`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF NEW YORK
`-------------------------------------------------------------------------X
`
`
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`
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`Plaintiffs,
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`
`
`
`- against -
`
`
`
`
`
`
`
`SKANSKA/WALSH JOINT VENTURE, a joint venture
`comprised of SKANSKA USA BUILDING, INC.,
`SKANSKA USA CIVIL NORTHEAST, INC. and WALSH
`CONSTRUCTION COMPANY II, LLC., SKANSKA USA
`BUILDING, INC., SKANSKA USA CIVIL NORTHEAST,
`INC., WALSH CONSTRUCTION COMPANY II, LLC.,
`
`
`
`
`
`
`
`AIG EUROPE LIMITED, THE MARINE INSURANCE
`COMPANY LIMITED, STARR SURPLUS LINES
`INSURANCE COMPANY, STARSTONE INSURANCE
`PLC, MAPFRE GLOBAL RISKS COMPANIA
`INTERNACIONAL DE SEGUROS Y REASEGUROS SA,
`TOKIO MARINE KILN INSURANCE LTD, SCOR UK
`COMPANY LIMITED, ACE EUROPEAN GROUP
`LIMITED, PARTNER REINSURANCE EUROPE SE,
`LLOYD’S SYNDICATE 2003 AA1128003
`
`
`
`
`Defendant.
`-------------------------------------------------------------------------X
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`Plaintiffs designate
`NEW YORK COUNTY
`as the place of trial.
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`
`
`SUMMONS
`
`
`
`
`Date Purchased:
`Index No.:
`
`
`
`The basis for venue is:
`PLAINTIFF SKANSKA
`USA BUILDING, INC.’S
`BUSINESS
`
`Plaintiff Skanska USA
`Building, Inc. is located at:
`New York, New York
`
`
`
`
`SUMMONS
`
`YOU ARE HEREBY SUMMONED to answer the complaint of the Plaintiffs which
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`is served herewith, and to serve an Answer on the undersigned attorney for the Plaintiffs,
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`Saxe Doernberger & Vita, P.C., within twenty (20) days after service of the Summons and
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`Complaint or within thirty (30) days of the Summons and Complaint if not served upon
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`you personally or is served outside the State of New York. In the event of your failure to
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`answer the Complaint of the Plaintiffs, judgment will be taken against you by the default
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`for the relief demanded in the Complaint.
`
`
`Dated: Temecula, California
`
` April 9, 2021
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`SKANSKA/WALSH JOINT VENTURE, a joint
`venture comprised of SKANSKA USA
`BUILDING, INC., SKANSKA USA CIVIL
`NORTHEAST, INC. and WALSH
`CONSTRUCTION COMPANY II, LLC.,
`SKANSKA USA BUILDING, INC., SKANSKA
`USA CIVIL NORTHEAST, INC., WALSH
`CONSTRUCTION COMPANY II, LLC
`
`
`
`By: /s/ William S. Bennett
`Jeremiah M. Welch, Esq.
`jwelch@sdvlaw.com
`NY Bar No.: 5057385
`William S. Bennett, Esq.
`wbennett@sdvlaw.com
`NY Bar No.: 5418264
`Attorney for Plaintiffs
`Saxe Doernberger & Vita, P.C.
`Two BetterWorld Circle, Suite 200
`Temecula, CA 92592
`Telephone: (951) 365-3145
`Facsimile: (203) 287-8847
`
`
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`TO DEFENDANTS:
`
`AIG Europe Limited
`The AIG Building
`58 Fenchurch Street
`London, EC3M 4AB
`United Kingdom
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
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`2
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`The Marine Insurance Company Limited
`Northdown St. Mark’s Court, Chart Way
`Horsham, West Sussex RH12 1XL
`United Kingdom
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Starr Surplus Lines Insurance Company
`399 Park Avenue, 3rd Floor
`New York, New York 10022
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Starstone Insurance PLC
`One Creechurch Place
`London EC3A 5AY
`United Kingdom
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Mapfre Global Risks Compania Internacional De Seguros Y Reaseguros SA
`Carretera de Pozuelo, Majadahonda 52
`Edificio M-II
`Madrid 28222
`Spain
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Tokio Marine Kiln Insurance LTD
`20 Fenchurch Street
`London EC3M 3BY
`United Kingdom
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`SCOR UK Company Limited
`10 Lime Street
`London EC3M 7AA
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`ACE European Group Limited
`The Chubb Building
`100 Leadenhall Street
`London EC3A 3BP
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Partner Reinsurance Europe SE
`Bellerivestrasse 36
`Zurich, Zurich, 8008
`Switzerland
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
`
`Underwriters at Lloyd’s, London, Lloyd’s Syndicate 2003, Subscribing to Policy Number
`6383/15
`Lloyd’s America, Inc.
