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HomeMy WebLinkAbout02-3060r EVERETT CASH MUTUAL INSURANCE : IN THE COURT OF COMMON PLEAS COMPANY, OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff n v. No. l.. O a- ,3a6 d i v t.???1LY+-1 DONALD E. MENTZER, : CIVIL ACTION - LAW SHIRLEY M. MENTZER, JOHN DAINES, : BECKY DAINES, and RE/MAX REALTY, : Defendants : JURY TRIAL DEMANDED NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 EVERETT CASH MUTUAL INSURANCE COMPANY, Plaintiff vs. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 02-3060 CIVIL TERM DONALD E. MENTZER, SHIRLEY M. MENTZER, JOHN DAINES, BECKY DAINES, AND : RE/MAX REALTY, : CIVIL ACTION -LAW Defendants : JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY OF SAID COURT: Please enter my appearance on behalf of Defendant Re/Max Realty only in the above- captioned matter. CALDWVLL & KEARNS By: /Jayfes L. Goldsmi quir ttorney I.D. #271 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 Attorney for Re/Max Realty Dated: CERTIFICATE OF SERVICE AND NOW, this,? day of 2002, I hereby certify that I have served a copy of the within document on the following by depositing a true and correct copy of the same in the U.S. Mails at Harrisburg, Pennsylvania, postage prepaid, addressed to: Rolf E. Kroll, Esquire MARGOLIS EDELSTEIN Post Office Box 932 Harrisburg, PA 17108-0932 William A. Addams HANFT & KNIGHT, P.C. 19 Brookwood Avenue - Suite 106 Carlisle, PA 17103-9142 Gregory Abeln, Esquire ABELN LAW OFFICES 37 E. Pomfret Street Carlisle, PA 17013 CALDWELL & KEARNS By 01-541/42520 c? ? ?-=? C :"e3 -rt /?) ? : ??., ? . -Tl ( _; ? C.:: .fi t.J -G NOTICIA Le ban demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viento (20) dias de plazo al partir de le fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objections a las demandas en contra de su persona. Sea advisado que si usted no se defiende, la corte tomara medidas y puede entrar una Orden contra usted sin previo adviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o es propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 l ? I EVERETT CASH MUTUAL INSURANCE : IN THE COURT OF COMMON PLEAS COMPANY, OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. No. Cad - .30(oC? Gukx - f-lt.) DONALD E. MENTZER, CIVIL ACTION - LAW 1 SHIRLEY M. MENTZER, JOHN DAINES, : BECKY DAINES, and RE/MAX REALTY, : Defendants : JURY TRIAL DEMANDED COMPLAINT FOR DECLARATORY JUDGMENT AND NOW comes Plaintiff, Everett Cash Mutual Insurance Company, by and through its counsel, Margolis Edelstein, to seek judgment in its favor, pursuant to the Declaratory Judgment Act, 42 Pa. Cons. Stat. §7531 et seq., declaring that Everett owes no indemnity coverage of any kind to Donald E. or Shirley M. Mentzer arising from any and all claims asserted by John Daines and Becky Daines in their Complaint filed in the Court of Common Pleas of Cumberland County, at Civil Action Number 01-4866 Civil, and in support thereof avers the following: L PARTIES 1. Everett Cash Mutual Insurance Company is an insurance company licensed to do business in the Commonwealth of Pennsylvania with a principal place of business at R.D. 1, Everett, Pennsylvania ("Everett'). 2. Donald E. Mentzer is an adult individual with an address at 166 North Middlesex Road, Carlisle, Pennsylvania ("Mr. Mentzer"). 3. Shirley M. Mentzer is an adult individual with an address at 166 North Middlesex Road, Carlisle, Pennsylvania ("Mrs. Mentzer). 4. RE/MAX Realty is a real estate entity with a place of business at 3425 Market Street, Camp Hill, Pennsylvania ("RE/MAX"). 5. John Daines is an adult individual with an address at 178 North Middlesex Road, Carlisle, Pennsylvania ("Mr. Daines"). 6. Becky Daines is an adult individual with a last known address at 265 Sisson Street, Detroit, Michigan ("Mrs. Daines"). II. OPERATIVE FACTS 7. On or about July 30, 2001, Mr. Daines and Mrs. Daines commenced a lawsuit by filing a Complaint in the Court of Common Pleas of Cumberland County (hereinafter referred to as "Mold Complaint"), against Mr. and Mrs. Mentzer and RE/MAX arising from Mr. and Mrs. Daines' purchase of the Mentzer's home. A true and correct copy of the Mold Complaint is attached hereto as Exhibit "A". 8. The essence of the Mold Complaint is that the Mentzer's allegedly had water in their basement which gave rise to mold, mildew and other airborne contagions that caused injury to Mrs. Daines. 9. In the Mold Complaint, Mr. and Mrs. Daines allege, as theories of recovery, that Mr. and Mrs. Mentzer knew or should have known of the water in their basement and nevertheless failed to disclose it. ("Count I - Negligent Misrepresentation"); that Mr. and Mrs. Mentzer knew of the water damage in their basement and fraudulently failed to disclose it ("Count II - Fraud"); that Mr. and Mrs. Mentzer breached their sales agreement by "failing to disclose to a buyer all known material defects about the property being sold that are not readily observable" ("Count III - Breach of Contract"); that Mr. and Mrs. Mentzer violated the Real Estate Disclosure Act by failing to disclose known defects in the property ("Count IV - Real Estate Disclosure Act"); that Mr. Mentzer is guilty of negligence in the construction of the property giving rise to Plaintiffs' damages ("Count V - Negligence"); and finally, that Mr. Mentzer's alleged failure to properly design and build the house breached an implied warranty of habitability (Count VI - Implied Warranty of Habitability). 10. More specifically, Count I of the Daines' Mold Complaint alleges in pertinent part as follows: "Mr. and Mrs. Mentzer knew or should have known of the water damage problems and or the indications of the water damage problems associated with the house. Despite their knowledge and or constructive knowledge of the water damage problems associated with the house located at or affixed to the house, Mr. and Mrs. Mentzer did not disclose these problems to the Plaintiffs." See Mold Complaint at paragraphs 83 and 84. 11. The Daines allege that the failure to disclose the water damage problems associated with the house were acts and or omissions upon which the Daines relied to their detriment giving rise to various personal injuries and damages. See Mold Complaint at paragraphs 87 and 88. 12. Similarly, in Count II of Plaintiffs' Complaint, Plaintiffs allege that Mr. and Mrs. Mentzer affirmatively knew of the water damage problems and intentionally concealed these problems from Plaintiffs to their detriment. See Mold Complaint at paragraph 92. 13. Although Count III of Plaintiffs' Complaint alleges a breach of contract, this breach is likewise premised upon the contractual requirement that the seller "disclose to a buyer all known material defects about the property being sold that are not readily observable." See Mold Complaint at paragraph 101. 14. More specifically, Plaintiffs allege that the Mentzer's breached the contract by failing to disclose known material defects about the property, namely the aforementioned water damage problems, causing damages and injuries to Plaintiffs. See Mold Complaint at paragraph 104. 15. Count IV of Plaintiffs' Complaint alleges a violation of the Real Estate Disclosure Act. This Count mirrors the breach of contract Count in that it hinges upon the alleged failure of the Mentzers to "disclose to a buyer all known material defects about the property being sold that are not readily observable ..." See Mold Complaint at paragraph 107. Plaintiffs again allege that the failure to disclose these known risks caused them injury and damages. 16. Count V of Plaintiffs' Complaint sounds in negligence. This Count asserts that Mr. Mentzer was the general contractor in charge of construction of the house and failed to discharge his duties with respect to design, plan, supervision and construction of the house in a workmanlike manner thereby giving rise to the water problems in the house that caused injury to the Plaintiffs. See Mold Complaint at paragraph 118. 17. Count VI of Plaintiffs' Complaint alleges a breach of implied warranty of habitability. This allegation likewise hinges upon Mr. Mentzer's alleged failure to design, plan, supervise and construct a house in a reasonable workmanlike manner. See Mold Complaint at paragraphs 122 and 123. III. PERTINENT POLICY PROVISIONS 18. At all times relevant hereto, Donald E. and Shirley M. Mentzer were covered under a policy of insurance issued by Everett Cash Mutual Insurance Company with policy number FO-800117. A true and correct copy of this policy is attached hereto as Exhibit "B". ("Policy"). 19. Form GL-2 Ed 2.0 provided personal liability coverage to the Mentzers. 20. The Policy provides, inter alia, liability coverage to the Mentzers, subject to the terms and conditions of the policy. 21. More specifically, coverage L which governs liability, provides that: "We" pay up to "our" "limit", all sums for which an "insured" is liable by law because of "bodily injury" or "property damage" caused by an "occurrence" to which this coverage applies. 22. The term "occurrence" is defined in the policy as follows: "Occurrence" means an accident, including repeated exposures to similar conditions, that result in "bodily injury" or "property damage" during the policy period. 4 23. The policy also defines "pollutant" to mean: Any solid, liquid, gases, thermal, or radioactive irritant or contaminate, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. 24. The policy expressly excludes certain conduct from coverage under the policy as follows: Exclusions That Apply to Coverages L and M -- This Personal Liability Coverage does not apply to: g. "bodily injury" or "property damage" which results from the rendering of or the failing to render a professional service. h. "bodily injury" or "property damage" which results from activities related to the "business" of an "insured", except as provided for by an incidental Business Coverage. ? * r j. "bodily injury" or "property damage" which is expected by, directed by, or intended by the "insured"; or that is the result of intentional and malicious acts of the "insured". 1. "bodily injury" or "property damage" which results from the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of "pollutants" into or upon land, water, or air. 25. Counts 11, 111 and IV of the Mold Complaint are premised on knowing and or fraudulent misrepresentations of fact. Such conduct is clearly excluded under the policy by exclusion subparagraph j., relating to conduct expected, intended or directed by the insured. 26. Counts V and VI of the Mold Complaint addresses negligence arising from the business activities of Mr. Mentzer. See Mold Complaint at paragraphs 115 through 119. This Count and the claims flowing therefrom are therefore excluded from coverage pursuant to subparagraph h., declining coverage from activities related to the business of the insured. 27. All injuries and damages alleged in the Mold Complaint are attributed to the actual, threatened and/or alleged discharge, migration or release of "pollutants" as that term is utilized in the policy. Accordingly, Plaintiffs' claims in the Mold Complaint are barred by the terms of subparagraph e., of the exclusions. 28. Accordingly, in the event that Mr. and Mrs. Dames prevail at trial on Counts I, II, III, rV, V or VI of their Complaint against the Mentzers, Everett Cash Mutual requests a declaration that it owes no coverage obligation with respect to any claims or damages asserted in this regard. WHEREFORE, Everett Cash Mutual Insurance Company demands judgment in its favor and against Defendants, Donald E. Mentzer, Shirley M. Mentzer, John Daines, Becky Daines and RE/MAX Realty, declaring that Everett owes no coverage of any kind to Donald E. Mentzer or Shirley M. Mentzer arising from any and all claims asserted by John Daines and Becky Dames in their Complaint filed in the Court of Common Pleas of Cumberland County, at Civil Action Number 01-4866 Civil. Respectfully Rolf E. Kroll, 'Esquire Attorney I.D. #47243 Post Office Box 932 Harrisburg, PA 17108-0932 (717) 975-8114 Attorney for Plaintiff VERIFICATION I, John A Thomas, have read the foregoing Complaint for Declaratory Judgment which has been drafted by my counsel. The factual statements contained therein are known by me and are true and correct to the best of my knowledge, information and belief. This statement and verification is made subject to the penalties of 18 Pa. C.S.A. Section 4904, relating to unworn falsifications to authorities, which provides that, if I knowingly make false averments, I may be subject to criminal penalties. Date: 3 - / / - o Z j? ? John Thomas ?O ??Op? Exhibit A JOHN DAINES and BECKY DALNES husband and wife, Plaintiffs, IN THF, COURT OF COtKNION PLEAS OF CUWI1f:R1,AND COUN-1-Y, PENNSYLVANIA \•s. DON:U,D E. MENT7ER 166 North Middlesex Road Carlisle, PA 17013 and SHIRLEY M. MENTLER 166 North Middlesex Road Carlisle, PA 17013 and RR/MAX Realty Associates 3425 Market Street Camp Hill, PA 17011 Defendants. No. CIVIL ACTION - LANV .IURI' TRIAL DEMANDED NO DE You have beep. s(Icd Ili COlll'i !I \M1 \Ci]!1 lU defend p ;a:111 :fll' Cl;li 11:C tie( fo!"ill ;!1 the (oilo\s•inc pu_c . , nu must MNC ::coon \r,atin t\vcm\ (20), da\s t•fte. 1 ?:s Noticc arc scncd. be cme:nr_ \vrlttcrt apl.carance I rsor.ally or b\ mplIlliainn<t , and in are warte attornc\ and l;c with :hc your, prt:r dc'"SL!" \lr I,b1000Ons to the cia!ms sC; for(It a alnst you. You are d that if coo fall to do So, ;ite case nta\ proceed \vuiiout b0u and a lodgement may be entered against you by the Court \\ itnout funitCI' notice. for any money ciam:ed III the Complaint or for any other cfailn for ;clicf requested by Plaintiff You ma\' lose your money or properiv or other rights important to \ ou 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 T14E OFFICE SET FORTH BELOW TO FIND OUT wl IERE YOU CAN GET LEGAL HELP. (_llntbel' land (,'aunty Bar ASSOCIauon Liberty Avenue Carllslc. Pcnnsvlvama 1701 I C! 7 1 7-249- i 166 AUG 2 3 2001 JOHN DAINES and BECKY D:V.1•.S. husband and gift., Plaintiffs, Vs. DONALD E. MENTZER 166 North Nliddlesex Road Carlisle, PA 17013 and SHIRLEY M.:41I-.NTZER 166.North Middlcsec Road Carlisle, PA 17013 and RE/MAX Realty Associates 3425 Market Street C:unp Hill, PA 17011 Defendants, IN THIS COURT OP C( MIMON PLR. OF CUMBERLAND C(11 .'rY, PENNSYLVANIA NO. CIV11.:\(`TION - 1.:1\\ JURY TRIAL DEMANDED CO?1PL:Al.'1 I.TR(iUl UTION AND PARTIES I. John Dames. Plantufl-husband (hcremalter. `Mr. Dames' ). is an adult individual !tvmg at 178 \urth \Iiddlcscx Road. Caritsic. PA 17(1, 2. Dcckp Dames. PluinuCf wife (hereutaftcr "Mrs. Daines ).:> an adult ndividual ?%ho )reatousl,\ a: 17S North \Lddl::scx Road. ?,ulislc. PA 17013 but is now tcmporatil\' icaidtnc at 263 Sisoo Sued. Dctru:t. \Lclugan 48065. Defendant Donald p ..\lcntzer (hereinafter "ti1r. Mcntzcr) ;s an adult individual Heine at 100 \•nith \giddlescx (Load, Carlisle, P,1 170 i3 r? 4 Defendant Sim iec M Mcmzcr Ohcremafter ":Mrs. Mentzer") is an adult individual living at 160 \oith Middlesex Road. C11-11NIe. VA 1701 ; Defendant Rlii-1:\X Realty Assoctates(hcremaftei -1t1-a business incorporated iw(lc: oi,: 1,1,N of I'cnnsylvanl,l X6111 Its nunCIpal place of business at 3425 Market S)occ; Camp I lill, PA 1701 1 FA("l:( AL BACKGRO ND 6. Plaintiffs hercm ..:.I I;n,;.ue nv rete;utce P:Ifagr::pi.s I ;Crouch ; o! tl:cir Complaint as if fully set lurth hacul 7 Upon mfonmuon and h;:ilcl. Ucfcn;lt:nts -1r and Mrs Mcntzcr constructed the residence located a; ! ; I \I,r;h \11eldlesex Road. Carlis!c. i'A 1?0i 3. In 1984 (hereinafter"house"I 8. Upon intormatu)rl ,:n 1 hcuel, \1r \1entzer \? s the ( lcncral Contractor in charge of the coiszjuc!;OI1 III the I(It1?e 9 Upon In(ornl:?t:,)n 111,1 hci:cl. the house ,eas unoccupied approm matcly twelve ( 12) to e:ghtecn t i 81 inontils prior to Plalnulis mo?;ma (n on \ovcmbcr 20. 2000. 10. On November :. 2000. \jj Dames and his Real Estate A_ent Steve Bickford (hcremaftc: \^_cn: Iltckloid' ) of lack Gaughil Realtors me; ,%Ith M. -tCIItZCr Cop an uuual , iclknl_ 01 the 11OUSe. 11. On November 7. 2004. I\-lr Baines and Agent Bickford n>ct a,_aln ?sith Mr. Mentzer at the house, at which time Mr -Mentzer supplied \1r. Dames with a r Y' Seller's Property DI]C101Ure St.uCnteut titer.:uwllel DtsclOSnre Statement") (Attached as exhtbil A) 12 Mr and Mrs .1cn:; i; :onsl • use(i the DiNOn,u:c Stater, nt ;hr :mother potential buyer kvhose exhibit A) i 3 On .tune 1. ?(H)(!. .ji,i \1n. \-lerV.er si ru,! alld Jatc Statement (Sce artJeiul C. \, 14 On Novenlocr '()(It), \Ir Uatncs .:no :1_cnt Bickford s;_ncd aad (Ijitcd file Disclosure Statenicin :,Sc,: ut;iehrcl exhibit :\1 15 The Disclosure Sattacltc(i hereto .:,11 S. Sl:,.1.!:!i \II:S I K 11 DISCLOSE TO I3I'1 i.i: \-! KNOW\' MAl L=RIAL DEFECTS, ABOUT PROPLRTY BI-TNC So ! tSce attached cxl::h:: ", i IG ,,. Under f . :,'L : . i3aSC :ncnts and C: ,t ci Spaces. ',L .:::o ?lrs \,lcnV.er stated isrs that creek o% ci flows sonr:nes Ou get eery little on fluor ;lot 'di ili. :loiu c?:il be cO creel." lSee auachcd e>;htnu :\) 17 Under Paraer;thh :ccn i Irt) Subsection (1), \9uccIIaIlc0u,. \L. and Mrs. Mentzer stated that thcrc , :,c• :: 1; am othc: ctaicrr<u ciclccts to ii;; rupcit_- (See attached exhibit A i 18 Despite knim n matet':al dclcclS .::Iolit the property and their cuiai :a,,i „i constructive knowledce of ntatenal ;:C!ccls ut the property, Mr and Mis \vtclnzcr negligentiy :utd ur ultcnuonally I:uled to disclose certain material delecls 19 On or about Novcnlhel 7 INOO. \lr and Mrs. Daines made an initial offer oh two hundred 1111% ti:oueuld dollal> IS'_mm) to ml and \1rs Menizcr Ior the house. which Mr. and :\•Irs Mentzer did not accept. -C. On or about \ I rlnbcl I . _'qQO. Plaintiffs made another offer of two ilunarcd si ay thousand ?: '..u, 6:b0.Uou). which A1r. aocf Mrs. Mentzer accepted. 2 i On or about Vuccmbcr 15, 20W P1au11ifTs and Defendants executed a Standard Agreement ;i,r ikc Saic of 1teai [-..state. (Attaclied as exhibit 13) Any. benefit.:cieaw k,: mcr,er C!ataC conCycd M operation of the agreement ,`or the sale and pulcimse of :ea! estate o!- related documents were -L i%en In consideration O! \I! Ind declaration of tllclr ohlieation W i:SCiosc kn.tu it ;`Mt-rial Ill the hOW,C An benelit.:elca,r Ir mercer clause conveyed by operation of the aereement for the sale and nurc!lase of real estate or related documents were _leell In coils Iderauon of \Ir and '?,Irs :\lentzcl' aff!rntatiVe representations concerting the absence of known nlater:al defects ul the house. ?_: "hose beile!iiS and or clauses are t oid and or without force or effect due to the necil!xnt and or Iraudulent ;illsrcltresclltatlolls oI all DCICIldall Is Col1CCn1i11_ material defects in the !lour, ?- At ail times relevant hereto. RUMA\ by and through its employees. servants, agents and/or ostensible agents Including but not limited to Steve 4. 5 1lawbeekcr : c;Cd ::s dtc aec:a fnr \•1r And Mrs. ivtcntzc! with respect to ;!II a(?'rccn!cnts by the p;uucs r:;at!nc to the house. (tier C:chthit 13 attached) 26 On ur about Ncvc::?h.r 20. 2000. \qr. Dames partially mc!ceJ into the house. On m ,t;xun Dec,:nh.i v, 2000. \1r and Mrs Dunes and her mono: natural dau_iuer. Chnsty Duscl;C!. LumpletCiV moved into the house. 'S c )n Or about Urc,c:i,r: _'ti. 2000. SCtlluncaIt ,cas lCitChCol ow the 11011 -') On ;?..::,uut )Q01 MIS Dames hZiu ,m a11ca;tc rcactlon dev,loped loves 0. On ur about Ianu..: v, 2001. N1Is. Dames was taken to Carlts.c 1-1 a I p.;(ix hr fist Om, w;th ;1liculues 1 On k„ ,:bout IMIUJrl IS 1_001. \-lrs. Danes went to sec Doctor \ alCnune O.i;om n! \tcc;:;n: slur :111111% 1'hvs:C;an rS Da:::r, ',•;t, ;akin tU C;UGS!c ??:, ?., :utl a <Ccond .!me v.t!!t dtllicultics and lac;•!I scccilin On c•r about Janua rc 21. 2001, Mrs. Daises v,as taken to Carlisle Hospua! (or third tmiC with hr,athtn_ dtlliculues and larvm_cai scv,ll ;a On or about .!anua! c 2 2001. Mrs. Daises went to see Doctor Joan \lontrllu...?.:\lirr?tst nt t ,uluic ur anc4ll Jan u.: r: ,, _ X001. !11;1[nttlls 111mcd out ofihr hcus; :nd cto the Super S I lotcl :n C ritslc. 1',\ ! -0l F 6 ±G. Om or about lanu.uv 17. 2001. 1'laintilis hired Advanced APpllcd Sciences. 111c.. an Gnvou:uncnud i rstIllg Conlpanv, to test and determine it there %%ere ally environmental rIrohlrns , uh the house 17 Oil oI about tanu.u , 'u. 'Oil i. ml, I)'lnlcs .I w Doctor MonIcIlo lui a second unle +S On ur abou! 1-001. Advanced Appiicd scierxea. Inc lesIc'! tile iIO11SC ;9. On of about 1-001. Ctrs Raines was taken to C'arhsie I lospital for a fourth unle kith hIc:mhnlL difficulties and larynocal ssvellut_ -10 On or about Pchi l.,u, 2001. Phlintlffs "love(' out 01 -111" lupcr S I lotct and into a refurbished root" in tilc barn located adjacent to the douse I On or auou; . chi u,;; i 1. 2001. Mrs [):tines ((a sccon.+ \ IIclist. h1cA)r Jeff \turraon 11 l?;.al; ! i,ll 47. thl I,r a:,wi: \1 lc'l. 'Dill . a report . as issued by ;%dvanced ,\pphC,i Sciences. Inc. stating :lice were $evcml contaminates present ill the horse incluerllc: C!adusl,on.un ;vpergillus. P etllclliltlm, Dust :MI(cs, and Siachcbotrvs. 43. The report staled that the Dust elite concentration was extremely hieh 44. The I',^0(: aI5i) >laleu lha I the IIIII??I -?t.IC IIVbOII'V$ is d Sl rOlig allcrgen that produces vci topic h, i,roduc x called illvcotoxuls 45. l he report also rcecaled that durc „,IS significant water damaee throughout the basement as ecidc:1ced hp the bubbled Iraterprooling paint, the rotted bottom wooden step, and the rusted steel fittings and or screws. 7 46. "rile report also ievcalcci that it chlorine disinlcctant was sprayed thrOnghout the basement to cover dlc nlrlid and mildew smell +7 On or about \larch Id. 3001. Plaintiffs (tired Indool I:nc::onrl nt.il .luluuons, all En\'Iromncni:ll ( calling Company, to clcall jilt II17i1g area] ,1i the (louse, aS On Or ahac: \1:+;eh i1. ?U() !. Indoor lineimnnlcnt,ti SOIU::011, the house and dlscovc:cc! .I .,::rcnious anwunt oil watu danl:lge sl,u;., uc•:c: the carpeting located in Iwo first ;luor rooms Of the house. 49. On or abo..n ....:L u. '_001, plainti I.fs notitirci \-L' and ' .cnt[c. and RE/MAN about Tile ;trn:,:,t;ns k lh ;hc house >0 On or about March I i. =001. plaintiffs moved back, into the aO'•:?e `1 On or ah„ut march I>. _UUI. Plaintiffs purchased and ..!Chun:rdifier in the basement .n •111 1O nllncalc the moisture problems On or about ll:uc!1 '0() 1. I lainulfs nlet •..ah \^, r. anti `.'; . • lcnvcr at the house. JJ During this :llcetinrl I?ia:ail!!s showed Mr. and Mrs.:Me;ltL:r :i'.C \1'all'r danI stains that l: d hccn discovered. Mr. Mentzer admittec.:,. ,i:., ll,, moot the some of the wa te: dama_c i ut did not disclose it stating that t:;e !e,: That was esponsible iii; hrc11 rcnaired Mr.:\•1entzer also .:,..:ut,cd tLat he treated the basenlclr "1111 :: moil ;111(1 mildcly cleaner due to water problems a4-, . s On O r a bout \gareI, ! 7, 2001. Mrs. Daines had another '!Iciglc reaction and developed hives >j On or about Marcie 17, 2001, Plamunk hired Hoff lliut Mechanical, hic . to repaint and rc-carpet the house in an attempt to restore the house sack u, Its mignlai condition ` 56. Oi or about April 1. 2UUI, Plamtifts purchased a seconc: ,:.alumidi!ie: and placed It 11: Inc II ing wulli of Me ]louse In del attelllpt to illltlgfitc Il olsinrc problems. 57. On or about April i. 2001, Mis Danics again saw Doctor k )shorn lit breathlm_ ItYculties. 53. On or about the everung orApni 5, 2001. Mrs. Daises wa, taken to Carlisle Hospital I x a ;11th unic gull hicathln_ ciAculues and laryn_em r, aLnc 59 A o: Lou, Apnl n. 001.:vhl Datncs saw Doctor R11m: an r\iler, Jpcciailst In \eu }'kok CO. "hae she remained I& unumcm unn, Apni 1 I, 200; 60 On or about :\prll 15 . 