HomeMy WebLinkAbout14-5301 Supreme Court ofennsylvania
Cour .v4ot�Commo leas For Prothonotary Use Only:
C YI! Cover Sheet
Docket No: ,S`
1:
Cunt'erland� County
The information collected on this form is used solely for court administration purposes. This form does not
supplement or replace the filing and service of pleadings or other papers as required by law or rules of court.
Commencement of Action:
S x' Complaint [3 Writ of Summons 0 Petition
E 0 Transfer from Another Jurisdiction 0 Declaration of Taking
C Lead Plaintiff's Name: Lead Defendant's Name:
T ESK Steakhouse, Inc. Brethren Mutual Insurance Company
Dollar Amount Requested: Dwithin arbitration limits
I Are money damages requested? Yes D No (check one) xi outside arbitration limits
O
N Is this a Class Action Suit? 0 Yes 0 No Is this an MDJAppeal? Q Yes 0 No
A Name of Plaintiff/Appellant's Attorney: Michael A. Scherer, Esquire
0 Check here if you have no attorney (are a Self-Represented jPro Sel Litigant)
Nature of the Case: Place an"X"to the left of the ONE case category that most accurately describes your
PRIMARY CASE. If you are making more than one type of claim,check the one that
you consider most important.
TORT(do not include Mass Tort) CONTRACT(do not include Judgments) CIVIL APPEALS
0 intentional 0 Buyer Plaintiff Administrative Agencies
0 Malicious Prosecution 0 Debt Collection:Credit Card Board of Assessment
0 Motor Vehicle Debt Collection:Other 0 Board of Elections
0 Nuisance 0 Dept.of Transportation
Premises Liability 0 Statutory Appeal:Other
S 0 Product Liability(does not include
E mass tort) 0 Employment Dispute:
0 Slander/Libel/Defamation Discrimination
C 0 Other: Employment Dispute:Other 0 Zoning Board
T 0 Other:
I Q Other:
O MASS TORT
0 Asbestos
N 0 Tobacco
0 Toxic Tort-DES
0 Toxic Tort-Implant REAL PROPERTY MISCELLANEOUS
0 Toxic Waste
0 Other: 0 Ejectment 0 Common Law/Statutory Arbitration
B Eminent Domain/Condemnation 0 Declaratory Judgment
Ground Rent 0 Mandamus
0 Landlord/Tenant Dispute 0 Non-Domestic Relations
0 Mortgage Foreclosure:Residential Restraining Order
PROFESSIONAL LIABLITY 0 Mortgage Foreclosure:Commercial 0 Quo Warranto
Dental Partition 0 Replevin
Legal 0 Quiet Title 0f Other:
0 Medical r-1 Other:
Other Professional:
Updated 1/1/2011
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ESK STEAKHOUSE, INC., IN THE COURT OF COMMON PLEAS OF
Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA
V. NO. 14-
CIVIL ACTION-LAW
BRETHREN MUTUAL :
INSURANCE COMPANY,
Defendant
NOTICE
You have been sued in court. If you wish to defend against the claims set forth
in the following pages, you must take action within twenty (20) days after this complaint
and notice are served, by entering a written appearance personally or by an attorney
and filing in writing with the court, your defenses or objections to the claims set forth
against you. You are warned that if you fail to do so, the case may proceed without you
and a judgment may be entered against you by the court without further notice for any
money claimed in the complaint or for any other claim or relief requested by the plaintiff.
You may lose money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH
INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE
TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER
LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street -U:: s _,
Carlisle, Pennsylvania 17013 z
Co
(717) 249-3166 --a
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1
ESK STEAKHOUSE, INC., IN THE COURT OF COMMON PLEAS OF
Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA
V. NO. 14-
CIVIL ACTION-LAW
BRETHREN MUTUAL
INSURANCE COMPANY,
Defendant
COMPLAINT
1. The Plaintiff is ESK Steakhouse, Inc. (hereinafter "ESK"), a Pennsylvania
corporation with a principal place of business formerly located at 909 Walnut Bottom
Road, Walnut Bottom Road, Cumberland County, Pennsylvania, 17013.
2. The Defendant is the Brethren Mutual Insurance Company (hereinafter
"Brethren"), with a mailing address of 149 North Edgewood Drive, Hagerstown,
Maryland 21740.
3. ESK brings this action for monies Brethren owes ESK under a contract of
insurance Brethren issued to ESK.
4. This Court has jurisdiction over this action because the policy of insurance
issued by Brethren insured ESK for business operations which were completely and
entirely operated within Cumberland County, Pennsylvania.
Background
5. At all times material hereto, ESK operated a "Bonanza" restaurant at 909
Walnut Bottom Road, Carlisle, Cumberland County, Pennsylvania.
6. At all times material hereto, ESK had in force a policy of business
insurance purchased from Brethren and in place relative to ESK's commercial
restaurant operations.
e
7. Brethren issued ESK a commercial policy (hereinafter "policy"), number
CPP0018984 01 which provided ESK insurance coverage for business income loss with
a limit of insurance in an amount equal to ESK's actual loss sustained. A copy of the
Business Income Coverage Endorsement is attached hereto as "Exhibit A."
