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UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF OREGON - EUGENE DIVISION 

No. 

DEFENDANT NAVIGATORS 

INSURANCE COMPANY'S 

NOTICE OF REMOVAL 

PURSUANT TO 28 U.S.C. § 

1441(a) 

TO: The Clerk of the United States District Court for the District of Oregon - Eugene 

Division. 

AND TO: Plaintiff, and their counsel of record, Gary G. Norris. 

Please take notice that Defendant Navigators Insurance Company (hereinafter 

"Navigators") hereby removes to this Court the Multnomah County Court action ca Case No.: 

14CV07180 described further below: 

I . INTRODUCTION 

This action involves an insurance coverage dispute between Vitek Construction, LLC 

(hereinafter "Vitek") and Navigators. The insurance coverage dispute involves the actual and 

VITEK CONSTRUCTION, LLC, 

Plaintiff, 

vs. 

NAVIGATORS INSURANCE COMPANY, a 

foreign corporation, 

Defendant. 

NOTIC E O F REMOVA L - 1 

S:\HLES\0'Halloran, Larry 14052\Pleadings\140623 Notice ofRemoval.doc 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN. , SUITE 100 

SEATTLE, W A 9810 9 

P: (206 ) 467-5444 F: (206) 467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 1 of 102
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justiciable controversy as to whether Navigators has any obligation to defend and indemnify 

Vitek for claims asserted in the two separate Underlying Lawsuits. As set forth below, the 

Underlying Lawsuits seek to recover from Vitek, a named defendant, damages in an amount 

exceeding $700,000.00. Navigators has denied coverage, including any defense or indemnity 

obligations due in part to the fact that the damage that is the subject ofthe Underlying Lawsuits 

occurred after the expiration of the Navigators' policy of insurance. 

Removal of this action is proper under 28 U.S.C. § 1332 and 28 U.S.C. § 1441. The 

parties are diverse and the amount in controversy exceeds $75,000.00. 

I I . FACTUAL BACKGROUND 

A. The Subiect Action. 

1. On June 19, 2014, Plaintiff Vitek filed a complaint alleging breach of an 

insurance contract. 

2. In this complaint, Vitek alleges that it is entitled to defense, under the policy of 

insurance issued by Navigators, for the lawsuit entitled XL Specialty Insurance Company v. Vitek 

Construction LLC, O'Halloran Construction and Does 1 through 25, in Circuit Court for the 

County of Lincoln, Oregon, case no. 140829 (hereinafter "XL Lawsuit"). Exhibit A. 

3. Further, Vitek alleges that it is entitled to defense, under the policy of insurance 

issued by Navigators, for the lawsuit entitled Alpha-C Incorporated a/k/a ISE Properties, Inc. 

d/b/a West Coast Inn v. Larry O 'Halloran Construction and Vitek Construction, LLC, in the 

Circuit Court for the County of Lincoln, Oregon, case no. 140772 (hereinafter "WC Lawsuit"). 

Exhibit B. 

4. Vitek has alleged that Navigators breached the insurance contract by allegedly 

failing to defend Vitek against the claims asserted in the XL Lawsuit and WC Lawsuit 

NOTIC E O F REMOVA L - 2 LETHER & ASSOCIATES, PLL C 

S:\HLES\OHaUoran, Larry 14052\Pleadings\140623NoticeofRemoval.doc 1848 WESTLAKE AV E N SUITE 100 

SEATTLE, W A 98109 

P: (206 ) 467-5444 F: (206) 467-5544 

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(hereinafter collectively "Underlying Lawsuits"). According to the complaint, Navigators' 

alleged breach caused Vitek to retain private counsel in defense of the claims asserted in the 

Underlying Lawsuits. 

5. Vitek has further alleged that it has incurred to date an estimated $15,000.00 in 

attorneys' fees defending the Underlying Lawsuits. Further, Vitek alleges that its attorneys' fees 

in the Underlying Lawsuits continue to mount. 

6. Vitek requests judgment against Navigators in an amount estimated at $15,000.00 

and plaintiffs costs, disbursements, and attorneys' fees pursuant to ORS 742.061. 

B. Underlying Lawsuits. 

1. XL Lawsuit. 

7. On or around March 13, 2014, XL Specialty Insurance Company (hereinafter 

"XL") filed suit against Vitek and Larry O'Halloran dba O'Halloran Construction LLC 

(hereinafter O'Halloran) in the Circuit Court for the County of Lincoln, Oregon, case no. 

140829. See Exhibit A. 

8. According to the allegations in the XL Complaint, on March 12, 2012, the roof of 

the Inn blew off during a moderate wind event, causing damage to the structure and interior of 

the Inn. 

9. The XL complaint further alleges that West Coast filed an insurance claim under 

the insurance policy issued by XL. Specifically it is alleged that XL paid policy benefits in the 

amount of $624,191.93. Based on payment of these policy benefits, XL alleges that it is 

subrogated to the interests of West Coast. 

10. According to the allegations in the XL Complaint, the damages suffered were 

caused by O'Halloran and or Vitek's a) failure to adequately supervise the work of Vitek; b) 

NOTIC E O F REMOVA L - 3 LETHER & ASSOCIATES, PLL C 

S:\FILES\0'Halloran, Larry 14052\Pleadings\140623 Notice of RemovaLdoc J 848 WESTLAKE AV E N SUITE 100 

SEATTLE, W A 98109 

P: (206 ) 467-5444 F: (206) 467-5544 

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failure to install the roof materials adequately; c) failure to fasten the roof materials adequately 

d) failure to warrant the workmanship for five years; e) failure to warrant the roof materials for 

fifteen years; f) failure to build and/or supervise construction of the roof consistent with 

applicable building codes; g) failure to provide services as expeditiously as is consistent with 

professional skill and care and the orderly progress of the construction on the Inn; and h) 

performing work in a manner that resulted in defects. 

11. As the subrogee of West Coast, XL has asserted the following causes of action 1) 

breach of contract against O'Halloran; 2) Negligence against O'Halloran; and 3) Negligence 

against Vitek. 

12. XL requests that the Court award judgment against O'Halloran and Vitek in the 

sum of $624,191.93, plus costs, disbursements, interest, and attorneys' fees. 

2. West Coast Lawsuit 

13. On March 11, 2014, Alpha-C Incorporated a/k/a ISE Properties, Inc. d/b/a West 

Coast Inn (hereinafter "West Coast") filed suit against Vitek and O'Halloran, in the Circuit Court 

for the County of Lincoln, Oregon, case no. 140772. See Exhibit B. 

14. The WC Complaint alleges that on November 15, 2010, West Coast, hired 

O'Halloran to replace the roof of the Inn. It is further alleged, that O'Halloran contracted with 

Vitek to remove the existing roof and re-roof the Inn. According to the WC Complaint the reroofing work was completed on or around February 2, 2011. 

15. The WC Complaint alleges that on March 14, 2012, the roof of the Inn failed, 

causing extensive flooding and water damage throughout all three levels of the Inn. It is further 

alleged in the WC Complaint that the water intrusion and property damage at the Inn rendered 

portions of the Inn unusable for a period of time. 

NOTIC E O F REMOVA L - 4 LETHER & ASSOCIATES, PLL C 

S:\FILES\0'Halloran, Larry 14052\Pleadings\140623 Notice of Removal, doc 1848 WESTLAKE AV E N SUITE 100 

SEATTLE, W A 98109 

P: (206 ) 467-5444 F: (206) 467-5544 

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16. The WC Complaint alleges that the roof failure was caused by O'Halloran's and 

or Vitek's defective construction, remolding and repair, non-compliance with industry standards, 

manufacturer specifications, and guidelines. It is further alleged that the claimed damage was 

caused by O'Halloran's and/or Vitek's (1) Failure to properly install and inspect the roof; (2) 

Failure to properly install and inspect the roofing materials; (3) Failure to follow the proper nail 

pattern when installing the roof; (4) Failure to properly nail the roofing materials to the structure; 

and (5) Failure to perform work in a reasonable and workmanlike manner. 

17. Based upon the following allegations, West Coast has asserted a negligence claim 

against Vitek and O'Halloran. 

18. West Coast requests that the Court award judgment against O'Halloran and Vitek 

for uninsured losses in the sum of $110,000.00 ($5,000.00 deductible toward repair work; 

$20,000.00 in code improvement; and $85,000.00 in public adjuster fees). West Coast also 

requests post-judgment interest, costs, and disbursements. 

III . DIVERSITY OF CITIZENSHIP 

19. Plaintiff Vitek has identified itself as an LLC licensed in the State of Oregon. All 

members of Vitek Construction, LLC, are citizens of the State of Oregon. As result, Plaintiff is a 

citizen of the State of Oregon for purposes of diversity under 28 U.S.C. § 1332. 

20. Defendant Navigators is a foreign insurer with its principal place of business in 

the State of New York and is incorporated in the State of New York. Navigators is a citizen of 

the State of New York for purposes of diversity under 28 U.S.C. § 1332. 

