riddell v. insurers

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1 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 I 27 28 P1LLSBURY WINTHROP SHAW PITTMAN LLP REYNOLD L. SIEMENS #177956 reynold.siemens(a),pillsburylaw.com MARIAH BRANDT #224076 [email protected] 725 South Figueroa Street, Suite 2800 Los Angeles, CA 90017-5406 Telephone: (213) 488-7100 Facsimile No.: (213) 629-1033 Attorneys for Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP. and RBG HOLDINGS CORP. FILED APR 122012 fvke, bxe^iive Otlicer/Cltrk Deputy SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF LOS ANGELES RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION, RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP., Plaintiffs, vs. Case No. BC482698 UNLIMITED JURISDICTION COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING JURY TRIAL DEMANDED 30 8 ACE AMERICAN INSURANCE COMPANY, AMERICAN HOME ASSURANCE CO., ARROWOOD INDEMNITY COMPANY, ASSOCIATED INTERNATIONAL INSURANCE COMPANY, CENTURY INDEMNITY COMPANY, COLUMBIA CASUALTY COMPANY, THE EMPLOYERS' FIRE INSURANCE COMPANY, ILLINOIS NATIONAL INSURANCE CO., INSURANCE COMPANY OF NORTH AMERICA, LUMBERMENS MUTUAL CASUALTY COMPANY, STEADFAST INSURANCE COMPANY, TRANSPORT INDEMNITY COMPANY, and DOES 1-50, Defendants. 50 "O •» m i- 3> £2 S —i m a rn •—« m £ as -o rn »m a> S 2 S3 21 •« 35 «• us wj m •> -e. <p R at o O -J CO o O 3: 403425655v2 COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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Page 1: Riddell v. Insurers

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P1LLSBURY WINTHROP SHAW PITTMAN LLP

REYNOLD L. SIEMENS #177956reynold.siemens(a),pillsburylaw.comMARIAH BRANDT #[email protected] South Figueroa Street, Suite 2800Los Angeles, CA 90017-5406Telephone: (213) 488-7100Facsimile No.: (213) 629-1033

Attorneys for Plaintiffs RIDDELL, INC., ALLAMERICAN SPORTS CORPORATION,RIDDELL SPORTS GROUP, INC., EASTON-BELLSPORTS, INC., EASTON-BELL SPORTS, LLC,EB SPORTS CORP. and RBG HOLDINGS CORP.

FILED

APR 122012fvke, bxe^iive Otlicer/Cltrk

Deputy

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

RIDDELL, INC., ALL AMERICANSPORTS CORPORATION, RIDDELLSPORTS GROUP, INC., EASTON-BELLSPORTS, INC., EASTON-BELL SPORTS,LLC, EB SPORTS CORP., and RBGHOLDINGS CORP.,

Plaintiffs,

vs.

Case No.

BC482698

UNLIMITED JURISDICTION

COMPLAINT FORDECLARATORY RELIEF, BREACHOF CONTRACT, AND BREACH OFTHE IMPLIED COVENANT OF

GOOD FAITH AND FAIR DEALING

JURY TRIAL DEMANDED

30

8

ACE AMERICAN INSURANCECOMPANY, AMERICAN HOMEASSURANCE CO., ARROWOODINDEMNITY COMPANY, ASSOCIATEDINTERNATIONAL INSURANCECOMPANY, CENTURY INDEMNITYCOMPANY, COLUMBIA CASUALTYCOMPANY, THE EMPLOYERS' FIREINSURANCE COMPANY, ILLINOISNATIONAL INSURANCE CO.,INSURANCE COMPANY OF NORTHAMERICA, LUMBERMENS MUTUALCASUALTY COMPANY, STEADFASTINSURANCE COMPANY, TRANSPORTINDEMNITY COMPANY, and DOES 1-50,

Defendants.

50 "O •»m i- 3>£2 S —im a rn•—« m£ as -orn »m a>

S 2 S3 21•« 35 «• us wj

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403425655v2

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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Plaintiffs RIDDELL, INC., ALL AMERICAN SPORTS CORPORATION,

RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-

BELL SPORTS, LLC, EB SPORTS CORP., and RBG HOLDINGS CORP.

(collectively, "Plaintiffs") allege as follows:

NATURE OF THE ACTION

1. This is a civil action for declaratory relief, breach of contract, and for

breach of the implied covenant of good faith and fairdealing arising from the failure

of certain of the defendant insurers ("Insurers") to satisfy their contractual

obligations to defend and indemnify Plaintiffs against lawsuits filed by present and

former professional football players alleging long-term neurological injuries caused

in partby football helmets allegedly designed, developed, assembled, and sold by

Plaintiffs (the "Underlying Actions").

THE PARTIES

2. Easton-Bell Sports, LLC is a Delaware corporation with itsprincipal

place of business in Van Nuys, California.

3. EB Sports Corp. is a Delaware corporation with its principal placeof

business in Van Nuys, California, and is wholly owned by Easton-Bell Sports, LLC.