8. The relevant business income loss policy language stated at paragraph
3.B. that: "The most we will pay for loss in any one occurrence, which occurs within 12
consecutive months after the date of direct physical loss or damage, is: 1. The actual
loss of Business Income you sustain due to the necessary suspension of your
"operations" during the "period of restoration."
9. "Period of restoration is not defined in the contract.
10. On October 19, 2013, the building located at 909 Walnut Bottom Road,
Carlisle, Pennsylvania, from which ESK operated the Bonanza Restaurant, was
completely destroyed by fire.
11. ESK made a claim under the policy with Brethren, for, among other things,
business income loss coverage. .
12. Brethren paid ESK proceeds from the policy for ESK's business income
loss for a period of six months after the fire.
13. The "period of restoration" as stated in the policy extends for the entire
twelve months after the fire.
14. Brethren owes ESK an additional six months of business income loss
coverage under the policy representing coverage for business income loss for months
seven through twelve following the fire.
15. Brethren has a contractual obligation to pay ESK business income loss
coverage for the entire duration of the twelve month "period of restoration" for which
ESK purchased coverage pursuant to the terms of the policy.
COUNT I - BREACH OF CONTRACT
16. Brethren's failure to pay ESK business income loss as required by the
policy written and issued by Brethren constitutes a breach of Brethren's contractual
obligations under insurance contract with ESK.
WHEREFORE, ESK demands judgment against Brethren for the entire business
income loss coverage provided for in the policy, plus interest and costs of suit and such
further relief as the Court deems appropriate.
COUNT II - BAD FAITH UNDER 42 Pa.C.S.A. Section 8371
17. Paragraphs one through sixteen above are incorporated herein.
18. ESK, through its president, Edward Kujawa, and undersigned counsel,
have repeatedly demanded the Brethren pay the insurance proceeds it owes to ESK.
19. Brethren refuses to pay ESK the insurance proceeds it owes ESK.
20. ESK, through counsel, has repeatedly asked Brethren's counsel for
justification of Brethren's refusal to pay the insurance proceeds due and owing to ESK.
21. Counsel for Brethren refuses to explain Brethren's refusal to pay the
policy proceeds it owes ESK except to generically state that Brethren does not owe
ESK any additional monies pursuant to the policy.
22. Brethren's vague denial of liability for further payment of business income
loss proceeds under the policy does not afford ESK a reasonable opportunity to
address Brethren's refusal to make further payment under the policy.
23. ESK has been forced to employ legal counsel to assert its rights under the
policy.
24. Brethren owes ESK a duty of good faith and fair dealing, which includes a
reasonable explanation of Brethren's analysis of the policy language and justification for
denial of further coverage, and not a general denial with absolutely no reference to
policy provisions or language.
25. Brethren has no reasonable basis to deny ESK's request for additional
business loss coverage.
26. Brethren has demonstrated a lack of good faith in completely replying to
ESK's coverage claim.
27. Brethren's refusal to pay additional business loss coverage under the
policy illegal, unjust and in breach of Brethren's duty of good faith owed to ESK.
28. Brethren has failed to act and proceed in good faith in evaluating and
processing this claim, thereby exposing ESK to unwarranted delay in receipt of
insurance proceeds, costs and legal fees.
[REMAINDER OF THIS PAGE BLANK]
WHEREFORE, ESK respectfully requests that this Honorable Court enter
judgment in its favor and against Brethren and to award ESK with such damages as the
Court deems just as enumerated in 42 Pa.C.S.A. section 8371.
Respectfully submitted,
BARIC SCHERER LLC
1�41-41
It VLZV MF I
Mi h e A. Sc erer, Esquire
I.D. # 61974
19 West South Street
Carlisle, Pennsylvania 17013
(717) 249-6873
VERIFICATION
I verify that the statements made in this Complaint 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.
ESK Steakhouse, Inc.
Date:C `� By:
Edward Kujawa
President
Brethren Mutu,-d
Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
Business Income (and Extra Expense) Enhancement Endorsement
This endorsement modifies Insurance provided under the following:
BUSINESS INCOME (AND EXTRA EXPENSE) COVERAGE FORM -CP 00 30
The BUSINESS INCOME (AND EXTRA 3• B. LIMITS OF INSURANCE is replaced with:
EXPENSE) COVERAGE FORM -CP 00 30 is
amended as follows: The most we will pay for loss in any one
occurrence, which occurs within 12 consecutive
1• Under A. COVERAGE, 5.Additional months after the date of direct physical loss or
Coverages, b:Alterations and New damage, is:
Buildings, (3) is amended to show 1;000
feet of the described premises. 1. 9-he-actual loss of�Business Income you
'Sustain due to the necessary:suspension of
2• Under A. COVERAGE, 6. Coverage -your"operations"during the"period of
Extension is replaced with: restoration", and
You may extend the insurance provided by 2• The,necessary Extra.Expenseyou incur
this Coverage Part as follows: during the"period of restoration"that you•
would not have incurred if there had been
Newly Acquired Locations no direct physical loss or damage to
- I property at the described premises.
a• You maylextend the Business Income
and Extra Expense Coverages to apply 4. D.ADDITIONAL CONDITION -Coinsurance is
to property at any location you acquire deleted. A minimum Coinsurance percentage is
other than fairs or exhibitions. not required to activate this Coverage
b. The most we will pay under this Enhancement Endorsement.
