght 19,~ ~15 PENN NATIONAL INSURANCE ~0. 90~ 2361 ~atd$~urg, PA T7105-2~1 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endomement changes the pQSlO¥ effective off the Ineeptlen date of the poliey or ea of the date Indleated below, This endomement modifies tush insurance al Is afforded by the provisions of the policy relating to the following: COMMERCIAL INLAND MARINE POLICY TOOLS AMENDATORY ENDORSEMENT Coverage II amended as follows: PROPERTY COVERED We covered your portable tools and equipment valued less than $ !,IN){} per Item or sat. This includes their containers, spare ports, and accessories. We also cover similar property that belongs to others and for which you era liable. Form 70-25,~ (Ed. 10~e} Exhibit B ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiffs VS. MEL SPOTTS, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM JURY TRIAL DEMANDED COMPLAINT AND NOW come the above-named Plaintiffs, by their attorney, Samuel L. Andes, and make the following Complaint in this matter: 1. The Plaintiff, Orchard Hills Associates, is a general Pennsylvania partnership consisting of Robert E. Goodling of Carlisle, Pennsylvania, James T. Gibson, of Mechanicsburg, Pennsylvania and Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania. Orchard Hills Associates is referred to hereinafter as "Orchard Hills." ' 2. The Plaintiff, Pocono Village Associates, is a Pennsylvania general partnership consisting of Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania, AAA Quality Builders, Inc., a Pennsylvania business corporation of Mechanicsburg, Pennsylvania, and PVOHA, Inc., a Pennsylvania business corporation of Carlisle, Pennsylvania. Pocono Village Associates will be referred to hereinafter as "Pocono." .. 3. The Defendant, Mel Spotts, is an adult individual who, to the best of Plaintiffs' knowledge, resides or maintains an office at 45 Martin Street in East Ead, Pennsylvania. 4. In 1994 Orchard Hills owned a Mobile Home Park situate in Pocono Township, Monroe County, Pennsylvania, which Mobile Home Park was known variously as "Pocono Village Court" or "Pocono Village Mobile Home Park" and which was improved with facilities for 32 mobile homes, which facilities were leased to tenants and which facilities included a septic system to lawfully dispose of sewer and other wastes on the property. 5. In 1994 and at all other times relevant to this action, Defendant was engaged in the business of excavation and plumbing work and held himself out to Orchard Hills and its representatives, and to various other members of the public, as an expert in such work. 6. During the summer and fall of 1994, Orchard Hills engaged Defendant Sports to do certain work on the Pocono Village Mobile Home Park. During the process of that engagement, representatives of Orchard Hills and Spotts took the following actions: a. Sports visited the Pocono Village Mobile Home Park to inspect the problem; and b, Spotts determined what work was necessary to correct the problem and make the improvements which Orchard Hills requested; and c, Spotts met with representatives of Orchard Hills at offices they maintained at that time at 4740 Delbrook Road in Mechanicsburg, '-~ Pennsylvania, to discuss the work he proposed to do, to explain to Orcllard Hills' representatives how that work would correct the problems at Pocono Village Mobile Home Park, and to propose payment terms for the work he was to do. 7. At various meetings held at Orchard Hills' office in Mechanicsburg, Omhard Hills engaged Spotts to do work on the septic and sewer system at the Pocono Village Mobile Home Park. The terms of the engagement were that Sports would do the work he had verbally described to the representatives of Orchard Hills in a good and workmanlike manner, in exchange for which Orchard Hills would pay Spotts his normal and customary charges, on a time and material basis, for such work. Although no formal written agreement was prepared between the parties, Brian Gross, one of the principals in Peifer & Gross, Inc. who represented Orchard Hills at the meetings with Spotts, prepared a Memorandum outlining the nature of the work to be done and said Memorandum was signed by representatives of Orchard Hills and by Sports. A copy of that Memerandum is attached hereto and marked as Exhibit A. 8. Thereafter, Sports did various wbrk on the plumbing and septic systems at the Pocono Village Mobile Home Park, between August of 1994 and the early part of 1995. Sports performed his work on the Pocono Village Mobile Home Park in a negligent, careless, and reckless fashion. Specifically: . a. Spotts and his workers cut off a gravity feed pipe or line which~'" connected eleven (11) mobile homes to a "dosing tank" without re-connecting that line to any other part of the septic system. As a result of this action, the sewage which emanated from those eleven (11) mobile homes was not deP°Sited into the septic system for the mobile home park and was simply dumped into the ground. b. Spotts and his workers re-filled the hole which they had excavated to cut off the gravity feed pipe described in sub paragraph a and refilled that hole without correcting the problem created by their mistake and thus concealed the problem from Orchard Hills. c. Spotts failed to advise Orchard Hills or it representatives of the wrongful action he or his employees had taken in cutting offthe gravity feed pipe. ~ As a direct result of the negligence, carelessness, and recklessness of SP0tts, the sewer system at the Pocono Village Mobile Home Park was rendered ineffective, incomplete, illegal, and dangerous. The acts of Spotts by cuffing off.the gravity feed pipe and causing the untreated waste from eleven (11) mobile homes to simply pass into the ground violated federal and state environmental laws and the ordinances of Pocono Township in Monroe County and exposed the owners and representatives of Orchard Hills to criminal and civil penalties and sanctions for such violations. 10. Because Spotts refilled the excavation in which Spotts did the defective work' and failed to report and disclose to Orchard Hills and its representatives the defective work he had done, Orchard Hills was unaware of the problem and the violation of law which that problem created. ii:': : 11 In June of 1996, still unaware of the problem caused by Sports' defective work, Orchard Hills sold the Pocono Hills Mobile Home Park to a third party purchaser for $645,000.00. 12. In late 1996, the third party purchaser complained to Orchard Hills about problems he was experiencing with the plumbing and sewer system at the Pocono Village Mobile Home Park. During the investigation of those problems, by the third party purchaser and his representatives and by Orchard Hills and its representatives, the gravity feed pipe which Sports had improperly cut and disconnected was uncovered and discovered. Upon discovery of the problem, the third party purchaser rescinded his purchase of the Pocono Village Mobile Home Park, threatened suit against Orchard Hills and its representatives, and demanded a refund of all monies paid by him for the purchase of the Pocono Village Mobile Home Park and all expenses incurred by him in the attempts to solve and remedy the problem caused by Spotts' defective work. 13. Following several months of negotiations with the third party purchaser, and several months of further investigation into the problem caused by Spotts' defective work, the principals of Orchard Hills formed a new partnership, Pocono Village, to re-purchase the Pocono Village Mobile Home Park from the third party purchaser and negotiated a settlement agreement, on behalf of Orchard Hills and Pocono Village, with the third party purchaser to pay and reimburse the third party purchaser his losses and expenses incurred as a result of the problem at Pocono Village Mobile Home Park with the plumbing and s~ w.~ sy ~ part of that agreement and settlement, Orchard H~lls and Pocono i e in~ed' tiie f°iiOWing e enses and had to pay the following items: a. Reimbursement of the third party purchaser's out of pocket expenses for plumbing repairs incurred in an attempt to correct the problem $3,185.00 b. Reimbursement of the third party purchaser's engineering fees incurred in an attempt to solve the problem $2,853.00 c. Reimbursement of the third party purchaser's attorney's fees $15,151.00 Total $21,189.00 All of these expenses were paid by Orchard Hills and Pocono Village as a direct result of the negligent, reckless, and careless actions of Spotts as described herein above. 14. In addition t° the above reimbursements and expenses, Pocono Village and Orchard Hills incurred other expenses of their own as a result of the negligence, carelessness, and recklessness of Sports. Those expenses and losses are: a. Settlement costs at Orchard Hills' original sale to the third party purchaser, which sale was later reversed $16,675.0{~,~ b. Fees paid to All State Septic Systems to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to correct the problem caused by Spotts' Improper actions $14,692.00 c. Engineering and related professional fees and expenses to identify and correct the problem caused by Sports' improper work $11,864.00 d, Attorney's fees $7,736.00 Total $50,967.00 All of these expenses and losses were caused to the Plaintiffs as a direct result of the negligence, carelessness, and recklessness of Spotts. 15. In addition to the damages and losses described in the foregoing two paragraphs, the Plaintiffs incurred other expenses and losses, including the following: a. The interruption of the activities and business effort of its owner,, employees, and representatives to address and resolve the problem caused by Spotts' defective work. , b. Public scorn, approbation and humiliation resulting from their owning and operating a mobile home park with a defective and illegal septic and plumbing system. c. The loss of the bargain they enjoyed from the sale'of the mobile home park to the third party pumhaser, which sale had to be set aside and reversed upon the discovery of the conditions and problems caused by Spotts' defective and improper work. The above damages are not liquidated. Plaintiffs believe that they have suffered damages, as a result of these items, in a sum in excess of $25,000.00. 