4. RBG Holdings Corp. is a Delaware corporation with its principal place

of business in Van Nuys, California, and is wholly owned by EB Sports Corp.

5. Easton-Bell Sports, Inc. is a Delaware corporation with its principal

place of business in Van Nuys, California, and is wholly owned by RBG Holdings

Corp.

6. Riddell Sports Group, Inc. is a Delaware corporation with its principal

place of business in Texas, and is wholly owned by Easton-Bell Sports, Inc.

7. Riddell, Inc. is an Illinois corporationwith its principal place of

business in Chicago, Illinois, and is wholly owned by Riddell Sports Group, Inc.

403425655v2 - 1

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OFTHEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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8. All American Sports Corporation is a Delaware corporation with its

principal place of business in Ohio, and is wholly owned by Riddell Sports Group,

Inc.

9. ACE American Insurance Company ("ACE"), successor to INA

Insurance Company of Illinois ("INA of Illinois"), is a Pennsylvania corporation

with its principal place of business in Philadelphia, Pennsylvania, and is currently

authorized to and is currently doing business in the state of California.

10. American Home Assurance Co. ("American Home") is a New York

corporation with its principal place of business in New York, New York, and is

authorized to and is currently doing business in the state of California.

11. Arrowood Indemnity Company ("Arrowood"), formerly known as

Royal Indemnity Company ("Royal Indemnity"), successor in interest to Globe

Indemnity Company ("Globe"), is a Delaware corporation with its principal placeof

business in Charlotte, North Carolina, and is authorized to and is currently doing

business in the state of California.

12. Associated International Insurance Company ("Associated") is a

California corporation with its principal place of business in Deerfield, Illinois, and

is authorized to and is currently doing business in the state of California. \

13. Century Indemnity Company ("Century"), successor to Insurance

Company of North American ("INA"), is a Pennsylvania corporation with its

principal place of business in Los Angeles, California, and is authorized to and is

currently doing business in the state of California.

14. Columbia Casualty Company ("Columbia") is an Illinois corporation

with its principal place of business in Chicago, Illinois, and is currently doing

business in the state of California.

15. The Employers' Fire Insurance Company ("Employers' Fire") is a

Massachusetts corporation with its principal place of business in Canton,

4034256S5v2 -2-

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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Massachusetts, and is authorized to and is currently doing business in the state of

California.

16. Illinois National Insurance Co. ("Illinois National") is an Illinois

corporation with its principal place of business in Chicago, Illinois, and is currently

doing business in the state ofCalifornia.

17. Insurance Company of North America ("INA") is a Pennsylvania

corporation with its principal place of business in Philadelphia, Pennsylvania.

18. Lumbermens Mutual Casualty Company ("Lumbermens") is an

Illinois corporation with its principal placeof business in Lake Zurich, Illinois, and

is authorized to and is currently doing business in the state of California.

19. Steadfast Insurance Company ("Steadfast") is a Delaware corporation

with its principal place of business in Schaumburg, Illinois, and is authorized to and

is currently doing business in the state of California.

20. Transport Insurance Company ("Transport"), formerly known as

Transport Indemnity Company ("Transport Indemnity"), is an Ohiocorporation with

its principal place of business in Boston, Massachusetts, and is authorized to and is

currently doing business in the state of California.

21. The true names and capacities of the defendants sued herein as Does 1-

50, inclusive, are unknown to Plaintiffs, which therefore sued said defendants by

such fictitious names. Plaintiffs will amend this Complaint to allege their true

names and capacities when ascertained, Plaintiffs are informed and believe and

thereon allege that each of said fictitiously named defendants is in some manner

responsible, in wholeor in part, for the matters allegedherein.

THE UNDERLYING ACTIONS

22. At present, the Underlying Actions consist of seven lawsuits filed

against Plaintiffs. Each lawsuit alleges thathead injuries experienced by

professional football players while playing in the National Football League ("NFL")

403425655v2 3-

COMPLAINT FORDECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OFTHEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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were caused in part by Plaintiffs' alleged negligence, and/oralleged defects relating

to helmets made by Plaintiffs. The seven Underlying Actions against Riddell are

summarized below:

23. On or about July 19, 2011, a lawsuit entitled Maxwell, et al. v.

National FootballLeague, et al. was filed in the United States District Court for the

Central District of California, Case No. 2:11-cv-08394 ("Maxwell"). Maxwell has

beentransferred and consolidated with the other actions in the NFL Players'

Concussion Injury Litigation MDL No. 2323 in the United States District Court for

the Eastern District of Pennsylvania ("MDL").

24. On or about July 19, 2011, a lawsuit entitled Pear, et al. v. National

Football League, et al. was filed in the United States District Court for the Central

District of California, Case No. 2:1 l-cv-08395 ("Pear"). Pear has been transferred

and consolidated in the MDL.

25. On or about August 26, 2011, a lawsuit entitled Barnes, et al. v.

National Football League, et al. was filed in the United States District Court for the

Central District of California, Case No. 2:11-cv-08396 ("Barnes"). Barnes has been

transferred and consolidated in the MDL.

