ami stamping llc v. ace american insurance company et al exhibit a - state complaint

8/13/2019 AMI STAMPING LLC v. ACE AMERICAN INSURANCE COMPANY et al exhibit a - state complaint

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EXHIBIT A


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2:14-cv-10176-DML-PJK Doc# 1-2 Filed 01/15/14 Pg 2 of 15 Pg ID 9STATE OF MICHIGAN

THIRD JUDICIAL CIRCUITWAYNE COUNTY

SUMMONS ANDRETURN OF SERVICE

CASE NO.13-016312-CK

2 Woodward Ave., DetroitMI48226 Court TelephoneNo.313-224-2240THIS CASE IS ASSIGNED TO JUDGE Daphne Means Curtis Bar Number: 262S5

PlaintiffAMI Stamping, LLC,a Michigan Limited Liability CompanyPlaintiffs AttorneyAndrew W. M ychalowych, P-3960237000 Grand River Ave Ste 350Farmington Hills,MI48335-2812

DefendantAce American Insurance CompanyDefendant's Attorney

CASE FILING FEEX Case FilingFee-$150.00

JURYFEEX Jury Fee - $85.00

ISSUED12/20/2013

THIS SUMMONSEXPOSES3/21/2014

DEPUTY COUNTY CLERKFile & Serve Tyler

Thissummons is invalid unless servedonor before its expiration date. CATHY M. GARRETT -WAYNECOUNTY CLERKN O T I C E T O T H E D E F E N D A N T : In the name ofthepeople of the State of Michigan you are notified:1. You are being sued.2. YOU HAVE21DAYS after receiving this summ ons to file an answer with the court and serve a copy on the o ther party or take other lawful action

(28 days if you were served by mail or you were served outside this state).3. If you do not answer or take other action within the time allowed, judgm ent may be entered against you for the relief demanded in the complaint,X There is no other pending or resolved civil action arising out of the same transaction or occurrence as alleged in the complaint.

A civil action between these parties or other parties arising out of the transaction or occurrence alleged in the comp laint has been previously filedin Court.There is no other pending or resolved action withinthe jurisdiction ofthefamily division of circuit court involving the family or family membersof theparties.An action within the jurisdiction of the family division of circuit court involving the family or family members of the parties has been previouslyfiled in Court.

The docket number and assigned judge ofthecivil/domestic relations action are:Docket No. Judge

-BarNo.

1

The action ^J remains j is no longer pending.I declare that the complaint information above and attached is true to the best ofmyinformation, knowledge, andbelief.

\9-t?a'i*>Date SignaUire/OTyuorncy/plaintifFCOMPLAINT IS STATED ON ATTACHED PAGES. EXHIBITSARE ATTACHED IF REQUIRED BY COURT RULE.

Ifyou require special accommodations to use the court because ofadisability or if you require a foreign language interpreter to help you to fullyparticipate in court proceedings, please contact the court immediately to make arrangements.

MC 0I-3CC (09/2008) SUMMONS AND RETURN O F SERVICEMCR 2.102(B)(11), MCR 2.104, MCR 2.105, MCR 2.107, MCR 2.113(C)(2)(a),(b), MCR 3.206(A)


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2:14-cv-10176-DML-PJK Doc# 1-2 Filed 01/15 /14 Pg 3 of 15 Pg ID10STATE OF MICHIGAN

THIRD JUDICIAL CIRCUITWAYNE COUNTY RETURN OF SERVICE


TO PROCESS SERVER: You are to serve the summons and complaint not later than91days from the date of filing or the date ofexpiration on the order for second summo ns. You must m ake and file your return with the court clerk. If you are unable to completeservice you must return this original and all copies to the court clerk.

CERTIFICATE / AFFIDAVIT OF SERVICE / NON SERVICE

OFFIC E R C E R T IFIC A T E OR AFFIDAV IT OF PROC ESS SERVERI certify that I am asheriff,deputysheriff, bailiff,appointedcourt officer, or attorney for a party [MCR2.104(A)(2)],andthat: (notarization not requited)

Being first duly sw orn, I state that I am a legally com petentadult who is not a party o r an officer of a corporate party, andthat: (notarization not required)

~^ I served personally a copy of the summo ns andcomplaint,] I served by registered o r certified mail (copy of return receipt attached) a copy of the summons and comp laint,

together with _ _ __^_List all documents served with the Summons and Complaint

on the dcfendani(s):Defendant's name Comp lete address(es) of service Day, date, time

J I have personally attempted to serve the summ ons and complaint, together with any attachments, on the following defendant(s) and have been unableto complete service.