21. Complete diversity exists between the parties. 

NOTIC E O F REMOVA L - 5 

S:\FILES\0'Halloran, Larry 14052\Pleadings\140623 Notice ofRemoval.doc 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AV E N. , SUITE 100 

SEATTLE, W A 98109 

P: (206) 467-5444 F: (206) 467-554 4 

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I V. AMOUNT IN CONTROVERSY 

22. The amount in controversy in this coverage action includes, but is not limited to, 

the following: 

• $624,191.93 in indemnity coverage for the XL Lawsuit. 

• $ 110,000.00 in indemnity coverage for the WC Lawsuit. 

• $15,000.00 in estimated defense fees incurred to date for the defense of 

Vitek in the Underlying Lawsuits. 

• Undetermined ongoing defense fees estimated to be in excess of 

$100,000.00. 

• Undetermined ongoing attorneys' fees including, but is not limited to, 

ORS §742.061 statutory attorneys' fees in pursuing coverage. These statutory 

attorneys' fees are estimated to be in excess of $100,000.00. 

23. Consequently, the amount in controversy is in excess of $75,000.00, excluding 

interest and costs. Missouri State Life Ins. Co. v. Jones, 290 U.S. 199, 202, 78 L. Ed. 267, 54 S. 

Ct. 133 (1933); Hendrickson v. Xerox Corp., 751 F. Supp. 175, 176 (D. Or. 1990) (attorney's 

fees sought are to be included in calculating the jurisdictional amount for purposes of 

establishing the federal court's jurisdiction in a diversity case). 

V. JURISDICTION 

24. There is complete diversity between the parties and Navigators reasonably 

believes Vitek to be seeking damages in excess of $75,000.00. 

25. This Court has jurisdiction over this controversy under 28 U.S.C. § 1332 and 28 

U.S.C. § 1441. 

NOTIC E O F REMOVA L - 6 

S:\FILES\0'Halloran. Larry 14052\Pleadings\140623 Notice ofRemoval.doc 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN. , SUITE 100 

SEATTLE, W A 98109 

P: (206)467-544 4 F: (206)467-554 4 

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V I . TIMELINESS 

26. Vitek filed its original summons and complaint on June 19, 2014. Navigators 

accepted service on July 1, 2014. Defendant filed this Notice of Removal on July 1, 2014. 

Removal is timely under 28 U.S.C. § 1446. 

27. For this reason Navigators' Notice of Removal is timely. 

VII . COPIES OF PROCESS, PLEADINGS, ORDERS, AND MOTIONS 

IN STATE COURT PROCEEDINGS 

28. In accordance with 28 U.S.C. § 1446, attached to this notice as Exhibits C 

through E are true and correct copies of the pleadings and documents in the State Court docket 

as of the date of this filing. These documents are: 

Exhibit C: Plaintiffs Complaint Action on an Insurance Policy (ORS 742.061). 

Exhibit D: Defendant's Notice of Appearance. 

Exhibit E: Defendant's Notice of Removal 

DATED this 3rd day of July, 2014. 

/s/ Thomas Lether 

Thomas Lether, OSB #101708 

1848 Westlake Ave N., Suite 100 

Seattle, WA 98109 

Telephone: (206) 467-5444 

Facsimile: (206) 467-5544 

tlether@letherlaw.com 

Attorneys for Defendant The Navigators Insurance 

Company 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN. , SUITE 100 

SEATTLE, W A 98109 

P: (206) 467-5444 F: (206) 467-5544 

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CERTIFICATE OF SERVICE 

The undersigned certifies that on the date below stated they caused the foregoing to 

served upon the below party(ies) at the address(es) and by the method(s) so indicated. 

Gary G. Norris 

1006 NE 3r d St. 

Suite A 

McMinnville, OR 97128 

Attorney for Plaintiff 

Email 

_ USPS 

X ECF Notice 

Facsimile 

DATED this 3rd day of July, 2014. 

/s/Hugh Engel 

Hugh Engel, Paralegal 

NOTIC E O F REMOVA L - 8 

S:\nLES\OHalloran, Larry 14052\Pleadings\140623 Notice of RemovaUoc 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN. , SUITE 100 

SEATTLE, W A 9810 9 

P: (206) 467-5444 F: (206) 467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 8 of 102
EXHIBIT A 

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^Itef^CERTiF Y THAT THE FORO 

15 A TRUE COPYONHE ORIGINAL TH 

IN THE CIRCUIT COURT OF THE STATE OF OREGON 

FOR THE COUNTY OF LINCOLN 

X L SPECIALTY INSURANCE ) Case No. 

COMPANY, ) 

) COMPLAINT 

Plaintiff, ) 

) (Breach of Contract, Negligence) 

vs. ) 

) Amount in Controversy: $624,191.93 

VITEK CONSTRUCTION, LLC, ) Filing fee due pursuant to ORS 21.160 (l)(c) 

O'HALLORAN CONSTRUCTION, and ) 

DOES 1 through 25. inclusive, ^ DEMAND FOR JURY TRI AL 

) 

Defendants.. ) 

COMES NOW, Plaintiff XL Specialty Insurance Company ("XL") and alleges as 

follows. 

PARTIES AND BACKGROUND 

1. 

Plaintiff XL is a Delaware corporation with its principle place of business in Stamford 

Connecticut. XL is an insurance company authorized to do business and doing business in the 

State of Oregon. At all relevant times, X L maintained in full force and effect a policy of 

jn^rgjjra nirrnhered 6a- A 6000925-01 covering ISE Properties Inc., DBA: West Coast Inn ("West 

Coast Inn"). 

Page 1 - COMPLAINT 991 

Thenell Law Group, P.C. 

12909 SW 68a Pkwy., Suite 320 

Portland, Oregon 97223 EXHIBI T 2 

Telephone: (503) 372-6450 

Facsimile: (503) 372-6496 1 Of tf 

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2. 

West Coast Inn operates a three story Inn building, commonly known as an 

"EconoLodge," located at 1713 NW 21st Street, Lincoln City OR. West Coast Inn is not a party 

to this action. 

D. 

Defendant Larry O'Hailoran, dba O'Halloran Construction ("O'Halloran") is an 

individual who resides and does business in Oregon. Plaintiff is informed and believes and 

based thereon alleges that O'Halloran is and at all relevant times was a contractor licensed by the 

state of Oregon under license number 184438. 

4. 

Plaintiff is informed and believes and based thereon alleges that Defendant Vitek 

Construction LLC ("Vitek") is a Limited Liability Company authorized to do business and doing 

business in Oregon. Plaintiff Is informed and believes and based thereon alleges that Vitek is a 

contractor licensed by the state of Oregon under license number 191601. 

5. 

On or about No vember 14, 2010, West Coast Inn contracted with Defendant O'Halloran to 

install a new roof on the West Coast Inn building located at 1713 NW 21st Street, Lincoln City, 

Oregon. The Contract provided for a 15 year warranty on materials, and a five year warranty on 

workmanship. A true and correct copy of the Contract is attached hereto as Exhibit 1. 

6. 

Plaintiff is informed and believes and based thereon alleges that O'Halloran subcontracted 

some or all of the roofing work to Defendant Vitek. 

7. 

Plaintiff is informed and believes and based thereon alleges that O'Halloran and Vitek 

are the agents, employees, supervisors or representatives of each other. 

/ / / 

Page 2 - COMPLAINT

 99 1 

Thenell Law Group, P.C. 

12909 SW68* Pkwy., Suite320 EXHIBI T 2 

Portland, Oregon 97223 

Telephone: (503) 372-6450 2 O f 8 

Facsimile: (503)372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 11 of 102
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8. 

Plaintiff is informed and believes and based thereon alleges that on or about November 

16, 2010, O'Halloran and Vitek installed a Poly Vinyl Chloride (PVC) single ply roof upon the 

West Coast Inn building. The installation was improper, defective, below the standard of care, 

and in violation of the contract provisions. In particular, the installation utilized dissimilar and 

incompatible materials, the workmanship utilized inadequate fasteners and fastening methods to 

secure the roof to the structure, the roof was improperly installed upon the structure, allowing it 

to fail. 

9. 

On or about March 12, 2012, the roof blew off in a moderate wind, causing damage to the 

structure and interior of the West Coast Inn. Plaintiff is informed and believes and based thereon 

illeges that local codes, to which the roof was to be installed, required that the roof be able to 

^thstand winds of at least 105mph. Plaintiff is informed and believes and based thereon alleges 

hat the roof actually failed in wind speeds of less than 55.2mph. 

10. 

iT'o."^ Tt-vt-. c?-i? ff^-t-^A ^nrMOfToc tr% ifc KiTilrfrncr an A K ticiti^c c ac ci r^ciilf rv^~ th Q aCtiOilS of 

D'Halloran and Vitek. West Coast Inn filed an insurance claim, and XL paid policy benefits to 

&

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est Coast Inn in the approximate amount of $624,191.93, a more precise sum to be presented 

t trial. 

11. 