26. On or about October 13, 2011, a lawsuit entitled Hardman, et al. v.

National Football, et al. was filed in the Superior Court of the State ofCalifornia

County of Los Angeles, Case No. BC471229 ("Hardman"). Hardman was

dismissed without prejudice on December 7, 2011.

27. On or about January 19, 2012, a lawsuit entitled Joel Steed v. National

Football League, et al. was filed in the United States District Court for the Central

District of California, Case No. 2:12-cv-00524 ("Steed'). Steed has been transferred

and consolidated in the MDL.

403425655v2

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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28. On or about January 23, 2012, a lawsuit entitled Steve Wallace, et al.

v. National Football League, et al. was filed in the United States District Court for

the Eastern District of Pennsylvania, Case No. 2:12-cv-00336 ^Wallace").

29. On or about February 17, 2012, a lawsuit entitled Tyrone Hughes, et

al. v. National Football League, et al. was filed in the United States District Court

for the Eastern District of Louisiana, Case No. 2: l2-cv-00459 ("Hughes"). Hughes

has been transferred and consolidated in the MDL.

30. Plaintiffs have incurred and/or continue to incur losses in defending

themselves against the foregoing Underlying Actions.

31. Plaintiffs gave prompt notice to the Insurers of the Underlying

Actions.

PLAINTIFFS' INSURANCE COVERAGE

32. Plaintiffs had in full force and effect primary policies that provide

commercial general liability and products liability coverage (the "Primary Policies")

and/or excess policies that provide commercial general liability and products

liability coverage (the "Excess Policies," collectively, the "Policies") issued by each

of the Insurers.

33. The Primary Policies include the following policies issued by certain

Insurers and/or their predecessors:

Insurer

Lumbermens

Lumbermens

Lumbermens

Arrowood f/k/a RoyalIndemnity, successor ininterest to Globe

Arrowood f/k/a RoyalIndemnity, successor ininterest to Globe

INA

INA

403425655v2

Policy No. Policy Period

Unknown 12/31/1959 12/31/1960

OYL-211500 12/31/1960 12/31/1961

1YL-211500 12/31/1961 12/31/1962

GLG-473526 12/31/1964 3/31/1965

GYB 145617 3/31/1965 3/31/1968

AGP 10 21 51,10-68-25 3/30/1971 10/31/1971

AGP 12-36-88 59 10/31/1971 11/5/1975

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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Columbia CCP1866338 11/5/1975 11/5/1976Employers' Fire F22-40040-21 3/31/1968 3/31/1971Associated XS 100160 3/15/1977 4/22/1977Associated AEL 050330 4/22/1977 4/22/1978Associated XS 100160 4/22/1977 8/10/1977Associated XS 100160 8/10/1977 4/22/1978Associated XS 100160 8/10/1977 4/22/1978Associated AEL 050330 4/22/1978 4/22/1979Associated XS 100160 4/22/1978 4/22/1979Associated XS 100160 4/22/1978 4/22/1979Associated AUL 301286 4/22/1979 4/22/1980Associated AUL 301456 4/22/1980 4/22/1981Associated GL 101494 4/22/1982 8/19/1982Associated PR 102355 8/19/1982 4/22/1983Associated PR 103062 4/22/1983 4/22/1984Associated PR 106742 4/22/1984 4/22/1985Associated XS 106787 4/22/1984 4/22/1985

34. The Excess Policies include the following policies issued by certain

Insurers and/or their predecessors:

Insurer Policy No. Policy Period

Arrowood f/k/a RoyalIndemnity, successor ininterest to Globe

GLA-100207 3/31/1965 3/31/1968

American Home 35-15-48 3/31/1968-12/22/1969American Home 35-15-48 12/23/1969-3/31/1971American Home CE 35-15-48 3/31/1971-10/31/1971

American Home BE 267-71-55 10/31/1971 -10/31/1974Columbia RDX 4169594 42 4/22/1979 4/22/1980Transport TUL 675407 4/22/1982 8/19/1982Transport TUL 675426 8/19/1982 4/22/1983Transport TUL 675434 4/22/1983 4/22/1984Transport TUL 675458 4/22/1984 4/22/1985Illinois National BE 357-02-65 1/31/1998 1/31/2009Steadfast SCO 9672420-00 8/1/2008 1/31/2010Steadfast SCO 9672420-01 1/31/2010 7/31/2011

35. The losses incurred by Plaintiffs in connection with the Underlying

Actions fall or potentially fall within the scope of coverage of these Policies.403425655v2 - 6 -

COMPLAINT FOR DECLARA"

IMPLIED CON

ORY RELIEF, BREACH OF CONT/ENANT OF GOOD FAITH AND F/

RACT, AND BREACH OF THEUR DEALING

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Accordingly, pursuant to the terms of the Policies and under the law, Insurers have

the duty to defend and/or indemnify Plaintiffs for losses incurred in connection with

the Underlying Actions, subject to each policy's terms, indemnity limit, deductible,

or attachment point.