16. All of the damages listed above are a direct result of the negligence, carelessness, and recklessness of the Defendant. All of these damages have been suffered by one or both of the Plaintiffs. The Defendant, by his conduct, has injured Plaintiffs in an amount substantially in excess of $25,000.00. WHEREFORE, Plaintiffs demand judgment against the Defendant, Mol Sports, in an amount in excess of $25,000.00, plus interest from and after 1 December 1995, plus costs of suit. Satori L. Andes Attorney for Plaintiffs Supreme Court ID # 17225 525 N. 12"' Street Lemoyne, Pa 17043 (717) 761-5361 COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) Robert E. Goodling, being duly sworn according to law, says that he Is the President of PVOHA, Inc. and as a partner in Orchard Hills Associates and deposes and says that the facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information, and belief. Sworn to and subscribed before me this J ~*1 ~ day of I"r~L.~ ,1998. Notary' .P.~blic. ' Robert E. GoocFl)r~g~''~;' ' y SEP-29- ~.997 y MURRay INS CLRIMS DEPT Commonwealth County of Cumberland TRUE COPY FROM RECORD Ear.i, PA- commenced an ~o~ in ..... £~.~td..Z.a~... ................................... (SF. AL) THE COURT OF COMMON ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiff vs. MELVIN W, SPO1-FS and ELIZABETH B. SPOTTS, t/d/b/a MEL SPOTTS EXCAVATING, Defendants ) PLEAS OF CUMBERLAND ) COUNTY, PENNSYLVANIA ) ) ) CIVIL ACTION - LAW ) ) NO, 97-4977 CIVIL TERM ) ) ]URY TRIAL DEMANDED STZPULATZON AND NOW come the above-named Plaintiffs and Melvin Sports, by their attorneys who have signed below and stipulate and agree that Plaintiff may file an Amended Complaint, in the form attached hereto and marked as Exhibit A, without formal leave of Court. ?N WITNESS WHEREOF, the above-named parties have authorized their attorneys to execute this Stipulation. Attorney for Plaintiffs ]ohr~ Flounlacker Attorney for Defendants ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiff vs. MELVIN W. SPO~q'S and ELIZABETH B. SPO'I-fS, t/d/b/a MEL SPOTTS EXCAVATI N G, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 9714977 CIVIL TERM 3URY TRIAL DEMANDED INOTICE TO DEFENDANT NAMED HEREIN: YOU HAVE BEEN SUED IN COURT. IF YOU WISH TO DEFEND AGAINST THE CLAIMS SET FORTH IN THE FOLLOWING PAGESt YOU MUST TAKE ACTION WITHIN TWENTY (20) DAYS AFTER THIS COMPLAINT AND NOTICE ARE SERVED, BY ENTERING A WRI'I-I'EN APPEARANCE PERSONALLY OR BY A'I-FORNEY 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 CLAIMS 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 BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 ORCHARD HILLS ASSOCIATES and POCONO VILLAGE ASSOCIATES, Plaintiff VS. MELVIN W. SPOTTS and ELIZABETH B. SPOI-I'S, t/d/b/a MEL SPOI-FS EXCAVATING, Defendants ) ) ) ) ) ) ) ) ) ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 97-4977 CIVIL TERM 3URY TRIAL DEMANDED AMENDED COMPLAINT AND NOW comes the above-named Plaintiffs, by their attorney, Samuel L. Andes, and makes the following Complaint in this matter: 1. The Plaintiff, Orchard Hills Associates, is a general Pennsylvania partnership consisting of Robert E. Goodling (~f Carlisle, Pennsylvania, 3ames T. Gibson, of Mechanicsburg, Pennsylvania and Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania. Orchard Hills Associates is referred to hereinafter as "Orchard Hills." 2. The Plalfltiff, Pocono Village Associates, is a Pennsylvania general partnership consisting of Peifer & Gross, Inc., a Pennsylvania business corporation of Elizabethtown, Pennsylvania, AAA Quality Builders, Inc., a Pennsylvania business corporation of Mechanlcsburg, Pennsylvania, and PVOHA, Inc., a Pennsylvania business corporation of Carlisle, Pennsylvania. Pocono Village Associates will be referred to hereinafter as "Pocono." 3. The Defendants are Melvin W. Sports and Elizabeth B. Sports, his wife, adult individuals who trade and do business, jointly, as "Mel Sports Excavating" and which maintain offices for the conduct of that business at 45 Martin Street in East Earl, Pennsylvania. Both Mr. and Mrs. Sports are collectively referred to hereinafter as "Defendant." 4. In 1994 Orchard Hills owned a Mobile Home Park situate in Pocono Township, Monroe County, Pennsylvania, which Mobile Home Park was known variously as "Pocono Village Court" or"Pocono Village Mobile Home Park" and which was improved with facilities for 35 mobile homes, which facilities were leased to tenants and which facilities included a septic system to lawfully dispose of sewer and other wastes on the property. 5. In 1994 and at all other times relevant to this action, Melvin W. Sports and Elizabeth B. Sports were engaged in the business of excavation and plumbing work, trading as "Mel Spotts Excavating" and held themselves and their business out to Orchard Hills and its representatives, and to other members of the public, as being experienced and experts in such work. Melvin W. Sports operated as an authorized agent and representative of both Defendants in the operation of the excavating the plumbing business. 6. During the summer and fall of 1994, Orchard Hills engaged Defendant to do certain work on the Pocono Village Mobile Home Park. During the process of that engagement, representatives of Orchard Hills and Defendant took the following actions: A. Defendant visited the Pocono Village Mobile Home Park to inspect the problem; and B. Defendant determined what work was necessary to correct the problem and make the improvements which Orchard Hills requested; and C. Defendant met with representatives of Orchard Hills at offices they maintained at that time at 4740 Delbrook Road in Mechanicsburg, Pennsylvania, to discuss the work he proposed to do, to explain to Orchard Hills' representatives how that work would correct the problems at Pocono Village Mobile Home Park, and to propose payment terms for the work he was to do. 7. At various meetings held at Orchard Hills' office in Mechanicsburg, Orchard HIlls engaged Defendant to do work on the septic and sewer system at the Pocono Village Mobile Home Park. The terms of the engagement were that Defendant would do the work It had verbally described to the representatives of Orchard Hills In a good and workmanlike manner, In exchange for whtch Orchard Hills would pay Defendant Its normal and customary charges, on a time and material basis, for such work. Although no formal written agreement was prepared between the parties, Brian Gross, one of the principals in Peifer& Gross, Inc. who represented Orchard Hills at the meetings with Defendant, prepared a Hemorandum outlining the nature of the work to be done and said Memorandum was signed by representatives of Orchard Hills and Defendant. A copy of that Memorandum is attached hereto and marked as Exhibit A. 8. Thereafter, Defendant did various work on the plumbing and septic systems at the Pocono Village Mobile Home Park, between August of 1994 and the early part of 1995. Defendant performed his work on the Pocono Village Mobile Home Park In a negligent, careless, and reckless fashion. Specifically: a. Defendant cut off a gravity feed pipe or line which connected eleven (11) mobile homes to a "dosing tank" without re-connecting that line to any other part of the septic system. As a result of this action, the sewage which emanated from those eleven (11) mobile homes was not deposited into the septic system for the mobile home park and was simply dumped into the ground. b. Defendant re-filled the hole which it had excavated to cut off the gravity feed pipe described in sub paragraph a and refilled that hole without correcting the problem created by their mistake and thus concealed the problem from Orchard Hills. c. Defendant failed to advise Orchard Hills or its representatives of the wrongful action it had taken in cutting off the gravity feed pipe. g. As a direct result of the negligence, carelessness, and recklessness of Defendant, the sewer system at the Pocono Village Mobile Home Park was rendered Ineffective, Incomplete, illegal, and dangerous. The acts of Defendant by cutting off the gravity feed pipe and causing the untreated waste from eleven (l~.) mobile homes to simply pass into the ground violated federal and state environmental laws and the ordinances of Pocono Township In Monroe County and exposed the owners and representatives of Orchard Hills to criminal and civil penalties and sanctions for such violations. ~.0. Because Defendant refilled the excavation in which Defendant did the defective work and failed to report and disclose to Orchard Hills and its representatives the defective work it had done, Orchard Hills was unaware of the problem and the violation of law which that problem created. · ll. In ~lune of 1996, still unaware of the problem caused by Defendant' s defective work, Orchard Hills sold the Pocono Hills Mobile Home Park to a third party purchaser for $645,000.00. ~2. In late ~gg6, the third party purchaser complained to Orchard Hills about problems he was experiencing with the plumbing and sewer system at the Pocono Village Mobile Home Park. During the investigation of those problems, by the third party purchaser and his representatives and by Orchard Hills and its representatives, the gravity feed pipe which Oefendant had improperly cut and disconnected was uncovered and discovered. Upon discovery of the problem, the third party purchaser rescinded his purchase of the Pocono Village lVloblle Home Park, threatened suit against Orchard Hills and its representatives, and demanded a refund of all monies paid by him for the purchase of the Pocono Village Mobile Home Park and all expenses incurred by him in the attempts to solve and remedy the problem caused by Defendant's defective work. 13. Following several months ol~ negotiations with the third party purchaser, and several months of further investigation into the problem caused by Defendant's defective work, the principals of Orchard Hills formed a new partnership, Pocono Village, to re-purchase the Pocono Village Mobile Home Park from the third party p'urchaser and negotiated a settlement agreement, on behalf of Orchard Hills and Pocono Village, with the third party purchaser to pay and reimburse the third party purchaser his losses and expenses incurred as a result of the problem at Pocono Village Mobile Home Park with the plumbing and sewer system. As part of that agreement and settlement, Orchard Hills and Pocono Village incurred the following expenses and had to pay the following items: a. Reimbursement of the third party purchaser's out of pocket expenses for plumbing repairs incurred in an attempt to correct the problem $3,185.00 b. Reimbursement of the third party purchaser's engineering fees incurred in an attempt to solve the problem $2,853.00 c. P, elmbursement of the third party purchaser's attorney's fees $15.151.00 Total $21,189.00 All of these expenses were paid by Orchard Hills and Pocono Village as a direct result of the negligent, reckless, and careless actions of Defendant as described herein above. 