In that X L paid policy benefits to West Coast Inn, it is subrogated to the interests of West 

^oast Inn, and stands in the shoes of West Coast Inn for the purposes of bringing this lawsuit. 

// 

// 

// 

// 

'age 3 - COMPLAINT

 99 1 

Thenell Lavv Group, P.C. 

12909 SWeS* Pkwy., Suite320 EXHIBIT 2 

Portland, Oregon 97223 

Telephone: (503) 372-6450 3 of 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 12 of 102
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FIRST CLAI M FOR RELIEF 

(Against Defendant O'Halloran) 

COUNTI 

(Breach of Contract) 

For Count I of their claim for relief against Defendant O'Halloran, Plaintiff alleges as 

follows: 

12. 

Plaintiff re-alleges paragraphs one through eleven, above, as well as the Contract attached 

hereto as Exhibit 1. 

13. 

Under the Contract, O'Halloran agreed to property install roofing, using the appropriate 

standard of care, in accordance with local codes, to be permitted and inspected by the Lincoln 

City Building Department. 

14. 

Under the Contract, O'Halloran agreed to warrant the roof for 15 years, and warrant 

15. 

Plaintiff is informed and believes and based thereon alleges that West Coast Inn paid 

O'Halloran all amounts due under the contract, and did not breached the contract in any manner. 

16. 

O'Halloran breached the contract in the following respects: 

a) By failing to adequately supervise the work of Vitek: 

b) By failing to install the roof materials adequately; 

c) By failing to fasten the roof materials adequately; 

d) By failing to warrant the workmanship for five years: 

e) By failing to warrant the roof materials for 15 years; 

Page 4 - COMPLAINT

 99 1 

Theneil Law Group, P.C. 

12909 SW SS* Pkwy., Suite 320 

Portland, Oregon 97223 ^ AtL L aL L 

Telephone: (503) 372-6450 4 of 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 13 of 102
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f) By failing to build and/or supervise construction of the roof consistent with 

applicable building codes; 

g) By failing to provide his services as expeditiously as is consistent with 

professional skill and care and the orderly progress of the construction on the 

West Coast Inn: and 

h) By performing his work in a manner that resulted in the defects alleged above. 

COUNT I I 

(Negligence) 

For Count II of its claim for relief against Defendant O'Halloran, Plaintiff alleges as 

bllows. 

17. 

Plamtiff re-alleges paragraphs one through sixteen, above, as well as the Contract 

ttached hereto as Exhibit 1. 

18. 

As a result of his role in providing services to West Coast Inn, and independent of his 

in+i'^o imAe-T anv prrrppmgntc 0'T-TaIioran owed West Coast Trm a dutv to perform Ms work in a 

;ood and workmanlike manner, in accordance with industry standards and codes, as well as local 

uilding codes. 

19. 

O'Halloran breached his duties to West Coast Inn in respects alleged in paragraph 16 

bove in a manner that resulted in physical damage to property and other damages. 

20. 

Plaintiff paid policy benefits to West Coast Inn as a result of the damages caused by 

rfendants, and each of them. In so doing. Plaintiff became the subrogee of West Coast Inn and 

lands in its shoes with regard to recovering damages to the extent of policy benefits paid. 

// 

age 5 - COMPLAINT

 99 1 

Thenell Law Group, P.C. 

12909 SWig* Pkwy., Suite 320 _ 

Portland, Oregon 97223 JiAtllBX l i 

Telephone: (503) 372-6450 5 O f 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 14 of 102
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SECOND CLAI M FOR RELIEF 

(Against Vitek Construction LLC) 

COUNTI 

(Negligence) 

For Count II of Its claim for relief against Defendant Vitek, Plaintiff alleges as follows. 

2 1 . 

Plaintiff re-alleges paragraphs one through twenty, above, as well as the Contract 

attached hereto as Exhibit 1. 

22. 

As a result of its role in providing services to West Coast Inn under contract with 

O'Halloran, and independent of its duties under any agreements, Vitek owed Wrest Coast Inn a 

duty to perform its work in a professional manner, in accordance with industry standards and 

codes, as well as local building codes. 

23. 

Vitek breached its duties to West Coast Inn in respects alleged in paragraph 16 (b) 

thrrmcrh fh"\ in a manner that resulted in nhvsical damage to property and other damages. 

24. 

Plamtiff paid policy benefits to West Coast Inn as a result of the damages caused by 

defendants, and each of them. In so doing, Plamtiff became the as subrogee of West Coast Inn 

and stands in its shoes with regard to recovering damages to the extent of policy benefits paid. 

/ / / 

/// 

/ / / 

/// 

/// 

/// 

Page 6 - COMPLAINT 

Thenelt Law Grenip, P.C. 

12909 SW 68* Pkwy., Sake 320 

991 

Portland, Oregon 97223 EXHIBI T 2 

Telephone: (503) 372-6450 6 of 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 15 of 102
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WHEREFORE, Plaintiff prays for judgment in its favor and against Defendants as 

follows: 

1, For the sum of $624,191.93 and for other damages representing policy benefits 

paid to date, and which may increase with the passage of time; 

3. For Plaintiffs reasonable attorney fees allowed under ORS 20.096 or as otherwise 

allowed by contract or law; and 

4. For such other relief the Court deems just and equitable. 

DATED this 13t h day of March, 2014. 

THENELL LAW GROUP, P.C. 

2 For Plaintiffs costs, disbursements, and interest; 

By: 

Daniel E. Thenell, OSB #971655 

Email: dan@thenelllawgroup.com 

Of Attorneys for Plaintiff 

7-COMPLAINT 991 

Theneli Law Group, P.C. 

12909 SW 68"1 Pkwy., Suite 320 

EXHIBI T 2 

7 o f 8 

Portland, Oregon 97223 

Telephone: (503) 372-6450 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 16 of 102
11/24/2010 

G 

Gmai! - new roof contract 

Scott Jone s <iarnforeverbiessed^gmaH.<»m> 

£D3 - °o>~t- 73 ^ 

new roof contract 

1 messag e 

ohalloranlk@frontler.com <ohalloranlk@irontier.com> 

To: iarrtfbfeverhlessed@grnail.corn 

/ 

O'Halloran Construction 

Larry O'Halloran 

317 S W Filbert St. 

McMinnvllle. Or. 97128 

CCB # 184438 

971-241-9360 

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Mon, Nov 22, 2010 at 6:34 PM 

N 

reM'sed ,H 1-22-10 

*0 / 

c 

7 ^ 

Project Description and invoice: Wes t Coas t Inn 

1713 NW 21 Street, Lincoln City Or 97367 

*Remove all 3 layers of existing roofing. Dispose of aii debris. 

* Re-roof with Versico PV C single ply membrane, (60 mill) replace ail 

\ents with new roof vents. 

* Ail work wiil be approved and inspected by Lincoln City Building Department. 

* You r new roof come s with a 15 year Manufacturers Warranty; and a 5 year Warranty on 

workmanship. 

* The PV C membrane come s in 6 ft. and 10ft. rolls. W e always minimize our seams , and wiil do 

s o on your project a s well. 

* All seaming is serf adhesive and wil! be torched together. 

' Curbing Wiii be ptiift from ^X4*s and 1/2 inch plywood, nailed ovta the existing roof si incut nj w 

help creating proper drainage. 

* Versico material has already been ordered and will be delivered within a week. 

* W e will watch the weather and wiil begin the project when there is a 3 day window of good 

weather. 

* Completion time is about 5 working day s from beginning of project. 

* Due to the rainy, winter seaso n and the condition ofthe existing roof, "Time is ofthe Essence " 

the (weather permitting) project must be completed no later than December 15th to avaid more 

damage to building. 

* W e dont expect any additional requirements that could affect price due to Lincoln City 

Building Department. 

* Contract and arty changes on part of Wes t Coast Inn, and O'Halloran Construction must be 

made in writing by both In-Joo Ch p and Larry O'Halloran. 

Total price $ 27,800.00, 

Down payment received on 11-18-10 $ 12,350.00 

Balanc e due upon completion $ 15,450.00 

Thank you, Larry O'Halloran 

hrjps://rf!all.google.com/mail/u/0/?ui=... Exhibit 1 

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Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 17 of 102
EXHIBIT B 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 18 of 102
CIRCUIT COURT 

RLED RECEIVED J 

/ 

MAR ! 1 m 

OT! nr-u 

BY 

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TN THE CIRCUIT COURT OF THE STATE OF OREGON 

FOR THE COUNTY OF LINCOLN 

ALPHA-C INCORPORATED a/k/a ISE 

PROPERTIES, INC. d/b/a WEST COAST 

INN, 

Plaintiff, 

vs. 

LARRY O'HALLORAN CONSTRUCTION, 

LLC, an Oregon limited liability corporation, 

VITEK CONSTRUCTION, LLC, an Oregon 

limited liability corporation, 

Case No. ! ^fOf? ^ 

COMPLAINT & JURY TRIAL DEMAND 

(Negligence) 

Prayer: $110,000.00 

NOT SUBJECT TO MANDATORY 

ARBITRATION 

Fee Authority: ORS 21.160(1)(C) 

Defendants. 