2001. \qr Daties developed allergic reactions including different rashes, facial swelling, sore throats, lethargc. and memos loss. 61 On or :,bout May 2. 2001, ;\Irs. Dames saw Doctor Tunoul\ l'ru_g. an Allergy-Imnumolu_ut in I Icrshcy, Pennsylvania. 62. On or aucut May 9, 2001. \4r Dalncs went to Charlotte..,\ulth ( arohlol fol work and his ailcrgic reactions started to dissipate, until his return tin May 15, 2001 9 63. On or AMR May 16. 2001, Mr. and Mr& Dames had to stac in the I Iultdav Inn Hotel to Carlisle due to Minn temperatures in the relurbtsiud room in the harp 64 On .u about May 24, 2001, Mrs. Dames was taken to i lui, span I InsIntal with Iac:al, tongue, and stomach swelllnL, and nausea. 66. On of about May 29, 2001. Advanced Applied Sciences, inc retested tine house The resulis again conic hack positive for Slachy hour, s ;aai ollicr contanunaiu, 66. On or about May 30. 2001, Plaunltth had Indoor Lnvnrntuncntal Soluoum, Man Ow ducMark of the house 67 On a 16out June 9. 2001. Mr. Dallies traveied to CauCon::: for %%oik and In,. allergic probicnns again dissipated, until his return on JLMU 13. An 1 68. On ni about June 10. 20'01. Mrs Daises gent to sec DOLhq l ,lig (or,: Second WC 69 On 0 about .lone 28. =001, Advanced Appitcd sciences ;-'tried the i:ocsc and detennmed that it was still contaminated with Stachybotry s and other contarrimmcs 70. Chi or about July 3, 2001, Plaintiffs hired Hoffman Mechanical. Inc to clean the air unit , .:be house. 71 Un M about .lull 13. `001. Mi Dames had ,cvcre ructions includine burntnu sensations in his lungs. breathing difficulties, and coughm_ up blood 10 72, (ht or about Juiy 17. 3001. Mrs. Dailies' daughter l hnstc Duscher %%okc i at 13:30 a.! it with severe breathing difficulties and had to Slav, at the Super 9 lion to Carhslc until she tell for vacalmn with her natural Now .a the end nrhgv 300 73. Un or about Juk 18, 220() 1. Mr. Dallies went •dhava to ,ec i h+ct;.r \laa Gllaune. a second Allergy-Immunologist in licrshc., Pcnn,tlya.^na lirr further testing 7; M 'about Juk d. 2001. L'oh PII'Omm from :\;r awca :gmhed Sci.rcc! Inc. and Swvc Yngsi. a proSsional engineer from Yingst Wgineers, bore and ct holes Into :he %valIs of the house to determine if There were any moisture pn:h eni: Within the ,%alls of the house Q 1•ingst then took sar.tpic, Icon, mstdc the gall, which he used to compile an inspection report detailing nou,ine code %miauons and moisture problems. 75 During the !hl-cu : ho;::' tcsnng pcnod \41 .teyc:, ped a sore t.:o:a and an ;!I fcclin,_j from rktn_ inside the house " uhotn uSinc u orotectiyc mask 76. Uri ur about August ;. 2001. Mr. Yingst. P 11 issued ius inspection report In his report. \1r 1'ingst colOuded to a reasonable degree ,,t cr,_:ncenng ca atr.t, that stenificant water entr has infiltrated and will continue to infiltrate the foundat,on ?Nalls and emno, back walls of dos house Mr Yinu t deternur,cd titan there %\cre nunterouS dchwenctes in the original construct,(),, ()! tnc infuse mcludin!y. the improper installation of the exterior brick veneer. sIII inadequate water tight membrane on c,terioi "ills, lack of proper Ilashin, at the i;asc of the beck veneer, lack cif weep holes, and an inadequate exterior foundation drainage system. I l e a lso dco n nwd IInu a result of these deficiencies, xrater entered through the brickwork into tite wail carne. %%citing the wall-fianung members 77 On (`: ahuw 7. _'l)ul Vlrs Damcs Ictt the !1m;w .n;.l nunc(: to _'G5 Won Street. Detroit %hoo gan 4N065 to live with her sister Ile medical pimicnts she was sulknng h m as a result of the condition of the house c%crc c:au;:na her severe phvscal and cmouo;:al distress. 78 Smcc ntstaiint_ ?r. 4") 't dehunudiners in utc house, Phuntrl:. na%c aad to drain approsunatci, :,,:(n :u) hints ofwater per day from Them total 79 Smcc nIok wi_ ;:ifu Inc :Iousc, both PIauttIfik ;tare dc\ elol1cd secc:c :rz;'tial conditions and %%0; need 1uun'c medical care and he rwuirect to take numcnu, medicines daily for .ut ludclinuc period of time. 80. Sntcr t111)c;m_ :n:: iW i;ousc. both Plamtitl .`:;ice amount Of !0!,1 ,?r.;,i„crude \?agcs as .: (iuc,t rc,,;iit of associated %k alt me z:oj ,e 81 Since ntocu:_ into We house. both Plaintiffs have suffered Irom sceerc emotional anz, rltssic;i! pwhlcnts COUNT I - NEGLIGENT MISREPRESENTATION PLAINTIFFS Ns. DONALD E. MENTZER and SHIRLEY M..NIFNT7_FR 82. Plat;;ulis hcrch% mcorrorate by reference Pamgmphs i though S': of Awn complaint a s it ,:II% <ct :orth itcrcin. 12 91 Mr. and Mrs. \lcnti.:r knew or shou!ci have knoNvn Of. tilt hater damage problems and or the indication, of the water dannage probicnts as;octatcd wit!,. the house 83 Despite thdr kno.?Icd!,c ,old or constiuCmvC know•IcdgC ,f the water d;ul•,aQC Problems associated will, the house located at or affixed to the house. \,Ir and Mrs Mentzer did not disclose problems to line Plaintiffs ?. At no tliitc durst` :r:.,pCCnon 01 :Ile prttpCl iV and !Ile tip to the agreenlents relatin_ to the sate and purchase of the housC did Nil. and Mrs. Mentzer inform Plaintiffs c: The water damage Problems and or i::u'Cat lolls of v.ater aamage proolents as<oci,uc,.11hC house S6. Mr. and Mrs \lenttC; had a duty to disclose the wale: da:r.a C problems associated wllh the house :0 :!,c i'Iail;ttlfs and fa led :o do so S7 ! he water dan•,auc iv„Li .ms and or nrur.nuxtti u(the arc: .i,lnlacc problems associated \? ith i!!C iiousc are materiai defects, .,lid ulJ," ni?m ;Ciaui:C tit Tile water damage problems ::>IsoclatCd With till' house 'A's mnatCr: i to the sale of the house and had Plaintiffs of tin n;isonable Person bean provided aft ,;:Ch information they would not !lace Cntered an agrcenlent to purchasC the properv SS. Plarntiffs rChCti upo,: !!tc misrepresentations o' :\'I; and \;; \I:alzer 89 As a direct and provnl:::c result of the alls"Plescntauons of \!r and \irs Mentzer. Plaintiffs Cntered in iureement of sale contract that the , lhCr tse Quid not have entered into 13 \VI IGRPPC)RE. Piam"I'lS respectfully request rescission of the suhlec; agreement of sale in the ::mount of two hundred sixty thousand dollars 5260011) 11), along \\!ti: resuhnlon of all cleaning. cosu. depose'., Ju\\n payments, mstallments.:n;crest: nnprovenncnl costs: knsl wages. medical exncnses past. present and futur;;. nno%in, and Incidental expenses. pain ;n!d >ulfennc ;:nd consequential expenses. ;o;:an:•, in excess of four hundred thousa d doiiar; S-400,000,1)0), d! Woo, wt;tl more than six LundrCU <!X!% I I (5660.000.00): together wah ail inaderimt and consequential damaecs. COUNT II - FRAUD PLAINTIFFS vs, DONALD ph X ENTZER and SHlivion \1. my rzim 90. Plaintiffs heicby u:coroorate by reference Paragraphs I thmut_h 89 of their Complain; as !f (illy set :o!j!! !nCreln I VI: .:ilk! \1!, vIc!lir yI:Cyv' it ;he vy;:tcl dam ?•(?!) __ ,.. .ICI: > ....J ttr ndicauons of tiro \\ater w,za,c problems associates v,IIh t!:C 91 Despite their hno"Iedge of the water damage problems : n;', or of the indications of the "wwr damage problems associated with the holUC. `.I! and Mrs Mentzer stated in their dBCWSnrC sWwnent tinat they were not ax%are or' am material \\ater damage pildens \ylth the propen, (Sec attach; d c\mhn .\) 9 Ml and \grs :\-icntZC1 Intentionally concealed the \\atcr dam :_r problems and or One indications of the water damage problems assoclat,2d \\,[!I the house, as described more tidy In Para r:iphs 1 through S 1. herein 14 94 In tlicir disclosure statcnl"t, Ml and IMrs.:MelltzC: made knoeeJIJL, statcrlcnts concerning nlaterial dclects in the house and water d:una!,c prohlc associated with the house 95 At no unle dunm, the Inspection of Elie property and the nasxctiions i up to the agreements relating to the sale and purchase of the house did !\•Ir an, .Mentzer inforn: I'lain:ills of tine ee:ucr darlagc prohlcnis and Of ,ndteau•in . •.. Jaillage problalls :issoc„u?:u u:;h tilt house. 96. Mr. and Mrs \Icntzer had a duty to disclose the water d.:nlage prnhle: associated with the house :o tiro Iiaintiffs and failed to (to so 97 The water danla gc problems and or Itdications of ;ilc leaxr dama_c problems associated eenh the I:OaSC arc ntateretl delccts. ;uld 11110 Illation reiatiilu to ile water damage moDi.c:11s Is, house and had Plamuf(? il% ;casoriahle n.rson heen nro%ldcc .kith •.•:ci, mfornlauon they \aouid nu! lIzO a altered an aercencnl to purcii.:>c Elie nmocrt 98. Plaintiffs rclted upon the misrepresentations of Mr. and Mrs \Icuzel 99. \s a direct and pioxtnl.uc result of the nusrepresent.:;urts of \Ir 'Ind \ITS Mentzer. Plaintiffs cntcrrd an uL?rcenlcnt of sale conu'act that the% other .cisc ?eould not haec entered into WHEREFORL, 1'I:unttlls respect UII reyucst resclssto:; t;ne suhicct agreement of sale in the amount of tern hundred sixty thousand dollar, (5260.000.00), aionc 1\ 1:11 resttnnlon of all clcculnng costs deposit;. down payments; installments: mtc'est; improvement costs: lost wages: medical expenses is Pam. present and future: moving and incidental expenses: pain and sutl.•nng, punitive damages, and consequential expenses, totaling m execs'. n1 !out hundred thousand dollars ($00.000 001: all claims total more than sit hewred sinv thousand dollars (5660.1itlu (10); tngedwr %with all incidental and .un,cqucirtial damages. COUNNI 11.1 - BREACH OF (--'ONTRACT' PLAINTIFFS vs. DONALD L. MENTZER and SHIRLEY M. \1F:\l Lh:R 100. Plaintiffs hcrcny mcorpora;c by re!crcnce Paragrapis I 9) o; their Complaint as if full) set 101.111 poem sea, 101 The Disclosure Statemciu. auached poet ;rates. "A sillA 1 a `.+,!:S i u1. DISCLOSE TO A BUYER ALI- KNOWN MATERIAL DEFEC 1S ABOUT PROPERTY BEING SOI 1) 111,\ 1- ARF No i RL:',DILY OBSIii'.`,',\ijLL (Sec anached exhik: %i 101 Mr and Mrs Mew/ut :..ui ..Area o: ,mSt,;:,'.!ve kno cle,:. he „,:,c1. damage problems and or the in1cinons of the wan: damage prop! ms .:ssocnaed Nath the house. 103. Notwithstanding their actual or constructive knom ledge (a me „atcr dan age problems. Mr. and &W \lcmrci ; nrnised and stated m Paragrapn mmeen ! 11 ) subsecuon (g), :Mocellancous, twat !ncrc were not an} other know ntatenal defects to this property (See attached c IMI :\) 100 \1r. and M's.:\gentzcr s laiiure to perform the contract b\ ;lot lisciosim, the matenal defects have Caused the Plaintiffs substantial injury. 16 WHEREFORE, Plaintiffs respectfully request ICSC1SSmn tit 111c ,LIJ)ICCJ aarcemcnt of sale In the amount ul l%cu huuulCti SIM%. lhousaad d„lial>. ('_x'60.000.00), along w;ih re%muuun of all Cle m Il Custs..icpu,n:. ,iulcn I)aNIllcilts. Inst:dlnicnIN. Inielc,l. :111p1'U\cllle:11 costs. wNt CeI)cI!Scs past, present and ILlurc: ntovin alld InCldcntal CspcnscS. Paul and ,ui 1CI ulg ar.d consequential espensCS. totalul- In excess u! tour hundI'CLi thou,a;:.; i,:dlars (S400.0 00,00). all elauns tacit rturc than er.:.anilrcti w: (S660.000.00). touctile! %tah all lnC:dental and cunSCyuCnual dal;:.:_c COUNT IV - REM. ESTATE DISCLOSURE AC] PLAINTIFFS vs. DONALD C. d1E\l'7.LR and SHIRLEY M. \ll:\' I'"L[:R 105 Plaintiff; hereby mcurpoiate i)\ reference Paragraphs I ,I;I;1u_it 104 uf;heu' Complaint as it fully Set forth imcut I'.)o 111C 'U1-'ICCl d tCeMC111 01 laic LU11II'.:.. IM ol\ Ci Zt:l IIl[LI.::I csi.IlC upon Which one residential ul eliinc !roil i. ,r.:ixci U; hhc UuCiUStI1C Snaclnenl. attacilCCi iwlCtu states. '.I R \11;S f DISCLOSE TO A BUYER AU. KNO\\\ \1ATER1:\I_ DGEEC"f? \Rol'T PROPERTY BEING SOLD I'HAh ARE NOT READILY 0BS1 R\ ,\BLI-- (Sec attached exhibit A) IUS. \qr and Mrs. Mentzer knee Iu ,IIOWd W VC 11110 Il of the 1\;ael d:utlaec problems and or the indicauuns ut the w,ilcr aaniage probienls ssoCl d \\ [tit the hutlSC 17 109 Notwithstanding their actual or constructive whi" ledge of the time, d;untlge problems. Mr and .\,'In %'jCm7er promised and stated In Para rapll slxteell 110 14 ;uhsectlo11 (g), MINCCil:uleous, that there were not and mile: ku(mit nlatcI t.iI tic! cc tl u) this property iSce attached exhibit A) 1 10 file water damage problems and or indications of the leatel danrlgc problems associated %yoh the house arc material relict:. „IIi CI ;.IC??; III' ::Ilif :VI CS. 4Il'I1VCr h<l(i :1 :..ii\ lu ?;!?l li,`.e [!le:11.c'1 !Problems associated %I till the house. GS P.S. § 1034 a ? .r 112 I no lime during the inspection of the r.oPcr:.. Illd Lhe Ilc,o:lauo: V I ' u IL ..,.tn_ up to the agreea:ctlts :clarng to the sale and Purchasc of the lmuse ,:d I. 'lentzer inform Plaultllfs of the water damage problems and or uldicat:ons of \%atcr damage piob!clrm ,u,oc!atcd wuh the house. A Mr ale: \hN MCMZ':1' S V101au"ll 01 111C RCai I_1iaLe 1)I?i llhllle '\.:; ?l;!. :I;lied !Ile N11!1I:I!i .la,5lan11:11 Ill l Ili \' WHERL! ORL. Plaullinh respectfully request rescission of :hc ,ublcct agreement of sale in the amount of two hundred hay Thousand dollars. 0261000.001. alone \\'uh destitution of Al cleaning costs; depose.. J,1\\ n p.!\ Illen:s: InSt;!!!;1I In I1J I1 LCI cSL I I1111)ro\'ernellI C11i I S. !„St IV;IgC?. InCiileal C\pCl,>CS j?aSt. pl'CSellt ally 11.1WIC. moving and IncidentCtl expellscs'. 1):1:11 and 'u1:c 111' Alfa consequentai expenses: totaling in excess of four hundred thousand doilars (S400.000 0R all deems total more than six hundred silty thousand dollar; (S660100.00); together with all incidental and consequential damages. Is COUN'r V - NEGLIGENCE PLAIN'r(FFS vs. DONALD E. MENTZER and SlltRLh,Y M. MENTZ 14. Plaintiffs hereby incorpurate by relerencc Paragraph] i ti,ruu,_h 11: Complaint as if sct forth fully herein. 115 . Upon information and belief, Mr. Mentzer was the Generai Contrtc charge of the construction of the house. 116- Mr %lentzer had a duty to the Plaintiffs to design, plan, ,iwcr% ise. ; construct the [louse in a reasonable and workmanlike manner. 1 IT Mr. Mentzer breached his duty to the Plaintiffs by failing under the circumstances to design, plan, supervise, and or construct the hm::c nt a rei and workmanlike manner as more fully described above. 118. Mr. vlentzer s failure to properly design, plan. super: tsc..md or cot the house proxunatci% caused the Plaintiffs damages. 119 . Planuitfs damages. as a result of Mr. iNlentzer's negiigencc. include the cost of repair and consequential damages. These damages exceed the compulsory arbitration limits of this county. WHEREFORE. Plaintiffs respectfully request rescission of the subject agrcenunt of sale in the anwunt of two hundred sixty thousand dolluts ($260,000.00), along with rcstIlUtiOn ofall cleaning costs; deposits. down -- payments: installments: interest; improvement costs; lost wages: medical expenses past, present and Hittite: moving and incidental expenses; pain and suffering and consequential expenses; totaling in excess of four hundred thousand dollars 19 ($400,000.00); all claims total more than six hundred sixty thousand dollars ($660,000.00); together with all incidental and consequential damages COUNT VI - IMPLIED WARRANTY OF 1IABITA1311._I_T_Y_ b5 PLAINTIFFS vs. DONALD h;. MEN' ZE'R and SIIIRI.1•;Y M. \11•;N'I'%1:R 120. Plaintiffs hereby incorporate by reference Paragraphs I through 119 of their Complaint as if fully set tOrth heron 121. Upon information and belie(. Mr. 4lentzer was the omrtctor in charge of the construction of the house. 122. Mr Mentzer had a duty to the Plaintiffs to design, plan, s.nxa tse. and or construct the house in a reasont:nle. workmanlike manner. and to the douse tit for habitation- 12 " . Mr Mentzer breachcd hi= dutc to the Plaintiffs by failing ;:nder the ctrcunistances to design, plan. upeivise. and or construct tite hrnr;c m a reasonable. workrianhkc manner. and tier not makuto the house tit for hahrtati„n as more fully described aboyc. 124. Plaintiffs relied on Mr and \1rs. Mentzer representations that the house was fit for habitation. 125 %I t- failure ;o properly design, plan, supervise, and o:' construct the house suitable for habitation proximately caused the Plaintiffs darllzwcs WHEREFORE, Platntll!s respectfully request rescission of the subject agreement of sale in the amount of two hundred sixty thousand doliars ($260.000.00), along with restitution of all cleaning costs; deposits: down 20 payments: installments; interest: utnproventent costs. lost wa!,cs. medical expenses past. prescmt and future: moving and incidental expenses: pain and suffering. punitive damages, and consequential expenses; totaling in execs% of four hundred thousand dollars ($400,000 00), all claims total more than six hind red snxt thousand (5660.000.00): together with all Incidental and conseyuc:nual damages COUNT VII - MISREPRESEN-rATION PLAIN-rIF S r s. REIMAX REALTY ASSOCIA I ES 126. I'latntiffs hereby incorporate by rclerence Paragraphs I tiu'ough 125 of their Complaint as if fully set forth hercm. 12' Defendant RE/MAX by and through its employees. ;er % alas. agents and or ostensible agents including but not limited to Steve I-lawbecker knew or should have i:nown of the %%ater dam ?,e problems associated with the i;•.,use 28 At no time during, the Inspection of tine propcI-tr and the negotiations eading LIP to the agn:cments relating, !o the Sale and purchase of the Itouse did Defendant RE/MAX, or anyone associated with Defendant RE/MAX, inform Plaintiffs of the water damage problems and of indications of water damage problems associated with the house. !29 Defendants RC/lent\X 'nad a duty to disclose the water damage problems associated with the house to the Plaintiffs and failed to do so 130 . The seater damage probienns and or indications of the water damage problems associated with the house arc material defects, and information relating to tine water damage problems associated with the house was material to the sale of the 21 house and had Plaintiffs or am reasonable person been provided 1(1th such information they would nut have entered an agreement to purchase the property 131 Plaintiffs relied upon ;he misrepresentations ol'Defendant REWAX. 132. As a direct and prom maic result of the misrepresentation, of Defendant RE/MAX. Plaintiffs entered an agreement ofsale conuact that tfle} otherWise would not have entered Into WHEREFORE. I'!,i:nluls respcctfully request resclsslon lit tile Nubject agreement of sale in the amulall 01 two hundred sixty thousand dollars ($260.000.00), along lcnh resuuluon of all cleaning costs; deposits. du In payments installments: nnerest. improvcmcnl cost:. !ust usages. me(ilc : expenses ' past. present and future; nlol ur4 and incidental expenses; pain and suffering. pt1111111'e d:Cllages. 111d C0iI1Cl{llentlal CxpCI1SCS: lOCiitllg ill 'xCeSS of f0jil I1i111(jrCd thousand dollars (S4C)0.01;) ,.:)1, all claims total mole than six hundred slxn thous: rd dollars (5600.000 Wit. together with all incidental and cnnseouennai danlaecs COUNT VIII - REAL ESTATE DISCLOSURE ACT PLAINTIFFS vs. RE/MAX REALTY ASSOCIATES 133 l'iainrlffs I1erCb\' :ncmpmate by reference Paragraphs I throu•'h 132 of their CunlPlalnt as 11 lull\ set Wnh herein. 134 The subject agreement of sale contract invokes an interest in real estate upon whlch one residential d?\cllin, unit is af. i ixcd. 22 135 'rhe Disclosure Statement. attached hereto states. "A SELLER MUS'L rv„, DISCLOSE TO A BUYER ALL KNOWN MATF.-RIAL DEFECTS ABOUT PROPERTY BEING SOLD 1'l IA: I' ARE NO I 'READILY OBSERVABLE (See attached exhibit Al 136. Defendant RUvIAX knew or should have known of the water damage problems and or the mduc:a.nrts Of the water damage probicnts associdted N%,!til tile house 137 Notwithstanding Defendant RE/MAX's actual or constructive knowledge of the water damage problems. Defendant RE/MAX promised and stated tit Paragraph sixteen (16)subsection (g!, Miscellaneous. that there were not any other known material defects io this pnmc:t% (See attaclicd exiiibit A) ,-IS 1'he water d;ura_e andacnis and of indications of the water damage problems associated will-, tile house arc material defects. 139 Undcr the Act. Defendan! RE/MAX had a duty to disclose tits structural problems associated with tite house. 63 P.S. § 1024. 140. At no time dur;;t_ the Inspection of tite property anti the negotiations leadim_ up to the agreements rclat:n_ w the sale and purchase of the house Jid Defendant RE/MAX inform Plaintiffs of the water damage problems and or indications of water damage problems associated with the house. 141. Defendant RE/,tiIAX's % iolation of the Real Estate Disclosure Act has caused the Plaintiffs substantial Injury. 23 WHEREFORF', Plaintiffs respectfully request rescission ul the su agecmcnt of' sale in die anunuu of two htuulrcd sixty thousand dollars ($260.00000), along %%uit restitution of all eieanin_ costs: deposits, dowt payments: installments: utacrest: improvement costs: lost wages. medical past, present and future. moving and incidental expenses; pain and suffer punitive d; mages. and consequential expenses: totaling in excess of four thousand dollars (a OU.ooo UU). all clauns u)tal more than six iuindred so thousand (5660.000.00): together with all incidental and consequential damages. Respectfully submim.,i. ABELN LAW OFFICES Brian P. Rancv, Esquiic Attornev I.D. 9 86SOS Attorney for Plaintiff' 37 E. Pomfret Street Carlisle, PA 17013 (717)245-2351 24 \'FIRIF1CATION We, John I.. Dame and Reeky Dames, verily that the Stalunenls made in this CcnuPlaint arc true :uul corrCCt, We Undcrsiand that false siatGnenls herein arc subject to the pcnalucs of I S i'a Coils. Star. Ann. §4904, relating to un"Vorn falstlicauon to authorrtic; 7 .3D _G Date , ' JOI 4. . Daines, Plaintiff Becky D nc41 s, Plaintiff JOHN DAINES and BECKY DAINES, husband and wife, Plaintiffs, vs. DONALD E. MENTZER 166 North Middlesex Road Carlisle, PA 17013 and SHIRLEY Nl. MENTZER 166 North Middlesex Road Carlisle, PA 17013 and RE/MAX Realty Associates 3425 Market Street Camp Hill, PA 17011 Defendants, : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY, : PENNSYLVANIA NO. CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE OF SERVICE f 4.a[ t; .r>,. hereby certify that 1 have th!, day served the loregoim, NOTICE: TO DIi1=E\D by hand delivering a true and exact copy addressed to the following: Jaqueline M Verney, Esquire R&Max Realtors (Attomec of Record 3425 Market S!. for Mr. and qtrs. \,Ientzer) Camp Hill. PA 1701 i 44 S. Hanover St. Carlisle, PA 170! 3 Donald E. and Shirley M. Mentzer (Through their Attorney Jaqueline M. Verney, Esquire) Respectfully submitted, 1c, ABELN LAW OFFICES Date < 13!i:ut P Rai squire \uurncy fix Plaintiff 37 East PomG'et Street Carlisle, PA 17013-3313 7 17/24 5-2851 Exhibit B AAIS FO-20 Ed 1.0 Paae 1 of 8 ADDITIONAL POLICY CONDITIONS AND PROPERTY COVERAGE TERMS ADDITIONAL POLICY CONDITIONS APPLICABLE TO ALL COVERAGES 1. Assignment - This policy may not be assigned without 'our' written consent. 2. Cancellation and Nonrenewal --'You' may cancel this policy by returning the policy to 'us' or by giving Ouse written notice and stating at what future date coverage is to stop. 'We' may cancel or not renew this policy by written notice to 'you' at the address shown on the 'declarations'. Proof of delivery or mailing is sufficient proof of notice. If 'we' do not renew this policy, 'we' will give 'you' notice at least 30 days before nonrenewal is effective. 'Your' return premium, K any, will be refunded at the time of cancellation or as soon as practical. Payment or tender of the unearned premium is not a condition of cancellation. 3. Change, Modification, or Waiver of Policy Terms - A waiver or change of the 'terms' of this policy must be issued by 'us' in writing to be valid. If, in the policy period, 'we' adopt a revision which broadens coverage without an additional premium, the broadened coverage will apply. During the first 60 days this policy is in effect, 'we' may cancel for any reason. 