36. To date, Arrowood, Employers' Fire, and ACE/Century/INA have

agreed to defend Riddell against the Underlying Actions, and Steadfast has agreed to

defend upon exhaustion of its self-insured retention, subject to a reservationof

rights. Other Insurers that have a duty to defend have refused to honor their defense

obligations. The Insurers have not agreed to indemnify plaintiffs against the

Underlying Actions.

37. As to the Policies, Plaintiffs have paid the required premiums in full

and have satisfied all other conditions to coverage, or are otherwise excused from

doing so. All actions taken by Plaintiffs with respect to the above loss have been

reasonable, and no action has prejudiced the ability of the Insurers to fulfill their

contractual obligations.

FIRST CAUSE OF ACTION

(For Declaratory Relief as to Duty to Defend)

(Against Lumbermens, American Home, and Columbia)

38. Plaintiffs repeat and incorporate by reference the allegations of

paragraphs 1 through 37above.

39. Pursuant to the terms of certain of the Lumbermens, American Home

and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the

Underlying Actions.

40. These Insurers have failed to defend Plaintiffs against the Underlying

Actions.

41. An actual controversy of a justiciable nature presently exists between

Plaintiffs and these Insurers concerning the proper constructionof the Policies and

403425655v2

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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the rights and obligations of the parties. The controversy is of sufficient immediacy

to justify the issuance of a declaratory judgment.

WHEREFORE, Plaintiffs pray for relief as set forth below.

SECOND CAUSE OF ACTION

(For Declaratory Relief as to Duty to Indemnify)

(Against All Defendants)

42. Plaintiffs repeatand incorporate by reference the allegations of

paragraphs 1 through 41 above.

43. Pursuant to the terms of the Policies, the Insurers are obligated to

indemnify the Plaintiffs covered by their Policies for the entire amount of losses

incurred in connection with the Underlying Actions, subject to the Policies' limits,

deductibles, or attachment points.

44. None of the Insurers have agreed to indemnify or provide a defense for

any of the Underlying Actions.

45. An actual controversy of a justiciable nature presently exists between

Plaintiffs and Insurers concerning the proper construction of the Policies and the

rights and obligations of the parties with respect to losses incurred by Plaintiffs in

connection with the Underlying Actions. The controversy is of sufficient immediacy

to justify the issuance of a declaratory judgment.

46. WHEREFORE, Plaintiffs pray for relief as set forth below.

THIRD CAUSE OF ACTION

(For Breach of Contract)

(Against Lumbermens, American Home, and Columbia)

47. Plaintiffs repeat and incorporate by reference the allegations of

paragraphs 1 through 46 above.

48. Pursuant to the terms ofcertain of the Lumbermens, American Home

and Columbia Policies, these Insurers are obligated to defend Plaintiffs against the

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COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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Underlying Actions.

49. These Insurers have failed to defend Plaintiffs against the Underlying

Actions.

50. Lumbermens, American Home and Columbia have breached the terms

of theirPolicies by refusing to perform theirduty to defend Plaintiffs against the

Underlying Actions.

51. As a direct result of these Insurers' breach of their Policies, Plaintiffs

have been deprived of the benefits of insurance coverage, for which it paid

substantial premiums, with respect to losses incurred by Plaintiffs in connection with

the Underlying Actions.

52. WHEREFORE, Plaintiffs pray for relief as set forth below.

FOURTH CAUSE OF ACTION

(For Breach of the Implied Covenant of Good Faith and Fair Dealing)

(Against American Home and Lumbermens)

53. Plaintiffs repeat and incorporateby reference the allegations of

paragraphs 1 through 52 above.

54. Implied in each of the Insurers' Policies is a covenant that they will act

in good faith and deal fairly with their insureds; that they will do nothing to interfere

with their insured's rights to receive the benefits of the Policies; that they will not

place their own interests before those of their insureds; that they will exercise

diligence, good faith, and fidelity in safeguarding the interests of their insureds; that

they will deal ethically with their insureds and will fairly and adequately inform

them of the nature and scope of their insurancecoverage (hereinafter referred to as

"the impliedcovenant of good faith and fair dealing").

55. American Home and Lumbermens have each breached the implied

covenant of good faith and fair dealing by, inter alia:

a. Refusing fully to defend and/or indemnify Riddell for covered

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COMPLAINT FORDECLARATORY RELIEF, BREACH OF CONTRACT, ANDBREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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403425655v2

liabilities, as defined in their Policies, without regard to relevant

insurance policy language, relevant law, and the specific facts

of the claim;

Interpreting the terms and conditions of their Policies in an

unreasonable manner, which is wholly inconsistent with

applicable law, solely in an effort to avoid providing Riddell

with coverage to which it is entitled under the Policies;

Refusing to acknowledge coverage, or withdraw or alter their

denials of coverage, notwithstanding their inability to identify

supporting legal or factual authority for their coverage defenses,

and decisions of other Courts rejecting their legal and/or factual

contentions;

Inventing spurious grounds for avoidance of coverage without

regard to the pertinent policy language, facts, or law;

Failing to provide promptly a reasonable explanation of the

basis relied on, in relation to the facts or applicable law, for the

denial of coverage;

Not attempting in good faith to negotiate a prompt, fair, and

reasonable settlement within policy limits of Riddell's claims;

Failingto provide Riddell with copies of documents evidencing

the terms of coverage when requested;

h. Forcing Riddell to file this litigation in order to obtain the rights

and benefits to which it is entitled under their Policies.