`280 Park Avenue, East Tower, 25th Floor
`New York, NY 10017
`
`c/o State of New York Department of Financial Services
`Office of General Counsel
`One State Street
`New York, New York 10004
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`
`
`
`
`
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`Plaintiffs,
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`- against -
`
`
`
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`
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`
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`Index No.:
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`
`
`COMPLAINT
`
`JURY DEMANDED
`
`
`
`April 9, 2021
`
`---------------------------------------------------------------- X
`SKANSKA/WALSH JOINT VENTURE, a joint venture
`comprised of SKANSKA USA BUILDING, INC.,
`SKANSKA USA CIVIL NORTHEAST, INC. and
`WALSH CONSTRUCTION COMPANY II, LLC.,
`SKANSKA USA BUILDING, INC., SKANSKA USA
`CIVIL NORTHEAST, INC., WALSH
`CONSTRUCTION COMPANY II, LLC.,
`
`
`
`
`
`
`
`AIG EUROPE LIMITED, THE MARINE INSURANCE
`COMPANY LIMITED, STARR SURPLUS LINES
`INSURANCE COMPANY, STARSTONE
`INSURANCE PLC, MAPFRE GLOBAL RISKS
`COMPANIA INTERNACIONAL DE SEGUROS Y
`REASEGUROS SA, TOKIO MARINE KILN
`INSURANCE LTD, SCOR UK COMPANY LIMITED,
`ACE EUROPEAN GROUP LIMITED, PARTNER
`REINSURANCE EUROPE SE, LLOYD’S
`SYNDICATE 2003 AA1128003
`
`
`
`
`Defendant.
`--------------------------------------------------------------- X
`
`
`
`Plaintiffs, SKANSKA/WALSH JOINT VENTURE, a joint venture comprised of
`
`SKANSKA USA BUILDING, INC., SKANSKA USA CIVIL NORTHEAST, INC. and
`
`WALSH CONSTRUCTION COMPANY II, LLC. (“SWJV”), SKANSKA USA BUILDING,
`
`INC. (“SKANSKA BUILDING”), SKANSKA USA CIVIL NORTHEAST, INC. (“SKANSKA
`
`CIVIL”), and WALSH CONSTRUCTION COMPANY II, LLC. (“WALSH”), by and through
`
`their attorneys, Saxe, Doernberger & Vita, P.C. allege as follows against Defendants
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`(collectively, “Underwriters”):
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`FILED: NEW YORK COUNTY CLERK 04/09/2021 06:52 PM
`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`
`
`PARTIES
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`1. Plaintiff SWJV is a joint venture comprised of SKANSKA BUILDING, SKANSKA
`
`CIVIL and WALSH. At all relevant times, SWJV was authorized to do business in New
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`York.
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`2. Plaintiff SKANSKA BUILDING is a Delaware corporation with its principal place of
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`business in New York, New York. At all relevant times, SKANSKA BUILDING was
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`authorized to do business in New York.
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`3. Plaintiff SKANSKA CIVIL is a New York corporation with its principal place of
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`business in Queens, New York. At all relevant times, SKANSKA CIVIL was authorized to
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`do business in New York.
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`4. Plaintiff WALSH is an Illinois corporation with its principal place of business in
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`Chicago, Illinois. At all relevant times, WALSH was authorized to do business in New
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`York.
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`5. AIG Europe Limited (Lexington London) is a foreign company based in the United
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`Kingdom and authorized to do business in the State of New York and, at all times relevant,
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`was conducting business affairs in New York.
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`6. The Marine Insurance Company Limited is a foreign company based in the United
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`Kingdom and authorized to do business in the State of New York and, at all times relevant,
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`was conducting business affairs in New York.
`
`7. Starr Surplus Lines Insurance Company is an entity formed and existing under the
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`laws of the State of Texas, with its principal place of business located at 399 Park Avenue,
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`3rd Floor, New York, New York 10022.
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`6
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`6 of 13
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`8. Starstone Insurance PLC is a foreign company based in the United Kingdom and
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`authorized to do business in the State of New York and, at all times relevant, was
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`conducting business affairs in New York.
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`9. Mapfre Global Risks Compania Internacional De Seguros y Reaseguros is a
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`foreign company based in Spain and authorized to do business in the State of New York
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`and, at all times relevant, was conducting business affairs in New York.
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`10. Tokio Marine Kiln Insurance Ltd is a foreign company based in the United Kingdom
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`and authorized to do business in the State of New York and, at all times relevant, was
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`conducting business affairs in New York.