For its Complaint, Plaintiff alleges as follows: 

1. 

A t al l materia l time s nerem . 

r-< 'lamtiii was an v/regun miuoiatiou win 

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of business in Lincoln County, Oregon, that owned and operated an Econo Lodge hotel located 

in Lincoln City, Oregon (referred to hereafter as the "Econo Lodge"). 

2. 

At all material times herein, Defendant Larry O'Halloran Construction, LLC 

("O'Halloran"), was an Oregon limited liability corporation based in McMinnville, Oregon, and 

a licensed Oregon contractor. Defendant O'Halloran performed and/or controlled some or ail of 

the remodeling and construction work at the Econo Lodge that forms the basis of this Complamt. 

n 

J . 

At all material times herein, Defendant Vitek Construction, LLC ("Vitek"), was an 

Oreaon limited liability corporation based in McMinnville, Oregon, and a licensed Oregon 

COMPLAINT 

EXHIBI T 3 

1 o f 5 

WHIPPLE & DUYCK. P C 

Attorneys at Law 

1500 S W First Ave Suite 1170 

Portland. OR 9/20 1 

503 222 S004 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 19 of 102
1 contractor. Defendant Vitek performed and/'or controlled some or all of the remodeling and 

2 const-action work at the Econo Lodge that forms the basis of this Complaint 

3

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4 AH or substantially all of the acts and omissions alleged herein occurred in Lincoln City, 

5 Oregon. 

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7 On or around November 15, 2010, Plaintiff hired Defendant O'Halloran to replace the 

8 roof at its Econo Lodge hotel. 

9 6. 

10 Thereafter Defendant O' Halloran and Defendant Vitek, a subcontractor, removed the 

11 Econo Lodge's existing roof, and re-roofed the Econo Lodge. 

12 7. 

13 Defendants completed their re-roofing work on or around February 2, 2011. 

8. 

On or around March 14, 2012, the roof ofthe Econo Lodge failed, causing extensive 

14 

~T6 flooding and water damage throughout ail three levels of die Euonu Lodge. 

17 9. 

i g Defendants were responsible for the quality of all labor and materials used in the 

19 construction and re-roofing at the Econo Lodge and for the work their agents 

20 10-

21 Defendants were responsible to ensure that the Econo Lodge was re-roofed so as to be 

22 free from defects and in a manner so as not to leak, fail or cause property damage. Defendants 

71 were also responsible for ensuring the Econo Lodge was remodeled and repaired in a 

24 weatherproof and workmanlike manner. 

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EXHIBI T 3 WHIPPLE & DUYCK. P c 

Paee2- COMPLAINT , - R Attorneys at Law 

& Z O X D 1500 S W First Ave. Suite 11/ 0 

Portland. OR 9/20 1 

503 222 6004 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 20 of 102
1 11-

2 The resultant roof failure, leaks, water intrusion and property damage at the Econo Lodge 

3 are the result of Defendants' defective construction, remodeling and repair, and non-compliance 

4 with industry standards, manufacturer specifications and guidelines, and other applicable 

5 specifications, including, but not limited to, the following: 

6 I . Failure to properly Install and inspect the roof; 

7 2. Failure to properly install and inspect the roofing materials; 

8 3. Failure to follow the proper nail pattern when installing the roof; 

9 4. Failure to properly nail the roofing materials to the structure; 

10 5. Failure to oerform work in a reasonable and workmanlike manner: 

H g. Such other specifications of negligence to be alleged upon completion of discovery. 

12 

13 The roof failure, leaks, water intrusion and property damage at the Econo Lodge caused 

14 by the above defects rendered portions ofthe Econo Lodge unusable for a period of time. 

15 Extensive repairs were necessary to correct the roof failure, leaks, water intrusion and property 

"Tg damage and to minimize the real, substantial and imminent risk of further property damage and 

17 loss. 

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19 As a result and the conduct set forth above. Plaintiff suffered substantial uninsured losses, 

20 and is entitled to recover damages in an amount to be proven at trial and currently estimated to 

21 be $ 1I0,000 in the following specifics: payment of a $5,000 deductable towards repair work: 

22 payment for "code improvement" repairs estimated at $20,000; public adjuster costs estimated at 

flifir AA A 

24 H . 

25 Plaintiff is aiso entitled to post judgment interest at a rate of nine percent (9%) per annum 

26 on any award. 

EXHIBI T 3 WHIPPLE i DUYCK P c 

Paae 3 - COMPLAINT 3 o f 5 •~£FmZ

m

T> M~ 

a

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- •J lsOO S W hirst Ave Suite Ili O 

Portland. OR p/20 1 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 21 of 102
1 FIRST CLAI M FOR RELIEF 

n

 fNevligence - Al l Defendants) 

15. 

Plaintiff re-alleges and incorporates paragraphs 1 through 12 above as i f fully set forth 

5 herein. 

16. 

7 Each ofthe Defendants had an independent duty to ensure that the Econo Lodge was 

8 remodeled and re-roofed in a weatherproof, workmanlike manner, in compliance with all 

9 industry and manufacturer standards and specifications and to ensure that the Econo Lodge roof 

did not fail, leak, or otherwise cause property damage. 

17. 

12 Defendants knew, or reasonably should have known, that failure to use reasonable care 

13 and comply with applicable plans, industry and manufacturer standards and specifications m 

14 overseeing, directing and undertaking the re-roofing and repair of the Econo Lodge would cause 

1 5 damage to the Econo Lodge as described in paragraphs 11 through 12, supra. 

10 

11 

16 

17 

— TW. 

Plaintiff relied on Defendants to perform their duties with reasonable care, and m 

18 compliance with all applicable plans, regulations and industry and manufacturer standards and 

19 specifications. 

20

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21 Defendants breached their duty to Plaintiff by failing to use reasonable care and failing to 

22 comply with all applicable plans and industry and manufacturer standards and specifications in 

T"> mrarrooinn rifrPPTlTl fj 53 Tin ttn f\P>V I 5\ K 1 TI ^ f flC < C~l UC7i Iiiii CUJ.U. i^L/dli vyi t-iiJC i^^^i^

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20. 

25 Defendants performed their work negligently by the conduct described in paragraph 11 

26 above. 

EXHIBI T 3 WHIPPLE a DUYCK. P.C 

Page 4 - COMPLAINT 4 of 5 .sooswTM ^ mo 

Portland. OR 9 f 201 

503 222 5004 

503 222 SI9 1 

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Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 22 of 102
1 21. 

? As a foreseeable, direct and proximate result of Defendants' negligence, Plaintiff has 

3 suffered damages and is entitled to recover those damages and interest as set forth above in 

4 paragraphs 13 through 14. 

5 WHEREFORE, Plaintiff prays for the following relief: 

6 A. Economic damages in an amount to be proven at trial not to exceed $ 110,000; 

7 B. Interest at a rate of nine percent (9%) per annum; 

8 C. Plaintiffs costs and disbursements incurred herein: and 

9 D. For any other appropriate relief that the Court deems just and equitable. 

DATED this jj _ day of March, 2014. 10 

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B v 

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 J ^'Daniel L. Duyck, OSB #972529 

dduvck@whippleduyck.com 

15 Eric D. Wilson, OSB#044556 

WHIPPLE & DUYCK, P.C. 

J%-fi.X\ ISIS, — 

•J5 o f Attorneys for Plaintiff 

Trial Attorney: Daniel L. Duyck 

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EXHIBI T 3 WHIPPLE S. DUYCK P C 

PageS- COMPLAINT ^oswSrtLm o 

Portland OR 97201 

503 222 600 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 23 of 102
EXHIBIT C 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 24 of 102
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IN THE CIRCUIT COURT FOR THE STATE OF OREGON 

FOR THE COUNTY OF MULTNOMAH 

VITEK CONSTRUCTION, LLC, ) Case No.: 

Plaintiff, ] COMPLAINT 

) Action on an insurance policy (ORS 742.061). 

v s

- ) Breach of Contract 

NAVIGATORS INSURANCE COMPANY ) (Subject to Mandatory Arbitration) 

Defendant. ) 

) 

) 

COMES NOW Plaintiff, Vitek Construction, LLC, by and through its attorney, Gary 

G. Norris, and for its Complaint against Defendant Navigators Insurance Company, alleges as 

follows: 

FIRST CLAIM FOR RELIEF 

(Breach of Contract) 

_ r 

At all material times Plaintiff was an Oregon LLC doing business and licensed to do 

business as a construction contractor. 

2. 

At all material times Defendant was a New York corporation authorized to do business 

and doing business in the State of Oregon as a commercial insurer. 

3. 

In return for premium paid, Navigators issued to Plaintiff policy number 3610122439. 

A copy of the policy is attached as Exhibit 1 to this Complaint. The dates of coverage for 

Vitek under the subject policy were August 5, 2010 to August 5, 2011. 

Page 1 of 3 COMPLAINT 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 25 of 102
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4. 