Defendant's name Complete address(es) of service Day, date, time

I declare that the statements above are true to the best of me information, knowledge andbelief.

Service fee$

Miles traveled$

Mileage fee$

Total fee$ Signature

Name (type or print)Title

Subscribed and sworn to before me onMy commission expires;

^County, Michigan.Date Signature:

Date Deputy courtclerk/NotarypublicNotary public, State of Michigan, Countyof,A C KN OW L E D GM E N T OF SE R V IC E

1acknowledge that I have received service of the summons and complaint, together withAttachments

on Day, date, timeon behalf of

SignatureMC01-3CC (09/2008) SUMMONS AND RETURN OF SERVICE

MCR2.102(B)(11), MCR 2,104, MCR2.105,MCR 2.107, MCR 2.113(C)(2)(a),(b), MCR3.206(A)


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THIRD JUDICIAL CIRCUITWAYNE COUNTY

SUMMONS ANDRETURN OF SERVICE


2 WoodwardAve.,DetroitMI48226 Court TelephoneNo.313-224-224THIS CASE IS ASSIGNED TO JUDGE Daphne Means Curtis Bar Number: 26255

PlaintiffAMI Stamping, LLC, a Michigan Limited Liability CompanyPlaintiffs AttorneyAndrew W. Mychalowych,P-3960237000 Grand River Ave Ste 350FarmingtonHills,MI48335-2812

DefendantAce Am erican Insurance CompanyDefendant's Attorney

X] Case Filing Fee -$ 150.00 >'-.rs*J;- 'JURyj?E K C-lij*

[x j Jury Fee-$85.00 fe*.-.,;: .

File & Serve TylerISSUED;,,--.,;:1'1';^j^^'---'.-:?X iy His;suMMONS;EXPrjRESv.;;f ;K12/20/2013 3/21/2014*Thissummons is invalid unless servedonor before its expiration date. CATHY M. GARRETT- WAYNECOUNTY CLERKN O T I C E T O T H E D E F E N D A N T : In the name of the people of the State of Michigan you are notified:1. You are being sued,2. YOU HAVE21DAYS after receiving this summ ons to file an answer with the court and serve a copy on the other party or take other lawful action

(28 days if you were served by mail or you w ere served outside this state).3. If you do not answer or take other action within the timeallowed,judgment m ay be entered against you for the relief demanded in the complaint.X There is no other pending or resolved civil action arising out of the same transaction or occurrence as alleged in the complaint.

A civil action between these parties or other p arties arising out of the transaction or occurrence alleged in the complaint has been previously filedin Court,There is no other pending or resolved action within the jurisdiction of the family division of circuit court involving the family or family membersofthe parties.An action within the jurisdiction o f the family division of circuit court involving the family or family members of the parties has been previouslyfiledin Court.

The docket number and assigned judge ofthecivil/domestic relations action are:Docket No. Judge BarNo.

The action Q remains Q is no longer pending.I declare that the complaint information above and attached is true to the best of my information, knowledge, and belief.

Date Signaturc/oiyttomey/plaintitfCOMPLAINT IS STATED ON ATTACHED PAGES. EXHIBITS AREATTACHED D7REQUIRED BY COURT RULE.

If you require special accommodations to use the court because ofadisability or if you require a foreign language interpreter to help you to fullyparticipate in court proceedings, please contact the court immediately tomakearrangements.

MC 01-3CC (09/2008) SUMMONS AND RETURN OF SERVICEMC R2.102(B)(11 , MCR 2.104, MCR2.105,MCR 2.107, MCR 2.113(C)(2)(a),(b), MCR3.206(A)


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STATEOFMICHIGANWAYNE COUNTY CIRCUIT COURT

AMI STAMPING, LLC,A M ichigan Limited L iability Company,

Plaintiff,

13-Hon:

CK

v.ACE A MERICAN INSURANCE COMPANY, a PennsylvaniaCompany authorized to do business as insurance carrierby the State of Michigan, and STARR TE CHNICAL RISKSAGENCY, INC.,aNew York corporation,

Defendants.

13-016312-CKFILED IN MY OFFICWAYNE COUNTY CLER12/20/20138:2 :4CATHY M. GARRET

Siciliano M ychalowych & Van Dusen, PLLCAndrew W. Mychalowych (P39602)Meghan W. Cassidy(P60356)Attorneys for Plaintiff37000 Grand River Avenue, Suite350FarmingtonHills,MI48335248.442.0510

VERIFIED COMPLAINT AND DEMAND FOR JURY TRIAL

There is no other pending or resolved civil action arising out of the transactionor occurrence alleged in the complaint.