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`11. SCOR UK Company Limited is a foreign company based in the United Kingdom
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`and authorized to do business in the State of New York and, at all times relevant, was
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`conducting business affairs in New York.
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`12. ACE European Group Limited is a foreign company based in the United Kingdom
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`and authorized to do business in the State of New York and, at all times relevant, was
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`conducting business affairs in New York.
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`13. Partner Reinsurance Europe SE is a foreign company based in Switzerland and
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`authorized to do business in the State of New York and, at all times relevant, was
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`conducting business affairs in New York.
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`14. Underwriters at Lloyd’s, London, Lloyd’s Syndicate 2003 AA1128003, is a foreign
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`company based in the United Kingdom and authorized to do business in the State of New
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`York and, at all times relevant, was conducting business affairs in New York.
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`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`FACTUAL ALLEGATIONS
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`15. On or about June 1, 2016, SWJV entered into a design-build contract with
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`LaGuardia Gateway Partners, LLC for the design and construction of a pedestrian bridge
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`at LaGuardia Airport in East Elmhurst, Queens, New York. The subject pedestrian bridge,
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`Pedestrian Bridge B, was to connect the main headhouse with Concourse B (the
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`“Project”).
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`16. The Underwriters issued a Builder’s Risk policy, Policy No. B0901LB1527838000
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`(the “Policy”) to SWJV, among others, insuring against risks of “physical loss of or damage
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`… to the Insured Property [located at the Project] … arising from any cause whatsoever
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`except as hereinafter excluded,” for the period of May 31, 2016 to August 31, 2022.
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`17. The Policy’s exclusion 3, entitled “Design Defect LEG 3/06,” defines “damage” to
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`the Project resulting from “defects of material, workmanship, design, plan or specification”
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`as “any patent detrimental change in the physical condition of the Insured Property.” With
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`respect to such damage, the Policy states that the cost of replacement or rectification
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`which is excluded is only “that cost incurred to improve the original material,
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`workmanship, design, plan or specification.”
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`18. The Policy insures SWJV and its shareholders, who are SKANSKA BUILDING,
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`SKANSKA CIVIL and WALSH.
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`19. The Policy’s coverage is subject to a limit of $3,981,599,618.
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`20. Construction on the Project began in 2018.
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`21. The core of the pedestrian bridge involved assembly of a steel “skeleton” made up
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`of hundreds of steel beams and parts joined by approximately 28,000 bolted, slip-critical
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`joints. A slip-critical joint relies on the friction between two surfaces, not the bearing
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`strength of the bolt.
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`22. Prior to assembly, SWJV decided to enlarge the bolt holes for the slip-critical joints.
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`The change was intended to make the assembly process easier by allowing more play in
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`each bolted connection.
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`23. SWJV also decided to “stick-build” the structure in place, rather than assemble
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`portions on the ground and lift them into place. The “stick-build” method reduced the
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`assembly time.
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`24. On or about February 5, 2019, SWJV encountered fitting issues with one of the
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`final steel top chord members. SWJV had to shave the chord member by ¼ inch on both
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`ends in order to achieve an aligned fit.
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`25. In March of 2019, following completion of the steel “skeleton” assembly, SWJV
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`observed that the completed span was 6 inches too low, which was an unacceptable
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`degree of structural deformation. SWJV corrected this by jacking the structure from
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`underneath, lifting it into its proper position.
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`26. On July 3, 2019, two loud banging sounds emanated from the structure while
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`workers poured the concrete structural slab on the bridge deck. The sounds were
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`alarming and potentially consistent with a major structural event. Work was immediately
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`stopped, and the area was evacuated. Following July 3, nine more banging noises were
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`heard.
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`27. SWJV initiated an immediate investigation into the origins of the banging noises.
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`SWJV eventually determined that the sounds were not indicative of a structural failure but
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`rather were the sound of numerous bolt connections converting from slip-critical joints to
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`load-bearing joints. In effect, the friction holding the beams together released, such that
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`within each bolt hole, the beams “slammed” against the bolts. SWJV further determined
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`that, due to the strength and number of bolts and the number of joints involved, there was
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`no structural risk and no safety risk.
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`28. SWJV and its experts further determined that the sounds resulting from the shifting
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`bolt connections resulted from movement of the structure tracing back to the decision to
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`enlarge the bolt holes and “stick-build” the structure. That decision resulted in deformation
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`of the structure as it was being assembled, which led to the need to shave the top chord
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`and the need to jack the completed span. All of these created the stress that eventually
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`manifested as the noises caused by the shifting connections.
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`29. SWJV knew that even though the bridge might be structurally sound, it would not
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`be possible to deliver the completed bridge in a condition that had the propensity to
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`produce alarming banging noises during use by airport workers and customers. SWJV
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`therefore developed a process of “pre-loading” the bridge in order to ensure all potential
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`movement and noise was “worked out” before the bridge went into service.