Plaintiff has been named as a Defendant in two separate lawsuits filed in Lincoln 

County Circuit Court, as follows. XL Specialty Insurance Company v, Vitek Construction, 

LLC, O'Halloran Construction, and Does I through 25, inclusive, Lincoln County Court Case 

No.: 140829 and Alpha-C Incorporateda/k/a ISE Properties, Inc. d/b/a West Coast Inn v. 

Larry O Halloran Construction and Vitek Construction, LLC Lincoln County Court Case No.: 

140772. Copies of the Complaints in each case are attached as Exhibits 2 and 3 respectively. 

Each of the lawsuits contain allegations that Vitek's work was faulty, and caused 

consequential damage to the property of the respective Plaintiffs in those lawsuits. The 

complaints each allege that Plaintiffs work was performed within the policy period. 

5. 

More than six months before the present lawsuit was filed, Plaintiff submitted proof of 

loss to Navigators and in fact such proof of loss was submitted to Navigators before Exhibits 2 

or 3 were filed. 

6. 

The allegations in each of the Complaints attached trigger an obligation on Navigators part to 

defend Vitek in each of the suits. Despite proof of loss, however, as mentioned above, 

Navigators has failed and refused to defend, which constitutes a material breach of the contract 

of insurance referenced above. As a direct and substantial result of Navigators' breach of the 

contract of insurance, Plaintiff has been required to retain personal counsel to defend the 

lawsuits, all to Plaintiffs damage currently estimated at $15,000.00. Due to Navigators 

continued material breach of the contract, Plaintiffs damages for defense costs and attorneys 

Page 2 of 3 COMPLAINT 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 26 of 102
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fees continue to mount. Plaintiff will file a supplemental complaint prior to arbitration to fully 

set forth the amount of those damages as of the date of arbitration. 

7. 

Pursuant to ORS 742.061, Plaintiff is entitled to recover its reasonable costs, 

disbursements and attorneys fees for proceeding with this lawsuit, as Vitek has made no 

tender. 

WHEREFORE, Plaintiff prays for relief as follows: 

1. For judgment against Navigators Insurance in an amount currently estimated at 

$15,000.00; and 

2. For Plaintiffs costs, disbursements and attorneys fees pursuant to ORS 742.061. 

DATED this / day of June, 2014. 

Law Office of Gary G. Norris 

Garv G. Norris,,OSB #823552 

Attorney for Rlaintiff Vitek Construction, LLC 

Page 3 of 3 COMPLAINT 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 27 of 102
EXHIBI T 1 

1 o f 5 4 

ENDORSEMENT 

NO. oi 

NAVIGATOR S INSURANC E COMPAN Y 

ATTACHED TO AND 

FORMING A PART OF 

POLICY MUM BE Ft 

ENDORSEMENT EFFECTIVE 

(STANDARD TIME/ 

MO. DAY YR. 12:01 

INSURED PRODUCER AND CODE 

36-1012243 9 08 0 5 

I A.M. 

10 ' X 

VITE K OBSTRUCTION, LLC HA0 53 

BUILDERS £ 

TRADESMEN'S INS 

SVC 

PER REQUEST FORM 03 2134NH (01/87 ) EXCLUSION-DESIGNATED WORK HAS BES1I JU3DKD 

ONTO THE POLICY ADDING THE B LICENSE EXCLUSION EFFECTIVE OS/05/201 0 

MJT, INC - HA0 59 /f|M . (AUAS-ff ^ 

DATE 09-IS-1 0 Authorized RS pr 9SOT :ativ9 

MOD 

-INSURED - SDBOWMAM 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 28 of 102
EXHIBI T 1 

COMMERCIAL GENEFAif L^ILIT Y COVERAGE PART 

DECLARATIONS 

Poticv Wo. 36-1012243 9 Effective Date: 08-05-201 0 

12:01 A.M . Standard Time 

LIMITS OF INSURANCE 

Genera! Aggregate Limit (Other Than Products-Complete d Operations) $ 000, 0 00 

Products-Complete d Operations Aggregate Limit $ 2 , 000,00 0 

Personal and Advertising injury Limit Ai 

? 1 - 000.00 0 

Each Occurrence Limit $ 000,00 0 

Firs Damage Limit $ 50,00 0 Any One Fire 

Medical Expense Limit $ 5,. 0 00 Any One Person 

LOCATION OF PREMISES 

Location of Al l Premises You uwn . Rent or Occupy : 

4 0 0 SS A LETH M Biff , HCMIHNVTLLE, OR 97123 

PREMIUM 

Rate Advance Premium 

Classification Code No. Premium Basis Pr/Co Ail Other Pr/Co Aii Other 

CAR-PENT RY - CON -3 TR. OCT I OH 91340 7.50 0 ip ! INCL 33.51 1 INCL 293 

OF RESIDEKTm L PROPERTY • 

NOT EXCEEDING THREE 

STORIES I N HEIGHT 

SIDIN G _NSTJ__L-iTION 98967 17,50 0 (p l INCL 53.70 9 INCL 1,02 7 

CONTRACTORS-StfBCONTRfeCT 91585 10,00 0 tc i INCL INCL SS 

WORK-IN CONNECTION WITH 

COKSTRTJCTIOK , ITS COM -

STRUCTION, REPAIR OR " 

ERECTION OF BUILDINGS 

I otal Advanc e Premium 1,333 

(ai arsa - per 1000 sq.ft. (mi admissions - per 1O0O te> each Cu? units 

(si gross sales - per 41OOO (pi payroB - per * iOOO (cf total cost - per $ iOOO 

FORMS AMD ENDORSEMENTS (other than applicable Forms and Endorsements shown elsewhere in the policy j 

Forms and Endorsements applying t o this Coverage Part and made part of this policy at time of Issue: 

CG2134NHC01/87> 

-_« _ DEC JKi^OfM S 4F.E »»BT OF T>tgs? .C V CBC C -15 Self*! " NO TNg <WNIE Of- E NSURED irj u "WS =Ct 

T

^ . ~ ;iac^ 3!'","- no : OO'. ia<? ^n-.-i ~<J6r ariE^ped I-? 3 ar:;si „.~5S 1" arp-r-r ^a-i ay _

:

r'::!3r3r..o-ns Pac:5, 

CoVi>'W> :»-» c, Ojrc i uens Coverage »*rt Csnrsg s

 c or~«3 ' ar :• jn v app- cauls 'or-is arc s-jfciwwTM . 

S200OC8/9 0 -IK3DRED -

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 29 of 102
EXHIBI T 1 

3 o f 5 4 

POLICY NUMBER: COMMERCIAL GENERAL LIABILITY 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

This endorsement modifies insurance provided under the following; 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART 

SCHEDULE 

Descriptio n of you r work : 

CONSTRUCTION OF NEW HOMES AS A GENERAL CONTRACTOR OR DEVELOPER. 

(If no entry appears above, information required to complete this endorsement wiil be shown in the Declarations as 

applicable to this endorsement.) 

This insurance does not apply to "bodiiy injury" or "ropert y damage" included in the "products-completed operations hazard" and arising out of "your work" shown <n the Schedule 

CG 21 3 4 MH 01 87 Copyright insurance Sen/sees Office, Inc., 1986 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 30 of 102
COM(VI@3><MA-_WMES FOLIC. 

COMMON PQUggf §>£C LA RATIONS 

NAVIGATORS INSURANCE COMPANY 

6 INTERNATIONAL DRIVE - SUITE 100 

RYE BROOK, NY 10573 

NEW 

Renewal of Number Polic y No . 38-1012243 9 

Named insured and Mailing Address 

(No., Street, Town or City, County. State, Zip Code) 

• VITE K CONSTRUCTION, LLC 

4 0 0 SE ALETHEA HAY 

MCMINNVILLE. OR 9 712 8 

ax orate 

at 12:01 A.M . Standard Vme 

producer and Mailing Addr 

(Mo., Street, Town or City, County, Stare, Zip Code) 

BUILDERS £ TRADESMEN'S IN S SVC 

SS10 SIERRA COLLEGE BLVD 

ROCKXiIN, CA 9 5 577 

TEL : (8"75 S43-5632 

Policy Period: From 08-05-201 0 to 03-05-201 1 

at your mailing address show " abovs . 

Form of Business: Limite d Liability - Corporacio n 

Business Description: aAORPSMTRY-CONSTRUCTION OF RSSIDBHTXMi PROPERTY NOT 

EXCEEDING THREE 

IN RETURN FOR THE PAYMENT OF THE PREMIUM, AMD SUBJ5C- TO ALL THE TtRM-S OF THIS POLICY.. WE AGREE WITH

 v O U 

TO PROVIDE THE INSURANCE STATED IN THIS POLICY 

THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS INDICATED. 

THIS PREMIUM MAY BE SUSPECT TO ADJUSTMENT. 

PREMIUM 

Commercial Property Coverage Part 

Commarclat General Liability Coverage Part 

Not Covare d 

1,38 9 .00 

rox. 

ADVANCE PREiVHUM 1,389.0 0 

Othe r Charg s Polic y Fee 150 .00 

$ 

$ 

TOTAL ? 