'We' will give you, notice at least ten days before cancellation is effective. After this policy has been in effect 60 days or more, or N it is a renewal of a policy issued by 'us', 'we' may cancel or not renew only at the anniversary date unless: a. the premium has not been paid when due; b. the policy was obtained through fraud, material misrepresentation, or omission of fact, which, if known by 'us', would have caused 'us' not to issue the policy; or c. there has been a material change or increase in hazard of the risk. If 'we' cancel this policy for nonpayment of premium, 'we' will give you' notice at least ten days before cancellation is effective. If 'we' cancel this policy for any other reason after it has been In effect for 60 days or more, 'we' will give you' notice at least 30 days before cancellation is effective. 'Our' request for an appraisal or examination under oath does not waive policy 'terms'. If this policy has no expiration date, 'we' may substitute or'we' may add, at each anniversary date, forms that are then authorized for use. 4. Examination of Books and Records - 'We' may examine and audit your' books and records that relate to this policy during the policy period and within three years after the policy has expired. 5. Inspections --'We' have the right, but are not obligated, to inspect 'your' property and operations. This inspection may be made by 'us' or may be made on 'our' behalf. An inspection or its resulting advice or report does not warrant that your' property or operations are safe, healthful, or in compliance with laws, rules, or regulations. Inspections or reports are for 'our' benefit only. AAIS FO-20 Ed 1.0 Peas 2 of 8 ADDITIONAL POLICY TERMS APPLICABLE TO ALL PROPERTY COVERAGES GENERAL EXCLUSIONS %a' do not pay for loss If one or more of the following exclusions 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 causes or events. 1. Business Interruption --'We' do not pay for loss which results from Interruption of 'business'. e. volcanic explosion. Volcanic explosion does not include Volcanic Action as described under the Perils Section. This exclusion does not apply to direct physical loss to covered 'livestock' caused by earthquake. 'We' do pay for direct loss caused by fire, explosion (other than a volcanic explosion), and theft resulting from earth movement. 'We' do pay for the breakage of glass that is part of a covered structure resulting from earth movement. 4. Intentional Acts --'We' do not pay for loss which results from an act committed by or at the direction of an 'insured' and with the intent to cause a loss. 2. Civil Authority --'We' do not pay for a loss which results from order of civil authority, except as provided under Coverage D. %a' do pay for loss which results from acts of a civil authority to prevent the spread of fire. 'We' do not pay if the fire was caused by an excluded peril. 3. Earth Movement - 'We' do not pay for loss which results from earth movement whether the earth movement results from natural or artificial causes. Earth movement includes but is not limited to: a. earthquake; b. landslide, subsidence, erosion; c. mudflow; d. earth sinking, rising, shifting, expanding, or contracting. This does not include Sinkhole Collapse as described under the Perils Section; or S. Neglect -'We' do not pay for loss which results from the neglect of an 'Insured' to use all reasonable means to save and preserve covered property at and after the time of a loss. 6. Nuclear Hazard --'We' do not pay for loss which results from nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by, contributed to, or aggravated by a peril insured against and whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. Direct loss by fire resulting from the nuclear hazard is covered. 7. Ordinance or Law -'We' do not pay for loss or increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, or demolition of property or the removal of its debris, except as provided by Incidental Increased Cost - Ordinance or Law Coverage for property covered under Coverages A and B. AAIS FO-20 Ed 1.0 Paae 3 of 8 8. Power Disruption --'We' do not pay for loss which results from the disruption of power or other utility service, whether or not it is caused by a peril insured against, If the cause of the disruption is not on the 'insured premises'. 'We' do pay for direct loss by a peril insured against which occurs on the 'Insured premises' as a result of the disruption of power. 9. War -'We' do not pay for loss which results from declared or undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, or destruction, seizure, or use of property for a military purpose. It includes the consequences of these. Discharge of a nuclear weapon is deemed an act of war event it is accidental. 11. Wear and Tear -- %a' do not pay for loss which results from wear and tear, marring, deterioration, inherent vice, latent defect, mechanical breakdown, rust, wet or dry rot, corrosion, mold, contamination, or smog. 'We' do pay for an ensuing loss unless the ensuing loss itself is excluded. 12. Weather Conditions --'We' do not pay for loss which results from weather conditions that initiate, set in motion, or in any way contribute to losses excluded under the preceding General Exclusions (Numbers 1 through 11). 'We' do pay for an ensuing loss unless the ensuing loss itself is excluded. 13. Errors, Omissions, and Defects --'We' do not pay for loss which results from one or more of the following: 10. Water Damage -'We' do not pay for loss which results from the following: a. flood, surface water, waves, tidal water, overflow of a body of water, or spray, all whether driven by wind or not; b. water which backs up through or overflows from sewers, drains, or sumps; or c. water below the surface of the ground. This includes water which exerts pressure on, or seeps or leaks through or into a building, sidewalk, driveway, foundation, swimming pool, or other structure. This exclusion does not apply to direct physical loss to covered 'livestock' caused by flood, surface water, waves, tidal water, overflow of a body of water, or spray, all whether driven by wind or not. a. an act, error, or omission (negligent or not) relating to: 1) land use; 2) the design, specification, construction, workmanship, or installation of property; 3) planning, zoning, development, surveying, siting, grading, compaction; or 4) maintenance of property (including land, structures, or improvements); whether on or off the 'insured premises'; b. a defect, a weakness, the inadequacy, a fault, or unsoundness in materials used in construction or repair whether on or off the 'insured premises'. 'We' do pay for an ensuing loss unless the ensuing loss itself is excluded. 'We' do pay for direct loss caused by fire; explosion (other than a volcanic explosion); and theft resulting from water damage. AAIS FO-20 Ed 1.0 Paao 4 of 8 property which has not been damaged by a peril insured against. This does not WHAT YOU MUST DO increase 'our 'limit'. IN CASE OF LOSS 5. Other Duties -- At 'our' request the 'insured' must: 1. Notice -- a, give 'us' a signed, sworn proof of loss, a. In case of a loss, the 'insured' must: within 60 days after 'our' request, that shows: 1) give 'use or 'our' agent prompt notice ('We' may request written 1) the time, place, and the details of notice); the loss; 2) give notice to the police when the 2) the interest of the 'Insured' and the act that causes the loss is a crime; interest of all others in the property. and This includes all mortgages and 3) give notice to the credit card liens; company if the loss involves a credit 3) other policies that may cover the card. loss; 4) changes in title or use; b. The notice to 'us' must state: 5) available plans and specifications of buildings; 1) the name of the *Insured*, the policy 6) detailed estimates for repair; and number and the time, place, and 7) in detail, the quantity, description, the details of the loss; and cost, amount of loss, and actual 2) the names and addresses of all cash value of the personal property known potential claimants and involved in the loss. The 'insured' witnesses. must give 'us' copies of all bills, receipts, and related documents to 2. Cooperation --'You' must cooperate with confirm these; 'us' in investigating and settling the claim. b. submit to examination under oath in 3. Volunteer Payments --'You' must not matters that relate to the loss or claim make payments, pay or offer rewards, or as often as 'we' reasonably request. If assume obligations or other costs, except more than one person is examined, at your' own cost. This does not apply to 'we' have the right to examine and costs that are allowed by this policy. receive statements separately from each person and not in the presence 4. Repairs - The 'insured' must take all of the others; reasonable steps to protect covered property at and after an insured loss to c. show the damaged property and allow avoid further loss. 'We' will pay the 'us' to take samples of damaged reasonable costs incurred by you' for property for inspection, testing, and necessary repairs or emergency measures analysis as often as 'we' reasonably performed solely to protect covered request; property from further damage by a peril insured against if a peril insured against d. show records, including tax returns has already caused a loss to covered and bank records of all canceled property. The 'insured' must keep an checks that relate to the value, loss, accurate record of such costs. However, and costs, and permit copies to be 'we' will not pay for such repairs or made of them as often as 'we' emergency measures performed on reasonably request; AAIS FO-20 Ed 1.0 Paste 5 of 8 e. assist 'us' to enforce any right of recovery which the 'insured' may have against a party causing the loss; show records that prove loss of rents and show receipts for additional living costs, and permit copies to be made of them as often as 'we' reasonably request; and 'We' pay that part of the loss over the deductible. The deductible applies per occurrence, and separately at each covered location. Only one deductible applies at each location. When an occurrence affects two or more items at the same location with different deductible amounts, the highest deductible amount applies. g. submit evidence or affidavit supporting a claim under Credit Card, Forgery, and Counterfeit Money Coverage stating the amount and cause of loss. HOW MUCH WE PAY FOR LOSS OR CLAIM 1. Our Limit -- Subject to the deductible or other limitation that applies, 'we' pay the lesser of: a. the 'limit' that applies; b. your interest in the property; or c. the amount determined under the applicable Loss Settlement Provisions. 2. Deductible - This applies to all Principal Property Coverages and Incidental Property Coverages, except: a Emergency Removal; Fire Department Service Charge; and, H provided by this policy, b. Credit Card, Forgery, and Counterfeit Money; Grave Markers; Refrigerated Food Spoilage; Signs; Glass Breakage in Cabs; Farm Operations Records; and Extra Expense. This applies to all perils insured against unless otherwise shown. 3. Loss to a Pair or Set -- If there is a loss to an item that is part of a pair or set, 'we' pay only to replace or repair the item, or 'we' pay the difference in the actual cash value of the pair or set just before the loss and the actual cash value just after the loss. 4. Loss to Parts -- If there is a loss to a part of an item that consists of several parts when it is complete, 'we' pay only for the value of the lost or damaged part or the cost to repair or replace it. 5. Vacancy or Unoccupancy -- If a location shown on the 'declarations' is vacant or unoccupied for more than 120 days in a row, the 'limit' that applies to buildings and their contents at the vacant or unoccupied location will be automatically reduced by 50%. 6. Insurance Under More Than One Coverage -- If more than one coverage of this policy applies to a loss, 'we' pay no more than the actual loss. 7. Insurance Under More Than One Policy -- If there is other insurance that applies to the loss, 'we' pay 'our' share of the loss. 'Our' share is that part of the loss that the 'limit' of this policy bears to the total amount of insurance that applies to the loss. 8. Restoration of Limits -- Each loss *we- pay under this policy does not reduce the 'limits' available over the policy period. AAIS FO-20 Ed 1.0 Peas 6 of 8 PAYMENT OF LOSS OR CLAIM Your Property -'We' adjust each loss with you'. 'We' pay an insured loss within 30 days after an acceptable proof of loss is received and the amount of the loss is agreed to in writing. If you' and 'we' do not agree, 'we' pay within 30 days after the filing of an appraisal award with 'us'. Payment is made to you' unless a loss payee is named. 2. Additional Llving Costs - If the 'insured premises' is made unfit for use for more than one month, covered costs are paid on a monthly basis. 'You' must give 'us' proof of such costs. 3. Damage to Personal Property of Others -- At 'our option, an insured loss may be adjusted with and paid: a. to you' on behalf of the owner, or b. to the owner. It "wee pay the owner, 'we' do not have to pay an 'insured' 4. Our Options -'We' may: OTHER CONDITIONS 1. Abandonment of Property --'You' may not abandon the property to 'us' unless `we' agree. 2. Appraisal -- If you' and 'we' do not agree as to the value of the property or the amount of the loss, you' and 'we' will each select a.competent appraiser within 20 days after receiving a written request from the other. The two appraisers will select an umpire. If they do not agree on an umpire, the two appraisers will ask a judge of a court of record of the state in which the appraisal is pending to make the selection. The written agreement of any two of these three will be binding and set the amount of the loss. 'You' will pay the expense of your appraiser and 'we' will pay for 'ours'. 'You' and 'we' will share equally the expense of the umpire and the other expenses of the appraisal. 3. Conformity With Statute - Terms' in conflict with the laws of the state where the 'insured premises' is located are changed to conform to such laws. a. pay the loss in money; or b. rebuild, repair, or replace the property. 'We' must give you' notice of 'our intent to do so within 30 days after %ve' receive an acceptable proof of loss. 'We' may take all or part of the damaged property at the agreed or appraised value. Property paid for or replaced by 'us' becomes 'ours'. 4. Death -- This applies only if the 'insured' is an individual. On your death, protection on your covered property passes to: a. your legal representative; or b. any other persons having proper, temporary custody of covered property. 5. Livestock -- Loss to covered 'livestock' means the death or destruction caused or made necessary by a peril insured against under Coverages F or G. If covered by this policy, loss to covered I ivestock' includes loss resulting from theft. AAIS FO-20 Ed 1.0 Paste 7 of 8 6. Misrepresentation, Concealment, or Fraud - This coverage is void as to 'you' and any other 'insured' if before or after a loss: If 'we' deny 'your' claim, that denial does not apply to a valid claim of the mortgagee, secured parry, or lender R the mortgagee, secured party, or lender has: a. you' or any 'insured' has willfully concealed or misrepresented: 1) a material fact or circumstance that relates to this insurance or the subject thereof; or 2) the 'insured's' interest herein; b. there has been fraud or false swearing by you' or any other 'insured' with regard to a matter that relates to this insurance or the subject thereof. 7. Mortgage, Secured Party, and Lender's Loss Payable Clause -- If a mortgagee is named on the 'declarations', a loss payable for covered buildings will be paid to the mortgagee and you', as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. The word mortgagee includes trustee. If a secured party is named on the 'declarations', a loss payable on property subject to the security interest will be paid to the secured party and you' as interests appear. If there is more than one security interest in the same property, the order of payment will be the same as their order of priority. However, the secured party's interest is not covered for your' conversion, embezzlement, or secretion of encumbered property in your' possession, unless specifically insured against and premium paid for such. If a lender is named on the 'declarations', a loss payable on property on which the lender has an insurable interest will be paid to the lender and you' as interest appear. a. notified 'us' of change in ownership, occupancy, or substantial change in risk of which the mortgagee, secured party, or lender became aware; b. paid the premium due under this policy on demand if 'you' neglected to pay the premium; and c. submitted a signed, sworn proof of loss within 60 days after receiving notice from 'us' 0 you' failed to do so. All 'terms' of this policy apply to the mortgagee, secured party, or lender unless changed by this clause. If 'we' cancel or do not renew this policy, 'we' will notify the mortgagee, secured party, or lender at least ten days before the date cancellation or nonrenewal takes effect. Payment to Mortgagee -- If 'we' pay the mortgagee for a loss and deny payment to you', 'we' are subrogated, up to the amount 'we' paid for the loss, to all the rights of the mortgagee granted under the mortgage on the property. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee's claim. At 'our' option, 'we' may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, 'we' shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt. AAIS FO-20 Ed 1.0 Peae 8 of 8 Payment to Secured Party -- If 'we' pay the secured party for a loss and deny payment to you', 'we' are subrogated, up to the amount 'we' paid for the loss, to all the rights of the secured party granted under the security agreement. Subrogation will not impair the right of the secured parry to recover the full amount of the security agreement. At 'our' option, 'we' may pay the secured parry the remaining amount due of the security agreement, plus the accrued interest. In this event, `we' shall receive full assignment of the security agreement and securities held as collateral for the agreement. Payment to Lender -- If 'we' pay the lender for a loss and deny payment to you', 'we' are subrogated, up to the amount 'we' paid for the loss, to the rights of the lender to collect on the debt from you'. Subrogation will not impair the right of the lender to collect the rest of the debt from you'. At 'our' option, 'we' may pay the lender the remaining amount due plus the accrued interest. In this event, 'we' shall receive a full assignment of the lender's interest and any instruments given as security for the debt. 8. No Benefit To Bailee -- Coverage under this policy will not directly or indirectly benefit those who are paid to assume custody of the covered property. 'You' must inform 'us- or -we' must inform 'you' if either recovers property or receives payment. Proper costs incurred by either parry are paid first. 'You' may keep the property. The amount of the claim paid, or a lesser amount to which 'we' agree, must be returned to 'us'. If the claim paid is less than the agreed loss due to a deductible, or other limiting 'terms', the recovery is prorated between you- and 'us' based on the interest of each in the loss. it. Safety Glass -- When breakage of glass is covered, 'we' pay to replace the damaged glass with safety glazing materials if required by code, ordinance, or law. 12. Subrogation -- If 'we' pay for a loss, 'we' may require that you' assign to 'us' the right of recovery up to the amount OweO pay. 'We' are not liable for a loss if, after the loss, 'you' impair 'our' right to recover against others. 'You- may waive your- right to recover, in writing, before a loss occurs, without affecting coverage. If 'we' pay a loss to or for you- and you' recover from another party for the same loss, you' must pay 'us' as stated in Recoveries. 13. Suit Against Us - No suit may be brought against 'us' unless all the 'terms' of this policy have been complied with and the suit is brought within two years after the loss. 9. Policy Period - This policy only covers losses that occur during the policy period. 10. Recoveries -This applies 'If 'we' pay for a loss and lost or damaged property is recovered, or payment is made by those responsible for the loss. 14. Volcanic Action - All volcanic action that occurs within a 168-hour period constitutes a single occurrence. FO-20 Ed 1.0 Copyright MCMXCN American Association of Insurance Services AAIS FO-3 Ed 1.0 THIS IS A LEGAL CONTRACT Pa e 1 of 12 -- PLEASE READ IT CAREFULLY -- DWELLING COVERAGE -- SPECIAL FORM The following Table of Contents shows how this Dwelling Coverage is organized. It will help you' locate particular sections of this form. TABLE OF CONTENTS Page Agreement .............................. 1 Definitions ............................... 2 Property Coverages Principal Property Coverages .............. 3 Incidental Property Coverages ............. 5 Perils Section -- Coverages A, B, C, and D ....... 8 Loss Settlement Provisions .................. 11 Additional provisions are found in Form FO-20. Endorsements and schedules may also apply. They are identified on the 'declarations'. Refer to the Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or bold type. AGREEMENT In return for your' payment of the required premium, 'we' provide the coverages described herein subject to all the 'terms'. AAIS FO-3 Ed 1.0 Page 2 of 12 c. persons under the age of 21 in your' care or in the care of 'your' resident DEFINITIONS relatives. 6. 'Insured Premises' means the location 1. The words you' and your' mean the shown on the 'declarations'. person or persons named as the insured on the 'declarations'. This includes your' 7. 'Limit' means the amount of coverage that spouse if a resident of your' household. applies. 2. The words 'we', 'us', and 'our' mean the 8. 'Motorized Vehicle' means a self-propelled company providing this Dwelling Coverage. land or amphibious vehicle regardless of method of surface contact. 3. 'Business' means a trade, a profession, or an occupation including farming, all This does not include vehicles that are whether full or part time. This includes the designed and used to assist the rental of property to others. It does not handicapped and are not required to be include the occasional rental for residential licensed for road use. purposes of the part of the 'insured premises' normally occupied solely by 9. 'Pollutant' means: 'your' household. a. any solid, liquid, gaseous, thermal, or 'Business' also includes services regularly radioactive irritant or contaminant, provided by an 'insured' for the care of including acids, alkalis, chemicals, others and for which an 'insured' is fumes, smoke, soot, vapor, and waste. compensated. A mutual exchange of like Waste includes materials to be services is not considered compensation. recycled, reclaimed, or reconditioned, as well as disposed of. 4. 'Declarations' are all pages labeled Declarations, Supplemental Declarations, or b. electrical or magnetic emissions, Schedules which pertain to this Dwelling whether visible or invisible, and sound Coverage. emissions. 5. 'Insured' means: a. 'you'; 10. 'Residence' means a one- to four-family house or a one- or two-family mobile home used mainly for family residential purposes. b. your' relatives K residents of 'your' household; and 11. 