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`30. With the benefit of retrospective analysis, the facts of this claim can be summarized
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`as one in which faulty construction means and methods decisions (i.e. enlarging the bolt
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`holes and “stick building”) damaged the completed structure, as manifested in the fitting
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`issues, deformation problems, and bolt connection shifts, which had to be repaired. These
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`repairs cost significant time and money (the “Loss”).
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`31. On or before October 8, 2020, SWJV timely notified Underwriters of the Loss and
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`surrounding factual circumstances and sought coverage under the Policy for the
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`increased costs and delay damages as a result of the Loss (the “Claim”).
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`FILED: NEW YORK COUNTY CLERK 04/09/2021 06:52 PM
`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`32. To date, Underwriters has failed and/or refused to make any payment to Plaintiffs
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`pursuant to the terms of the Policy.
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`33. Underwriters has wrongfully denied coverage for the Claim.
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`34. The deformation of the assembled span and the resulting propensity to shift in an
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`alarming noisy way was a “patent detrimental change in the physical condition of the
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`Insured Property” resulting from “defects of material, workmanship, design, plan or
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`specification.”
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`35. None of the costs to rectify the “patent detrimental change in the physical condition
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`of the Insured Property” were incurred to improve the structure.
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`FIRST COUNT—BREACH OF CONTRACT
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`36. Paragraphs 1-35 are realleged and incorporated by reference herein.
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`37. Underwriters’ issuance of the Policy to SWJV created a contractual relationship
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`between Underwriters and Plaintiffs.
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`38. Plaintiffs performed all of their obligations under the Policy.
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`39. The Policy does not exclude damages caused by the Loss and none of the Policy’s
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`exclusions apply to the Claim.
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`40. By and through its denial of coverage for the Claim, Underwriters has breached its
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`contractual obligations to Plaintiffs under the Policy.
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`41. As a result of Underwriters’ breach of contract in denying coverage for the Claim
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`under the Policy, Plaintiffs have been harmed and continue to be harmed.
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`SECOND COUNT—DECLARATORY JUDGMENT
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`42. Paragraphs 1-41 are realleged and incorporated herein by reference.
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`43. Pursuant to the Policy, Underwriters promised to indemnify Plaintiffs for physical
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`loss of or damage to the Project unless otherwise excluded.
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`44. A dispute has arisen between Underwriters and Plaintiffs regarding whether
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`Underwriters is obligated to provide coverage for physical damage and other costs
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`associated with the Loss.
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`45. An actual and justiciable controversy exists between Underwriters and Plaintiffs
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`regarding Underwriters’ obligation to indemnify Underwriters under the Policy for physical
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`damage and other costs associated with the Loss.
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`46. A declaratory judgment, pursuant to N.Y. C.P.L.R. § 3001, is necessary and
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`appropriate to determine the rights and duties of Plaintiffs and Underwriters under the
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`Policy.
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`
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`WHEREFORE, Plaintiffs pray for the following relief:
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`PRAYER FOR RELIEF
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`1. A declaration that Underwriters is obligated to indemnify Plaintiffs for all damages
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`arising out of the Loss;
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`2. Costs and damages arising out of the Loss;
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`3. Interest;
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`4. Consequential damages;
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`5. Allowable costs;
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`6. Such other relief as this Court deems fair, just, and equitable.
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`FILED: NEW YORK COUNTY CLERK 04/09/2021 06:52 PM
`NYSCEF DOC. NO. 1
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`INDEX NO. 652398/2021
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`RECEIVED NYSCEF: 04/09/2021
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`Dated: Temecula, California
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` April 9, 2021
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`SKANSKA/WALSH JOINT VENTURE, a joint
`venture comprised of SKANSKA USA
`BUILDING, INC., SKANSKA USA CIVIL
`NORTHEAST, INC. and WALSH
`CONSTRUCTION COMPANY II, LLC.,
`SKANSKA USA BUILDING, INC., SKANSKA
`USA CIVIL NORTHEAST, INC., WALSH
`CONSTRUCTION COMPANY II, LLC
`
`
`
`By: /s/ William S. Bennett
`Jeremiah M. Welch, Esq.
`jwelch@sdvlaw.com
`NY Bar No.: 5057385
`William S. Bennett, Esq.
`wbennett@sdvlaw.com
`NY Bar No.: 5418264
`Attorney for Plaintiffs
`Saxe Doernberger & Vita, P.C.
`Two BetterWorld Circle, Suite 200
`Temecula, CA 92592
`Telephone: (951) 365-3145
`Facsimile: (203) 287-8847
`
`
`
`
`
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