Formisi and Endorsements ) made a part of this policy at tim e of issue V 

AMF159 (06/961, ANF ! 77 10L081, IL0O17 (I 1/98!, ILO02! (09/03), IL0279 (0a08!, S20O0 (3/91 

Omits applicable Forms and Endorsements if shown in specific Cov 

Countersigned: 08-09-1 0 MOD By 

Part/Cov 

( .1 f if 'r 

norm Declarations veuragejAuthorized Representative 

THESE DECLARATIONS TOGETHER WITH THE COMMON POLICY CONDITIONS. COVERAGE PART DECLARATIONS, COVERAGE PART COVERAGE FORMCS) 

AMD FORMS AMD ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART THEREOF, COMPLETE THE ABOVE NUMBERED POLiCY. 

includes copyrighted material of Insurance Services O ff ice, inc., with Its permission. Copyright, insurance Services Office, Inc., 1933, '934 

COM 0 IOO 00 05/2006 - IITSURED -

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 31 of 102
EXHIBI T 1 

5 o f 5 4 

SERVICE OF SUIT 

It is agreed that service ofprocess in suit may be made upon 

Navigators California Insurance Services 

Arm: Noel Higgitt 

433 California St, Suit 820 

San Francisco, C A 94104 

and that in any suit instituted agaijist any one of them upon this contract the Company will abide by the 

final decision of such Court or of any Appellate Court in the event of an appeal 

The above-named are authorized and directed to accept seivice ofprocess on behalf of the Company in 

any such suit and/or upon the request of the Insured to give a written uiKiertaidiig to the Insured thai 

thev will enter a general appearance upon the Company behalf in the event such a suite shaU be 

institutedRirther, pursuant to any statute of my state territory or district of the United States which makes 

provision therefor, the Company hereon hereby designates the Supersitendent, Commissioner or 

Director of Insurance or other officer specified for that purpose in the statute, or his successor or 

successors in office, as their true an lawful attorney upon whom may be served any law&l process in 

any action, suit ox proceeding instituted by oi on behalf ofthe Insured or any beneficiary hereunder 

arising out of this contract of insurance, and hereby designates the above-named as the person to 

whom the said officer is authorized to mail such process or a true copy thereof 

ANF 159 (06/96) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 32 of 102
6 o f 54 

POLICYHOLDE R DISCLOSUR E 

NOTICE OF TERRORISM 

INSURANCE COVERAGE 

You arc hereby notified that under the Terrorism Risk Insurance Act as amended, that you have a right to purchase' insurance 

coverage tor losses resulting from acts of terrorism, as defined in Section lOZfli ofilie Aa: The term "act ot terrorism" means any act 

that is certified by tne Secretary of the Treasury—in concurrence with the Secretary of State, and the Attorney General ofthe United 

States to be an act of terrorism: to be a violent act or an act that is dangerous to iainiarz lift, property, or intxasttucture; to have 

resulted in damage within the United States, or uuiside the United States in the case of certain air carriers or vessels or tne premises of 

a United States mission, and to have been committed by an individual or individuals as part of an effort to coerce the civilian 

population of tiie United States or to irrfluence the policy or affect the conduct of the United States Government by coercion. 

YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED BY THIS POLICY FOR LOSSES RESULTING FROM 

CERTIFIED ACTS OF TERRORISM. SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE UNITED STATES 

GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER. YOUR POLICY MAY CONTAIN 

OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS, 

UNDER THE FORMULA THE UNTIED STATES GOVERNMENT GENERALLY REIMBURSES 85% OF COVERED 

TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE 

COMPANY PROVIDING IHE COVERAGE THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW 

AND DOES NOT INCLUDE ANY CHARGES FOR. THE PORTION OF LOSS THAT MAY BE COVERED BY THE FEDERAL 

GOVERNMENT UNDER THE ACT. 

YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED. CONTAINS A Si00 

BILLION CAP THAT LIMITS U.S. GOVERNMENT FY LMBURSEMENT AS WELL AS INSURERS" LIABILITY FOR LOSSES 

RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE 

CALENDAR YEAR EXCEEDS S 100 BILLION. IF IHE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $ 100 

BILLION, YOUR COVERAGE MAY BE REDUCED, 

Acceptance or Rejertiori ofTBrrortaw -"quo- - C—.'araga 

I hereby elect to purchase terrorism coverage for a prospective premium oi ji JtyTu_QQ_ 

I hereby decline to purchase terrorism coverage for certified acts of terrorism, i understand that i will have no 

coverage for losses resulting from certified acts of terrorism. 

Policyholder 'Applicant s Signature 

Print Name 

NAVIGATORS INSURANCE CGMPANV 

Insxiranee Company 

3S-1012243 9 

Policv Number 

Date 

ANF 177(31 08 

S 2007 National Association of Insurance Commissioners 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 33 of 102
EXHIBI T 1 

7 o f 5 4 

IL0O 17 11 98 

COMMON POLICY CONDITIONS 

Aii Coverage Parts included in this policy are subject to the foi towing conditions. 

A. Cancellation 

1. The first Named insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation. 

2. We may cancel tnis policy by mailing or delivering to the first Named Insured written notice 

of cancellation at least: 

a, 10 day s before the effective date of cancellation if we cancel for nonpayment of 

premium; or 

b, 30 days before the- effective date of cancellation if we cancel for any other reason. 

3. We wiil mail or deliver our notice to the first 

Named Insured's last mailing address known to 

us. 

•i, Notice of cancellation will state the effective 

date of cancellation. The policy period will end 

on that date. 

5, !f this policy is cancelled, we will send the first 

Named insured any premium refund due. If we 

cancel, the refund will be pro rata, if the first 

Named insured cancels, the refund may be 

less than pro rata. The cancellation will be effective even if we have not made or offered a 

refund. 

SrNf-ttefjcc is matted, proof of maSttng^wtt-ee-sfcflF 

ficient proof of notice. 

B. Change s 

This policy contains ail the agreements between 

you and us concerning the insurance afforded. 

The first Named Insured shown in the Declarations is authorized to make changes in the terms 

of this policy with our consent. This policy's terms 

can be amended or waived only by endorsement 

issued by us and made a part of this policy. 

C. Examinatio n Of You r Book s An d Record s 

W e may examine and audit your books and records as they relate to this policy at anytime during 

the policy period and up to three years afterward. 

D. inspection s Ant ! Surveys 

1, W e have the right to: 

a. Make Inspections and surveys at any time: 

b. Give you reports on the conditions we find: 

and 

c. Recommend changes. 

2. W e are not obligated ta make any inspections, 

surveys, reports or recommendations and any 

such actions we do undertake relate only So insurability and ihe premiums to be charged. We 

do not make safety inspections. We do not undertake to perform the duty of any person or 

organization to provide for the health or safety 

of workers or the pubiic. And we do not warrant 

that conditions: 

a. Are safe or healthful, or 

b, Comply with laws, regulations, codes or 

standards, 

5. Paragraphs 1, and 2. of this condition apply 

not only to us. but also to any rating, advisory, 

rate service or similar organization which 

makes insurance inspections, surveys, reports 

or recommendations. 

4. Paragraph 2. of this condition does not apply 

to any inspections, surveys, reports or recommendations we 'may make re la five to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators. 

E. Premiu m o -

The first Named Insured shown in the Declarations. 

1. is responsible for the payment of all premiums; 

and 

2, Wil l be the payee for any return premiums we 

pay. 

F. Transfe r Of You r Rights An d Duties Unde r 

Thi s Polic y 

Your rights and duties under this policy may not 

be transferred without our written consent except 

in the case of death of an individual named insured. 

If you die, your rights and duties wiil be transferred to your legal representative but only while 

acting within the scope of duties a s your legal representative. Until your legal representative is appointed, anyone having proper temporary custody 

of your property will have your rights and duties 

but only with respect to that property. 

ILOG 17 11 S3 Copyright, insurance Services office , inc., 1998 Page 1 of 1 • 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 34 of 102
EXHIBI T 1 

8 o f 54 

ILOO 2 1 0 9 0 8 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

NUCLEAR ENERGY LIABILITY EXCLUSION 

ENDORSEMENT 

(Broad Form) 

This endorsement modifies insurance provided under the following: 

COMMERCIAL AUTOMOBILE COVERAGE PART 

COMMERCIAL GENERAL LIABiLITY COVERAGE PART 

FARM COVERAGE PAR I 

LIQUOR LIABILITY-COVERAGE PAR i 

MEDICAL PROFESSIONAL LIABILITY COVERAGb PART 

OWNERS AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART 

POLLUTION LIABILITY COVERAGE PART 

PRODUCTS/COMPLETED OPERATIONS UABi U i Y COVERAGb PAR t 

RAILROAD PROTECTIVE LIABILITY COVERAGb PART 

UNDERGROUN D STORAGE TANK POLICY 

1. The insurance does not aopi y 

A. Under any Liability Coverage- to "bodiiy injury" 

or "property damage": 

(1) With respect to wfvch an "rsurea " under 

the policy is also an insured under a nuclear energy liability policy Issued by Nuclear Energy Liability insurance Association, Mutual Atomic Energy LiabilityUnderwriters; Nuciear insurance Association of Canada or any of their successors 

or i<i<m ild hft an ms-ir^ i nm'A HH V Elici t tn»-

icy but for its termination upon exhaustion 

of its limit of liability or 

(2J Resulting from the "hazardous properties" 

"• * of "nuclear material" and with respect to 

which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or 

any law amendatory thereof or <b> the "insured" is or had this policy not been issued 

would be: entitled to indemnity from the 

United States of America, or any agency 

thereof, under any agreement entered into 

by the United States of America, or any 

agency thereof with any person or organization. 