14. In addition to the above reimbursements and expenses, Pocono Village and Orchard Hills Incurred other expenses of their own as a result of the negligence, carelessness, and recklessness of Defendant. Those expenses and losses are: a. Settlement costs at Orchard Hills' original sale to the thlrd party purchaser, which sale was later reversed $16,675.00 b. Fees paid to All State Septic Systems to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to pump sewerage from the Pocono Village Mobile Home Park and to make certain repairs to the system to correct the problem caused by Defendant's Improper actions $14,692.00 c. Engineering and related professional fees and expenses to identify and correct the problem caused by Defendant's improper work $:1.1,864.00 d. Attorney's fees $7.736.00 TOTAL $50,967.00 All of these expenses and losses were caused to the Plaintiffs as a direct result of the negligence, carelessness, and recklessness of Defendant. 15. In addition to the damages and losses described in the foregoing two paragraphs, the Plaintiffs Incurred other expenses and losses, Including the following: a. The interruption of the activities and business effort of Its owner, employees, and representatives to address and resolve the problem caused by Defendant's defective work. b. Public scorn, approbation and humiliation resulting from their owning and operating a mobile home park with a defective and illegal septic and plumbing system. c. The loss of the bargain they enjoyed from the sale of the mobile home park to the third party purchaser, which sale had to be set aside and reversed upon the discovery of the conditions and problems caused by Defendant's defective and improper work. The above damages are not liquidated. Plaintiffs believe that they have suffered damages, as a result of these items, in a sum in excess of $25,000.00. :L6. All of the damages listed above are a direct result of the negligence, carelessness, and recklessness of the Defendant. All of these damages have been suffered by one or both of the Plaintiffs. The Defendants, by their conduct, have Injured Plaintiffs In an amount substantially In excess of $25,000.00. WHIEREFORE~ Plaintiffs demand judgment against the Defendants, Melvin W. Sports and Elizabeth B. Sports, jointly and severally, in an amount in excess of $25,000.00, plus Interest from and after i December 1995, plus costs of suit. Attorney for Plaintiffs Supreme Court iD # 17225 525 N. 12th Street Lemoyne, Pa 17043 (717) 761-5361 COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) Robert E. Goodling, being duly sworn according to law, says that he Is the President of PVOHA, Inc. and as a partner In Orchard Hills Associates and deposes and says that the facts set forth In the foregoing Amended Complaint are true and correct to the best of his knowledge, Information, and belief. .~worn to and subscribed before me this /~/~ day of /[JO/,,/~/')Q,~'./" , 1998. Notary ~ubllc. Investment Management Services, Inc. 4740 DELBROOK ROAD MECIIANICSBURG, PA i705§ (717) 737.5440 FAX:(717) 737.4524 August 22, 1994 To: FROM: RE: Paul Lopresti, Bob Goodling, Me1 Sports, Irvtn Pellet' Brian Gross Action plan [or resolution o[ sewage mana~emertt and repairs at Pocono Village The followinfl plan was agreed to by all parties ak a meeting at 4740 Delbrook Road, Mechanicsburg, PA, on August 22, 199~l, according ko the following sequence: Mel will tn~nedtately begin construction of the ctJrtain drain for failing septic bed. In conjunction with Paul's advice, Met will begin tnst~ttlation of grease traps according to plans approved by Bob Goodling. Mel will ~rench two or more short, lines from tile front beds across the park street, -I. After ~.he above has been co~mnenced, Paul wlll begin designing a new septic bed on the undeveloped portion of the property tn conjunction with the Township SEO. During that process, Paul will explore the feasibility o~ installing a treatment: plant on the property t:o treat AIl peri:las'will co~nunicate t. hr(~ugh Bob Goodling throughout: tim processes. Exhibit C 330 COMMERCIAL GENERAL I CG IX) 01 01 COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties end what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declara- tions, and any other person or organization qualifying as a Named Insured under this policy. The words "we", "us" and "our" refer to the company providing this insurance. The word "insured" means any person or organization qualifying as such under WHO IS AN INSURED (SECTION II). Other words and phrases that appear in quotation marks have special meaning. Refer to DEFINITIONS (SECTION V). SECTION I - COVERAGES COVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "body injury" or "property dam- age" to which this insurance applies, We w have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the Insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result. BUt: (1) The amount we will pay for damages is limited as described in LIMITS OF INSUR- ANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insur- ance in the payment of judgments or set- tlements under Coverages A or B or medi- cal expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to "bodily Injury" and .property damage" only if: (1) The "bodily injury" or "property damage" I~ caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily Injury" ,or "property damage" occurs during the pohcy period. c. Damages because of "bodily injury" Include damages claimed by any person or organize. tion for care, loss of services or death resulting at any time from the "bodily injury", 2. Exclusions This Insurance does not apply to: a. Expected or Intended Injury "Bodily injury" or "property damage" e,xpected. or intended from the standpoint of the msurs~, This exc usion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a con- tract or agreement. This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agreement; or (2) Ass~med in a contract or agreement that is an "insured contract", provided the "bodily Injury" or "property damage" occurs subse- quent to the execution of the contract or agreement. Solely for the purposes of II- ability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be damages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and CG 00 01 01 96 Copyright, Insurance Services Office, Inc,, 1994 Page 1 of 13 ~ CGL Coverage Form 331 .BILITy 1 01 96 ,fy" and iago" is 's place Image" nclude laniza- suiting acted ;ured. '~jury" ce to /hich s by COn- not ~t is diiy or Ii- :t", a to or st (b) Such attorney fees and litigation ex- penses are for defense of that party against a civil or alternative dispute resolution proceeding in which damages to which this insurance applies are al- leged. Liquor Liability "Bodily Injury" or "property damage" for which any Insured may be held liable by reason of: (t) Causing or contributing to the Intoxication of any person; (2) The furnishing of alcoholic beverages to a person under the legal drinking age or un- der the Influence of alcohol; or (3) Any statute, ordlnanse or regulation relating to the sale, gift, distribution or use of alco- holic beverages. This exclusion applies only if you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. Workers Compensation and Similar Laws Any obligation of the insured under a workers compensation, disability benefits or unem- ployment compensation law or any similar law. Employer's Liability "Bodily injury" to: (1) An "employee" of the Insured arising out of and in the course of: (a} Employment by the insured; or (b) Performing duties related to the conduct of the insuted's business; or {2) The spouse, child, parent, brother or sister of that "employee" es a consequence of paragraph (1) above. This exclusion applies: (1) Whether the insured may be liable as an employer or In any other capacity; and (2} To any obligation to share damages with or repay someone else who must pay dam- ages because of the injury. This exclusion does not apply to liability as- sumed by the insured under an "insured con- tract". f. Pollution (1) "Bodily Injury" or "prope .r!y damage" arising out of the actual, allage~ or threatened dis- charge, dispersal, seepage, migration, lease or escape of pollutants: (a) At or from any premises, site or location which Is or wes at any time owned or occupied by, or rented or loaned to, any Insured; (b) At or from any premises, site or location which is or was at any time used by or for any Insured or others for the han- dling, storage, disposal, processing or treatment or waste; (c) Which are or were at any time trans- ported, handled, stored, treated, dis- posed of, or processed as waste by or for any Insured or any person or organi- zation for whom you may be legally re- sponsible; or (d) At or from any premises, site or location on which any Insured or any contractors or subcontractors working directly or In- directly on any insured's behalf are performing operations: (I) If the pollutants are brought on or to the premises, site or location In con- nection with such operations by such insured, contractor or subcontractor; or (11) If the operations are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants. Subparagraph {d)(I) does not apply to "bodily injury" or "property damage" arising out of the escape of fuels, lubri- cants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions nec- essary for the operation of "mobile equipment" or Ils parts, if such fuels, lu- bricanis or other operating fluids escape from a vehicle part designed to hold, store or