56. Plaintiffs are informed and believe and thereon alleges, that American

Homeand Lumbermens are in breach of the implied covenant of good faith and fair

dealing, did the things and committed the wrongful acts allegedabove, among other

things, for thepurpose of willfully and consciously withholding from Plaintiffs the

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rights and benefits to which they are entitled under their Policies and in complete

disregard of said rights; in so doing, American Home and Lumbermens have placed

their own interests above those of Plaintiffs for the purpose of retaining and using

money that should have been spent on the defense of Riddell.

57. Pursuant to Brandt v. Superior Court, 37 Cal. 3d 813 (1983), Plaintiffs

are entitled to recover all attorneys' fees and expenses that they reasonably have

incurred and will incur, in their efforts to obtain the benefits of insurance that have

been, and continue to be, wrongfully and in bad faith withheld by American Home

and Lumbermens.

58. The wrongful conduct alleged herein was done with conscious

disregard of Plaintiffs' rights and with the intent to vex, injure or annoy Plaintiffs,

such as to constitute oppression, fraud or malice under California Civil Code Section

3294, thereby entitling Plaintiffs to punitive damages in an amount appropriate to

punish or set an example of Lumbermens and American Home.

WHEREFORE, Plaintiffs pray for relief as set forth below:

PRAYER FOR RELIEF

Plaintiffs request that the Court enter judgment as follows:

59. On the First Cause of Action, for a declaration that the Lumbemens,

American Home and Columbia policies impose on those Insurers a duty to defend

Riddell against the Underlying Actions, as more fully described above;

60. On the Second Cause of Action, for a declaration that the Insurers have

a duty to indemnify the Plaintiffs insured under their Policies against the Underlying

Actions.

61. On the Third and Fourth Causes of Action:

a. Compensatory and general damages according to proof;

b. Special and incidental damages according to proof;

c. Prejudgment interest at the maximum legal rate;

403425655v2 -11

COMPLAINT FOR DECLARATORY RELIEF, BREACH OF CONTRACT, AND BREACH OF THEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

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62. For costs of suit; and

63. Forsuch otherand further reliefas theCourtdeems appropriate.

Dated: April 12,2012.

PILLSBURY WINTHROP SHAW PITTMAN LLPREYNOLD L. SIEMENS725 South Figueroa Street, Suite 2800Los Angeles, CA 90017-5406

403425655v2

By ,Synold L.TSiemens

Attorneys for Plaintiffs RIDDELL, INC., ALLAMERICAN SPORTS CORPORATION,RIDDELL SPORTS GROUP, INC., EASTON-BELL SPORTS, INC., EASTON-BELL SPORTS,LLC, EB SPORTS CORP., and RBG HOLDINGSCORP.

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COMPLAINT FORDECLARATORY RELIEF, BREACH OFCONTRACT, AND BREACH OFTHEIMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING

Page 14: Riddell v. Insurers

ATTORNEYOR PARTYWITHOUTATTORNEY (Name. Slate Barnumber. tmO etidress):-PILLSBURY W1NTHROP SHAW PITTMAN LLP

REYNOLD L. SIEMENS #I77956/MARIAH BRANDT #224076725 S. Rfiucroa Street, Suite 2800, I^os AiiReles, CA 90017-5406

TELEPHONE-NO, (213) 488-7100 FAX NO, (213) 629-1033attorney for (N^m): Kiddeil, Inc., All American Sports Corporation, et al.

SUPERIOR COURT OF CALIFORNIA, COUNTY OF LOS ANG ELESSTREET ADDRESS: ] | | ft. Hill StreetMAILING ADDRESS:

city and zip code: Los Angeles, CA 90012branch name: StanleyMosk Courthouse

CASE NAME:

RIDDELL, INC., ct al. v. ACE AMERICAN INSURANCE, et al.

CM-010ouitr use ONLY

••*»•&•!»*fohn

•Qeputv

CIVIL CASE COVER SHEET

CZ3 Unlimited • Limited(Amount (Amountdemanded demanded is

exceeds $25,000) $25,000 or less)

Complex Case Designation

I I Counter I I Joinder

Filed with first appearance by defendant(Cal. Rules of Court, rule 3.402)

CASE NUMBER:

BC482 69 8JUDGE?