Is /Andrew W .MychalowychAndrew W. Mychalowych(P39602)

NOW COMES Plaintiff, AMI STAMPLING, LLC , a Michigan Limited LiabilityCom pany, by and through its counsel, Siciliano Mychalowych and V an Dusen, PL C, and forthis its Verified Complaint against Defendants ACE American Insurance Company and StarrTechnical Risks A gency, In c., state as follows:


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PARTIES. JURISDICTION ANDVENUE1. Plaintiff AMI Stamping, LLC is a Michigan Limited Liability Company with itsregistered agent in the City ofSouthfield,State of Michigan.2. Defendant ACEAmericanInsurance Company, ( ACE ), is a company organized underthe laws of the State of Pennsylvania and is authorized to conduct business as an insurancecarrier in the State of Michigan with the State of Michigan Department of Insurance andFinancial Services.3. Defendant Starr Technical Risks Agency, Inc. ( STA RR ), is a New York corporation,authorized to conduct business in the State of Michigan and has a designated registered agent inthe State of M ichigan.4. Venue is proper in Wayne County, Michigan as this is the county in which the propertywas located that was stolen and that is subject of the insurance claim made by the Plaintiff andimproperly denied by the Defendants and the location where the claims alleged herein arose.5. Jurisdiction is proper as there is more than $25,000 in controversy, exclusive of interest,attorneys fees and costs.

COMMON ALLEGATIONS6. In October 2007, Plaintiff AMI Stamping, LLC entered into a Loan DocumentAssignment Agreement with National City Bank wherein AMI acquired the rights, title andinterest in all loan documents and collateral securing same between National City Bank (f/k/aProvident Bank) and Dearborn G ear & Tool Company, Inc.7. As a result of the Assignm ent from National City, Plaintiff AMI received a securityinterest in the assets, including but not limited to the tools and equipment of Dearborn Gear &Tool.


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8. As a result of the Assignment from Na tional City, the Plaintiff AMI received a securityinterest in the mortgage that encumbered the property where Dearborn Gear & Tool operated, i.e.4300 Cabot, Detroit, Michigan.9. As a result of the agreement reached with National City, Plaintiff AMI stepped inNational City's shoes as the lender to Dearborn Gear & T ool Company.10. As a result of the defaults of Dearborn Gear & Tool under the terms of the LoanDocuments assigned to Plaintiff AMI, the Plaintiff initiated legal proceedings against DearbornGear & Tool in the Wayne County Circuit Court, case number09-025105-CK, entitled AMIStamping, LLC v. Dearborn Gear Tool Com pany, Inc., et.at which was assigned to theHonorable Pren tice Edwards.11. In Novem ber, 2010, an Amended Final Judgment was entered in favor of Plaintiff AMIin the matter pending in the Wayne County Circuit Court Case No: 09-025105-CK. The Courtawarded physical possession to the Plaintiff of all of Dearborn Gear & Tool's equipment andmachinery.12. The tools and equipment and other personal property located at 4300 Cabot Drive,Detroit, M ichigan, were added to the operative insurance policy by the Defendants. (AMI is oneof many related and/or affiliated entities insured under a global policy issued by the DefendantACE through Defendant STARR, collectively Defendants ).13. In Janua ry, 2012, it was discovered by the Plaintiff that an unidentified person or personshad taken the p roperty belonging to AMI that w as located at the 4300 Cabot Drive property.14. On or about January 18,2012, a police report was m ade reporting the theft of the tools,equipment and machinery to the Detroit PoliceDepartment.15. The Defendants were timely notified of the loss by the Plaintiff and the claim wasassigned Claim Num ber 266 under PolicyPGLN05100276.