'Terms' means all provisions, limitations, exclusions, conditions, and definitions that apply to this Dwelling Coverage. AAIS FO-3 Ed 1.0 Paae 3 of 12 PROPERTY COVERAGES 'We' do not cover land, including the land on which covered property is located, underground water, or surface water. PRINCIPAL PROPERTY COVERAGES Each Principal Property Coverage applies only 9 a 'limit' is shown on the 'declarations'. Coverage A - Residence 'We' cover the 'residence' on the 'insured premises'. This includes additions and built-in components and fixtures and building materials and supplies located on the 'insured premises' for use in construction of or to the 'residence'. 'We' do not cover land, including the land on which covered property is located, underground water, or surface water. 'We' do not cover trees, plants, shrubs, or lawns; private power, light, or electric poles; wells or well pumps; irrigation systems; or outdoor antennas, except as provided under Incidental Property Coverages. Coverage B -- Related Private Structures 'We' cover related private structures on the 'insured premises' which are not attached to 'your' 'residence'. Structures that are connected to your' 'residence' by only a fence, a utility line, or a similar connection are not considered attached. 'We' cover fences, driveways, sidewalks, and other permanently installed outdoor fixtures that are within 250 feet of the 'residence' covered under Coverage A. 'We' cover building materials and supplies located on the 'insured premises' for use in construction of or to a related private structure covered under Coverage B. 'We' do not cover barns or other structures designed or used for farming. 'We' do not cover other structures designed or used for 'business' purposes other than farming. However, this does not apply to structures: 1. rented to a tenant of the 'residence' on the 'insured premises- and not used for 'business': or 2. used solely for private garage purposes. 'We' do not cover trees, plants, shrubs, or lawns; private power, light, or electric poles; wells or well pumps; irrigation systems; or outdoor antennas, except as provided under Incidental Property Coverages. Coverage C -- Personal Property 'We' cover personal property owned by or in the care of an 'insured'. Coverage for personal property usually on residential premises of an 'insured' other than the 'insured premises' is limited to 10% of the Coverage C 'limit'. 2. 'We' cover personal property in a newly acquired principal place of residence. The full Coverage C 'limit' applies for 30 days from the date 'you' begin to move. After that, coverage for personal property in a newly acquired principal place of residence is limited to 10% of the Coverage C 'limit'. This coverage does not extend past the date on which the policy expires or the date on which the policy is terminated. 3. At 'your' option, personal property owned by a guest or domestic employee is covered while it is in that part of residential premises occupied by an 'insured'. AAIS FO-3 Ed 1.0 Peas 4 of 12 4. Limitations on Certain Property -- The special 'limits' shown below do not increase the Coverage C'limit'. The limit' for each class is the total 'limit' per occurrence for all items in that class. h. $2,500 on 'business' property, other than farm personal property. 5. Personal Property Not Covered --'We' do not cover: a. $250 on money, bank notes, bullion, gold other than goldware and gold- plated ware, silver other than silverware and silver-plated ware, platinum, and numismatic property. b. $1,500 on securities, stamps, philatelic property, bills, letters of credit, notes other than bank notes, tickets, accounts, deeds, evidence of debt, passports, and manuscripts. c. $1,500 on electronic devices, accessories, and antennas that can be operated from the electrical system of a'motorized vehicle', farm equipment, or watercraft and by other sources of power. This includes films, tapes, wires, discs, records, or other media for use with such devices. The special 'limit' applies only while the property described in this paragraph is in or on a'motorized vehicle', farm equipment, or watercraft. d. $1,500 on watercraft including their trailers, furnishings, equipment, anc motors. e. $1,500 on trailers not otherwise provided for. For loss by theft: 1) $2,500 on jewelry, watches, precious and semiprecious stones, gems, and furs; 2) $2,500 on silverware, goldware, pewterware, and items plated with gold or silver; and 3) $2,500 on guns and items related to guns. g. $2,500 on 'motorized vehicles' used to service the 'insured premises' and not designed or licensed for use on public roads. a. animals, birds, fish, or insects; b. 'motorized vehicles', other than those subject to Limitations on Certain Property, including parts, equipment, and accessories while in or on a 'motorized vehicle'; C. aircraft, including their parts and equipment; d. property of roomers and boarders who are not 'insureds'; e. trees, plants, shrubs, or lawns, except as provided under Incidental Property Coverages; f. electronic devices, accessories, or antennas that may be operated only from the electrical system of a 'motorized vehicle', farm equipment, or watercraft while in or on the 'motorized vehicle', farm equipment, or watercraft. This includes films, tapes, wires, discs, records, or other media for use with such devices; g. loss that results from credit or debit cards, except as provided under Incidental Property Coverages; h. farm personal property; i. private power, light, or electric poles; wells or well pumps; irrigation systems; or outdoor antennas, except as provided under Incidental Property Coverages; or j. land, including the land on which covered property is located, underground water, or surface water. i i AAIS FO-3 Ed 1.0 Page 5 of 12 Coverage D -- Additional Living Costs and Loss of Rent -We' pay the necessary and reasonable increase in living costs you' incur to maintain the normal standard of living of your' household If a part of the 'insured premises' is made unfit for use by an insured loss. 'We' pay only for the period of time reasonably required to make the 'insured premises' fit for use or until your' household is permanently relocated, whichever is less. This period of time is not limited by the policy period. 'We' pay for the rent you' lose or the fair rental value H the part of the 'residence' rented or held for rental to others is made unfit for use by an insured loss. 'We' only pay for the period of time reasonably required to make the 'residence' fit for use or until your' household is permanently relocated, whichever is less. Loss of rent is the amount 'you' would have received less the charges and expenses that do not continue while the residence' is unfit for use. This period of time is not limited by the policy period. 'We' pay 'your additional living costs and loss of rent or fair rental value for up to two weeks if a premises neighboring the 'insured premises' is damaged from a peril insured against by this policy and 'you' may not, by order of civil authority, use the 'insured premises'. This is not limited by the policy period. premises to prevent a loss from perils insured against. The property is covered for direct physical loss not excluded, for up to 30 days. This coverage does not extend past the date on which this policy expires. 'We' pay up to $250 towing charge to move a covered mobile home that is in danger from a peril insured against. 2. Debris Removal --'We' pay for the cost to remove the debris of property covered under Coverages A, B, or C after an insured loss. This includes the cost to remove volcanic ash, dust, or particulate matter that causes direct physical loss to property covered under Coverages A, B, or C. 'You' may apply up to 25% of the 'limit' that applies to the damaged property to cover debris removal. 'We' will not pay more for direct physical loss to property and debris removal combined than the 'limit' that applies to the damaged property. However, when the covered loss plus the cost of debris removal is more than the applicable 'limit', 'we' will pay up to an extra 5% of the applicable 'limit' to cover the cost of debris removal. This coverage does not include costs to extract 'pollutants' from land or water; or remove, restore, or replace polluted land or water. 'We' do not pay for loss of rent or costs due to the cancellation of a lease or an agreement. INCIDENTAL PROPERTY COVERAGES This form provides the following Incidental Property Coverages. They are subject to all of the 'terms' of the applicable Coverages A, B, or C. These coverages provide additional insurance unless otherwise stated. 'We' pay for loss to property covered under Coverages A, B, or C that is moved from a 1. Emergency Removal -- This coverage does not increase the 'limits' shown for the property being removed. 'We' also pay the cost to remove fallen trees which cause damage to property covered under Coverages A, B, or C if: a. the falling of the tree is caused by any of the perils that apply to Coverage C; and b. coverage is not provided elsewhere by this form. Regardless of the number of fallen trees, the most 'we' will pay is $500 per occurrence. AAIS FO-3 Ed 1.0 Peas 6 of 12 3. Increased Cost -- Ordinance or Law -- 'We' pay for the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, or demolition of property or the removal of its debris when loss to property covered under Coverages A or B is caused by a peril insured against. 'You' may apply up to 25% of the 'limit' that applies to the damaged property to cover such increased costs. 'We' will not pay more for direct physical loss to property and the increased costs combined than the 'limits that applies to the damaged property. However, when the covered loss plus the increased cost is more than the applicable 'limit', 'we' will pay up to an extra 5% of the applicable 'limit' to cover the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, or demolition of property or the removal of its debris. This coverage does not include costs to extract 'pollutants' from land or water; or remove, restore, or replace polluted land or water. 4. Fire Department Service Charge --'We' pay for charges assumed by you' under a contract or agreement when a fire department is called to save or protect property covered under Coverages A, B, or C from a peril insured against. The most 'we' pay is $500 per occurrence unless a higher 'limit' is shown on the 'declarations'. c, accepts in good faith counterfeit United States or Canadian paper money. The most 'we' pay is $1,500 per occurrence unless a higher 'limit' is shown on the 'declarations'. 'We' do not pay for a loss if: a. the 'insured' has not complied with the rules under which the credit or debit card was issued; b. the loss is caused by the dishonesty of an 'insured'; c, the loss results from the 'business' of an 'insured'; or d. the loss occurs while a person who is not an 'insured' has the credit or debit card with the consent of an 'insured'. 6. Trees, Plants, Shrubs, or Lawns --'We' pay for direct physical loss to trees, plants, shrubs, or lawns on the 'insured premises' caused by: a. fire or lightning, explosion, riot or civil commotion, aircraft, vandalism, theft; or b, vehicles if not owned or operated by an occupant of the 'insured premises'. 'You' may apply up to 10% of the Coverage C 'limit' to cover trees, plants, shrubs, or lawns. 'We' do not pay more than $500 for each tree, plant, or shrub. This includes the cost to remove the debris of the covered item. 5. Credit Card, Forgery, and Counterfeit Money --'We' pay for loss if an 'insured': a. by law must pay for the unauthorized use of credit or debit cards issued or registered in the name of an 'insured': 'We' do not cover trees, plants, shrubs, or lawns grown for 'business'. 'We' do not cover trees, plants, shrubs, or lawns located more than 250 feet from the 'residence' covered under Coverage A. b. has a loss when checks, drafts, notes, or negotiable instruments are forged or altered; or AAIS FO-3 Ed 1.0 Peas 7 of 12 7. Grave Markers --'We' pay up to $1,500 for direct physical loss to grave markers and mausoleums caused by a peril that applies to Coverage C. 8. Collapse - %a' pay for direct physical loss to property covered under Coverages A, B, and C involving the collapse of a building or a part of a building caused by the following: loss to property covered under Coverages A. B, or C which is damaged by the breakage of glass that is part of a structure. However, 'we' do not pay for loss If the 'residence' is vacant for more than 30 days in a row just before the loss. A 'residence' being built is not vacant. This coverage does not increase the 'limits' shown for the property covered. a. any of the perils insured against described under Coverage C; b. hidden insect or vermin damage or hidden decay; c. weight of contents or people; d. weight of rain which collects on a roof; or e. the use of defective materials or methods in construction or repair if the collapse occurs during the course of construction or repair. Under b. through e. above, unless the loss is the direct result of the collapse of a building, 'we' do not pay for loss to awnings; swimming pools; fences; patios; paved areas; retaining walls; bulkheads; foundations; wharves; docks; piers; underground pipes, flues, and drains; cesspools; and septic tanks. Collapse does not mean settling, cracking, shrinking, bulging, or expanding. This coverage does not increase the 'limits- shown for the property covered. 9. Glass Breakage --'We' pay for breakage of glass that is part of a structure covered under Coverages A or B. 'We' also pay for 10. Outdoor Antennas --'We' pay for direct physical loss to outdoor antennas caused by a peril that applies to Coverage C. This includes satellite dish antennas and masts, towers, and lead-in wiring. The most owed pay is $1,500 per occurrence unless a higher limit' is shown on the 'declarations'. 11. Well Pumps --'We' pay for direct physical loss to well pumps caused by a peril that applies to Coverage C. This includes pump switch boxes, fuse boxes, control boards, and any other equipment attached to the pump for its operation. The most 'we' pay is $1,500 per occurrence unless a higher 'limit' is shown on the 'declarations'. 12. Private Power and Light Poles --'We' pay for direct physical loss to private power and light poles caused by a peril that applies to Coverage C. This includes outdoor electrical wiring, switch boxes, fuse boxes, and any other outdoor electrical equipment mounted on panels or poles. The most "we' pay is $1,500 per occurrence unless a higher 'limit, is shown on the 'declarations'. AAIS FO-3 Ed 1.0 Pace 8 of 12 13. Refrigerated Food Spoilage -'We' pay for spoilage of food in a freezer or refrigerated unit on the 'insured premises'. The spoilage must be caused by change in temperature resulting from: PERILS SECTION -- COVERAGES A, B, C,ANDD a. interruption of electrical service to refrigeration equipment caused by damage to the generating or transmission equipment; or b. mechanical or electrical breakdown of the refrigeration equipment. This coverage applies only to property intended for the personal use of an 'insured'. It does not apply to farm personal property. 'You' must maintain the refrigeration equipment in proper working order. The most 'we' pay is $500 per occurrence unless a higher -limit* is shown on the 'declarations'. Coverage A -- Residence and Coverage B - Related Private Structures -'We' insure property covered under Coverages A and B for risks of direct physical loss, unless the loss is excluded under the Exclusions Applying to Coverages A and B or under the General Exclusions. Exclusions Applying to Coverages A and B: Freezing, Discharge, Leakage, or Overflow -- Unoccupied Residence -- 'We' do not pay for loss caused by freezing or the resulting discharge, leakage, or overflow from any plumbing, heating, air-conditioning, or automatic sprinkler system; water heater; or domestic appliance if the residence is vacant, unoccupied, or under construction and unoccupied. This exclusion does not apply if 'you' take reasonable care to: a. maintain heat in the building; or b. shut off the water supply and completely empty liquids from such system, heater, or appliance, 2. Freezing, Thawing, Pressure, or Weight of Ice or Water --'We' do not pay for damage caused by freezing, thawing, or pressure or weight of ice or water, whether driven by wind or not, to structures (other than structures that are buildings, carports, or mobile homes) such as: a. swimming pools, fences, patios, paved areas; b. retaining walls, bulkheads, foundations; C. wharves, docks, or piers. AAiS FO-3 Ed 1.0 Page 9 of 12 3. Theft -- 'We' do not cover theft or attempted theft in or to a 'residence' being built, or theft of materials and supplies for use in construction of the 'residence', until the 'residence' is occupied for its intended use. 4. Vandalism or Glass Breakage --'We' do not pay for loss caused by vandals or breakage of glass if the 'residence' is vacant for more than 30 days in a row just before the loss. A 'residence' being built is not vacant. 5. Seepage or Leakage --'We' do not pay for loss caused by repeated or continuous seepage or leakage of liquids or steam from within a plumbing, heating, air- conditioning, or automatic sprinkler system; water heater; or domestic appliance. Except as provided above, 'we' pay for loss caused by the accidental leakage, overflow, or discharge of liquids or steam from a plumbing, heating, air-conditioning, or automatic sprinkler system; water heater; or domestic appliance. 'We' also pay the reasonable cost of removing and replacing those parts of the building or mobile home necessary to make repairs. 'We' do not pay for loss to the system, heater, or appliance from which the liquid or steam escapes. 6. Settling, Cracking, Shrinking, Bulging, or Expanding --'We' do not pay for loss caused by the settling, cracking, shrinking, bulging, or expanding of a building structure or mobile home, pavements, patios, or other outdoor structures. Birds, Vermin, Rodents, Insects, or Domestic Animals --'We' do not pay for loss caused by birds, vermin, rodents, insects, or domestic animals, except as provided under Incidental Property Coverages. 8. Smoke --'We' do not pay for damage caused by smoke from agricultural smudging or industrial operations. 9. Collapse -'We' do not pay for loss caused by collapse, except as provided under Incidental Property Coverages. 10. Pollution --'We' do not pay for loss caused by the release, discharge, or dispersal of 'pollutants'. 'We' pay for an ensuing loss that results from any of the above, unless the ensuing loss itself is excluded. 11. 'We' do not pay for loss excluded under the General Exclusions. Coverage C -- Personal Property -- 'We' insure against direct physical loss to property covered under Coverage C caused by the following perils, unless the loss is excluded under the General Exclusions: 1. Fire or Lightning 2. Windstorm or Hail -- However, 'we' do not pay for loss: a. to property inside a structure caused by dust, rain, sand, sleet, snow, or water, all whether driven by wind or not, which enter through an opening not made by the direct force of wind or hail; or b. to watercraft and their trailers, furnishings, equipment, and motors unless inside a fully enclosed building. 'We' do cover canoes and rowboats while on the 'insured premises'. 3. Explosion 4. Riot or Civil Commotion AAIS FO-3 Ed 1.0 Paoe 10 of 12 5. Aircraft 6. Vehicles 7. Sudden and Accidental Damage from Smoke -- However, 'we' do not pay for loss caused by smoke from agricultural smudging or industrial operations. 8. Sinkhole Collapse -- This means direct physical loss caused by sudden settlement or collapse of earth supporting covered property. The earth settlement or collapse must result from subterranean voids created by the action of water on a limestone or similar rock formation. However, •we' do not pay for the value of land or the cost of filling sinkholes. 9. Volcanic Action -- This means: a. airborne volcanic blast or airborne shock waves; b. ash, dust, or particulate matter; or c. lava flow. However, 'we, do not cover the removal of ash, dust, or particulate matter that does not cause direct physical loss to covered property. c. loss of a precious or semiprecious stone from its setting; d. loss that results from the theft of a credit or debit card, except as provided under Incidental Property Coverages; e. theft from a part of the 'residence- usually occupied solely by an 'insured- while it is rented to others; or I. theft that occurs away from the 'insured premises' of: 1) property while on the part of residential premises which an 'insured' owns, rents, or occupies, except for the time while an 'insured' temporarily resides there. 'We' do cover the property of an 'insured' who is a full-time student while it is in the living quarters occupied by the student at school; 2) trailers and their equipment; 3) campers or camper bodies; or 4) watercraft and their furnishings, equipment, and motors. 12. Falling Objects -- However, 'we' do not pay for loss to: a. property inside a structure, unless the falling object has first damaged an outside wall or the roof by impact; or 10. Vandalism -- However, 'we' do not pay for loss on the 'insured premises' if the 'residence' is vacant for more than 30 days in a row just before the loss. A 'residence' 13. being built is not vacant. 11. Theft -- This includes attempted theft and loss of property from a known place when it is likely that theft occurred. However, 'we' do not cover: a. theft by an 'insured'; b. theft in or to a *residence* being built, or theft of materials and supplies for use in construction of the 'residence', until the 'residence' is occupied for its intended use; b. to the object which falls. Weight of Ice, Snow, or Sleet which damages a structure or the property inside a structure. However, 'we' do not pay for loss to swimming pools. 14. Sudden and Accidental Tearing Apart, Cracking, Burning, or Bulging of a heating, air-conditioning, or automatic sprinkling system or water heater. However, we' do not pay for loss caused by freezing, except as provided under the peril of Freezing. r AAIS FO-3 Ed 1.0 Page 11 of 12 15. Accidental Discharge or Overflow of b. shut off the liquid supply and drain the Liquids or Steam from a plumbing, system, domestic appliance, or heater. heating, air-conditioning, or automatic sprinkling system; water heater; or 17. Sudden and Accidental Damage from domestic appliance. However, 'we' do not Artificially Generated Electrical Currents - pay for loss: - However, 'we' do not pay for loss to tubes, transistors, and similar electronic a. caused by continuous or repeated components. seepage or leakage; b. caused by freezing, except as provided under the peril of Freezing; LOSS SETTLEMENT PROVISIONS C. on the 'Insured premises' caused by accidental discharge or overflow which The following provisions apply to property comes from off the 'insured premises'; covered under Coverages A, B, and C and to the Incidental Property Coverages described in d, if the 'residence' has been vacant for this form. more than 30 days in a row just before the loss. A 'residence' being built is Subject to the 'terms' shown under How Much not vacant; or We Pay For Loss or Claim, 'we' settle losses according to the Replacement Cost Terms. If e. to the system, heater, or appliance the Replacement Cost Terms do not apply, from which the liquid or steam 'we' settle losses according to the Actual Cash escapes. ('We' do pay the reasonable Value Terms. cost of removing and replacing only those parts of the structure needed to 1. Replacement Cost Terms repair the system, heater, or appliance.) a. The Replacement Cost Terms apply only to buildings covered under In this peril, a plumbing system does not Coverages A and B that have a include a sump, sump pump, and related permanent foundation and roof. They equipment. do not apply to: 16. Freezing of a plumbing, heating, air- 1) mobile homes whether or not on a conditioning, or automatic sprinkling permanent foundation; system; water heater; or domestic 2) window air-conditioners; appliance. However, 'we' do not pay for 3) awnings and canopies; loss on the 'inured premises' while the 4) appliances; 'residence' is vacant or unoccupied or 5) carpets; and under construction and unoccupied, unless 6) window coverings. you' have taken reasonable care to: b. In determining the replacement cost, a. maintain heat in the building or mobile do not include the cost of: home; or 1) excavations; AAIS FO-3 Ed 1.0 Peas 12 of 12 2) brick, stone, or concrete e. If the 'limit' on the damaged building is foundations; at least 80% of its replacement cost at 3) piers and other supports which are the time of loss, the smaller of the below the surface of the ground following amounts is used in applying inside the foundation walls; and the 'terms' under Our Limit: 4) underground flues, pipes, wiring, and drains. 