receive them, This exception does not apply if the fuels, lubricants or other operating fluids are Intentionally discharged, dispersed or released, or if such fuels, lubricants or other operating fluids are brought on or to the premises, site or location with the intent to be dis- charged, dispersed or released as part of the operations being performed by such insured, contractor or subcontrac- tor. Page 2 of 13 Copyright, Insurance Services Office, Inc., 1994 CG 00 01 01 96 [] 332 CGL Coverage Form Subparagraphs (a) and (d)(I) do not apply to "bodily injury" or "property damage" arising out of heat, smoke or fumes from a hostile fire. As used In this exclusion, a hostile fire means one which becomes uncontrollable or breaks out from where it wes Intended to be. (2) Any loss, cost or expense arising out of eny: (a) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants; or (b) Claim or suit by or on behalf of a gov- ernmental authority for damages be- cause of testing for, monitoring, clean- ing up, removing, containing, treating, detoxlfylng or neutralizing, or In any way responding to, or assessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, Including smoke, vapor, soot, fumes, acids, alkalis, chemicals and weste. Weste includes mated- als to be recycled, reconditioned or reclaimed. AImmft, Auto or Watemreft ~Bodily injury" or ~propedy damage" arising out of the ownership, maintenance, use or an- trustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". This exclusion does not apply to: (1) A watemraff while ashore on premises you own or rent; (2) A watemraft you do not own that is: (a) Less than 26 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured con- tract" for the ownership, maintenance Or use of aircraft or watercraft; or , (5) "Bodily injury" or "property damage, arising out of the operation of any of the equip. ment listed in paragraph f.{2) or definition of "mobile equipment", h. Mobile Equipment "Bodily Injury" or "property damage" arising out of: (1) The transportation of "mel311e equipment, by an "auto" owned or operated by or rented or loaned to any insured; or (2) The use of "mobile equipment" In, or while in practice for, or while being prepared for, any prearranged racing, speed, demolition, or stunting activity. I. War "Bodily Injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed un- der a contract or agreement. J. Damage to Property "Property damage" to: (1) Property you own, rent, or occupy; (2) Premises you sell, give away or abandon, If the "property damage" arises out of any part of those premises; (3) Prope ~rt~y, loaned to you; (4) Personal property in the care, custody or control of the insured; (5) That particular part of real property on which you or any contractors or subcon- tractors working directly or indirectly on your behalf are performing operations, If the "property damage" arises out of those operations; or (6) That particular part of any property that must be restored, repaired or replaced be- cause "your work" was incorrectly per- formed on it. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 3 of 13 CGL ¢ovar~ge Form 333 Paragraphs (3), (4), (5) and (6) of this exclu- sion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "prod- ucts-completed operations hazard". k. Damage to YourProduct "Property damage" to "your product" arising out of it or any part of it. I. Damage to YourWork "Property damage" to "your work" arising out of it or any part of it and included in the "prod- ucts-completed operations hazard". This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a sub- contractor, Damage to Impaired Property or Property Not Physically Injured "Property damage" to "impaired property" or property that has not been physically injured, arising out of: (1) A defect, deficiency, inadequacy or dan- gerous condition in "your product" or "your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended n. Recall of Products, Work or Impaired Property Damages claimed for any loss, cost or ex- pense incurred by you or others for the loss of use, withdrawal, recall, Inspection, repair, re- placement, adjustment, removal or disposal of: (1) "Your product"; (2) "Your work"; or (3) "impaired property"; if such product, work, or preperty is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. Exclusions c, through n. do not apply to damage by fire to premises while rented to you or tempo- rarily occupied by you with permission of the owner. A separate limit of insurance applies to this coverage as described in LIMITS OF iNSUR- ANCE (Section III). COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured be- comes legally obligated to pay as damages because of "personal injury" or "advertising injury" to which this Insurance applies, We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal injury" or "advertising injury" to which this insurance does not apply. We may, at our discretion, Investigate any "occurrence" or of- tense and seltle any claim or "suit" that may result. But: (1) The amount we will pay for damages is limited as described in LIMITS OF INSUR- ANCE (SECTION III); and (2) Our right and duty to defend end when we have used up the applicable limit of insur- ance in the payment of judgments or set- t{ements under Coverages A or B or medi- cal expenses under Coverage C. No other obligation or liability to pay sums or perform acts or sen/ices Is covered unless ex- plicitly provided for under SUPPLEMENTARY PAYMENTS - COVERAGES A AND B. b. This insurance applies to: (1) "'Personal injury" caused by an offense arising out of your business, excluding ad- vertising, publishing, broadcasting or tele- casting done by or for you; (2) "Advertising injury" caused by an offense committed in the course ct advertising your goods, products or services; but only if the offense was committed in the "coverage territory" during the policy period. 2. Exclusions This insurance does not apply to: a. "Personal injury" or "advertising injury": (1} Adsing out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity; 4 of 13 Copyright, Insurance Services Office, Inc.. 1994 CG 00 01 01 96 334 CGL Coverage Form (2) Arising out of oral or written publication of material whose first publication took place before the beginning of the policy pedod; (3) Adsing out of the willful violation of a penal statute or ordinance committed by or with the consent of the insured; (4) For which the Insured has assumed liability in a contract or agreement. This exclusion does not apply to liability for damages that the Insured would have In the absence of the contract or agreement; or (5) Arising out of the actual, alleged or threat- ened discharge, dispersal, seepage, migra- tion, release or escape of pollutants at any time. b. "Advertising Injury" arising out of: (1) Breach of contract, other than misappro- priation of advertising ideas under an im- plied contract; (2) The failure of goods, products or services to conform with advertised quality or per- formance; (3) The wrOng description of the pdce of goods, products or services; or (4) An offense committed by an Insured whose businesS is advertising, broadcasting, pub- lishing or telecasting. c. Any loss, cost or expense arising out of any: (1) Request, demand or order that any Insured or others test for, monitor, clean up, re- move, contain, treat, detoxify or neutralize, or In any way respond to, or assess.the ef- fects of pollutants; or (2) Claim or suit by or on behalf of a govern- mental authority for damages because of testing for, monitoring, cleaning up, re- moving, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicats and waSte. Waste includes materials to be recycled, reconditioned or reclaimed. COVERAGE C. MEDICAL PAYMENTS t. Insuring Agreement a. We will pay medical expenses as described below for "bodily injury" caused by an accident: (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; prOvided that: (1) The accident takes place In the "coverage territory" and during the policy period; (2) The expenses are Incurred and reported to us within one year of the date of the eccl. dent; and (3) The injured person submits to examination, at our expense, by physicians of our ~holce aS often aS we reesonably require. b. We will make these payments regardless of fault. These payments will not exceed the plicable limit of Insurance. We will pay rasscn- able expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including prosthetic vices; and (3) Nsoeesary ambulance, hospital, profes- sional nursing and funeral services. 2. Exclusions We will not pay expenses for "bodily injury": a. To any Insured. b. To a person hired to do won~ for or on behalf of ar~y Insured or a tenant of any insured. c. TO a person injured on that part of premises you own or rent that the person normally occu- pies. d. To a person, whether or not an "employee" any insured, if benefits for the "bodily Injury" are payable or must be provided under a workers compensation or disability benefits law or a similar law. e. To a person injured while taking part In athlet- Ics. f. included within the "products-completed op- erations hazard". g. Excluded under Coverage A, h. Due to war whether or not declared or any act or condition Incident to war. War Includes civil war, insurrection, rebellion or revolution. CG O0 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 5 of 13 CGL Coverage Form 335 · SUPPLEMENTARY PAYMENTS - COVERAGES A AND B We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: 1. All expenses we Incur. 2, Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Uab~flty Coverage applies. We do not have to fur- nish these bonds. 3, The cost of bonds to release attachments, but only for bond amounts within the applicable limit of Insurance. We do not have to furnish these bonds. 4. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss. of earnings up to $250 a day because of time off from work, 5. All costs taxed against the insured in the "suit". $. Prejudgment interest awarded against the insured on that part of the judgment we pay. if we make an offer to pay the applicable I{mit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. 