DEPT:

Items 1-6 below must be completed (see instructions on page 2).1. Check one box below for the case type that

Auto Tort

Auto (22)

Uninsured motorist (46)

Other PI/PD7WD (Porsonal Injury/PropertyDamagorWrongful Death) Tort

LZH Asbestos (04)CD Product liability (24)I I Medical malpractice (45)• Other PI/PD/WD (23)Non-PI/PD/WO (Other) Tort

Business tort/unfair business practice (07)

I I Civil rights (08)I I Defamation (13)

Fraud (16)

Intellectual property (19)

Professional negligence (25)

Other non-Pt/PD/WD tort (35)

Employment

|_ | Wronglul termination (36)I I Other employment (15)

••••

^--"2. This case I / I is I I is not complex under rule 3.400 of the California Rules ofCourt. If the caseiscomplex, mark thefactors requiring exceptional judicial management:

best describes this case:

Contract

•••

Breach of contract/warranty (06)

Rule 3.740 collections (09)

Other collections (09)

Insurance coverage (18)

Other contract (37)

Real Property

| | Eminent domain/Inversecondemnation (14)

I I Wrongful eviction (33)I I Other real property (26)Unlawful Detainer

[......".] Commercial (31)I I Residential (32)• Drugs (38)Judicial Review

L_J Asset forfeiture (05)I I Petition re: arbitration award (11)I I Writ of mandate (02)(_] Other judicial review (39)

Provisionally Complex Civil Litigation(Cal. Rules of Court, rules 3.400-3.403)

I I Antitrust/Trade regulation (03)L_J Construction defeet (10)CZ3 Mass tort (40)I I Securities litigation (28)I I Environmental/Toxic tort (30)I </ I Insurance coverage claims arising from the

above listed provisionally complex casetypes (41)

Enforcement of Judgment

I I Enforcement ofjudgment (20)Miscellaneous Civil Complaint

CZ3 RICO (27)I I Other complaint (not specified above) (42)Miscellaneous Civil Petition

I I Partnership and corporate governance (21)I I Other petition (not specified above) (43)

a. I / I Large number ofseparately represented partiesb. [_/J Extensive motion practice raising difficult or novel

issues thatwill be time-consuming to resolvec. I I Substantial amount of documentary evidence

3. Remedies sought (check all that apply): a.l / I monetary4. Number ofcauses ofaction (specify): Four (4)5. This case I I is I / I is not a class action suit.6. Ifthere are any known related cases, file and serve a notice of related case. (Youmay use form CM-C15.)

Date: April 12,2012 4Reynold L. Siemens h

d.1 ILarge number ofwitnessese. I / ICoordination with related actions pending in oneormore courts

inothercounties, states, or countries, or ina federal courtf. 1 1Substantial postjudgment judicial supervision

&• lZJ nonmonetary; declaratory orinjunctive relief c.[ / Ipunitive

(TYPE OR PRINT NAME) (Sll "RE OFPARTY OR ATTORNEY FORPARTY)

NOTICE• Plaintiff must file this cover sheet with the first paper filed in the actionor proceeding (except small claimscases or cases filed

underthe Probate Code, Family Code, or Welfare and Institutions Code). (Cal. Rules of Court, rule3.220.)Failure to file mayresultin sanctions.

• File this cover sheet in addition to any cover sheet required by local court rule.$• If this case iscomplex under rule 3.400 et seq. of the California Rules ofCourt, you must servea copy of this cover sheet on all"i other parties to the actionor proceeding.»• Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only'*i | . Pi

*535E55i5" CIVIL case cover sheetCM-OtO [Rev. July t, 2Q07|

Pago 1 of 2

Cfll. Rules of Court, rules 2.30.3.220, 3.400-3 403, 3.740.Cal. Standards of Judicial Administration, std. 3.10

www.courtinla.ca.gav

American LegaiNut, Inc.www. FormsWorkflow.oom

Page 15: Riddell v. Insurers

SHORT TITLE:

RIDOELL, INC. vs. ACE AMERICAN INSURANCE COMPANY, et al.CASE NUMBER

«£<**6*8-CIVIL CASE COVER SHEET ADDENDUM AND

STATEMENT OF LOCATION

(CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION)

This form is required pursuant to Local Rule 2.0 in all new civil case filings in the Los Angeles Superior Court.

Item I. Check the types of hearing and fill in the estimated length of hearing expected for this case:

JURY TRIAL? EyES CLASS ACTION? D YES LIMITED CASE? DyES TIME ESTIMATED FOR TRIAL 15 D HOURS/ B DAYS

Item II. Indicate the correct district and courthouse location (4 steps - Ifyou checked "Limited Case", skip to Item III, Pg. 4):

Step 1: After first completing the Civil CaseCover Sheet form, find the main Civil CaseCover Sheet heading for yourcase in the left margin below, and, to the right in Column A, the Civil Case CoverSheet case type youselected.

Step 2: Checkone Superior Courttype ofaction in Column B below which best describes the nature of thiscase.

Step 3: In Column C, circle the reason for thecourt location choice that applies tothe type ofaction you havechecked. For any exception to the court location, see Local Rule 2.0.

Applicable Reasons for Choosing Courthouse Location (see Column C below)

1. Class actions must be filed in the Stanley Mosk Courthouse, central district.2. May be filed in central (other county, or no bodily injury/property damage).3. Location where cause of action arose.4. Location where bodily injury, death or damage occurred.5. Locationwhere performance required or defendant resides.