Extension,for the sum of Business 5. Under E. OPTIONAL COVERAGES,the only
Income loss and Extra Expense optional coverage that applied to this Coverage
incurred, is$250,000 at each location. Enhancement Endorsement is:
C. Insurance under this Extension for each 1- Maximum Period Of Indemnity.
newly acquired location will end when
any of the following first occurs: The following optional coverages are deleted:
(1) The Ifolicy expires, 2. Monthly Limit of Indemnity,
(2) 30 days expire after you acquire or 3. Business Income Agreed Value,and
begin to construct the property: or
t
(3) You report values to us. 4. Extended Period of Indemnity.
We will charge you additional premium
for values reported from the date you
acquire the property.
This Extension is additional insurance.
�J Includes copyrighted material of Insurance Services Office, Inc.,
BMI 90 04 01 10 with its permission.
Page 1 of 1
"EXHIBIT All
DURKIN LAW OFFICES, P.C.
By: Martin A. Durkin, Esquire
Attorney ID No: 37279
1760 Market Street - Suite 602
Philadelphia, PA 19103
Phone: (215) 569-9090
4:e D
PR
2114 sep 7 pe
sio'Br_f-R1.4,y0
Attorney for Defecrfd#1/2r,. vAL.N147
Y
ESK STEAKHOUSE, INC.
Plaintiff,
V.
BRETHREN MUTUAL INSURANCE
COMPANY '
Defendant.
COURT OF COMMON PLEAS
CUMBERLAND COUNTY
CIVIL ACTION - LAW
No. 14-5301
JURY TRIAL DEMANDED
ENTRY OF APPEARANCE
TO THE PROTHONOTARY:
Kindly enter our Appearance as counsel for the Defendant, Brethren Mutual Insurance
Company.
By:
Respectfully submitted,
DURKIN LAW OFFICES, P.C.
Martin A. Durkin, Esquire
Attorney for Defendant
CERTIFICATE OF SERVICE
I, Martin A. Durkin, Esquire, hereby certify a true and correct copy of the foregoing Entry
of Appearance was served upon the following attorney of record via telecopier on the 15th day of
September, 2014, addressed as follows:
Michael A. Scherer, Esquire
BARIC SCHERER LLC
19 West South Street
Carlisle, PA 17013-3432
Telecopier No.: (717) 249-5755
BY:
DURKIN LAW OFFICES, P.C.
Martin A. Durkin, Esquire
Ronny R Anderson
Sheriff
Jody S Smith
Chief Deputy
Richard W Stewart
Solicitor
SHERIFF'S OFFICE OF CUMBERLAND COUNTY
r
CFFICF. OF Ti ti $ SRIF=
2.3111 SEP 22 PM 2: 29
CUMBERLAND COUNTY
PENNSYLVANIA
ESK Steakhouse, Inc.
vs.
Brethren Mutual Insurance Company
Case Number
2014-5301
SHERIFF'S RETURN OF SERVICE
09/10/2014 Ronny R Anderson, Sheriff, who being duly sworn according to law, states that he served the within
Complaint & Notice upon the within named defendant, Brethren Mutual Insurance Company, in the
following manner: On September 10, 2014 the Sheriff mailed by certified mail, return receipt requested a
true and correct copy of the within Complaint & Notice to the defendant's last known address of 149 North
Edgewood Drive, Hagertown, MD 21740. The certified mail return receipt card was received by the
Cumberland County Sheriff's Office signed by Brethren Mutual Insurance Company on Rob Stouffer.
SHERIFF COST: $34.69 SO ANSWERS,
September 16, 2014
(c) County,Suite Sheriff, Teleosoft, Inc.
RONZ ANDERSON, SHERIFF
r
SENDER: COMPLETE THIS SECTION
• Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery Is desired.
• Print your name and address on the reverse
so that we can return the card to you.
• Attach this card to the back of t
or on the front if space permi
1. Article Addressed to:
- —,
Brethren Mutual Insuran
149 Nodgewood Drive
Hagertown, MD 21740
COMPLETE THIS SECTION ON DELIVERY
A. nat�s
0 Agent
0 Addressee
egeivec} by
Cinte. . ') C. Date of Delivery
2-1(1
D. Is delivery address different from item 1? 0 Yes
If YES, enter delivery address below: 0 No
53D1 -fin
3. Service Type
0 Certified Mails 0 Priority Mall Express'
0 Registered 0 Return Receipt for Merchandise
0 Insured Mail 0 Collect on Delivery
4. Restricted Delivery? (Extra Fee)
0 Yes
2. Article Number
(Transfer from service labe°
7
07 0710 0003 2210 4266
PS Form 3811, July 2013• • •
Domestic Return Receipt