7. All interest on the full amount of any judgment that accrues after entry of the judgment and fore we have paid, offered to pay, or deposited in court the part of the Judgment that is within the applicable flmit of insurance. These payments will not reduce the limits of insur- ance. If we defend an insured against a "suit" and an demnitee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the lollowing conditions are met: s. The "suit" against the Indemnitee seeks damages for which the insured has assumed the liability of the Indemnitee in a contract or agreement that is an "insured contract"; b, Th{s insurance applies to such liability assumed by the insured; ¢, The obligation to defend, or the cost of the de- fense of, that indemnites, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the information we know about the "occurrence" are such that no conflict appears to exist between the interests of the insured and the interests of the Indemnitae; e. The indemnitee end the insured ask us to conduct and control the defense of that indemnitee against such "suit" and agree that we can assign the same counsel to defend the insured and the Indemnitee; and . f. The indemnitee: {1) Agrees in writing to: (a) Cooperate with us in the investigation, settlement or defense of the "suit"; (b) Immediately send us copies o~' any de- mands, notices, summonses or legal pa- pers received in connection with the "suit"; (c) Notify any other insurer whose coverage {s available to the Indemnitee; and (d) Cooperate with us with respect to coordi- nating other applicable insurance available to the indemnitee; and (2) Provides us with written authorization to: (a) Obtain records and other information luted to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit". So long as the above conditions are met, attorneys fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred by us and necessary litigation expenses incurred by the indem- nitee at our request will be paid as Supplementary Payments. Notwithstanding the previsions of para- graph 2.b.(2) of COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY (Section I - Coverages), such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance, Our obligation to defend an insured's indemnitee and to pay for attorneys fees and necessary litigation expenses as Supplementary Payments ends when: a. We have used up the applicable limit of insurance in the payment of Judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in paragraph f. above, am no longer met. 336 CGL Coverage Form SECTION II -WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are in- sureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or Joint venture, you are an in- sured. Your members, your partners, and their spouses are also Insureds, but only with re- spect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also Insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an Insured. Your "executive officers" and directors are insureds, but only with respect to their du- ties as your officers or directors. Your stock- holders are also insureds, but only with respect to their liability as stockholders. 2. Each of the following is also an insured: a. Your "employees", other than either your "ex- ecutive officers" (if you are an organization other than a partnership, joint venture or lim- ited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" is an insured for: (1) "Bodily injury" or "personal Injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited li- ability company), or to a co-"employee" while that co-"employee" is either in the course of his or her employment or performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"employee" as a conse- quence of paragraph (l)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in paragraphs (l)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or trol of, or over which physical control being exercised for any purpose by you, any of your "employees", any partner or member (if you are a partnership or Joint venture), or any member (if you are s lira. ired liability company). b. Any person (other than your "employee"), or any organization while acting as your reel e~- tats manager. c. Any person or organization having Proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That represen- tative will have all your rights and duties under this Coverage Part. 3. With respect to "mobile equipment" registered In your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your per- mission. Any other person or organization respon- sible for the conduct of such person is also an In- sured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind Is available to that person or organization for this liability. However, no person or organization is an insured with re- spect to: a. "Bodily injury" to a co-"employes" of the per- son driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who Is an In- sured under this provision. 4. Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain ownership or majority interest, will qualify ss a Named In- sured if there is no other similar insurance avail- able to that organization. However: a. Coverage under this provision is afforded only until the 90th day after you acquire or form the organization or the end of the policy period, whichever is earlier; CG 00 01 01 96 Copyright, Insurance Services Office, inc., 1994 Page 7 of 13 ~]:ii,~ CGL Coverage Form 337 er ir b. Coverage A does not apply to "bodily injury" or "property damage" that occurred before you acquired or formed the organization; and c. Coverage B does not apply to "personal injury" or "advertising Injury" arising out o! an ol'fense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured Jn the Declarations. SECTION III - LIMITS OF INSURANCE 1, The Limits of Insurance shown In the Declarations and the rules below fix the most we will pay re- gardless of the number a, lnsureds; b. Claims made or "suits" brought; or c, Persons or organizations making claims or bringing "suits". 2. The General Aggregate Limit is the most we will pay for the sum of: a. Medical expenses under Coverage C; bo Damages under Coverage A, except damages because of "bodily injury" or "property dam- age" included in the "products-completed op- erations hazard"; and c, Damages under Coverage B. 3, The Products-Completed Operations Aggregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included {n the "products-completed op- erations hazard". 4. Subject to 2. above, the Personal and Advertising Injury Limit is the most we will pay under Cover- age B for the sum ol' all damages because of all "personal injury" and all "advertising Injury" sus- tained by any one'person or organization. $. Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A; and b, Medical expenses under Coverage C because of all "bodily injury" and "property dam- age" arising out of any one "occurrence". 6. Subject to 5. above, the Fire Damage Limit is the most we will pay under Coverage A for, damages because of "property damage" to premises, while rented to you or temporarily occupied by you with permission of the owner, arising out of any one fire. 7, Subject to 5. above, the Medical Expense Limit is the most we will pay under Coverage C for all medical expenses because oi' "bodily Injury" sus- tained by any one person, The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining pedod ot' less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period Is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS t. Bankruptcy Bankruptcy or insolvency of the Insured or o~' the insured's estate will not relieve us of our obliga- tions under this Coverage Pa~t. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent pos- sible, notice should include: {1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "occurrence" or offense. b. it a claim Is made or "suit" is brought against any insured, you must: {1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You must see to it that we receive written no- tice of the claim or "suit" as soon as practica- ble. 338 CGL Coverage Form c. You and any other involved insured must: (1) Immediately send us copies of any de- mands, notices, summonses or legal pa- pers received in connection with the claim or ~suit'; (2) Authorize us to obtain records and other Information; (3) Cooperate with us in the investigation or settlement o! the claim or defense against the "suit"; and (4) Assist us, upon our request, In the en- fomemant of any right against any person or organization which may be liable to the insured because of Injury or damage to which this insurance may also apply. d. No insured will, except at that Insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. Legal Action Against Us No person or organization has a right under this Coverage Part: e. To join us es a party or otherwise bring us into a "suit" esking for damages from an insured; or b. To sue us on this Coverage Part unless all of Its terms have linen fully compiled with, A person or organization may sue us to recover on an agreed seftiemant or on a final judgment against an Insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insur- ance. An agreed settlement means a settlement and release of liability signed by us, the Insured and the claimant or thc claimant's legal represen- tative. Other Insurance If other valid and collectible insurance Is available to the insured for a loss we cover under Cover- ages A or B of this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance Is primary except when b. be- low applies. If this Insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over any of the clt~. Insurance, whether primary, excess, continn~.,~ or on any other basis: {1) That is Fire, Exten.d, ed Cov,erege, Risk, Installation Risk or similar coverege for "your work"; (2) That is Fire Insurance for premlss~ re~ to you or temporarily occupied by you with permission of the owner; or (3) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Coy. crags A (Section I), When this insurance is excess, we will have no duty under Coverages A or B to defend the In- sured against any "suit" if any other inSurer a duty to defend the insured against that "suit", If no other insurer defends, we will undertake to do so, but we will be entitled to the insured~ rights against all those other insurers, When this insurance is excess over other surance, we wilt pay only our share of the amount of the loss. if any, that exceeds the sum of: (1) The total amount that all such other Insur- ance would pay for the loss in the absence of this Insurance; and (2) The total of all deductible and self-Insured amounts under all that other Insurance. We will share the remaining loss, if any, with any other insurance that Is not described In this Excess Insurance provision and wss not bought specifically to apply in excess of the Limits of insurance shown in the Deslaraticns of this Coverage c. Method of Sharing If all of the other insurance permits contrlbu- tlon by equal shares, we will follow this method also, Under this approach each Insurer con- tributes equal amounts until it has paid its ap- plicable limit of insurance or none of the loss remains, whichever comes first, If any of the other insurance does not permit contribution by equal shares, we will contribute by limits, Under this method, each Insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all Insurers. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 9 of 13 ~ CGL Coverage Form 339 5. Premium Audit e. We will compute all premiums for this Cover- age part in accordance with our rules and rates. b, Premium shown in this Coverage Part as ad- vance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period. Audit premiums are due and payable on notice to the first Named insured. If the sum of the ed- vance and audit premiums paid for the policy period Is greater than the earned premium, we will return the excess to the first Named In- sured. c. The first Named Insured must keep records of the Information we need for premium compu- tation, and send us copies at such times es we may request. $. Representations By accepting this policy, you agree: a. The statements in the Declarations are accu- rate and complete; b, Those statements are based upon representa- tions you mede to u~; end c, We have issued this policy in reliance upon your representations. 7. Separation Of Insureda Except with respect to the Limits of insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this Insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" Is brought. $. Transfer Of Rights Of Recovery Against Othere To Ua If the insured has rights to recover all or part of any payment we have mede under this Coverage Part, those rights are transferred to us. The In- sured must do,.ncthing after loss to impair them. At our request, the Insured will bring "suit" or transfer those rights to us and help us enforce them. g. When We Do Not Renew If we decide not to renew this Coverage Part, we will mall or deliver to the first Named Insured shown In the Declarations written notice of the nonrenewal not less than 30 days before the expi- ratlo~ date. If notice Is mailed, proof of mailing will be suffi- cient proof of notice. SECTION V - DEFINITIONS 1. "Advertising Injury" means Injury arising out of one or more of the following offenses: a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or sea[cas; b. Oral or written publication of material that violates a person's right of privacy; c. Misappropriation of advertising ideas or style of doing business; or d. Infringement of copyright, title or slogan. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, In- cluding any attached machinery or equipment. But "auto" does not include "mobile equipment". 3. "Bodily Injury" means bodily Injury, sickness or disease sustained by a person, including death re- suiting from any of these at any time. 4. "Coverage territory" means: a. The United States of ArCtics (including its territories and possessions), Puerto Rico and Canada; b. international waters or airspace, provided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world If: (1) The Injury or damage arises out of: Ia) Goods or products made or sold by you in the territory described In a. above; or 340 CGL Coverage Form (b) The activities of a person whose home is In the territory described in a. above, but Is away for a short time on your business; and (2) The Insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a. above or in a settlement we agree to. "Employes" Includes a "leased worker", "Em- ployee" does not include a "temporary worker". "Executive officer" means a person holding any of the officer positions created by your charter, con- stitutlon, by*laws or any other similar governing document. "Impaired property" means tangible property, other than "your product" or "your work", that can- not be used or is less useful because: a. It incorporates "your product" or "your work" that is known or thought to be defective, defi- cient, inadequate or dangerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. The' repair, replacement, adjustment or re- moval of "your product" or "your work"; or b, Your fulfilling the terms of the contract or agreement. "Insured contract" means: s. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or or- ganization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "in- sured contract"; b. A sidetrack agreement; o. Any easement or license agreement, except in connection with construction or demolition op- erations on or within 50 feet of a railroad; d. An obligation, as required by ordinance, to indemnify a municipality, except In connection with work for a municipality; e. An elevator maintenance agreement; f. That part of any other contract or , agrsema~t pertaining to your business (~ncludlng an in- demnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "propeR damage" to a third person or organization. Tort liability means a liability that would be Impesed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That Indemnifies a railroad for "bodily In. jury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroadproperty and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing; (2) That indemnifies an amhitect, engineer or surveyor for injury or damage arising ou~ of: (a) Preparing, approving, or failing to pre. pare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifl- caflor~s; or (b) Giving directions or instructions, or failing to give them, If that is the primary cause of the injury or damage; or (3) Under which the Insured, if an architect, engineer or surveyor, assumes liability for an Injury or damage arising out of the In. sured's rendering or failure to render pro- fesaional, servlces, Including those listed In (2) above and supervisory, inspection, ar- chitectural or engineering activities, g. "Leased worker" means a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 10."Loading or unloading" means the handling o~' property: a. After it Is moved from the place where it is accepted for movement into or onto an air- craft, watercraft or "auto"; CG 00 01 01 96 Copyright, Insurance Services Office, Inc,, 1994 Page 11 of 13 ~ CGL Coverage Form 341 ment r~ in- etlon ndsr ~ther ~erty Tort sod ~,ny s, ~r b. While it is in or on an aimraft, watercraft or "auto"; Or c, While it is being moved from an aircraft, wa- temraff or "auto" to the place where it is finally delivered; but "loading er unloading" does not inclUde the movement of property by means of a mechanical device, other than a hand truck, that is not at- tached to the aimraff, watemraft or "auto". 11."Mobile equipment" means any of the following types of land vehicles, Including any attached ma- chinery or equipment: a. Bulldozers, farm machinery, forkiitts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, main- rained primarily to provide mobility to perma- nently mounted: (I) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resuff~cing equipment such as graders, scrapers or milers; e, Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f, Vehicles not described in a., b., c. or d. above maintained primarily for purposes other than the transportation of perecns or cargo. However, self-propelled vehicles with the fol- lowing types of permanently attached equip- ment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, inclUding spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment, 12."Occurrance" means an accident, including con- tlnuous or repeated exposure to substantially the same general harmful conditions. 13."Personal injury" means injury, ether than "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b, Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occu- pancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or organization or disparages e person's or organization's goods, products or services; or e. Oral or written publication of material that violates a person's right of privacy. 14. "Products-completed operations hazard": a. Includes all "bodily injury" and "property dam- age" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (I) Products that are still in your physical pos- session; or {2) Work that has not yet been complated or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been completed. (b) When all of the work to be done at the job site has been completed if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to Its Intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need so. ice, maintenance, correction, repair or replacement, but which is otherwise complete, will be treated as completed. Page 12 of 13 Copyright, Insurance Services Office, thC., 1994 CG 00 01 01 96 I-3 342 CGL Coverage Form b. Does not include "bodily injury" or "property damage" arising out of: (1) The transportation of property, unless the Injury or damage arises out of a condition in or on a vehicle not owned or operated by you, and that condition was created by the "loading or unloading" of that vehicle by any insured; (2) The existence of tools, unlnstalled equip- ment or abandoned or unused materials; or (3) Products or operations for which the classi- fication, listed in the Declarations or in a policy schedule, states that products- completed operations are subject to the General Aggregate Limit, t 5. "Property damage" means: a. Physical injury to tangible property, including all resulting loss of use of that property, All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically Injured. All such loss of use shall be deemed to occur at the time of the "occur- rence'' that caused it. 16."Suit" roeans a civil proceeding In which damages because of "bodily injury", "property damage", "personal injury" or "advertising injury" to which this insurance applies are alleged. "Suit" includes: a. An arbitration proceeding in which such dam- ages are claimed and to which the insured must submit or does submit with our consent; or b. Any other alternative dispute resolution pro- ceeding in which such damages are claimed and to which the insured submits with our con- sent. 17."Temporary worker" means a person who Is fur. nished to you to substitute for a permanent "em. ployee" on leave or to meet seasonal or short. term workload conditions. 