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16. On or about April 11,2012, the Defendants agent and claims administrator Engle Martin& Associates, Inc. sent correspondence to Plaintiff's counsel requesting additional informationregarding the claim as well as seeking Plain tiffs cooperation in obtaining access to the buildingto allow the Defendant AC E's representative to conduct an inspection o f the premises where thetheft occurred and reserving Defendant ACE's rights to defenses under the policy.17. Over the course of the next several mo nths, the Defendan ts sought and the Plaintiffprovided all of the information available to the Plaintiff regarding its claim for the property loss.18. Per the Defendants request, the Plaintiff made arrangements to have the Wayne CountySheriff open the building in September, 2012 so that Defendant's agent could conduct its furtherinvestigation regarding the claim.19. On October 17, 2012, the Plaintiff sought information from Defendant AC E'srepresentative at Engle Martin, (Justin Miles), in an effort to understand ACE's timetable forresponding to the claim that was submitted ten months previously. Defendant's representativeadvised that he should be able to find something out this week .20 . On or about Novem ber 12, 2012, the Plaintiff was advised that ACE was requesting thatits agent Engle Martin obtain further information from the Plaintiff and ask the Plaintiff toanswer additional questions.21. On or about November 19, 2012, the Defendant ACE through its agent Engle Martin,issued correspondence to Plaintiff seeking additional information regarding thePlaintiffs claim.

22. On Decem ber 1, 2012, the Plaintiff provided the detailed information in response to thelatest set of questions posed by Defendants regarding the claim made by AM I.23. Over a month passed and Defendants provided no further information regarding theclaim. Accordingly, Plaintiff again followed up w ith Defendants' representative Engle M artin todetermine the status of their claim.


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24 . Plaintiffwas informed that their responsive information to the November 19, 2012 letterwas submitted to ACE for consideration and that Plaintiff would have information within thenext week regarding AC E's position. Notwithstanding the assurances ofACE'srepresentative,no information was forthcoming.25 . On January2 1,2013,Plaintiff againfollowedup seeking information regarding the statusof their claim. The response received from Defendants' representative was that the insurancecompany has required me to perform a few m ore tasks on this file for our investigation. I shouldbe able to come to some kind of closure in a few m ore weeks.26. By this time, the claim submitted by the Plaintiff was over a year old.27 . With no information provided to the Plaintiff, AMI again followed up with ACE'srepresentative inquiring on February 6,2013as to the status oftheclaim.28. On February 12, 201 3, the Plaintiff received correspondence from ACE's adjustor,EngleMartin stating: W e are now ready to finalize the claim. Can you confirm the exact amount youare claiming? Is it what I have attached? $138,100.00?29. Accord ingly, as of February 12,2013,it appeared that ACE was prepared to finalize theclaim with a payment of $138,100, which is what ACE believed at that time w as the amount ofthe claim being made. There was no indication of any kind as of February 12,2013 that ACEwas intending to deny the claim.30. On February 21 ,2013, Plaintiff pointed out to Defendants' agent that the policy providesfor replacem ent value and that the $138,100 value was based on a forced liquidation valueand not replacem ent value . Accordingly, the Plaintiff notified the Defendant's representativethat they would request an updated appraisal to address replacement value of the lost equipment.31 . At no time did the Defendant indicate that it was not honoring the policy or otherwisedenying the claim submitted by thePlaintiff.


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32. On or about March 26, 2013 , the Plaintiff provided Defendants representative EngleMartin with an appraisal that sets forth the replacement value for all of the stolen equipment.The replacement value of the equipment and personal property equals $1,907,000.33 . N o communication from Defendant AC E or its agent was received in response to thereplacement cost value appraisal sent to them by Plaintiff. Accordingly, on April 5, 2013,Plaintiff again followed up with Defendant's agent Engle Martin, seeking information regardingthe status of the claim. No response was received,34. On April 12,2013,Plaintiff again sought to understand the status of the claim submittedto the Defendant.35. Inexplicably and notwithstanding all indications that the investigation was complete andthat the claim would be honored pursuant to the Policy, the Plaintiff was notified on May 2,2013that the claim had been transferred from the Engle Martin Senior Property Adjustor, Justin M.Miles, (who had been handling the claim from its inception and conducting all communicationon behalf oftheDefendant), to Jeff Nonhof,an Executive GeneralAdjustor in Engle Martin'sMinneapolis Office.36. On July 15, 201 3, the new adjuster assigned to handle thePlaintiffsclaim, (once it wasrealized to be m ore than$138,000and instead, a claim for $1.9 million), sent correspondence toPlaintiff seeking even more information - - information that was in some part, already provided

i

to ACE for its investigation.37. The Plaintiff subm itted the additional information requested by Defendant ACE.38. On August 12, 2013 , the Plaintiff received comm unication from a law firm stating that itrepresented ACE Am erican Insurance Company regarding the claim submitted by AMI. Ademand was made for Plaintiff to produce a witness with knowledge regarding certain areas ofinquiry described to provide testimony under oath regarding the claim.