B. Under any Medical Payments coverage to 

expenses Incurred with respect to "bodily injury" resulting from the "hazardous properties" 

of "nuclear material" and arising out of the operation of a "nuciear facility" by any person or 

organization. 

C. Under any Liability Coverage, to "bodiiy injury" 

or "property damage resulting from "hazardous properties" of "nuciear material", if 

(1) Th e "nuclear material" (a) is at any "nuclear 

facility" owned by or operated by or on behalf of, an "insured" or (b) has been discharged or dispersed therefrom; 

{2} Th e "nuclear material" is contained in 

"spent fuel" or "waste" at any time possessed, handled, used processed, stored 

transported or disposed of by or on behsrff 

of an "insured": or 

{%) Th e "bodily injury" or "property damage" 

arises out of the furnishing by an "insured" 

of services, materials parts or equipment in 

connection with the planning, construction, 

maintenance, operation or use of any "nuciear facility", but if such facility is located 

within th e United States of America, its territories or possessions or Canada, this exclusion (3) applies oniy to 'property damage" t o such "nuclear facility" and any 

property thereat. 

2. As used in this endorsement 

"Hazardous properties" includes radioactive, toxic 

or explosive properties, 

"Nuclear material 1 1 means "source materia!", "special nuclear material" or "by-product material" 

IL 00 21 0 9 08 ©IS O Properties inc., 20Ur Psge 1 c f 2 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 35 of 102
EXHIBI T 1 

9 o f 54 

"Source materiai", "special nuclear material", an d 

"by-product material" have the meanings given 

them in the Atomic Energy Act of 19d4 or in any 

law amendatory thereof. 

"Spent fuel" means any fuel element or fuel component solid or liquid, which has been, used or exposed to radiation in a "nuciear reactor". 

'Waste " means any waste material (a) containing 

"by-product material" other than the tailings or 

wastes produced by the extraction or concentration of uranium or thorium from any ore processed 

primarily for its "source materiai" content, and (b) 

resulting from the operation by any person or organization of any "nuciear facility" included under 

the first two paragraphs of the definition of "nuclear facility 1

'- ' 

"Nuclear facility" means: 

(a) Any "nuclear reactor'; 

{b) Any equipment or device designed or used 

for {1} separating the isotooes of uranium or 

Plutonium, (2) processing or utilizing "spent 

fuel", or (3) handling processing or packaging "waste"; 

(c) Any equipment or device used for the processing, fabricating or alloying of "special 

nuclear material" if at any time the total 

amount of such materiai in the custody of 

the "insured" at the premises where such 

equipment or device is located consists of 

or contains more than 25 grams of Plutonium or uranium, 233 or any combination 

thereof or more than 250 grams of uranium 

235 

(d) Any structure, basin, excavation, premises 

or place prepared or used for the storage or 

disposal of "waste": 

and includes th e site on which any of the foregoing 

is located, all operations conducted on such site 

and all premises used for such operations, 

"Nuclear reactor" means any apparatus designed 

or used to sustain nuclear fission in a selfsupporting chain reaction or to contain a critical 

mass of fissionable material. 

"Property damage" includes all forms of radioactive contamination of property 1 

Page 2 of 2 © ISO Properties, Inc.. 2007 i t 00 21 09 08 O 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 36 of 102
EXHIBI T 1 

1 0 o f 5 4 

iL 02 79 09 08 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

OREGON CHANGES - CANCELLATION 

AND NONRENEWAL 

This endorsement modifies insurance provided under the followingCAPITAL ASSETS PROGRAM (OUTPUT POLICY) COVERAGE PART 

COMMERCIAL AUTOMOBILE COVERAGE PART 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

COMMERCIAL INLAND MARINE COVER AGE FAART 

COMMERCIAL PROPERTY COVERAGE PAR I 

CRIME AND FIDELITY COVERAGE PART 

EMPLOYMENT-RELATED PRACTICES Li ABILITY COVERAGE PART 

EQUIPMENT BREAKDOWN COVERAGE PART 

FARM COVERAGE PART 

LIQUOR LIABILITY COVERAGE PAR i 

MEDICAL PROFESSIONAL LIABiLITY COVERAGE PAR i 

PRODUCTS/COM-! 'FTED OPERATIONS LIABILTY COVERAGE PAR i 

A, Paragraph 2. ofth e Cancellation Common Policy 

Condition is replaced by the following. 

2. If this policy has been in effect for: 

a. Fewer than 5 0 days and is not a renewal 

policy, w e may cancel for any reason. 

b, 60 days or more or is a renewal policy we 

may cancel only for one or more of the following reasons. 

f 1) Non-payment of premium, 

(2) 1 rasd—ot—nmafenal rc^f^esBrtmorf 

mad e by you or with your knowledge in 

obtaining the policy continuing the colicy or in presenting a claim under the 

policy: 

(3) Substantial Increase in the risk of loss 

after -insurance coverage has been issued or renewed including but not limited to an, increase in exposure due to 

rules, legislation or court decision, 

(4) Failure to comply with reasonable ices 

control recommendations 

{5} Substantial breach of contractual duties, 

conditions or warranties; 

(6) Determination by the commissioner that 

the continuation of a line of Insurance or 

class of business to which th e policy belongs will jeopardize our solvency or will 

place us in violation of the Insurance 

laws of Oregon or any other state; or 

(7) Loss or decrease in reinsurance covering the risk. 

c. 60 days or more or is a renewal policy, we 

may cancel for any other reason approved 

by the commissioner by rule, but only with 

respect to insurance provided under the following: 

(1| A package policy that includes commercial property and commercial liability insurance.. 

(2) Commercial Automobile coverage Part: 

(3) Commercial Genera! Liability Coveraqe 

Part; 

(4) Commercial Property Coverage Part -

Legal Liability Coverage Form. 

(5) Commercial Property Coverage Part -

Mortgageholders Errors And Omissions 

Coverage Form; 

(S) Employment-related Practices Liability 

Coverage Part; 

(7) Farm Coverage Part - Farm LiabilityCoverage Form, 

(3) Liquor Liability Coverage Part. 

(9) Products/Completed Operations Liability 

Coverage Part; or 

(101 Medical Professional Liability Coverage 

Part. 

!L 02 79 09 08 © ISO Properties. Inc.. 2G07 Page 1 of 2 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 37 of 102
EXHIBI T 1 

1 1 o f 5 4 

B. Paragraph 3. ofth e Cancellation Common Policy 

Condition is amended by the addition of the following: 

3. W e will mail or deliver to the first Named Insured written notice of cancellation, stating the 

reason for cancellation 

C. T he foi lowing is added to the Cancellation Comm o n Policy Condition: 

7. Number Of Days' Notice Of Cancellation: 

a, With respect to Insurance provided under 

2.c.(1) through (10 ) above, cancellation will 

not be effective until at least 10 working 

days after the first Named insured receives 

our notice, 

fo. With respect to insurance other than that 

provided under 2 . c .(1 ) through (10 ) above 

cancellation will not be effective until at 

ieast 

(1) 10 days after the first Named Insured 

receives our notice, if w e cancel for 

nonpayment of premium; or 

(2) 30 n^ s after the first Named insured 

receives our notice, if w e cancel for any 

other

 r02son. 

D. Paragraph 6. of the Cancellation Common Policy 

Condition does not appN 

E. Th e following are addec and supersede any provision to the contrary: 

1 . Nonrenewa l 

W e may elect not to renew this policy by mailing or delivering to the first Named Insured, at 

the last mailing address known to us, written 

notice of nonrenewal before the: 

a, Expiration date of the policy: or 

fa, Anniversary date of the policy if the poiicy is 

written for a term of more than one year or 

without a fixed expiration dat a 

However, if this policy is issued for a term of 

more than one year and for additional consideration the premium is guaranteed, we may not 

refuse to renew the poiicy at its anniversary 

date. 

Nonrenewal will not be effective until at least 

45 days after the first Named Insured receives 

our notice. 