18. "Your product" means: a. Any goods or products, other than real prop. erty, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), materiale, parts or equipment furnished in connection with such goods or products. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your product"; and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending machines or other property rented to or located for the use of othem but not sold. 19, "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or operations. "Your work" includes: a. Warranties or representations made at any time with respect to the fitness, quality, dura- bility, performance or use of "your work"; and b. The providing of or failure to provide warnings or instructions. CG 00 01 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 13 of 13 50 N~)F~TH DUt~E STREET, P.O. BOX 83480, LAN~-~STER, PENNSYLVANIA 17608-3480 · (717) 299-8200 SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN PLAINTIFF/S/ 2. COURT NUMBER Pennsylvan~ National Mutual Insurance C~..~, ~ ' 01-210 Civil · TY E OF II R M T' :~i: {5'NAMEOFINOIVIDUA/COMPANY'CORPORA~ION'ETC''TOBEsERVED': Melvi~J SDotts d/b/a Nel Sports EbEcavat.%ncj 6. ADDRESS (Street or RFD, Aparim~t No., City, Boro. Twp., State and ZiP Code) AT 1296 Mart:in St~ F.~at: E,~-i, PA 1'7519 INDICATE UNUSUAL SERVICE: ]~ DEPUTIZE [] OTHER C~T~erla~d Iow, 1/18/01 20 , I, SHERIFF O~ COUNTY, PA., do hereby deputize the Sheriff of T~n~-;~.f-~- ~ounty to execute this Writ and make return thereof according ) law. This deputation being made at the request and risk of the plaintiff. SPECIAL INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: IlE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAWER OF WATCHMAN - Any deputy sheriff levying u~On or attaching ~,,y p rty ~SIGNATUREj4 ~°f ATTORNEY or Other~ORIGINATOR 10. TELEPHONE(21~) 9'/2--'~00NUMBER t 1. t/t0/01DATE SEND NOTICE OF SERVICE COP~TO NAME AND ADDRESS BELOW: (Thie area muet be cOmFlated if notice it to be matted}. , ~PACE BELOW FOR USE OF SHERIFF ONLY -- DO NOT WRITE BELOW THIS MNE I acknowledge re ' of the writ NAME of Authorized LCSO Deputy or Clerk 14. Date Received 15. Expiration/Hearing date orcomolaintasi~dabove. } N~i~I:~J-'J-~; ~ 717-20J5--~o0~ 1/19/01 2/20/01 ' hereby (~E~I'I~V mn'~ RETURN th a~'~ave perao~lallx served,~l~ave legal evidence of service as shown in 'Remarks", [] have executed as shown in ~fe and Zip Code) '" I/~l/ Advancel~7~ Costs100.00 -~' 25. Se~ice4?.~oCOStS 26. Notary Cert. REMARKS: %FFIRMED and s bscribed to b his '~' ~, .~OMMISSION EXPIRES 22. Time PM EST Miles I DeF. Int. q l.'Ll & 1,).) ,~of2 50 NORTH DUKE STREET, P.O, BOX 83480. LAN~i~$TER, PENNSYLVANIA 1 608-3480 · (717) 299-8200 2. COURT NUMBER 01~210 Civil ~ SHERIFF SERVICE PROCESS RECEIPT, and AFFIDAVIT OF RETURN LAINTIFFIS/ Pennsylvania National ~uL~al Insurance C~3y / DEFENDANT/SI . Melvin sports, et. al. F 5. NAME OF INDIVIDUAL, COMPANY. CORPORATION, ETC., TO SE SERVED. llkE m {zabeth Sports AT . : I~,~~s'AoDRESS(atre~t°rRFO'ApartmentN°''city'B°r°'Twp''StateandzlPo°de}1296 Martin St, ~t Eerl, PA 17519 NDICATE UNUSUAL SERVICE:~ DEPUTIZE E) OTHER (~[~,rl ow, 1/18/0! 20 __, I, SHERIFF O~R COUNTY, PA., do hereby deputize the Sheriff of ~;;u¢~=t~ County to execute this Writ and make return thereof according ) law. This deputation being made at the request and risk of the plaintiff. SPECIAL INeTRUCTIONB Off OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE: . ~ -- Cumberland GTE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF'WATCHMAN -- Any deputy sheriff levying upon or attaching an~rty u~er ithin wht may leave same without a watchman, in ~u stodgy of whomever is found in possession, after notifying person of levy or attachment, withof~iabilit~n ,e part o! suoh deputy or the sheriff to any blain~iff herald for any loss. destruction or removal of any such property before shehff's sale t~f. I. SIGNATURE of ATTORNEY or other ORIGINATOR 10, TELEPHONE NUMBER [ 11. DATE ~ H ~ ~.., ,< ': (21.5) 972-7900 I 1/10/01 t. BEND NOTICE OF SERYICE COPY TO NAME AND ADDRESS BELOW: (Thia area* mutt be =omptated If notloe is to be mailed) '~ Ei~(~AVZA :~u.cm 600 1811 ~ ~ t~ZZLA t~ 19103 SPACE BELOW FOR USE OF ~ERIFF ONLY -- DO NOT WRITE Itel;OW 1111S 3.1 acknowledge receipt of the writ ' 1/19/01 or complaint as indicated above.--} .~E,NAME~°f Au~o,z~d717_295_3609LCSO Deputy or Clerk 14. Date Received J 15.2/20/01Expiration/Hearing date 6. I hereb~CERTIFY a~d RETURN that I ~ave personally served, E] have legal evidence of service as shown in "Remarks", [] have executed as shown in "RemarKs", the writ Or compialot described orl the ihdividual, corn pany, corporatio n, etc.. at th · ~dd ross sh own above o r on the individual, combany, cor- poration, etc.. at the address inserted beiow by handing a TRUE a~d ATTESTED COPY thereof. 7. [] I hereby certify and return a NOT FOUND because I sm unable to locate the individual, company, corporation, etc., named above. (See remarks below) 8. Name and title of individual serve~ (if not shOWp.above) (Relationship to Dete.danf) 19. / s. Rmmdm I~o~ (N~ 30) 0 Address of where se~sd (complete only if difterent than shown above) (Street or RFD,Apartment NO., City, Bore, Twp. 21. Date of Sewice 22. Time State and Zip Code) - I I PM ,4. Advance Costa ~$. aervice Costs 26, Notary Ce~t ' 27. Mileage/Postag_elN F: 28 Total Costs 2g. (;OFT Ob~ On al~UNp S.T.A.: -'~ ~ . } .22 i.,. '. 31. AFFIRMED and s~bsCribed to before me this 34. day of 20 37 Prothonotary/Oebuty/Notary Public MY COMMISSION EXPIRES IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, CIVIL ACTION - LAW PENNSYLVANIA NATIONAL MUTUAL INSURANCE COMPANY, Plaintiff, VS. MELVIN SPOTTS, MEL SPOTTS, d/b/a/ MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS ORCHARD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES, Defendant. : No. CI-01-210 PENNSYLVANIA Civil PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Kindly enter the appearance of Kenelm L. Shirk, III, Esquire, and Shirk & Ermolovich, LLP, as attorneys on behalf of the Defendant/s in the above-captioned case. DATE: Respectfully Submitted, SHIRK & ERMOLOVICH, LLP Kenelm L. Shirk, III, Esquire Attorney For Defendant/s Attorney I.D. #19195 115 South State Street Ephrata, PA 17522 (717) 627-0711 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA NATIONAL MUTUAL CASUALTY COMPANY Plaintiff, MELViN W. SPOTTS, MEL SPOTTS d/b/a MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS, ORCHARD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES Defendants, CIVIL ACTION NO.: 01-210 PRAECIPE TO SUBSTITUTE VERIFICATION Please substitute the attached verification of Tom Bross for the verification of Kenneth M, Portner for the Complaint which was filed in the above-captioned matter. Kenneth M. Portner Date: VERIFICATION I, Tom Bross, hereby verify that the statements made in the lbregoing pleading are true and correct to the best of my knowledge, information and belief. The undersigned understands that the statements therein are made subject to the penalties of 18 Pa. C.S.A. 4904 relating to unsworn falsification to authorities. Date: SHIRK & ERMOLOVICH, LLP By: Kenelm L. Shirk, III, Esquire I~entification No. 19195 Nicholas Ermolovich, Esquire Identification No. 73573 115 South State Street Ephrata PA 17522-2412 (717) 733-7997 Attorneys for Defendants Melvin Sports, Mel Sports d/b/a Mel Sports Excavat- ing and Elizabeth Spotts PENNSYLVANIA NATIONAL MUTUAL INSURANCE COMPANY, Plaintiff MELVIN SPOTTS, MEL SPOTTS, d/b/a MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS, ORCHILRD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES, Defendants. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 01-210 CIVIL TERM PRELIMINARY OBJECTIONS OF DEFENDANTS, MELVIN SPOTTS AND ELIZABETH SPOTTS TO COMPLAINT FOR DECLARATORY JUDGMENT AND OTHER RELIEF Defendants, Melvin Sports, a/k/a Mel Spotts, and Elizabeth Spotts, by and through their Counsel, Shirk & Ermolovich, LLP, file these Preliminary Objections to Plaintiff's Complaint for Declaratory Judgment and Other Relief and in support thereof aver the following: 1. The present civil action was commenced by Plaintiff, Pennsylvania National Mutual Insurance Company (hereinafter referred to as "Penn National"), by Complaint on or about January 10, 2001. 2. This declaratory action stems from a civil action filed against Defendants, Melvin Spotts and Elizabeth B. Spotts, t/d/b/a Mel Sports Excavating (hereinafter referred to collectively as "Spotts") in the Court of Common Pleas of Cumberland County (No.: 97-4977) by co-Defendants, Orchard Hills Associates and Pocono Village Associates.~ ~Defendant, Melvin Sports is also known as Mel Sports and he is the sole proprietor of the business known as "Mel Sports Excavating". allege Sports 4. Orchard Hills Associates and Pocono Village Associates certain damages incurred as a result of work performed by at a mobile home park in Monroe County, Pennsylvania. Penn National was the general liability insurance carrier for Spotts Excavating". I. Preliminary Objection Pursuant to Pa.R.C.P. No. Improper Venue. 5o reference 6. objection 7. "Mel Sports Excavating" and/or "Mel Sports t/a Mel 1028(a) (1): Paragraphs 1 through 4 are incorporated herein by as though fully set forth below at length. Pa.R.C.P. No. 1028(a) (1) provides that a preliminary may be filed on the grounds of improper venue. Pa.R.C.P. No. 1006 {Venue), in pertinent part, states: "(a)..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 arose or where a transaction or occurrence took place out of which the cause of action arose or in any other county authorized by law." 8. The Spotts live in Lancaster County and were served with the Complaint in Lancaster County. 