SAN FRANCISCO – A Sacramento construction company is seeking a declaration from the court against three insurers regarding their duty to indemnify.

A. Teichert & Son Inc., doing business as Teichert Construction, filed a complaint on Dec. 13 in the U.S. District Court for the Northern District of California against Landmark American Insurance Co., Colony Insurance Co. and RSUI Indemnity Co. seeking declaratory relief.

According to the complaint, the plaintiff alleges that on Aug. 28, 2007, it entered into a contract with the San Luis Obispo County Flood Control and Water Conservation District to construct the Pipeline North Units for the Nacimiento Water Project. On Aug.19, 2015, the suit states the district filed a complaint against plaintiff that seeks damages in the amount of $1,444,431 for purported physical injury to pipe and $3,450,000 for purported loss of use of water capacity and physical injury to water. Prior to litigation, the suit states that HDD Commercial, plaintiff's subcontractor, submitted additional coverage in favor of plaintiff to provide liability coverage, to which defendants refused to acknowledge.

The plaintiff holds Landmark American Insurance Co., Colony Insurance Co. and RSUI Indemnity Co. responsible because the defendants allegedly delayed and refused to timely investigate and defend plaintiff against the alleged claims, failed to affirm or deny coverage of claims within a reasonable time, and failed to adopt and implement reasonable standards for the prompt investigation and processing of claims.

The plaintiff requests a trial by jury and seeks declaration that defendants are obligated to indemnify and comply with its duty to defend; action, general, consequential, punitive and compensatory damages; attorneys' fees; costs; injunctive relief; restitution; interest; and further relief as the court may deem just. It is represented by John W. Klotsche, Sean-Thomas P. Thompson and John W. Klotsche of O'Connor Thompson McDonough Klotsche LLP in Sacramento.

U.S. District Court for the Northern District of California Case number 4:16-cv-07094

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U.S. District Court for the Northern District of California
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