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39. As it had all along, Plaintiff complied with its insurance carrier's request and arepresentative for AM I appeared to provide testimony regardingPlaintiffs claim.40 . Two more months passed and on Novem ber 13 , 201 3, correspondence was sent toPlaintiff indicating that Defendant AC E was denying the claim. Defendant ACE has allegedthat Plaintiff misrepresented the value oftheequipment insured and alleges that Plaintiffwasinviolation of the Protective Safeguards Endo rsement concern ing the property at issue.

COUNTIBREACH OF CONTRACT

41 . Plaintiff reincorpora tes the allegations set forth in Paragraphs 1-40 as though fully statedherein.42 . The Plaintiff AMI Stamping, LLC was a named insured with respect to the policy ofinsurance issued by Defendant ACE through STARR, Policy Number PGLN05100276. ( ThePolicy ).43 . The Policy was in full force and effect with all prem iums paid at the time of the losscomplained of by thePlaintiff.44. The Plaintiff complied with the terms of the insurance agreement and with Defendants'requests for information.45 . The Plaintiff has provided all of the required all of the information necessary for theDefendants to d etermine the validity of the Proof of Loss,46 . The Defendants have refused to pay the claim submitted to it as a result of the propertyloss sustained by thePlaintiff.47 . The Defendants' denial of the claim submitted by the Plaintiff was improper and contraryto the terms oftheParties' insurance agreement and therefore a breach oftheAgreement by theDefendants.48. As a result of the breach by Defendants, the Plaintiff has suffered damages.


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WHEREFORE Plaintiff AMI Stamping, LLC prays that this Honorable Court findDefendants ACE American Insurance Company and Starr Technical Risks Agency, Inc., liablefor breach of contract and award damages, as well as all costs, fees and other amounts the Courtdeems just under the circumstances.

COUNT IIDECLARATORY RELIEF REGARDING PLAINTD7F'S ENTITLEMENT TO12 INTEREST PURSUAN T TO MCL 500.200649 . Plaintiff reincorporates the allegations set forth in Paragraphs 1-48 as though fully statedherein,50. In addition to breaching the express terms of the Par ties' agreement, the Defendants arealso liable to Plaintiff for 12% interest on the amounts due and owing to Plaintiff under thepolicy of insurance.51 . ThePlaintiffs claim was not reasonably in dispute and therefore, the Defendant'sfailure to pay the claim is an unfair trade practice which entitles the Plaintiff to12% interest onthe amounts due and owing under the policy of insurance.

WHEREFORE Plaintiff AMI Stamping, LLC prays that this Honorable Court find thatthe Plaintiff is en titledto12% interest upon the amounts owed by the Defendants ACE AmericanInsurance Company and Starr Technical Risks Agency, Inc., under the insurance policy at issueas provided for in MCL 500.2006, as well as all costs, fees and other amounts the Court deemsjust under the circumstances.


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Respectfully submitted,SICILIANO MYCHALWOYCH& VAN DUSEN, PLC

Bv:IslAndrewW.MvchalowvchAndrew W . Mychalowych(P39602)Meghan W. Cassidy(P60356)Attorneys for Plaintiff37000 Grand River Avenue, Suite 350Farmington Hills,MI48335248.442.0510


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STATE OF MICHIGANWAYNE COUNTY CIRCUIT COURTAMI STAM PING, LLC,A Michigan Limited Liability Company,

Plaintiff,

13-Hon: CK

v.ACE AMERICAN INSURANCE COMPANY, a PennsylvaniaCompany authorized to do business as insurance carrierby the State of Michigan, and STARR TECH NICAL RISKSAGENCY, INC.,aNew York corporation,

Defendants.Siciliano M ychalowych & V anDusen,PLLCAndrew W. Mychalowych (P39602)Meghan W. Cassidy (P60356)Attorneys for Plaintiff37000 Grand River A venue, Suite 350FarmingtonHills,MI48335248.442.0510

/DEMAND FOR JURY TRIAL

Plaintiff AMI STAMPING, LLC, through its counsel, Siciliano Mychalowych and VanDusen, PLC , hereby dem ands a jury trial in the above entitled cause of action.

Respectfully submitted,SICILIANOMYCHALWOYCH& VAN DUSEN, PLC

B y: /s/ Andrew W. MychalowychAndrew W. Mychalowych(P39602)Meghan W. Cassidy(P60356)Attorneys for Plaintiff37000 Grand R iver Avenue, Suite 350Farmington H ills,MI48335248.442.0510