9. The business of Melvin Sports is located in Lancaster County and he conducts business primarily in Lancaster County. 10. Penn National maintains a principal place of business in Dauphin County. 11. Penn National conducted business with Melvin Sports or "Mel Sports Excavating" in Lancaster County through it's agent, Murray Insurance Associates, Inc., also of Lancaster County. 12. All contact between Melvin Sports and Penn National (through Murray Insurance Associates, Inc.) occurred within Lancaster County. 13. All documents regarding insurance coverage were executed in Lancaster County. 14. Sports has no place of business or registered office in Cumberland County. 15. Sports does not regularly conduct business in Cumberland County. 16. No transaction or occurrence took place and no cause of action arose in Cumberland County regarding insurance policies issued to Melvin Sports by Penn National. 17. No contracts or agreements were executed between Sports and Penn National designating Cumberland County as proper venue for any disputes regarding insurance coverage. 18. Penn National has failed to allege a contractual or other relationship with Defendant, Elizabeth Spotts, to establish venue in Cumberland County. 19. Penn National has failed to allege a cause of action and any relief in this declaratory action against Orchard Hills Associates and Pocono Village Associates and, therefore, venue is not appropriate under Pa.R.C.P. No. 1006(c). 20. Monroe County, Pennsylvania is the location of the alleged occurrence which gave rise to the underlying cause of action against Sports by co-Defendants, Orchard Hills Associates and Pocono Village Associates. 21. Pursuant to Pa.R.C.P. No. 1006, venue in Cumberland County is improper and the matter should be transferred to Lancaster County. WHEREFORE, Defendants, Melvin Sports, a/k/a Mel Sports and Elizabeth Sports, respectfully request this Honorable Court sustain the preliminary objection for improper venue and order the matter transferred to Lancaster County with all costs and fees of transfer to be paid by Pennsylvania National Mutual Casualty Company. II. Preliminary Objection Raisin~ Legal Insufficiency of a Pleadin~ (Demurrer). 21. Paragraphs 1 through 4 are incorporated herein by reference as though fully set forth below at length. 22. The declaratory action filed by Penn National names Elizabeth Spotts as a co-Defendant. 23. Penn National fails to establish a factual or legal basis for naming Elizabeth Spotts as a Defendant in this action. 24. As indicated in Paragraph 9 of the Complaint, Penn National has sold insurance policies to "Mel Spotts Excavating" and/or "Mel Sports t/a Mel Sports Excavating". 25. As such, this declaratory action filed against Elizabeth Spotts is not available as a matter of law, is legally insufficient and should be dismissed. WHEREFORE, Defendants, Melvin Spotts, a/k/a, Mel Spotts, and Elizabeth Spotts, respectfully request this Honorable Court sustain the Preliminary Objection by way of demurrer and dismiss 4 Elizabeth Sports as a party to this action. IIi. Preliminary Objection Raisinu Failure of a Pleadinq to Conform to Law or Rule of Court. 26. Paragraphs 1 through 4 are incorporated herein by reference as though fully set forth below at length. 27. The prayers for relief in Count I and Count II of the Complaint, in part, requests: "For such other and further relief this Court may deem just and proper, including attorneys' fees and costs of suit." 28. The requested relief is improper and inappropriate since no specific statute or Rule of Court provides for such relief for a "declaratory judgment" action or other common law relief for the purported claims raised in Count I and Count II of the Complaint. 29. The prayer for relief in Count II of the Complaint, in part, requests: "An Order directing Spotts to reimburse Penn National for all fees and costs incurred by Penn National in defending Sports against the claims asserted in the Complaint and Amended Complaint " 30. The requested relief is improper and inappropriate since no specific statute or Rule of Court provides for such relief in a declaratory judgment action. 31. Penn National fails to provide any contractual or other legal basis that the requested relief is permitted. WHEREFORE, Defendants, Melvin Sports a/k/a Mel Sports and Elizabeth Sports, respectfully request this Honorable Court 5 sustain this preliminary objection and strike the prayers for relief in Counts I and II of the Complaint. IV. Preliminary Objection Raisin~ Insufficient Specificity in the Complaint. 32. Paragraphs 1 through 4 are incorporated herein by reference as though fully set forth below at length. 33. Paragraph 26 of the Complaint alleges: "The claims asserted in the Complaint and Amended Complaint fall within the ambit of the exclusions cited in the preceding paragraph and therefore are not covered under the Penn National policies". 34. Penn National has failed to allege facts with sufficient particularity to enable Spotts to prepare and assert defenses to the allegations contained in Paragraph 26. 35. The Sports are severely and substantially prejudiced in that they are not able to respond properly and sufficiently to the broad and vague language contained in Paragraph 26. 36. Paragraph 28 of the Complaint states: "The claims asserted in the Complaint and Amended Complaint fall within the ambit of the Total Pollution Exclusion and therefore there is no coverage for these claims under the Penn National policies". 37. Penn National has failed to allege facts with sufficient particularity to enable Sports to prepare and assert defenses to the allegations contained in Paragraph 28. 4. The Spotts are severely and substantially prejudiced in that they are not able to respond properly and sufficiently to the broad and vague language contained in Paragraph 28. 6 WHEREFORE, Defendants, Melvin Sports, a/k/a, Mel Spotts and Elizabeth Spotts, respectfully request this Honorable Court sustain the preliminary objection alleging insufficient specificity in the Complaint and order Penn National to file a more specific Pleading. Respectfully Submitted, SHIRK & ERM~LOVICH/'EL--~-~ · /' KeneYm L. ghirk;/III, Esqu're Attorney I.D. ~19195 Nicholas Ermo~ovich, Esquire Attorney I.D. ~73573 Attorneys for Defendant, Melvin Sports, Mel Sports d/b/a Mel Sports Excavating and Elizabeth Spotts 115 South State Street Ephrata, PA 17522 (717) 733-7997 7 VERIFICATION I, Nicholas Ermolovich, Esquire, of Shirk & Ermolovich, LLP, verify that I am an attorney for the Defendants, Melvin Spotts, Mel Sports d/b/a Mel Sports Excavating and Elizabeth Spotts, herein and that I have the permission of the Defendant, Elizabeth Sports, to sign this document on her behalf. I further verify that the statements made in this document are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to sworn falsification to authorities. Nicholas Ermol~iire Sports d/b/a Mel Sports Excavating and Elizabeth Sports 115 South State Street Ephrata, PA 17522 (717) 627-0711 VERIFICATION I, Melvin Sports a/k/a Mel Spotts, verify that the statements made in the foregoing Preliminary Objections are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. MELVIN'SPOTTS CERTIFICATION OF SERVICE I hereby certify that I have on the below date served a copy of the foregoing Preliminary Objections to Complaint for Declaratory Judgment and Other Relief on the person and in the manner indicated below, which service satisfies the requirements of Pa.R.C.P. No. 440. Service by regular first class mail, addressed as follows: Kenneth M. Portner, Esquire WEBER GOLDSTEIN GREENBERG & GALLAGHER The Belgravia, Suite 600 1811 Chestnut Street Philadelphia, PA 19103 DATE: SHIRK &~/~.-~/LP~;ERMO~/~CH, ~LP ~.~ By: %~ _ --~ Kenelm L. Shirk, I~I, Esquire Attorney ID #19195~-- Nicholas Ermolovich, Esquire Attorney ID #73573 Attorneys for Melvin Sports, Mel Spotts d/b/a Mel Spotts Excavating and Elizabeth Sports 115 South State Street Ephrata, PA 17522 (717) 733-7997 H:\Spotts, MeLvin\POstoCo~plaint...sjf 3/~8/01 2:45PM SHIRK & ERMOLOVICH, LLP By: Kenelm L. Shirk, III, Esquire Identification No. 19195 Nicholas Ermolovich, Esquire Identification No. 73573 115 South State Street Ephrata PA 17522-2412 (717) 733-7997 Attorneys for Defendants M~lvin Sports, Mel Spotts d/b/a Mel Sports Excavat- ing and Elizabeth Sports PENNSYLVANIA NATIONAL MUTUAL INSURANCE COMPANY, Plaintiff MELVIN SPOTTS, MEL SPOTTS d/b/a MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS, ORCHARD RILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES, Defendants. ORDER IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 01-210 CIVIL TERM AND NOW, this day of , 2001, upon consideration of the Preliminary Objections of Defendants, Melvin Sports, a/k/a Mel Sports and Elizabeth Sports, to the Complaint for Declaratory Judgment and Other Relief and any response thereto, it is hereby ORDERED and DECREED that the objections are sustained and the Complaint is dismissed against Melvin Sports, a/k/a Mel Spotts and Elizabeth Spotts; in the alternative, the objections are sustained and the Prothonotary of Cumberland County is directed to transfer this action to the Court of Common Pleas of Lancaster County upon payment by Plaintiff of all costs and fees of transfer. BY THE COURT: ATTEST: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA NATIONAL MUTUAL CASUALTY COMPANY Plaintiff, MELVIN W. SPOTTS, MEL SPOTTS d/b/a MEL SPOTTS EXCAVATING, ELIZABETH SPOTTS, ORCHARD HILLS ASSOCIATES, POCONO VILLAGE ASSOCIATES Defendants, CIVIL ACTION NO.: 01-210 PRAECIPE TO WITHDRAW COMPLAINT TO THEPROTHONTARY: Please mark the complaint in the above-captioned matter withdrawn without prejudice. Date: Respectfully submitted, WEBER GOLDSTEIN GREENBERG & GALLAGHER LLP Attorney for Plaintiff Pennsylvania National Mutual Casualty Company CERTIFICATE OF SERVICE I hereby certify that on the ~*Sa-day of September, 2001, I forwarded a copy of the foregoing Praecipe to Withdraw Complaint on behalf of plaintiff Pennsylvania National Mutual Casualty Company, via first-class United States mail, postage prepaid, upon the following: Nicholas Ermolovich, Esquire Shirk & Ermolovich, LLP 115 South State Street Ephrata, PA 17522-2412 Samuel L. Andes, Esquire 525 North 12th Street P.O. Box 168 Lemoyne, PA 17043 Kennet~h~vl.~ner