1) the cost to repair or replace the damage on the same premises c. When the cost to repair or replace using materials of like kind and exceeds the lesser of $2,500 or 5% of quality, to the extent practical; or the 'limit' on the damaged building, 2) the amount spent to repair or 'we' do not pay for more than the replace the damage. actual cash value of the loss until repair or replacement is completed. 2. Actual Cash Value Terms -- Actual cash value includes a deduction for depreciation, 'You' may make a claim for the actual however caused. cash value of the loss before repairs are made. A claim for an additional a. The Actual Cash Value Terms apply to amount payable under these 'terms' all property not subject to the must be made within six months after Replacement Cost Terms. the loss. d. If the 'limit' on the damaged building is less than 80% of its replacement cost at the time of loss, the larger of the following amounts is used in applying the 'terms' under Our Limit: 1) the actual cash value at the time of the loss; or 2) that part of the replacement cost of the damaged part which 'our" 41imit' on the building bears to 80% of the full current replacement cost of the building. b. The smallest of the following amounts is used in applying the *terms, under Our Limit: 1) the cost to repair or replace the property with materials of like kind and quality to the extent practical; 2) the actual cash value of the property at the time of loss; or 3) (applies only to mobile homes) the difference in the actual cash value just before the loss and the actual cash value just after the loss. FO-3 Ed 1.0 Copyright MCMXCIV American Association of Insurance Services AAIS GL-2 Ed 2.0 THIS IS A LEGAL CONTRACT it AmVP 1 of 12 -- PLEASE READ IT CAREFULLY -- PERSONAL LIABILITY COVERAGE (FARM) The following Table of Contents shows how this Personal Liability Coverage is organized. It will help you' locate particular sections of this form. TABLE OF CONTENTS Agreement Page ...................................... Definitions ....................................... 2 Principal Coverages Coverage L -- Liability ........................... 4 Coverage M -- Medical Payments To Others ........... 4 Incidental Coverages ............................... 5 Exclusions Exclusions That Apply To Coverages L and M ......... 7 Additional Exclusions That Apply Only To Coverage L ................................... 9 Additional Exclusions That Apply Only To Coverage M ................................... 10 What You Must Do In Case Of Loss .................... 10 How Much We Pay ................................ 11 Payment of Loss or Claim ........................... 11 Conditions ....................................... 12 Additional provisions are shown separately. Endorsements and schedules may also apply. They are identified on the 'declarations'. Refer to the Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or bold type. AGREEMENT In return for your' payment of the required premium, 'we' provide the coverages described herein subject to all the 'terms'. AAIS GL-2 Ed 2.0 DEFINITIONS 1. The words you' and your mean the person or persons named as the insured on the 'declarations'. This includes your spouse if a resident of your household. 2. The words 'we', 'us', and 'our mean the company providing this Personal Liability Coverage. 3. 'Bodily Injury' means bodily harm to a person and includes sickness, disease, or death. This also includes required care and loss of services. 'Bodily Injury' does not mean bodily harm, sickness, disease, or death that arises out of: a. a communicable disease; b. the actual, alleged, or threatened sexual molestation of a person; c, mental or emotional injury, suffering, or distress that does not result from physical injury; or d. the use, sale, manufacture, delivery, transfer, or possession by any person of Controlled Substances as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812, including any amendments. Controlled Substances Include but are not limited to cocaine, LSD, marijuana, and all narcotic or hallucinogenic drugs. However, this does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician. 4. 'Business' means a trade, a profession, or an occupation, all whether full or part time. This includes the rental of property to others. 'Business' includes services regularly provided by an 'insured' for the care of others and for which an 'insured' is compensated. A mutual exchange of like services is not considered compensation. 'Business' does not include: a. 'farming'; b. the incidental activities that are usually performed by minors; or c. activities that are related to 'business', but are usually not viewed as 'business' in nature. 5. 'Declarations' are all pages labeled Declarations, Supplemental Declarations, or Schedules which pertain to this Personal Liability Coverage. 6. 'Domestic Employee' means a person employed by an 'insured' to perform duties that relate to the use and care of the 'insured premises'. This includes a person who performs duties of a similar nature elsewhere for an 'insured'. This does not include a'farm employee' or a person while performing duties in connection with the 'business' of an 'insured', 'Farm Employee' means an employee of an 'insured' whose duties are in connection with the 'farming- operations of the 'insured'. This does not include a 'domestic employee' or a person employed in your 'business'. AAIS GL-2 Ed 2.0 Peas 3 of 12 8. 'Farming' means the ownership, maintenance, or use of premises for the production of crops or the raising or care of livestock, including all necessary operations. h. a person while performing duties as an employee of an 'insured' with respect to farm implements and other vehicles covered by this Personal Liability Coverage. 'Farming' also includes the operations of roadside stands and farm markets maintained principally for the sale of the 'insured's' own farm products, but it does not include other retail activities. 9. 'Insured' means: a. you'; b. your, relatives N residents of your household; c. persons under the age of 21 in your care or in the care of your resident relatives; d. your legal representative, If you' die while insured by this Personal Liability Coverage. This person is an 'insured' only for liability arising out of the 'insured premises'. An 'insured' at the time of your death remains an 'insured' while residing on the 'insured premises'; e. persons using or caring for vehicles, watercraft, or animals owned by an 'insured' as defined under a., b., or c. above and to which this Personal Liability Coverage applies (This does not include persons using or caring for vehicles, watercraft, or animals in the course of 'business' or without the owner's consent.); f. persons in the course of performing domestic duties that relate to the 'insured premises'; g. persons in the course of acting as your real estate manager for the 'insured premises'; and Each of the above is a separate 'insured', but this does not increase 'our 'limit'. 10. 'Insured Premises' means: a. the one- to four-family dwelling shown on the 'declarations'. This includes structures or parts of buildings where you' reside; b. the farm premises described on the 'declarations'; c. other land 'you' use for "farming' purposes and new farm premises acquired by 'you' during the policy period; d. all other premises shown on the 'declarations'; e. all vacant land owned by or rented to an 'insured'. This includes land where a residence or farm structure is being built for the use of an 'insured'; f. that part of a residence, acquired by 'you' during the policy period, and to be used by 'you'; g. 'your cemetery lots and 'your burial vaults or those of 'your, resident relatives; h. that part of a premises not owned by an 'insured' R it is temporarily used as a residence by an 'insured'; i. all premises used by 'you' in connection with 'your residence; j. all access ways adjoining the 'insured premises'; and AAIS GL-2 Ed 2.0 Page 4 of 12 k, that part of premises occasionally rented to an 'insured' for other than 'business' purposes. 11. 'Limit' means the amount of coverage that applies. 12. 'Motorized Vehicle' means a self-propelled land or amphibious vehicle regardless of method of surface contact. This includes parts and equipment. This does not include vehicles that are designed and used to assist the handicapped and are not required to be licensed for road use. 13. 'Motor Vehicle' means a'motorized vehicle', a trailer, or a semi-trailer, and all attached machinery or equipment, if: a. it is subject to 'motor vehicle' registration; or b. it is designed for use on public roads, 14. 'Occurrence' means an accident, including repeated exposures to similar conditions, that results in'bodiy injury' or 'property damage' during the policy period. 15. 'Pollutant' means: a. any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be recycled, reclaimed, or reconditioned, as well as disposed of. b, electrical or magnetic emissions, whether visible or invisible, and sound emissions. 16. 'Property Damage' means physical injury to tangible property. This includes the loss of use. 17. 'Recreational Motor Vehicle' means a 'motorized vehicle', a trailer, or attached equipment that is designed or is used for leisure time activities, and which is not a 'motor vehicle'. 18. Terms' means all provisions, limitations, exclusions, conditions, and definitions that apply to this Personal Liability Coverage. PRINCIPAL COVERAGES Each Principal Coverage applies only if a'limit' is shown on the 'declarations'. Coverage L -- Liability --'We' pay, up to 'our' 'limit', all sums for which an 'insured' is liable by law because of 'bodily injury' or 'property damage' caused by an 'occurrence' to which this coverage applies. 'We' will defend a suit seeking damages if the suit resulted from 'bodily injury' or 'property damage' not excluded under this coverage. 'We' may make investigations and settle claims or suits that 'we' decide are appropriate. 'We' do not have to provide a defense after 'we' have paid an amount equal to 'our' 'limit' as a result of a judgment or written settlement. Coverage M -- Medical Payments To Others --'We' pay the necessary medical expenses If they are incurred or medically determined within three years from the date of an accident causing covered 'bodily injury'. Medical expenses means the reasonable charges for medical, surgical, X-ray, dental, ambulance, hospital, professional nursing, and funeral services, prosthetic devices, hearing aids, prescription drugs, and eyeglasses, including contact lenses. This applies only to: 1. a person on the 'insured premises' with the permission of an 'insured'; and AAIS GL-2 Ed 2.0 Paae 5 of 12 2. a person away from the 'insured premises' If the 'bodily injury': a is a result of a condition on an 'insured premises'; b. is caused by an activity of an 'insured'; c. is caused by a person in the course of performing duties as a 'domestic employee'; d. is caused by an animal owned by or in the care of an 'insured'; or e. is sustained by a'domestic employee' and arises out of and in the course of employment. INCIDENTAL COVERAGES The following coverages are subject to all the 'terms' of Coverages L and M. Except for Claims and Defense Cost and First Aid Expense, they do not increase the 'limits' stated for the Principal Coverages. 1. Damage to Property of Others -- Regardless of an 'insured's' legal liability, 'we' pay for property of others damaged by an 'insured', or 'we' repair or replace the property, to the extent practical, with property of like kind and quality. 'Our' 'limit' for this coverage is $500 per 'occurrence'. The exclusions that apply to Coverages L and M do not apply to this coverage. However, 'we' do not pay for damage to property: c, resulting in whole or in part from: 1) activities related to a'business' of an 'inured' 2) premises owned, rented, or controlled by an 'insured', other than an 'insured premises'; or 3) the ownership, operation, maintenance, use, occupancy, renting, loaning, entrusting, supervision, loading, or unloading of 'motorized vehicles', aircraft, or watercraft. 'We' do pay for 'property damage' to 'motorized vehicles' not subject to 'motor vehicle' registration and not owned by an 'insured' K the motorized vehicle' is used only to service the premises or if it is designed for recreational use off public roads. 2. Contracts and Agreements --'We' pay for damages for 'bodily injury' or 'property damage' resulting from liability assumed by an 'insured' under a written contract made before the loss. The loss causing the 'bodily injury' or 'property damage' must have occurred during the policy period. This coverage does not apply to a contract in connection with 'business' activities of an 'insured'. 3. Claims And Defense Cost -- If 'we' defend a suit, 'we' pay: a. the costs taxed to an 'insured'; b. the costs incurred by 'us'; c. the actual loss of earnings by an 'insured' for time spent away from work at 'our' request ('We' pay up to $50 per day.); a. owned by an 'insured', or owned by, rented to, or leased to another resident of your' household or the tenant of an 'insured'; b. caused intentionally by an 'insured' who has attained the age of 13; or d. the necessary costs incurred by 'you' at 'our' request; e. the interest which accrues after the entry of a judgment, but ending when 'we' tender or pay up to 'our' 'limit'; AAIS GL-2 Ed 2.0 Paus 6 of 12 f. the premiums on appeal bonds or 3) a 'motorized vehicle' which is bonds for the release of attachments designed only for use off public up to 'our' 'limit' ('We' are not required roads and which is used mainly to to apply for or furnish bonds.); service the 'insured premises'. However, this coverage does not g. the premiums up to $500 per bail bond apply to 'bodily injury' or 'property required of an 'insured' because of an damage' which results from a accident or a traffic law violation arising 'motorized vehicle' owned by an out of the use of a vehicle to which this 'insured', other than a golf cart, Personal Liability Coverage applies while used for recreational purposes ('We' are not required to apply for or away from the 'insured premises'. furnish bonds.); and h. prejudgment interest awarded against an 'insured' on that part of the judgment %ve' pay. If 'we' offer to pay the 'limit', 'we' will not pay any prejudgment interest based on that period of time after the offer. 4. First Aid Expense -- 'We' pay the expenses incurred by an 'insured' for first aid to persons, other than 'insureds', for covered 'bodily injury'. 5. Motorized Vehicles -- 'We' pay for the 'bodily injury' or the 'property damage' which: a. occurs on the 'insured premises' and is a result of the ownership, maintenance, use, loading, or unloading of: 1) a'motorized vehicle''rf it is not subject to 'motor vehicle' registration because of its type or use; or 2) a 'recreational motor vehicle'. b, results from: c. results from an 'insured's' use of a 'recreational motor vehicle' which is not owned by an 'insured'. 6. Watercraft - a. 'We' pay for the 'bodily injury' or the 'property damage' which results from the maintenance, use, loading, or unloading of: 1) a watercraft while it is on the 'insured premises'; 2) a watercraft which is not owned by or rented to an 'insured' if the loss is a result of the activities of an 'insured'; 3) a watercraft which is not owned by an 'insured' and which is powered by inboard or inboard/outboard motors which total 50 horsepower or less; 4) a sailing vessel with or without auxiliary power which is owned by or is rented to an 'insured' and is less than 26 feet in length; or 5) a watercraft which is powered by outboard motors which total 25 horsepower or less. 1) a golf cart while used for golfing purposes; 2) a utility, boat, camp, or mobile home trailer, except when the trailer is carried on, is towed by, or is attached to a 'motor vehicle' or a 'recreational motor vehicle'; or b. 'We' pay for the 'bodily injury' or the 'property damage' which results from the maintenance, use, loading, or unloading of a watercraft that is powered by outboard motors which total more than 25 horsepower, if: AAIS GL-2 Ed 2.0 Paae 7 of 12 1) the motors are listed on the 'declarations'; 2) the motors are acquired by an 'insured' during the policy period and a request for coverage is made within 45 days after they are acquired; or 3) the motors are not owned by an 'insured'. 7. Business - 'We' pay for the 'bodily injury' or the 'property damage' which results from: EXCLUSIONS 'We' do not pay for a loss K one or more of the following excluded events 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 event. 1. Exclusions That Apply to Coverages L a. the rental of that part of the 'insured and M -- This Personal Liability Coverage premises' that is usually occupied by does not apply to: you' as a residence; a. 'bodily injury' or 'property damage' b. the rental of other parts of the 'insured which results from war. (This includes premises' for use as a residence (No undeclared war, civil war, insurrection, family unit may include more than two rebellion, revolution, warlike act by a roomers or boarders.); or military force or military personnel, or destruction, seizure, or use of property the rental of a art of the 'insured c. P for a military purpose. Discharge of a premises' for use as a school, studio, nuclear weapon is deemed a warlike office, or private garage. act even if accidental.) 8. Custom Farm Work --'We' pay for 'bodily b. 'bodily injury' or 'property damage' injury' or 'property damage' which results which results from the ownership, from the 'insured's' performance of or operation, maintenance, use, failure to perform custom farm work for occupancy, renting, loaning, entrusting, others for a charge under contract or supervision, loading, or unloading of agreement. Custom farm work includes the aircraft, except for 'bodily injury' to a use of draft animals, farm tractors, farm person while performing duties as a trailers, farm implements, and other farm 'domestic employee'. However, this machinery used in performing the work. exclusion does not apply to model airplanes. This coverage applies only if 'your' receipts from custom farm work for the 12 months c. 'bodily injury' or 'property damage' just before the date of the 'occurrence' do which results from the ownership, not exceed $5,000. This coverage does not operation, maintenance, use, apply to 'bodily injury' or 'property occupancy, renting, loaning, entrusting, damage' which results from the application supervision, loading, or unloading of of pesticides or herbicides. 'motorized vehicles' or watercraft AAIS GL-2 Ed 2.0 Peas 8 of 12 owned or operated by or rented or loaned to an 'insured'. However, 'we' do pay: 1) for 'bodily injury' to a person in the course of performing duties as a 'domestic employee'; or 2) if coverage is provided by an Incidental Motorized Vehicle or Watercraft Coverage. d. 'bodily injury' or 'property damage' which results from the use of a 'motorized vehicle' in, or in the practice or the preparation for, racing, speed, pulling or pushing, demolition, or stunt activities or contests. 'bodily injury' or 'property damage' which results from premises that are owned, rented, or controlled by an 'insured' and that are not the insured premises'. However, 'we' do pay for 'bodily injury' to a person in the course of performing duties as a'domestic employee. 'bodily injury' or 'property damage' which is expected by, directed by, or intended by the 'inured' or that is the result of intentional and malicious acts of the 'insured'. However, this exclusion does not apply to 'bodily injury' that arises out of the use of reasonable force to protect people or property. e. 'bodily injury' or 'property damage' which results from the use of animals, other than horses, in or in the practice or preparation for, any prearranged racing, speed, pulling or pushing, or stunt activities or contests. However this exclusion applies only to 'occurrences' that take place at the location designated for the contest or activity. 'bodily injury' or 'property damage' which results from liability imposed by law on an 'insured' for the use of a 'motorized vehicle', aircraft, or watercraft, except if coverage is provided for by an Incidental Motorized Vehicle or Watercraft Coverage. g. 'bodily injury' or 'property damage' which results from the rendering of or the failing to render a professional service. h. 'bodily injury' or "property damage' which results from activities related to the 'business' of an 'insureds, except as provided for by an Incidental Business Coverage. k. 'bodily injuy or 'property damage' which results from an 'occurrence' for which an 'insured' Is also an 'insured' under a nuclear energy liability policy or would be an 'insured' but for the exhaustion of its 'limits'. (A nuclear energy liability policy is a policy issued by the Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, Nuclear Insurance Association of Canada, or their successors.) 'bodily injury' or 'property damage' which results from the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of 'pollutants' into or upon land, water, or air. However, this exclusion does not apply to 'bodily injury' or 'property damage' that results from the heat, smoke, or fumes of a fire on the 'insured premises' that: 1) becomes uncontrollable or breaks out from where lt was intended to be; or , AAIS GL-2 Ed 2.0 Page 9 of 12 2) is set by the 'insured' for the 1) liability assumed by an 'insured' purpose of burning off crop stubble under a contract or an agreement; or other vegetation consistent with or normal and usual alarming' 2) 'bodily injury' sustained by a person and Is not in violation of practices on the 'insured premises' in a , any ordinances or laws. neighborly exchange of assistance for which the 'insured' is not m. any loss, cost, or expense arising out obligated to pay any money. of any: 2. Additional Exclusions That Apply Only to 1) request, demand, or order that any Coverage L -- Coverage L does not apply 'insured' or others test for, monitor, to: clean up, remove, contain, treat, detoxify, neutralize, or in any way a. 'bodily injury' to you', and if residents respond to or assess the effects of of your' household, 'your' relatives 'pollutants'; or and persons under the age of 21 in 2) claim or suit by or on behalf of any 'your' care or in the care of 'your' governmental authority relating to resident relatives. testing for, monitoring, cleaning up, removing, containing, treating, b. liability assumed under a contract or detoxifying, neutralizing, or in any an agreement, except as provided by way responding to or assessing the Incidental Contracts and Agreements effects of pollutants'. Coverage. n. 