6. Locationof propertyor permanently garaged vehicle.7. Location where petitioner resides.8. Location wherein defendant/respondent functions wholly.9. Locationwhere one or more of the parties reside.

10. Location of Labor Commissioner Office

Step 4: Fill in the information requested on page4 in Item III; complete Item IV. Sign thedeclaration.

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ACivil Case Cover Sheet

Category No.

BType of Action

(Check only one)

cApplicable Reasons -

See Step 3 Above

Auto (22) D A7100 Motor Vehicle - Personal Injury/Property Damage/Wrongful Death 1..2..4.

Uninsured Motorist (46) • A7110 Personal Injury/PropertyDamage/Wrongful Death - Uninsured Motorist 1,2., 4.

Asbestos (04)O A6070 Asbestos Property Damage

• A7221 Asbestos - Personal Injury/Wrongful Death

2.

2.

Product Liability(24) D A7260 Product Liability (not asbestos or toxic/environmental) 1..2..3..4..8,

Medical Malpractice (45)a A7210 Medical Malpractice - Physicians &Surgeons

D A7240 Other Professional Health Care Malpractice

1..4.

1..4.

Other

Personal InjuryProperty DamageWrongful Death

(23)

D A7250 Premises Liability (e.g., slip and fall)

• A7230 Intentional Bodily Injury/PropertyDamageArVrongful Death (e.g.,assault, vandalism, etc.)

Q A7270 Intentional Infliction of Emotional Distress

D A7220 Other Personal Injury/PropertyOamageAVrongful Death

1„4.

1..4.

1„ 3.

1..4.

IfACIV 109 (Rev. 03/11)LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

Local Rule 2.0

Page 1 of 4American l.cgiil.Vct, Inc.•mn .FumnWofkr-tow.cimi

Page 16: Riddell v. Insurers

SHORT TITLE:

RIDDELL, INC., et al. vs. ACE AMERICAN INSURANCE, et al.CASE NUMBER

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Category No.

BType of Action

.;*"'. '• " (Check only one)

CApplicable Reasons -

See Step 3 Above

Business Tort (07) D A6029 OtherCommercial/Business Tort (not fraud/breachof contract) 1..3.

Civil Rights (08) D A6005 Civil Rights/Discrimination 1..2, 3.

Defamation (13) D A6010 Defamation (slander/libel) 1..2..3.

Fraud (16) a A6013 Fraud (no contract) 1„ 2. 3.

Professional Negligence (25)a A6017 Legal Malpractice

Q A6050 Other ProfessionalMalpractice (notmedicalor legal)

1.. 2., 3.

1,2., 3.

Other (35) D A6025 Other Non-Personal Injury/Property Damage tort 2,3.

Wrongful Termination (36) D A6037 Wrongful Termination 1..2., 3.

Other Employment (15)• A6024 Other Employment Complaint Case

D A6109 Labor Commissioner Appeals

1„ 2., 3.

10.

Breach of Contract/ Warranty(06)

(not insurance)

D A6004 Breach of Rental/Lease Contract (not unlawfuldetainer or wrongfuleviction)

Q A6008 ContracVWarranty Breach -Seller Plaintiff(no fraud/negligence)

O A6019 Negligent Breach of Contract/Warranty (no fraud)

D A6028 Other Breach of ContractfWarranty (not fraud or negligence)

2., 5.

2., 5.

1., 2., 5.

1., 2.. 5.

Collections (09)D A6002 Collections Case-Seller Plaintiff

D A6012 Other Promissory Note/Collections Case

2,5.6.

2,5.

Insurance Coverage (18) • A6015 Insurance Coverage (not complex) 1„ 2„ 5., 8.

Other Contract (37)

D A6009 Contractual Fraud

P A6031 Tortious Interference

D A6027 Other Contract Dispute(not breach/insurance/fraud/negligence)

1..2., 3.. 5.

1., 2., 3„5.

1.,2.,3.,8.

Eminent Domain/Inverse

Condemnation (14) D A7300 Eminent Domain/Condemnation Number of parcels 2.

Wrongful Eviction (33) D A6023 Wrongful Eviction Case 2., 6.

Other Real Property (26)

D A6018 Mortgage Foreclosure

D A6032 Quiet Title

D A6060 Other Real Property (not eminent domain, landlord/tenant, foreclosure)

2., 6.

2., 6.

2., 6.

Unlawful Detainer-Commercial(31) D A6021 Unlawful Detainer-Commercial (not drugs or wrongful eviction) 2., 6.

Unlawful Detainer-Residential

(32) D A6020 Unlawful Detainer-Residential(not drugs or wrongful eviction) 2.,6.

Unlawful Detainer-

Post-Foreclosure (34) • A6020F Unlawful Detainer-Post-Foreclosure 2., 6.

Unlawtul Detainer-Drugs (38) • A6022 UnlawfulDetainer-Drugs 2., 6.

wT.LACIV 109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATIONLocal Rule 2.0

Page 2 of 4AmerkftB LcgvfNri, lac.

