ACE American Insurance Company, along with several other insurers, has filed a lawsuit against Decker Electric Co., Inc. and Electrical Contractors, accusing them of negligence that led to significant property damage. The complaint was lodged in the Superior Court of California, County of San Francisco on January 16, 2025. The plaintiffs allege that Decker Electric's improper installation work caused an explosion at a property owned by Alexandria Real Estate Equities, Inc.
The plaintiffs in this case include Endurance American Specialty Insurance Company, Columbia Casualty Company, Lloyd’s Syndicate 1919, ACE American Insurance Company, Allianz Global Risks US Insurance Company, XL Insurance America Inc., Evanston Insurance Co., and Certain Underwriters at Lloyd’s, London. They collectively insured Alexandria Real Estate Equities' property located at 1700 Owens St., San Francisco. According to the complaint, on December 31, 2022, an explosion occurred in the main busway duct connecting the PG&E transformer to the building's main electrical switchboard. This incident resulted in catastrophic damage and a complete loss of power to the building housing research laboratories.
The investigation revealed that water intrusion into the Busway Duct caused insulating materials to break down leading to electrical arcing and failure. The plaintiffs argue that Decker Electric failed to follow manufacturer instructions during installation which could have prevented water buildup. Consequently, they are seeking compensatory damages amounting to $2,171,943.10 for repairs undertaken due to this incident.
The lawsuit is grounded on claims of negligence against Decker Electric and unnamed defendants referred to as DOES 1-50. The plaintiffs assert that these parties owed a duty of care which they breached by not installing the Busway Duct properly. As a result of their alleged negligence, Alexandria Real Estate Equities suffered substantial property damage and loss of use.
In addition to compensatory damages exceeding $2 million for repair costs already incurred or anticipated under their insurance policy with Alexandria Real Estate Equities Inc., the plaintiffs also seek costs and prejudgment interest as permitted by law from Decker Electric Co., Inc., Electrical Contractors along with any further relief deemed appropriate by the court.
Representing ACE American Insurance Company is attorney Kris Cherevas from Cozen O'Connor; Michael J. Lorusso from Dugan Brinkmann Maginnis & Pace represents Endurance American Specialty Insurance Co., Continental Casualty Co., Lloyd’s Syndicate 1919 among others; while Jennifer Sanchez from Murphy Sanchez PLLC represents Certain Underwriters at Lloyd’s London subscribing to Policy No B1262PW0061822.
Case ID: CGC-25-621475