'bodily injury' or 'property damage' c. damage to property owned by an which results from the 'insured's' 'insured'. performance of or failure to perform custom farm work for others for a d. damage to property that is rented to, charge under contract or agreement, occupied by, used by, or in the care of except as provided for by Incidental an 'insured', except for 'property Custom Farm Work Coverage. damage' caused by fire, smoke, or explosion. o. 'bodily injury' or 'property damage' which results from the discharge of substances from an aircraft. p. 'bodily injury' to a'farm employee' of an 'insured' N it occurs in the course of employment by the 'insured' or the consequential injury to a spouse, child, parent, brother, or sister of such injured employee. This exclusion applies whether the 'insured' is liable either as an employer or in any other capacity and to any obligation of an 'insured' to fully or partially reimburse another for damages arising out of the injury. However, this exclusion does not apply to: e. sickness, disease, or death of a 'domestic employee' unless a written notice is received by 'us' within 36 months after the end of the policy period ir. which the injury occurred. I. 'bodily injury' to a person, including a 'domestic employee', if the 'insured' has a workers' compensation policy covering the injury or if benefits are payable or are required to be provided by an 'insured' under a workers' compensation, non-occupational disability, occupational disease, or like law. AAIS GL-2 Ed 2.0 Page 10 of 12 g. 'property damage' to products manufactured, sold, handled, or distributed by an 'insured' when the 'property damage' arises out of such products or a part of the products. The notice must state: a. the name of the 'insured'; the policy number; and the time, place, and the details of the 'occurrence'; and h. 'property damage' to work performed by or for an 'insured' when the 'property damage' arises out of such work or a part of the work. However, this exclusion does not apply to Incidental Custom Farm Work Coverage. 3. Additional Exclusions That Apply Only to Coverage M -- Coverage M does not apply to 'bodily injury' to: a. an 'insured' or other person who resides on the 'insured premises', except a 'domestic employee'. b. a person who is on the 'insured premises' because a'business' is conducted or professional services are rendered on the 'insured premises'. c, a person, including a 'domestic employee', R a workers' compensation policy covers the injury or if benefits are provided under a workers' compensation, non-occupational disability, occupational disease, or like law. WHAT YOU MUST DO IN CASE OF LOSS Notice -- in the case of an 'occurrence' (or if an 'insured' becomes aware of anything that indicates that there might be a claim under this Personal Uability Coverage), the 'insured' must promptly give 'us' or low agent notice (in writing 0 requested). b, the names and the addresses of all known potential claimants and witnesses. 2. Cooperation - The 'insured' must cooperate with 'us' in performing all acts required by this Personal Uability Coverage. 3. Volunteer Payments -- An 'insured' must not make payments, pay or offer rewards, or assume obligations or other costs except at the'insured's' own cost. This does not apply to costs that are allowed by this Personal Liability Coverage. 4. Other Duties -- Uablllty Coverage -- In case of an 'occurrence' which might result in a claim, the 'insured' must promptly give 'us' copies of all legal papers, demands, and notices that relate to the 'occurrence' or claim. At 'our' request, the 'insured' must help 'us': a. to settle a claim; b. to conduct suits (this includes being at trials and hearings.); c. to enforce the right of recovery or indemnification against all parties who may be liable to an 'insured' for the injury or damage; d. in the securing of and giving of evidence; and e. in obtaining the attendance of all witnesses. AAIS GL-2 Ed 2.0 Paue 11 of 12 5. Other Duties - Medical Payments To Others Coverage - In case of a loss the injured person or someone acting on behalf of that person must: a. give 'us' written proof of claim (under oath If we' request) as soon as practical; and b. authorize 'us- to get copies of medical records. 2. Coverage M -- Medical Payments To Others - The 'limit' shown on the 'declarations' per person for Coverage M is the most 'we' pay for all medical expenses payable for 'bodily injury' to one person as the result of one accident. When a 'limit' is shown on the 'declarations' per accident for Coverage M, that 'limit' is the most 'we' pay for any one accident. The injured person must submit to medical exams by doctors chosen by 'us' when and as often as 'we' may reasonably require. 6. Other Duties - Damage to Property of Othera - In case of a loss, you' must give 'us' a signed, sworn statement of loss within 60 days after the loss and you' must exhibit the damaged property if it is within your' control. HOW MUCH WE PAY 1. Coverage L -- Liability -- The 'limit' shown on the 'declarations' for Coverage L is the most 'we' pay for loss for each 'occurrence'. This applies regardless of the number of: a. persons insured under this Personal Liability Coverage; b. parties who sustain injury or damage; or c. claims made or suits brought. The payment of a claim under Coverage M does not mean 'we' admit 'we' are liable under Coverage L. 3. Insurance Under More Than One Coverage - If more than one coverage applies to a loss, 'we' pay no more than the actual loss. 4. Coverage L -- Insurance Under More Than One Policy -- Coverage L is excess over other insurance that applies to the loss or claim. If the other insurance is also excess, 'we- pay only 'our' share of the loss. 'We' pay only that part of the loss that the applicable 'limit' under this Personal Liability Coverage bears to the total amount of insurance covering the loss. PAYMENT OF LOSS OR CLAIM A person who has secured a judgment against an 'insured' for an insured loss or has liability established by a written agreement between the claimant, an 'insured', and 'us', is entitled to recover under this Personal Liability Coverage to the extent of coverage provided. AAIS GL-2 Ed 2.0 Page 12 of 12 CONDITIONS 1. Bankruptcy Of An Insured -- Bankruptcy or insolvency of an 'insured' does not relieve 'us' of 'our obligations under this Personal Liability Coverage. 2. Conformity With Statute - Terms' in conflict with the laws of the state where the premises described on the 'declarations' is located are changed to conform to such laws. 5. Subrogation - If 'we' pay for a loss, Vag may require that you' assign to 'us' the right of recovery up to the amount @we@ pay. 'We' are not liable for a loss R, after the loss, you' impair our' right to recover against others. 'You' may waive your' right to recover, in writing, before a loss occurs, without affecting coverage. Subrogation does not apply to Coverage M -- Medical Payments to Others or to Damage to Property of Others under the Incidental Personal Liability Coverages. 6. Suit Against Us - No suit may be brought against Ouse unless: 3. Misrepresentation, Concealment, Or Fraud - This coverage is void if, before or after a loss: a. you' or any other insured' has willfully concealed or misrepresented: 1) a material fact or circumstance that relates to this insurance or the subject thereof; or 2) the'insured's' interest herein; b. there has been fraud or false swearing by you' or any other insured' with regard to a matter that relates to this insurance or the subject thereof. 4. Policy Period -- These coverages apply only to 'bodily injury' and 'property damage' that occur during the policy period. a. all the Berms' of this Personal Liability Coverage have been complied with; and b. the amount of an 'insured's' liability has been fixed by: 1) a final judgment against an 'insured' as a result of a trial; or 2) a written agreement of the 'insured', the claimant, and 'us'. No person has a right under this Personal Liability Coverage to join 'us' or implead 'us' in actions that are brought to fix the liability of an 'insured'. GL-2 Ed 2.0 Copyright MCMXCIV American Association of Insurance Services AAIS This endorsement changes FO 0706A 06 99 the policy Page 1 of 2 -- PLEASE READ THIS CAREFULLY -- AMENDATORY ENDORSEMENT PENNSYLVANIA 1. Under Additional Policy Conditions Applicable To All Coverages, Cancellation and Nonrenewal is deleted and replaced by: This policy terminates automatically on its expiration or anniversary if "you": Cancellation and Nonrenewal -- "You" may cancel this policy by returning the policy to "us" or by giving "us" written notice and stating at what future date coverage is to stop. a. surrender the policy to "us"; b. have notified "us" or "our" agent in writing of "your" intent not to renew; or "We" may cancel or not renew this policy by written notice to "you" at the address shown on the "declarations". Proof of delivery or mailing is sufficient proof of notice. During the first 59 days this policy is in effect, "we" may cancel for any reason. "We" will give "you" notice at least 30 days before cancellation is effective. After this policy has been in effect 60 days or more, or if it is a renewal of a policy issued by "us", "we" may cancel or not renew only for the following reasons: a. the premium has not been paid when due; b. the policy was obtained through fraud, material misrepresentation, or omission of fact which, if known by "us", would have caused "us" not to issue the policy; or c. there has been a material change or increase in hazard of the risk. "We" will give "you" notice at least 30 days in advance of cancellation or nonrenewal. "Our" notice will state the reasons for cancellation or nonrenewal. "Your" return premium, if any, will be refunded at the time of cancellation or as soon as practical. Payment or tender of the unearned premium is not a condition of cancellation. c. have not paid the renewal or installment premium when due. 2. Under General Exclusions, Wear and Tear is deleted and replaced by the following: Wear and Tear --'We" do not pay for loss which results from: a. wear and tear; b. marring or deterioration; c. inherent vice, latent defect, or mechanical breakdown; d. rust, wet or city rot, corrosion, contamination, or smog; or e. fungus, spores, mold, mildew, bacterium, or other natural growth. However, "we" do pay for an ensuing loss that is otherwise covered by this policy. 3. Under Payment Of Loss Or Claim, Our Options is deleted and replaced by the following: Our Options -- "We" may: a. pay the loss in money; or AAIS FO 0706 06 99 Page 2 of 2 b. rebuild, repair, or replace the property. "We" must give "you" notice of "our" intent to do so within 15 working days after "vve" receive an acceptable proof of loss. "We" may take all or part of the damaged property at the agreed or appraised value. Property paid for or replaced by "us" becomes "ours". 4. When this policy includes form FO-1, FO-2, or FO-3, the following is added to the applicable form under Incidental Property Coverages, Debris Removal: "We" pay up to $500 to remove fallen trees from the "insured premises" if: a. the fallen trees are within 250 feet of the "residence" covered under Coverage A; b. a structure covered under Coverages A or B is damaged by Windstorm or Hail, or Weight of Ice, Snow, or Sleet; and c. as a result of such weather conditions, the Governor of Pennsylvania declares the area in which the "insured premises" is located to be a disaster area. 5. When this policy includes form FO-1, FO-2, FO-3, or FO-4, the peril of Explosion under Perils Section in the applicable form is deleted and replaced by the following: Explosion -- However, explosion does not include the expulsion of spores or other matter from fungus or other natural growth. 6. When this policy includes form FO-6, the following is added to the peril of Explosion under Perils Section in that form: "We" do not pay for loss caused by the expulsion of spores or other matter from fungus or other natural growth. When this policy includes Liability Coverage, the following provisions amend those "terms": 7. The definition of "bodily injury" is deleted and replaced by the following: "Bodily injury" means bodily harm to a person and includes sickness, disease, or death. This also includes required care and loss of services. "Bodily injury" does not mean bodily harm, sickness, disease, or death that arises out of: a. a communicable disease; b. the actual, alleged, or threatened sexual molestation of a person; or c. the use, sale, manufacture, delivery, transfer, or possession by any person of Controlled Substances as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812, including any amendments. Controlled Substances include but are not limited to cocaine, LSD, marijuana, and all narcotic or hallucinogenic drugs. However, this does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician. 8. Under Principal Coverages, Coverage M -- Medical Payments To Others, the three year time limitation does not apply to expenses for funeral services. 9. Under Exclusions, Exclusions That Apply to Coverages L and M, exclusion d. is deleted and replaced by the following: d. "bodily injury" or "property damage" which results from the use of a "motorized vehicle" in, or in the practice or preparation for, any prearranged or organized racing, speed, pulling or pushing, demolition, or stunt activities or contests. 10. Under Exclusions, Exclusions That Apply to Coverages L and M, exclusion e. is deleted. FO 0706A 06 99 Copyright, American Association of Insurance services, 1999 AAIS Everett Cash Mutual Insurance Co. 10591 Lincoln Highway Everett, PA 15537 This endorsement changes the Personal Liability Coverage GL-614A (Farm) provided by this policy. Ed 11.99 - PLEASE READ THIS CAREFULLY - FARM POLLUTION LIABILITY COVERAGE Personal Liability Coverage (Farm) Form GL-2 Exclusion 1.1. is deleted and replaced by the following: Exclusions that Apply to Coverages L & M -This Personal Liability Coverage does not apply to: 1) "bodily injury" or "property damage" which results from the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of "pollutants" into or upon land, water, or air. This exclusion does not apply if such discharge, dispersal, seepage, migration, release, or escape is both sudden and accidental; or arises from the heat, smoke or fumes of a fire on the "insured premises" that: a) becomes uncontrollable or breaks out from where it was intended to be; or b) is set by the "insured" for the purpose of burning off crop stubble or other vegetation consistent with normal and usual "farming" practices, and is not in violation of any ordinances, regulations, or laws. 1. 2) "bodily injury" or "property damage" which results from or in connection with the continual or repeated usage, disposal, or application of substances that would not normally be considered "pollutants" but which become "pollutants" because of such continual or repeated usage, disposal, or application. All other "terms" remain the same. GL-614A Ed 11.99 AAIS FO-6 Ed 1.0 THIS IS A LEGAL CONTRACT Paae 1 of 14 - PLEASE READ IT CAREFULLY - FARM COVERAGE The following Table of Contents shows how this Farm Coverage is organized. It will help you' locate particular sections of this form. TABLE OF CONTENTS Page Agreement .............................. 1 Definitions .............................. 2 Principal Property Coverages ................. 3 Property Not Covered Under Coverages E, F, or G .................... 7 Incidental Property Coverages ................ 8 Perils Section -- Coverages E, F, and G ......... 10 Loss Settlement Provisions .................. 13 Additional provisions are found in Form FO-20. Endorsements and schedules may also apply. They are identified on the 'declarations'. Refer to the Definitions for words and phrases that have special meaning. These words and phrases are shown in quotation marks or bold type. AGREEMENT In return for 'your' payment of the required premium, 'we' provide the coverages described herein subject to all the 'terms'. nags FO-6 Ed 1.0 Peas 2 of 14 DEFINITIONS 7. 'Livestock' means cattle, sheep, swine, goats, horses, mules, donkeys, and hybrids thereof. 1. The words you' and your' mean the person, persons, or organization named as the insured on the 'declarations'. 2. The words 'we', 'us', and 'our' mean the company providing this Farm Coverage. 3. 'Declarations' are all pages labeled Declarations, Supplemental Declarations, or Schedules which pertain to this Farm Coverage. 4. 'Insured' means Now. If the 'insured' is a person, the word 'insured' also means: a. your' spouse and your' relatives if residents of your' household; and b. persons under the age of 21 in your care or in the care of your resident relatives. 5. 'Insured Premises' means: a. the location shown on the 'declarations'; b. other land you- use for farming; and c. new farm premises acquired or leased during the policy period. 6. 'Limit' means the amount of coverage that applies. 8. 'Non-Farm Vehicles' means: a automobiles, trucks, and vehicles designed and licensed for road use, other than farm wagons and farm trailers; b. motorcycles, motorized bicycles or tricycles, mopeds, dirt bikes, and three- or four-wheel all-terrain vehicles; c. mobile homes, motor homes, house trailers, and camper bodies; and d. snowmobiles, watercraft, and aircraft, and includes tires, parts, or equipment of any of the above. 9. 'Pollutant' means: a. any solid, liquid, gaseous, thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be recycled, reclaimed, or reconditioned, as well as disposed of. b. electrical or magnetic emissions, whether visible or invisible, and sound emissions. 10. `Terms' means all provisions, limitations, exclusions, conditions, and definitions that apply to this Farm Coverage. AAIS FO-6 Ed 1.0 Paae 3 of 14 PRINCIPAL PROPERTY COVERAGES New Construction --'We' cover new, permanent farm structures at the 'insured premises'. This includes materials and supplies for use in their construction. Coverage E -- Farm Barns, Buildings, and Structures 'We' cover additional farm dwellings, farm barns, farm buildings, portable buildings and structures, tenant's improvements and betterments, and other structures located on the 'insured premises' for which a 'limit' is shown on the 'declarations'. 'We' cover silos that are specifically scheduled on the 'declarations'. The 'limit' for each covered building or structure includes all materials and supplies intended for use in the construction, alteration, or repair of that building or structure. These items must be on or adjacent to the 'insured premises'. The 'limit' for each additional farm dwelling includes additions, fixtures, and outdoor equipment used for servicing that dwelling. The 'limit' for each farm barn, building, and structure includes attached sheds and fixtures. The 'limit' for tenant's improvements and betterments includes permanent fixtures, alterations, decorations, and additions, made or acquired at your' expense, which are part of the described farm barn or farm structure. For any one portable building, 'we' pay no more than the proportion of the 'limit' for portable buildings or structures that the value of each bears to the total value of all such portable buildings or structures that 'you' own at the time of loss. 'We' cover only those structures that are not otherwise covered under this or any other policy. 'We' cover direct physical loss or damage caused by the perils of fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, and vandalism. The most we pay for this coverage is $50,000 per occurrence. This coverage applies for 60 days after the first date of delivery of the materials and supplies or until 'you- report the values to 'us', whichever occurs first. This coverage does not extend past the end of the policy period. 'We' will charge 'you' an additional premium for the values reported from the date construction begins or the materials and supplies are delivered. Coverage F -- Scheduled Farm Personal Property 'We' cover the classes or items of farm personal property for which a 'limit' is shown on the 'declarations'. Coverage applies while property is on the 'insured premises'. Unless otherwise specified, coverage for property while away from the 'insured premises' is limited to 100 of the applicable 'limit' for such property. This does not increase the 'limit'. Described Machinery --'We' cover specifically scheduled items of mobile farm machinery and equipment for which a 'limit' is shown on the 'declarations'. The 'limits' shown on the 'declarations' apply to covered property while on or away from the 'insured premises'. AAIS CO-6 Ed 1.0 Pegs 4 of 14 a. Replacement Items --'We' cover This coverage applies for 30 days after mobile farm machinery and equipment you' acquire a new item or until you' you' acquire during the policy period report it to 'us', whichever occurs first. to replace specific items that are This coverage does not extend past scheduled on the 'declarations'. 'You' the end of the policy period. must provide 'us' with a complete description of each replacement item 'We' do not cover: and pay any additional premium within 30 days of acquisition. Any premium 1) 'non-farm vehicles'; due will be charged from the date you' 2) brooders, fences, windmills or acquire the property. windchargers or their towers; manufactured gas, liquified The most 'we' will pay under this petroleum gas, gasoline, or their coverage is the smaller of the containers; or following: 3) bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, 1) the limit' shown on the or any permanent fixtures attached 'declarations' for the specific item to or within a building. replaced plus an additional amount up to $50,000 per occurrence; or 2. Machinery Not Described -- When a'limits 2) the actual cash value of the item. is shown on the 'declarations' for Machinery Not Described, we, cover your' This coverage applies for 30 days after unscheduled mobile farm machinery and 'you' acquire a replacement item or equipment including tools, accessories, until you' report it to 'us', whichever and spare parts. The 'limit' shown on the occurs first. This coverage does not 'declarations' applies to covered property extend past the end of the policy while on or away from the 'insured period. premises'. If 'you' do not report a replacement 'We' pay no more than $2,500 for any one Rem to 'us' within the 30-day period item of covered property. and pay the additional premium, the most that 'we' will pay is the 'limit' 'We' do not cover: shown for the item replaced. a. property which is specifically insured or b. Newly Acquired Property -- 'We' cover any property covered under Described mobile farm machinery and equipment Machinery; that you' acquire during the policy period which are not replacement b. brooders, fences, windmills or items. 'You' must provide 'us' with a windchargers, or their towers; complete description of each new item and pay the additional premium within c. threshing machines, tractors, 30 days of acquisition. The premium combines, corn pickers, hay balers, will be charged from the date 'you' harvesters, peanut diggers, potato acquire the property. diggers or pickers, cotton pickers, crop driers, or sawmill equipment; 'We' cover these items for their actual cash value. The most 'we' pay for all d. manufactured gas, liquified petroleum newly acquired items is $50,000 per gas, gasoline, or their containers; occurrence. AAIS FO-6 Ed 1.0 Paae 5 of 14 e. bulk milk tanks, bulk feed tanks, bam cleaners, pasteurizers, boilers, or any permanent fixtures attached to or within a building; f. portable buildings or portable structures; g. irrigation equipment; or h. 