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Page 17: Riddell v. Insurers

SHORT TITLE:

RIDDELL, INC., et al. vs. ACE AMERICAN INSURANCE, et al.CASE NUM6ER

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ACivil Case Cover Sheet

Category No.

BType of Action

..'••*'- (Check only one) . •.

cApplicable Reasons -

See Step 3 Above

Asset Forfeiture (05) Q A6108 Asset Forfeiture Case 2., 6.

Petition re Arbitration (11) D A6115 Petition to Compel/ConfirmA/acate Arbitration 2.. 5.

Writ of Mandate (02)

Q A6151 Writ - Administrative Mandamus

Q A6152 Writ - Mandamus on Limited Court Case Matter

D A6153 Writ - Other Limited Court Case Review

2., 8.

2.

2.

Other Judicial Review (39) D A6150 Other Writ/Judicial Review 2., 8.

Antitrust/Trade Regulation (03) • A6003 Antitrust/Trade Regulation 1..2..8.

Construction Defect (10) D A6007 Construction Defect 1..2..3.

Claims Involving Mass Tort(40) Q A6006 Claims Involving Mass Tort 1..2..8.

Securities Litigation (28) D A6035 Securities Litigation Case 1..2..8.

Toxic Tori

Environmental (30) • A6036 Toxic Tort/Environmental 1.,2.,3..8.

Insurance Coverage Claimsfrom Complex Case (41) XH A6014 Insurance Coverage/Subrogation (complexcase only) 1,2^8.

Enforcement

of Judgment (20)

O A6141 Sister State Judgment

D A6160 Abstract of Judgment

D A6107 Confession of Judgment (non-domestic relations)

D A6140 Administrative AgencyAward(not unpaid taxes)

D A6114 Petition/Certificate for Entryof Judgment on UnpaidTax

D A6112 Other Enforcementof Judgment Case

2., 9.

2,6.

2., 9.

2., 8.

2„8.

2., 8., 9.

RICO (27) O A6033 Racketeering (RICO) Case 1„2..8.

Other Complaints(Not Specified Above) (42)

0 A6030 Declaratory Relief Only

D A6Q40 Injunctive Relief Only (not domestic/harassment)

• A6011 Other Commercial Complaint Case (non-tort/non-cornplex)

• A6000 Other Civil Complaint (non-tort/non-complex)

1..2..8.

2,8.

1., 2., 8.

1., 2.,8.

Partnership CorporationGovernance (21) D A6113 Partnership and Corporate Governance Case 2., 8.

Other Petitions

(Not Specified Above)(43)

a A6121 Civil Harassment

Q A6123 Workplace Harassment

a A6124 Eider/Dependent Adult Abuse Case

a A6190 Election Contest

D A6110 Petition for Change of Name

O A6170 Petition for Relief from Late Claim Law

D A6100 Other Civil Petition

2., 3., 9.

2., 3.. 9.

2., 3., 9.

2.

2., 7.

2., 3„4.,8.

2., 9.

LACIV 109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATIONAmerica* l,ci;i)Nrt, Inc.

Local Rule 2.0

-j Page 3of 4

Page 18: Riddell v. Insurers

SHORT TITLE:

RIDDELL, INC., et al. vs. ACE AMERICAN INSURANCE, et al.CASE NUMBER

Item III. Statement of Location: Enter the address of the accident, party's residence or place of business, performance, or othercircumstance indicated in Item II., Step 3 on Page 1, as the proper reason for filing in the court location you selected.

REASON: Check the appropriate boxes for the numbers shownunder Column C for the type of action that you have selected forthis case.

DT. D2. D3. D4. 05. D6. 07. D8. L7J9. D10.

ADDRESS:

818 W. Seventh Street

Los Angeles, CA 90017

CITY:

Los Angeles

STATE:

CA

ZIP COOE:

90017

Hem IV. Declaration of Assignment: Ideclare under penalty of perjuryunder the laws of the State of California that the foregoingis true

and correct and that the above-entitled matter is properly filed for assignment to the Stanley Mosk courthouse in theDistrict of the Superior Court of California, County of Los Angeles [Code Civ. Proc, § 392 et seq., and LocalCentral

Rule 2.0, subds. (b), (c) and (d)].

Dated: April 12, 2012

AtURE OF ATTORNEY/FIUNG PARTY)(SIGNAt

Reynold L. Siemens

PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLYCOMMENCE YOUR NEW COURT CASE:

1. Original Complaint or Petition.

2. If filing a Complaint, a completed Summons form for issuance by the Clerk.

3. Civil Case Cover Sheet, Judicial Council form CM-010.

4. Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev.03/11).

5. Payment in full of the filing fee, unless fees have been waived.

6. A signed order appointing the Guardian ad Litem, Judicial Council form CIV-010, if the plaintiffor petitioner is aminor under 18 years of age will be required by Court in order to issue a summons.

7. Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendummust be served along with the summons and complaint, or other initiating pleading in the case.

LACIV109 (Rev. 03/11)

LASC Approved 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION AmfrlciB lxg»lN'cl, Inc.

Local Rule 2.0

Page 4 of 4

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