'non-farm vehicles'. 3. Rented or Borrowed Equipment -- When a 'limit' is shown on the 'declarations' for Rented or Borrowed Equipment, 'we' cover farm machinery and equipment that 'you' rent or borrow from others to use in your' farming operation. The 'limit' shown on the 'declarations' applies to covered property while on or away from the 'insured premises'. 'We' do not cover: a. 120% of the amount obtained by dividing the 'limit' for the affected class of 'livestock' by the number of head in that class owned by you' at the time of loss; b. the actual cash value of the 'livestock' damaged or destroyed; or c. $2,500. Each horse, mule, or head of cattle under one year of age at the time of loss will be counted as one-half head. Newly Acquired Livestock --'We' cover 'livestock' similar to that scheduled separately or by class on the 'declarations' which 'you' buy or borrow during the policy period. 'You' must report newly acquired 'livestock' to 'us' and pay the additional premium within 30 days of acquisition. The premium will be charged from the date 'you' acquire the 'livestock'. a. 'non-farm vehicles'; b. dealers' demonstration machinery, vehicles, or equipment; or c. property in which 'you' have an interest either as an owner or lienholder. 'We' do not cover borrowed farm machinery when coverage for such property is provided elsewhere under this or any other policy 'you' may have. 4. Livestock --'We' cover specifically scheduled 'livestock' for which a 'limit' is shown on the 'declarations'. 'We' also cover classes of livestock for which a 'limit' is shown on the 'declarations'. The 'limits' shown on the 'declarations' apply to covered 'livestock' while on or away from the 'insured premises'. The most 'we' pay for loss to any one head of 'livestock', other than 'livestock' specifically scheduled on the 'declarations', is the smallest of the following amounts: The most 'we, pay for newly acquired 'livestock' is 25% of the total of the 'limits' shown on the 'declarations' for all covered 'livestock'. This coverage applies for 30 days after 'you' acquire the 'livestock' or until 'you' report it to 'us', whichever occurs first. This coverage does not extend past the end of the policy period. 5. Poultry -- When a 'limit' is shown on the 'declarations' for Poultry, 'we' cover poultry. The most 'we' pay for loss to any one bird is its cash market value at the time of loss. 'We' do not cover poultry in heated buildings or turkeys unless specifically scheduled on the 'declarations-. 6. Household Contents -- When a -limir is shown on the 'declarations' for Household Contents, 'we' cover household contents while in a dwelling covered under Coverage E. AAIS FO-6 Ed 1.0 Paste 7 of 14 c. 'We' cover direct physical loss to unharvested barley, corn, oats, rye, wheat and other grains, flax, soy beans, and sunflowers caused only by the peril of fire or lightning. This does not include coverage for seed or forage crops, straw, or stubble. d. The most 'we' pay for loss to property in the open as listed under 3. a., 3.b., and 3.c. above is 10% of the Coverage G 'limit'. This does not increase the Coverage G'limit'. The most 'we' pay for loss or damage to any one stack of hay, straw, or fodder is $10,000. A stack means hay, straw, or fodder in one area separated by a clear space of 100 feet or more from any other hay, straw, or fodder in the open. 4. Property Not Covered -- Coverage G does not apply to: a. property covered under Coverages E or F; b, property specifically insured; c. tobacco, cotton, vegetables, root crops, bulbs, fruit, or nursery stock; d. contents of potato, onion, bulb, or fruit cleaning, grading, sorting, packing, or storage buildings; e. race horses, show horses, or show ponies; f. contents of heated chicken fryer or broiler houses, laying houses, poultry brooder houses, or duck or turkey houses, including fowl therein; g. fences, windmills, windchargers, or their towers; h. 'non-farm vehicles'; i. animals other than 'livestock'; j. bulk milk tanks, bulk feed tanks, barn cleaners, pasteurizers, boilers, silo unloaders, and any permanent fixtures attached to or within the building; k. portable buildings or portable structures; 1. farm operations records; m. irrigation equipment; n, sawmill equipment; or o. any property shown on the 'declarations' under Additional Property Not Covered under Coverage G. PROPERTY NOT COVERED UNDER COVERAGES E, F, OR G 'We' do not cover: property covered under Coverages A, B, or C, or the Incidental Property Coverages pertaining to those coverages, if provided by the policy; 2. trees, plants, shrubs, lawns, growing crops, and standing crops, except as provided under Coverage G; 3. devices, accessories, or antennas designed for reproducing, receiving, transmitting, recording, or playing back data, sound, or picture while in or on a vehicle or watercraft unless such device, accessory, or antenna is specifically scheduled on the 'declarations' or permanently installed by the manufacturer or dealer in a covered vehicle or watercraft; 4. film, tape, wire, record, or other media for use with any device designed for reproducing, receiving, transmitting, recording, or playing back of data, sound, or picture while in a vehicle or watercraft; AAIS FO-6 Ed 1.0 Page 8 of 14 5. the contents of a rice warehouse, rice drying house, cotton gin building belonging to a cotton gin plant or located on gin pramises, or machinery, vehicles, or implements that are part of these operations; 6. contraband or property used in the course of illegal transportation or trade; 7. land, including the land on which covered property is located; 8. underground or surface water; 9. private power, light, or electric poles; wells or well pumps; irrigation systems; or outdoor antennas, unless specifically scheduled on the 'declarations'; or 10. while away from the 'insured premises': a. property in the custody of a common or contract carrier, except as provided under the Incidental Property Coverages; b. property stored or being processed in manufacturing plants, public elevators, warehouses, seed houses, or commercial drying plants; c. property in public sales barns or public sales yards or stockyards; or d. property at packing plants or slaughter houses. INCIDENTAL PROPERTY COVERAGES 1. Emergency Removal -- This coverage does not increase the 'limits' shown for the property being removed. 'We' pay for loss to property covered under Coverages E, F, or G that is moved from a premises to prevent a loss from perils insured against. The property is covered for direct physical loss not excluded for up to 30 days. This coverage does not extend past the end of the policy period. 'We' pay up to $250 for towing charges to move a covered mobile home that is in danger from a peril insured against. 2. Debris Removal -- 'We' pay for the cost to remove the debris of property covered under Coverages E, F, or G after an insured loss. This includes the cost to remove volcanic ash, dust, or particulate matter that causes direct physical loss to covered property. a. For property covered under Coverages E and F, 'you' may apply up to 25% of the 'limit' for the damaged property to cover debris removal. b. For property covered under Coverage G, 'you' may apply up to 5% of the Coverage G 'limit' to cover debris removal. 'We• will not pay more for direct physical loss to property and debris removal combined than the 'limit' that applies to the damaged property. However, when the covered loss plus the cost of debris removal is more than the applicable 'limit', owe' will pay up to an extra 5% of the applicable 'limit' to cover the cost of debris removal. This form provides the following Incidental Property Coverages. They are subject to all the 'terms' of Coverages E, F, and G. These coverages provide additional insurance unless otherwise stated. This coverage does not include costs to extract 'pollutants' from land or water, or remove, restore, or replace polluted land or water. AAIS FO-6 Ed 1.0 3. Fire Department Service Charge --'We' pay for charges assumed by you' under a contract or agreement when a fire department is called to save or protect property covered under Coverages E, F, or G from a peril insured against. The most ewe' pay is $500 per occurrence unless a higher 'limit' is shown on the 'declarations'. 4. Pollutant Clean Up and Removal -'We' pay your' expense to extract 'pollutants' from land or water on the 'insured premises' R the discharge, dispersal, seepage, migration, release, or escape of the 'pollutants' is caused by a peril insured against that applies to Coverages F or G and that occurs during the policy period. 'We' pay the cost of testing, evaluating, observing, or recording the existence, level, or effects of 'pollutants' only when the expense of extracting the pollutants' is provided by this Incidental Coverage. The most owe' pay is $10,000 for the sum of all such expenses arising out of perils insured against that occur during each separate 12 month period of this policy. These expenses are paid only If they are reported to 'us' in writing within 180 days from the date the peril insured against occurs. 5. Property in the Custody of a Common or Contract Carrier --'We' pay for loss to property covered under Coverages F or G while it is in the custody of a common or contract carrier. The loss must be caused by a peril insured against that applies to Coverages F or G. The most 'we' pay is $1,500 per occurrence unless a higher limit' is shown on the 'declarations'. 6. Signs - •We' pay for loss to outdoor signs related to the farming operation caused by a peril insured against that applies to Coverages F or G. The most 'we' pay is $500 per occurrence unless a higher 'limit' is shown on the 'declarations'. 7. Glass Breakage In Cabs --'We' pay for glass breakage in cabs of covered farm machinery which is not otherwise covered by a peril insured against. The most 'we' pay is $500 per occurrence unless a higher 'limit' is shown on the 'declarations'. 8. Farm Operations Records --'We' pay for the expenses 'you' incur to reproduce, replace, or restore 'your farm operations records damaged by a peril insured against that applies to Coverages F or G. This includes the research necessary to obtain data. The most 'we' pay is $2,500 per occurrence unless a higher 'limit, is shown on the 'declarations'. J AAIS FO-6 Ed 1.0 Paae 10 of 14 The following coverage applies only if a 'limit' for Extra Expense is shown on the 'declarations'. 9. Extra Expense -'We' pay the actual and necessary expenses you' incur to resume normal farming operations interrupted as the result of direct physical loss by a peril insured against to property covered under Coverages E, F, or G. Coverage for such extra expense is not limited by the expiration of this policy. However, we' will not pay extra expenses you' incur after the period required for repairing, rebuilding, or replacement of covered property. 1. Fire or Lightning - However, we' do not pay for loss: a resulting from any electrical injury or disturbance to electrical appliances, devices, fixtures, or wiring caused by electrical currents artificially generated unless fire ensues, and then only for the loss caused by such fire; or b. caused by fire to the contents usual and incidental to tobacco bams while tobacco is being cured or dried by open fire, and for five days thereafter. 2. Windstorm or Hall -- However, we' do not pay for loss: Extra Expense Coverage does not include loss caused by or resulting from the enforcement of any ordinance or law which requires you' or others to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of 'pollutants'. The most we' pay is the 'limit' shown on the 'declarations' for Extra Expense Coverage. The business interruption exclusion under the General Exclusions does not apply to this Incidental Property Coverage. PERILS SECTION - COVERAGES E, F, AND G 'We' insure against direct physical loss to property covered under Coverages E, F, and G caused by the following perils, unless the loss is excluded under the General Exclusions: a. caused directly or indirectly by frost, cold weather, ice (other than hail), snow, or sleet, all whether driven by wind or not; b. to the interior of a structure or to the property inside caused by dust, rain, sand, sleet, snow, or water, all whether driven by wind or not, which enter through an opening not made by the direct force of wind or hail; c. to 'livestock' or poultry caused by: 1) running into streams or ditches or against fences or other objects; 2) smothering; 3) fright; or 4) freezing in blizzards or snowstorms; d, to dairy and farm products, (other than hay, straw, or fodder) while outside buildings; or e. to watercraft, including their trailers, furnishings, equipment, and outboard motors while such property is outside a fully enclosed building. AAIS FO-6 Ed 1.0 Pas11of14 3. Explosion -- However, 'we' do not pay for loss caused by: a. explosion of alcohol stills, steam boilers, steam pipes, steam turbines, or steam engines, N owned or leased by you' or operated under your' control; b. shock waves caused by aircraft, known as sonic boom; c. electric arcing; d. rupture or bursting of rotating or moving parts of machinery caused by centrifugal force or mechanical breakdown; Smoke - This means only direct loss from smoke due to sudden, unusual, and faulty operations of any heating or cooking unit on the 'insured premises'. This does not include loss caused by smoke from fireplaces, agricultural smudging operations, or industrial operations. 8. Vandalism -- However, 'we' do not pay for loss to a building or structure, or its contents, 4 the building or structure is vacant for more than 30 days in a row just before the loss. A building or structure being built is not vacant. 9. Theft -- This means any act of stealing or attempt to steal. However, 'we' do not pay for loss: e. rupture or bursting of water pipes; f. rupture, bursting, or operation of pressure relief devices; or g. rupture or bursting due to swelling of the contents of any building or structure, caused by water. 4. Riot or Civil Commotion 5. Aircraft -- This means only direct loss from actual physical contact of an aircraft, or objects falling from an aircraft, with covered property. This does not include loss caused by chemical overspray. 6. Vehicles -- This means only loss or damage caused by contact of a vehicle, or of an object thrown up by a vehicle, with covered property or with a building or structure containing covered property. However, 'we' do not pay for: a. damage to 'livestock' or to a fence, driveway, or walk; or b. loss caused by a vehicle owned or operated by an occupant of the 'insured premises'. a. committed by an 'insured'; b. disclosed on taking inventory; c. by wrongful conversion or embezzlement; d. by escape or mysterious disappearance, unless there is evidence that the property was stolen; e. due to unauthorized instructions to transfer property to any person or to any place; f, in or from a building or structure under construction, or of materials and supplies for use in such construction, until the building or structure is occupied for its intended use; or g. due to 'your' voluntary parting with possession of covered property if 'you' are induced to do so by a trick, scheme, or device or through fraud or false pretense. This includes the acceptance of: 1) counterfeit money or fraudulent post office or express money orders; 2) checks or promissory notes that are not paid upon presentation; or 3) credit cards that are illegally obtained and or used. AAIS FO-6 Ed 1.0 Page 12 of 14 10. Sinkhole Collapse -- This means direct 2) caused by contact between a physical loss caused by sudden settlement tractor and implement during or collapse of earth supporting covered towing, hitching, or unhitching; property. The earth settlement or collapse 3) caused by foreign objects taken into must result from subterranean voids any farm machine or mechanical created by the action of water on a harvester; limestone or similar rock formation. 4) while farm machinery is used in, or in the practice or the preparation However, 'we' do not cover the value of for, racing, speed, pulling or land or the cost of filling sinkholes. pushing, demolition, or stunt activities or contests; or 11. Volcanic Action -- This means: 5) caused by contact with the roadbed or ground that is not the result of a. airborne volcanic blast or airborne overturn of the covered machinery, shock waves; except as provided below. b. ash, dust, or particulate matter; or c. lava flow. However, 'we' do not cover removal of ash, dust, or particulate matter that does not cause direct physical loss to covered property. 12. Earthquake Loss to Livestock 1 Flood Loss to Livestock -- This means only loss or damage caused by or resulting from flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not. 14. Collision 'We' pay for loss or damage to covered farm machinery caused by contact with the roadbed or ground that is not the result of overturn of the machinery, subject to a $1,000 deductible per occurrence. b. Covered Livestock --'We' pay for death to covered 'livestock' caused or made necessary by the collision or overturn of a vehicle on which the 'livestock' is being transported. Collision means the accidental contact of the vehicle transporting the 'livestock' with: 1) another vehicle, but not a vehicle owned or operated by you'; or 2) another object. a. Covered Machinery --'We' pay for loss or damage to covered farm machinery caused by the collision or overturn of that machinery. Collision means accidental contact of the farm machinery with another vehicle or object. However, 'we' do not pay for loss or damage: 1) to tires or tubes, unless the damage is coincidental with other damage to the farm machinery or implement; 'We' also pay for death to covered 'livestock' caused or made necessary by being struck by a vehicle not owned or operated by 'you'. c. Other Covered Property --'We' pay for loss of or damage to covered property other than farm machinery or 'livestock', in or on a vehicle, caused by the collision or overturn of that vehicle. Collision means the accidental contact of the vehicle with another vehicle or object. AAIS FO-6 Ed 1.0 Page 13 Of 14 15. Electrocution of Livestock -- This means loss by electrocution of 'livestock' covered under this policy. However, 'we' do not cover loss caused by stray voltage that does not result in or make necessary the immediate death or destruction of the covered 'livestock'. c. the actual cash value of the property at the time of loss; d. (applies only to mobile homes) the difference in the actual cash value just before the loss and the actual cash value just after the loss; or 16. Loading and Unloading Accidents -- This means events that occur while covered 'livestock' is being loaded or unloaded on to vehicles and result in or make necessary 2. the immediate death or destruction of the covered 'livestock'. However, 'we' do not pay for loss caused by or resulting from disease. LOSS SETTLEMENT PROVISIONS The following provisions apply to property covered under Coverages E, F, and G and to the Incidental Property Coverages described in this form. Subject to the 'terms' shown under How Much We Pay For Loss or Claim, 'we' settle losses according to the Actual Cash Value Terms. 1. Actual Cash Value Terms -- Actual cash value includes a deduction for depreciation, however caused. The smallest of the following amounts is used in applying the 'terms' under Our Limit: a. the special 'limit'; e. the amount computed after applying the Other Limitations shown below. Other Limitations - Coverage F - When the 'declarations' indicates that the Coinsurance Clause or the Pro Rata Distribution Clause applies to Coverage F, the respective limitations apply to the following classes of property: a. Machinery Not Described; b. Poultry; c. Grain; d. Hay in Barns; e. Hay in the Open; and I. Farm Products and Supplies. Coinsurance Clause --'We' pay no more than that proportion of the loss which the 'limit' for each class bears to the percentage shown on the 'declarations' of the actual cash value of all property covered under that class at the time of loss. The value of machinery and supplies acquired, not as replacement items, within the previous 30 days will be excluded from the calculation above. b. the cost to repair or replace the property with materials of like kind and quality to the extent practical; AAIS FO-6 Ed 1.0 Pace 14 of 14 Pro Rata Distribution Clause - This applies only when Vol cover two or more farm locations. 'We' pay no more than the proportion of the 'limit' for the class that the value of the property covered under that class at each farm location bears to the total value of the 4. property covered under that class at all locations. The value of machinery and supplies acquired, not as replacement items, within the previous 30 days will be excluded from the calculation above. 3. Other Umitations - Coverage G --'We' pay no more than that proportion of the loss that the Coverage G 'limit' bears to 80% of the actual cash value of the farm personal property at the time of loss. The calculation of the actual cash value of the fans personal property at the time of loss will not Include the value of the fame personal property acquired, not as replacement items, within the previous 30 days. Other Umitations - Electronic Data Processing Software and Media - The most 'we' pay for loss to electronic data processing software is the amount required to replace it as a prepackaged program. The most 'we' pay for loss to electronic data processing media, such as cells, discs, drums, film, or tape, is the amount required to replace it in its unexposed or blank form. FO-6 Ed 1.0 Copyright MCMXCN American Association of Insurance Services AAIS This endorsement changes FO-368 Ed 1.1 the policy Paqe 1 of 1 - PLEASE READ THIS CAREFULLY - CALENDAR DATE OR TIME FAILURE EXCLUSION 1. The Calendar Date or Time Failure exclusion shown below is added under General Exclusions: Calendar Date or Time Failure -'We" do not pay for loss or damage resulting from the failure of any electronic data processing equipment, computer program, software, media, or data to correctly recognize, interpret, or process any encoded, abbreviated, or encrypted date or time. 2. The following additional exclusion amends the Liability Coverage "terms", if applicable: 'We" do not pay for "property damage" resulting from the failure of any electronic data processing equipment, computer program, software, media, or data to correctly recognize, interpret, or process any encoded, abbreviated, or encrypted date or time. FO-368 Ed 1.1 Copyright MCMXCVII, American Association of Insurance services EVERETT CASH MUTUAL INSURANCE CO. FO-778 11.99 10591 LINCOLN HIGHWAY Everett, PA 15537 Page 1 of 1 AMENDATORY ENDORSEMENT It is agreed that Coverage B - Related Private Structures under the Dwelling Coverage Form is deleted and replaced by the following: Coverage B - Related Private Structures "We" cover related private structures on the "insured premises" which are not attached to "your" "residence". (Structures connected to "your" "residence" by only a fence, utility line, or similar connection are considered to be related private structures.) This coverage includes fences, driveways, sidewalks, and other permanently installed outdoor yard fixtures that are within 250 feet of the "residence" covered under Coverage A. Coverage B does not cover: 6. outdoor antennas including their lead-in wiring, accessories, masts, and towers, except as provided under Incidental Property Coverages; 7. detachable building items covered under Coverage C - Personal Property; 8. carpeting, curtains, or drapes, all whether or not permanently installed, covered under Coverage C - Personal Property; 9. trees, plants, shrubs, and lawns; private power,light, or electric poles; well or well pumps; or irrigation systems, except as provided under Incidental Property Coverages, or 1. structures used or designed for "business", even if such "business" use is occasional or partial; 2. structures, including mobile homes, used or designed as dwellings, even if such dwelling use is occasional or partial; 3. structures, such as barns, poultry houses, implement sheds, silos, and any similar structures, designed specifically for farming use, even if at the time of the loss the structure is not used for farming; 4. structures rented or held for rental to others even if rental is occasional or partial (this does not apply to structures, other that those structures designed for farming use, rented solely for use as a private garage); 5. utility structures used solely for the service and maintenance of"your" "residence", if located more than 250 feet from "your" "residence" on the "insured premises"; 10. land, including the land on which covered property is located, underground water, or surface water. Under the Dwelling Coverage and Farm Coverage Forms, Loss Settlement Provisions, the following is deleted: Actual Cash Value Terms - Actual Cash value includes a deduction for depreciation, however caused. The following is added: Actual Cash Value Terms - Actual cash value means the cost to repair, replace, or reconstruct the property, whichever is less, subject to deduction for depreciation, but consideration may also be given by "us" to age, condition, deterioration, economic value, market value, obsolescence (both structural and functional), original cost, use and other circumstances that may reasonably affect values, in "our" determination of actual cash value. All other "terms" remain unchanged. FO-778 1 1 .99 ML-120 (Ed.4-81) AAIS PENNSYLVANIA Insurance Consultation Services Exemption Act -- Notice This company may provide consultation services such as inspections or surveys of your property in accordance with the provisions of the policy. These services may reduce the likelihood of injury, death or loss. This notice is required to be provided to you by the "Insurance Consultation Services Exemption Act' of Pennsylvania. This act provides that we, our agents, employees, or service contractors are not liable for damages from injury, death or loss occurring as a result of an act or omission by a person in the course of such services. The Act does not apply: 1. If the injury, death or loss occurred during the actual performance of the consultation services and was caused by our negligence or the negligence of our agents, employees or service contractors; 2. To consultation services performed under a written service contract not related to the policy; or 3. If an act or omission by us, our agents, employees or service contractors is determined by law to constitute a crime, actual malice or gross negligence. This notice must be attached to all new and renewal policies. ML-120 AAIS Copyright 1981 EVERETT CASH MUTUAL INSURANCE CO. 10591 Lincoln Highway Everett, PA 15537 FO-358 11.99 ADDITIONAL FARMOWNERS COVERAGES ENDORSEMENT A. Borrowed Farm Machinery, Vehicles and Equipment of Others Coverage F & G - Farm Personal Property is extended to cover borrowed farm machinery, vehicles and equipment. This includes farm machinery, vehicles, and Equipment which are used in the farming operation and in which you have no interest as owner or lienholder, but which are in your care, custody, or control. This does not include motor vehicles (other than wagons and trailers designed for farming purposes and used principally on farm premises), watercraft, aircraft, their equipment, tires and parts:. dealers demonstration machinery, vehicles and equipment. This is excess over any other valid and collectable insurance available to the owner of such borrowed farm machinery, vehicles or equipment. Limit of Liability is $25,000. Deductible: $100 per occurrence shall apply to losses covered by this provision. This coverage may be increased for an additional premium. B. Farm Extra Expense Under Form FO-6, Incidental Property Coverage, Item 49, Extra Expense is amended as follows: The most we pay is $2,000 per occurrence, unless a higher limit is shown on the declarations. No deductible applies. C. Farm Operations Records Under Form FO-6, Incidental Property Coverage, Item #8, Farm Operations Records is amended as follows: The most we pay is $5,000 per occurrence, unless a higher limit is shown on the declarations. No deductible applies. Page One of Four FO-358 11.99 FO- 358 11.99 ADDITIONAL FARMOWNERS COVERAGES ENDORSEMENT D. Property In Control of Insured (Fire Legal Liability) Under 6L-2, Personal Liability Coverage (Farm) Coverage L - Personal Liability is extended to coverage property damage to premises used, rented or operated by you as a farm. This does not cover property damage to premises owned by you. The property damage must result from: a) Fire; b) Explosion; or c) Smoke or Smudge caused by sudden, unusual and faulty operation of a heating or cooking unit. Other conditions: 1. We will pay up to the limit of liability stated below for all damages as the result of one occurrence. This limit applies separately to the insurance for Property In Control of Insured (Fire Legal Liability). 2. We pay only that part of the loss over the deductible stated below. Not more than one deductible applies per occurrence. 3. We may pay any part or all of the deductible in settling a loss or claim. You must pay us back for any part of the deductible that we pay. Limit of Liability not to exceed $50,000. Deductible: $100 per occurrence shall apply to losses covered by this provision. E. Private Power and Light Poles We will pay you up to S500 per occurrence for loss or damage to private power and light poles including attached switch boxes. fuse boxes, and outside wiring if owned by you and on the insured premises. Coverage applies for direct loss or damage caused by any of the perils listed in the Farm Perils Section of Form FO-6. If a different limit of insurance is stated on the schedule, that limit will apply. Deductible: A separate S100 deductible per occurrence shall apply to losses covered by this provision. F. Added Perils for Refrigerated Food Spoilage We pay for spoilage of contents of a freezer or refrigerated unit on the insured premises. We pay no more than S 1.000 per occurrence. The covered contents must be owned by you. This coverage applies only to farm personal property. It does not apply to property intended for the personal use of an insured. Page Two of Four FO-358 11.99 AAIS This endorsement changes the Liability Coverage GLA0 Ed 2.0 provided by this policy Paoe 1 of 1 - PLEASE READ THIS CAREFULLY - PUNITIVE DAMAGE EXCLUSION This policy does not apply to a claim or indemnification for punitive or exemplary damages. If a suit seeking both compensatory and punitive or exemplary damages is brought against the "insured" for an "occurrence" covered by this policy, "we" will provide defense coverage. 'We" will not pay for any costs, interest, or damages attributable to punitive or exemplary damages. All other "terms" of this policy apply. GL-10 Ed 2.0 Copyright MCMXCIV, American Association of losurance services AAIS This endorsement changes the Liability Coverage GL-890 Ed 2.0 provided by this policy Page 1 of 1 -- PLEASE READ THIS CAREFULLY - LEAD LIABILITY EXCLUSION The following additional exclusions amend the liability coverage of this policy: "We" do not pay for: 1. actual or alleged "bodily injury" arising out of the ingestion, inhalation, or absorption of lead in any form; 2. actual or alleged "property damage" (or "personal injury" or "advertising injury", if provided by this policy) arising out of any form oflead; 3. any loss, cost, or expense arising out of any request, demand, or order that any "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of lead; or 4. any loss, cost, or expense arising out of any claim or suit by or on behalf of any governmental authority for damages resulting from testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, or in any way responding to or assessing the effects of lead. GL-890 Ed 2.0 Copyright MCMXCIV American Association of Insurance Services SHERIFF'S RETURN - NOT FOUND CASE NO: 2002-03060 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND EVERETT CASH MUTUAL INS CO VS MENTZER DONALD E ET AL R. Thomas Kline Sheriff or Deputy Sheriff, who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named defendant, DEFENDANT DAINES JOHN but was unable to locate Him in his bailiwick. He therefore returns the COMPLAINT & NOTICE NOT FOUND , as to the within named DEFENDANT DAINES JOHN PER DONALD MENTZER, OWNER OF MOVED TO MONTANA IN DECEMBER Sheriff's Costs: Docketing 6.00 Service .00 Not Found 5.00 Surcharge 10.00 .00 21.00 178 N MIDDLESEX ROAD, JOHN DAINES 2001. So R. Thomas Kline Sheriff of Cumberland County MARGOLIS EDELSTEIN 07/09/2002 Sworn and subscribed to before me this a k t day of J"2- A.D. ?16 may, Pro h notary SHERIFF'S RETURN - REGULAR CASE NO: 2002-03060 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND EVERETT CASH MUTUAL INS CO VS MENTZER DONALD E ET AL RONALD HOOVER Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon RE/MAX REALTY the DEFENDANT at 1518:00 HOURS, on the 8th day of July , 2002 at 3425 MARKET STREET CAMP HILL, PA by handing to LAURA ZODY. ASST MANAGER a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service 10.35 Affidavit .00 Surcharge 10.00 .00 26.35 , Sheriff or Deputy Sheriff of So Answers: R. Thomas Kline 07/09/2002 MARGOLIS EDELSTEIN Sworn and Subscribed to before me this R," day of C%??t X002 A. D. P o honotary By: Deputy Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2002-03060 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND EVERETT CASH MUTUAL INS CO VS MENTZER DONALD E ET AL RONALD HOOVER Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon MENTZER DONALD E the DEFENDANT at 1427:00 HOURS, on the 8th day of July 2002 at 166 NORTH MIDDLESEX ROAD CARLISLE, PA 17013 by handing to DONALD E MENTZER a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 18.00 3.45 .00 10.00 .00 So Answers: 31.45 Sworn and Subscribed to before me this day of 2 A. D. l? Q P othonotary R. Thomas Kline 07/09/2002 MARGOLIS EDELSTEIN By: Deputy Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2002-03060 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND EVERETT CASH MUTUAL INS CO VS MENTZER DONALD E ET AL RONALD HOOVER Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon SHIRLEY M the DEFENDANT , at 1427:00 HOURS, on the 8th day of July 2002 at 166 NORTH MIDDLESEX ROAD CARLISLE, PA 17013 by handing to DONALD E MENTZER, HUSBAND a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this ? day of d tsc?_ A. D. P othonotary So Answers: R. Thomas Kline 07/09/2002 MARGOLIS EDELSTEIN By: Deputy Sheriff (J 4Q. C) G (? r?Ci -T t , s :,rr 8 EAS OF EVERETT CASH MUTUAL INSURANCE : CUMBERLAND OF COMMON PENNSYLVANIA COMPANY, Plaintiff v : NO. 02 - 3060 CIVIL TERM CIVIL ACTION -LAW DONALD E. MENTZER, SHIRLEY M. MENTZER, JOHN DAINES, : BECKY DAINES, and RE/MAX REALTY, : Defendants : JURY TRIAL DEMANDED IN I, PARTIES 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted in part and denied in part. John Daines is an adult individual with an address of 2-403 Elm Creek Drive, Elmhurst, Illinois 60126. 6. Admitted in part and denied in part. John Daines is an adult individual with an address of 2-403 Elm Creek Drive, Elmhurst, Illinois 60126. II. OPERATIVE FACTS 7. Admitted. g. Admitted. 9. Admitted. 10. Admitted. 11. Admitted. 12. Admitted. 13. Admitted. 14. Admitted. 15. Admitted. 16. Admitted. 17. Admitted. III. PERTINENT POLICY PROVISIONS 18. Admitted. 19. Admitted. 20. Admitted. 21. No answer is required as the policy speaks for itself. To the extent a response is required, said averments are denied and strict proof is demanded at trial. 22. No answer is required as the policy speaks for itself. To the extent a response is required, said averments are denied and strict proof is demanded at trial. 23. No answer is required as the policy speaks for itself. To the extent a response is required, said averments are denied and strict proof is demanded at trial. 24. No answer is required as the policy speaks for itself. To the extent a response is required, said averments are denied and strict proof is demanded at trial. By way of further answer, coverage is not excluded because the Defendant Mentzers wouldn't know that their misrepresentations would result in Defendant Dairies allergic reaction to the mold that was created, and therefore said acts would not constitute conduct that is clearly excluded relating to conduct expected, intended or directed by the insured. Furthermore, mold is not a "pollutant" as defined under the policy. 25. Denied as a conclusion of law. 26. Denied as a conclusion of law. 27. Denied as a conclusion of law. 28. Denied as a conclusion of law. Date Respectfully submitted, ABELN LAW OFFICES Gregory Barton Abeln, Esquire Attorney ID #35960 37 East Pomfret Street Carlisle, PA 17013 717/245-2851 VERIFICATION I verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. This Verification is being made by the undersigned attorney in compliance with Pa.R.Civ.P. 1024(c). I understand that false statements are made subject to the penalties of 18 Pa.C.S.A. §4904, relating to Unsworn Falsifications to Authorities. Gregory Barton Abeln, Esquire gz?d2 Date EVERETT CASH MUTUAL INSURANCE COMPANY, Plaintiff vi. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 02 - 3060 CIVIL TERM DONALD E. MENTZER, : CIVIL ACTION -LAW SHIRLEY M. MENTZER, JOHN DAINES, : BECKY DAINES, and RE/MAX REALTY, : Defendants : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing ANSWER TO PLAINTIFF'S COMPLAINT FOR DECLARATORY JUDGMENT by mailing a true and exact copy addressed to the following: Rolf E. Kroll, Esquire Margolis Edelstein PO Box 932 Harrisburg, PA 17108-0932 Respectfully submitted, ABELN LAW OFFICES Date 7'02 Darlene F. Mellinger Legal Assistant 37 East Pomfret Street Carlisle, PA 17013-3313 717/245-2851 i c _ F, IN' rTl -a v ro ? In the Court of Common Pleas of CUMBERLAND County, Pennsylvania DOMESTIC RELATIONS SECTION JEAN A. HENGST ) Docket Number Plaintiff ) vs. ) PACSES Case Number BRUCE D. HENGST ) Defendant ) Other State ID Number 02-3061 CIVIL 431105371 ORDER OF COURT - RESCHEDULE A CONFERENCE You, JEAN A. HENGST plaintiff/defendant of 41 VILLAGE CT, MECHANICSBURG, PA. 17050-9166-41 r o n 15 Cp :K C:) are ordered to appear at CUMBERLAND CO DRS w 13 NORTH HANOVER STREET, CARLISLE, PA. 17013 gnu -n ..n D before a conference officer of the Domestic Relations Section, on the o? 5 3RD DAY OF JULY, 2003 at 9 : o oAM for a conference, after which the conference officer may recommend that an order be entered. This date replaces the prior conference date of MAY 21, 2003 You are further required to bring to the conference: 1. a true copy of your most recent Federal Income Tax Return, including W-2s, as filed, 2. your pay stubs for the preceding six (6) months, 3. the Income and Expense Statement attached to this order as required by Rule 1910.11 (c). 4. verification of child care expenses, and 5. proof of medical coverage which you may have, or may have available to you 6. information relating to professional licenses 7. other: Form CM-513 Service Type M Worker ID 21205 Ti i tl1MWRSNN3d nr? { r, ^,r 1 v. HENGST PACSES Case Number: 431105371 HENGST If you fail to appear for the conference/hearing or to bring the required documents, the court may issue a warrant for your arrest or enter an order in your absence. If paternity is an issue, the court may enter an order establishing paternity. The appropriate court officer may enter an order against either parry based upon the evidence presented without regard to which party initiated the support action. BY THE COURT: Date of Order: MAI0vaW C \ Ck JUDGE YOU HAVE THE RIGHT TO A LAWYER, WHO MAY ATTEND THE CONFERENCE AND REPRESENT YOU. 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 MAY GET LEGAL HELP: CUMBERLAND CO BAR ASSOCIATION 32 S BEDFORD ST CARLISLE PA 17013-3302-32 (717) 249-3166 AMERICANS WITH DISABILITIES ACT OF 1990 The Court of Common Pleas of CUMBERLAND County is required by law to comply with the Americans with Disabilities Act of 1990. For information about accessible facilities and reasonable accommodations available to disabled individuals having business before the court, please contact our office at: (717) 240-E-,225 . All arrangements must be made at least 72 hours prior to any hearing or business before the court. You must attend the scheduled conference. Form CM-513 Service Type M Worker ID 21205 In the Court of Common Pleas of CUMBERLAND County, Pennsylvania DOMESTIC RELATIONS SECTION JEAN A. HENGST ) Docket Number 02-3061 CIVIL Plaintiff ) vs. ) PACSES Case Number 431105371 BRUCE D. HENGST ) Defendant ) Other State ID Number ORDER OF COURT - RESCHEDULE A CONFERENCE You, BRUCE D. HENGST plaintiff/defendant of 807 POPLAR ST, PO BOX 70, MILLERSTOWN, PA. 17062-0070-70 v ,r Y, O are ordered to appear at CUMBERLAND CO DRS m m F =+o w 13 NORTH HANOVER STREET, CARLISLE, PA. 17013 no o= - ©r- D C ) m before a conference officer of the Domestic Relations Section on the o , -<X w N C 3RD DAY OF JULY, 2003 at 9: ooAM for a conference, after which the conference officer may recommend that an order be entered. This date replaces the prior conference date of MAY 21, 2003 You are further required to bring to the conference: 1. a true copy of your most recent Federal Income Tax Return, including W-2s, as filed, 2. your pay stubs for the preceding six (6) months, 3. the Income and Expense Statement attached to this order as required by Rule 1910.11 (c). 4. verification of child care expenses, and 5. proof of medical coverage which you may have, or may have available to you 6. information relating to professional licenses 7. other: Form CM-513 Service Type M Worker ID 21205 ?-??' ??''?7t cS?n?d ? ? :? ?r;r? ?? ? J ??,? ??` ?;,,, ?,? a , ??? v. HENGST PACSES Case Number: 431105371 HENGST If you fail to appear for the conference/hearing or to bring the required documents, the court may issue a warrant for your arrest or enter an order in your absence. If paternity is an issue, the court may enter an order establishing paternity. The appropriate court officer may enter an order against either party based upon the evidence presented without regard to which parry initiated the support action. BY THE COURT: Date of Order: MAY 3 0 2003 C' 1 YOU HAVE THE RIGHT TO A LAWYER, WHO MAY ATTEND THE CONFERENCE AND REPRESENT YOU. 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 MAY GET LEGAL HELP: CUMBERLAND CO BAR ASSOCIATION 32 S BEDFORD ST CARLISLE PA 17013-3302-32 (717) 249-3166 AMERICANS WITH DISABILITIES ACT OF 1990 The Court of Common Pleas of CUMBERLAND County is required by law to comply with the Americans with Disabilities Act of 1990. For information about accessible facilities and reasonable accommodations available to disabled individuals having business before the court, please contact our office at: (717) 2 4 0 - 6 2 2 5 . All arrangements must be made at least 72 hours prior to any hearing or business before the court. You must attend the scheduled conference. Form CM-513 Service Type M Worker ID 21205 EVERETT CASH MUTUAL INSURANCE COMPANY vs Case No. 02-3060 DONALD E MENTZER. H7 T Y M M NTZER, JOHN DAINES, BECKY DAINES, AND RE/MAX REALTY Statement of Intention to Proceed To the Court: EVERETT CASH MrtTUAT INSURANCE COMPAT intends to proceed with the above captioned matter. Print Name Rolf E. Kroll, Esquire Sign Name Date: 10/5/05 Attomeyfor Everett Cash Mutual Insurance Company Explanatory Comment The Supreme Court of Pennsylvania has promulgated new Rule of Civil Procedure 230.2 governing the termination of inactive cases and amended Rule of Judicial Administration 1901. Two aspects of the recommendation merit comment. 1. Rule of civil Procedure New Rule of Civil Procedure 230.2 has been promulgated to govem the termination of inactive cases within the scope of the Pennsylvania Rules of Civil Procedure. The termination of these cases for inactivity was previously govemed by Rule of Judicial Administration 1901 and local rules promulgated pursuant to it. New Rule 230.2 is tailored to the needs of civil actions. It provides a complete procedure and a uniform statewide practice, preempting local rules. This rule was promulgated in response to the decision of the Supreme Court in Shop v. Eagle, 551 Pa. 360,710 A.2d 1104 (1998) in which the court held that "prejudice to the defendant as a result of delay in prosecution is required before a case may be dismissed pursuant to local rules implementing Rule of Judicial Administration 1901." Rule of Judicial Administration 1901(b) has been amended to accommodate the new rule of civil procedure. The general policy of the prompt disposition of matters set forth in subdivision (a) of that rule continues to be applicable. II Inactive Cases The purpose of Rule 230.2 is to eliminate inactive cases from the judicial system. The process is initiated by the court. After giving notice of intent to terminate an action for inactivity, the course of the procedure is with the parties. If the parties do not wish to pursue the case, they will take no action and "the Prothonotary shall enter an order as of course terminating the matter with prejudice for failure to prosecute." if a pany wishes to pursue the mutter, he or she will file a notice of intention to proceed and the action shall continue. a. Where the action has been terminated If the action is terminated when a party believes that it should not have been terminated, that party may proceed under Rulc230(d) for relief from the order of termination. An example of such an occurrence might be the termination of a viable action when the aggrieved party did not receive the notice of intent to terminate and thus did not timely file the notice of intention to proceed. The timing of the filing of the petition to reinstate the action is important. If the petition is filed within thirty days of the entry of the order of termination on the docket, subdivision (d)(2) provides that the court must grant the petition and reinstate the action. If the petition is filed later than the thirty-day period, subdivision (d)(3) requires that the plaintiff must make a show in to the court that the petition was promptly filed and that there is a reasonable explanation or legitimate excuse both for the failure to file the notice of intention to proceed prior to the entry of the order of termination on the docket and for the failure to file the petition within the thirty-day period under subdivision (d)(2). B. Where the action has not been terminated An action which has not been terminated but which continues upon the filing of a notice of intention to proceed may have been the subject of inordinate delay. In such an instance, the aggrieved party may pursue the remedy of a common law non pros which exits independently of termination under Rule 230.2. C'? C ?' ?? (. J <?i _il _ ":2-; N ? {... L. G'1 ? "j fV '.i1 rs. . { Curtis R. Long Prothonotary (Office of the Protbonotarp Cumberfanb Countp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor n,2-3046 CIVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 29TH DAY OF OCTOBER 2008 AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2 BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square • Carlisle, Pennsylvania 17013 • (717) 240-6195 • Fax (717) 240-6573