2 . Mailing Of Notices 

a. If notice of cancellation or nonrenewal is 

mailed, a post office certificate of mailing 

will be conclusive proof that the first Named 

Insured received the notice on the third calendar day after the date of the certificate of 

mailing. 

b. Th e following provision applies with respect 

to coverage provided under the Farm Coverage Part: 

if the first Named Insured has affirmatively 

consented to our use of an electronic record to deliver notice of cancellation or nonrenewal and has ro t withdrawn such consent, then the electronic record delivering 

notice of cancellation or nonrenewal satisfies the requirement that the notice of cancellation or nonrenewal be provided, or 

made available, to the first Named Insured 

in'wnting if we send the first Named Insured 

the electronic record with a request for a return receipt and w e receive the return receipt If w e do not receive the return receipt 

w e may cancel or nonrenew the policy oniy 

after providing or delivering the notice of 

cancellation or nonrenewal to the first 

Named Insured In writing, subject to Pare>-

graph 2,a, above 

Page 2 of 2 ©SSO Properties, inc., 200 / IL 02 79 139 08 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 38 of 102
EXHIBI T 1 

COrVI MERC SAL GEN^fefcl/^ILIT Y COVERAGE PART 

DECLARATIONS 

Policv No. 36-1012243 9 Effective Data: 08-05-201 0 

12:01 A.M. Standard Time 

LIMITS OF INSURANC E 

General Aggregate Limit [Other Than Products-Completed Operations 

Products-Completed Operations Aggregate Limit 

Personal and Advertising Injury Limit 

Each Occurrence Limit 

Fire Damage Limit $ 50 , 000 Any One -Fire 

Medical Expense Limit $ 5, 000 Any One Person 

$ 2 , 000,, 000 

$ 2 ,000,00 0 

$ i ,000,00 0 

$ 1 , 000,ooo 

$ 50,00 0 

$ 5 , 000 

LOCATION OF PREMISES 

Location of AH Premises You Own, Rent or Occupy: 

40 0 SE ALETHEA SOW, MCMIiJim/TLLS , OR 97123 

PREMIUM 

Rate Advance Premium 

'Classification Cods No. Premium Basis Pr/Co All Other Pr/Co Ail Other 

CARPEHTSY-CON3TRUCTION 91340 7,50 0 (p l IMCO 39.51 1 INCL 29S 

OF RESIDENTXR_ PROPERTY 

NOT EXCEEDING THREE; 

STORIES IM" HEIGHT 

SIDIN G IN S TALI/AT I OH 98967 17 , 500 (p i ISiCL 58.70 9 IHCL 1,027 

CONTRACTORS -SUBCONTRACT 91585 10 , 000 its) IBfCL S.537 - IHCL SS 

WORK-IN CONNECTION WITH 

cotrcTrtcrcTToj;-;. cacaM : 

STRUCTION, -REPAIR OR ~ 

SRECTXOH OF BUILDINGS 

Total Advance Premium 1 , 3 39 

iai area - per 1000 sq.ft, (mf admissions - per 1000 je> each CuJ units 

(s? gross sates - per $1000 (pj payroll - per $1000 te> total cost - per $ 1000 

FORMS AMD ENDORSEMENTS (other than applicable Forms and Endorsements shown elsewhere in the policy} 

Forms and Endorsements applying to this Coverage Part and made part of this policy at time of Issue: 

ANF-BT15S{06/OS>, ANF-ES043 (BJ0S): ANF-ES i 30(06/98;, ANF-ES (32(07/05), ANF-ES I 75(03/02), ANF032 (07/05} 

ANF15Q (07/055, ANF I 61 (03/97), ANF • 64 (07/051, ANF168 (07/99!, ANF ! 70 <04;00), ANF I 72 IO1/0I], CGOOO I (12/04! 

CG0O67 (O3/05i, CG030O (01,96), CG2I34CM 01 87, CG2147 i07;98), CG2154A (07/05), CG2243 (07/93), CG2426 (07,04; 

IL0142 ©9/08), CG2173 (,01/08), CG2134BLO! 87, CG2134NR0I 37 

ThES E CSTuAR^TO'I S AR E °iPT O F -H P ='7 _.C,V jK.AflJ"ON6:Cfri * J « e Tt = «!] f j f - E B .SLRE D n-'-lC -H t PC C ="R:C -

-^-: s ;^q~ i!o" - t>e s po-:d ? -^'ac e 3^ , .:= nzz^-ea :o 2 /-rr^e'-Cie , _.ns s Conno r c , J^Oi3raE;or- £ P^ge . 

S2000 (8/91? 

- IITSUREDCase 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 39 of 102
EXHIBI T 1 

1 3 o f 5 4 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY, 

EXCLUSION - CONDOMINIUMS, TOWNHOUSES, T1MESHARES, AND TRACTS 

This endorsement modifies insurance provided under the following; 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

Tnis insurance does not apply to and the Company shal! have no duty to defend any 

claim or "suit" seeking damages for "bodiiy injur/', "property damage", or "personal and 

advertising injury" arising out of any work involving, related to. or performed about the 

premises of: 

1. Condominiums or townhouses; 

2. Any location which has been or becomes converted into condominiums or 

townhouses, regardless of whether: 

a. any insured had involvement in the conversion: 

b. any insured had knowledge of the conversion; 

c. the conversion is prior to or subsequent to any insured's work at the location 

3. Timeshare development; or 

4. Any project or premise on which more than 10 houses have been built or are in 

wtP^iS^slJim^pmee&^mm^, or cnastmHtiop 

This exclusion does not apply to: 

1. Non-Structural remodeling or repair of the dwelling unit for the dwelling unit owner 

on premises described In paragraphs 1, 2, or 3 above; or 

• 2. Remodeling or additions to a single house in a development described in 

paragraph 4 above. 

3. Maintenance, service, or non-structural repairs to common areas of a completed 

and occupied development or project, except any common areas which are part of 

any building containing the dwelling units 

4, Work done on a new single custom home for an individual in a development 

described in paragraph 4 above. 

ANF-BT 158(08/2008) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 40 of 102
EXHIBIT 1 

It 

0 

M3URED S 

INTRACT C 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

SCHEDUL E 

Poiicy NuiTber 36-1012243 9 Endorsementeffective: os/os-'i o 12:01 am . 

Named insured 

VITEK CONSTRUCTION, LLC 

Countepigned By; 

SCHEDULE 

Name of Person or Organization: 

A n y person or organization that the name d insured is obligated 

to provide insurance suc h as is afforded by this policy. 

by virtue of a written contract or agreement 

Location: 

(if no entry appears above, information required to complete this endorsement wiil be sho w in the Declarations 

ss applicable to this endorsement) 

A. Section il - Who is An Insured is amended to fncfude a s an insured the person or organization 

shoVr in the Schedule, but only to the extent that tie person or organization shown in the 

Schedule is held liable for your acts or omissions arising out of your ongoing operations 

performed for that insured. 

8 . With respect to the insurance afforded to these additional insureds, the Mowin g exclusion is 

added: 

2, Exclusions 

—Tms fnsurenceifoea-mrt-app^ injury" or "preperty damaqB^eeeumr:g after = 

(1) AH work, including materials, parts or equipment furnished in connection with such 

work, on the project {other than service, maintenance or repairs) to be performed by 

or on behalf of the additional jnsuredfs) at the site of the covered operations has been 

completed: or 

IZ\ That portion of 'your work'' out of which the injury or damage arises has been put to 

its intended use by any person or organization other than another don tractor or 

subcontractor engaged fn performing operations for a principal as a part of the same 

project 

C. The words "you'' and "your" refer to the Named Insured shown in Ihe Declarations. 

D. "Your work* means work or operations performed by you or on your behalf and materials, parts 

or equipment furnished in connection with such work or operations. 

Primary Wording 

if required by written contract or agreement: Such insurance as is afforded by this policy shad be 

primary insurance, and any insurance or sett-insurance maintained by the above additional 

insurerjfe) shaft be excess of the insurance afforded to the named insured and shall not contribute 

to it. 

Waiver of Subrogation 

If required by written contract or agreement; We waive any right of recovery we may have against an entity 

that is an additional insured per the terms of this endorsement because of payments we make for injury or 

damage arising out of "your work" done under a contract with that person or otganization. 

ANF- ES 043 (5/2006) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 41 of 102
EXHIBIT 1 

15 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, 

INDEPENDENT CONTRACTORS 

The insured hereby represents and warrants that: 

1. Commercial general liability insurance coverage for "bodily injury" and "property 

damage" will be required for all contractors and sub-contractors performing work or 

operations on behalf of any insured; and the insured shali obtain certificates of 

insurance from all contractors and sub-contractors performing work or operations 

on behalf of any insured'. Such insurance will be in effect during the duration ofthe 

time work is being performed on behalf of any insured; and that 

2. The insured will be named as an "additionai insured" on the required coverages 

described in Item 1. above and" that 

3. The minimum limits and coverages thus required of all contractors and subcontractors performing work or operations on behalf of any insured shall be: 

REQUIRED LIMIT COMMERCIAL GENERAL LIABILITY FORM 

$ I,OOO,QO O General Aggregate 

$ i , o oo, oo o Producis/Completed Operations Aggregate 

$ I,OOO,QO Q Each Occurrence; 

a Any coverage that mighj nth^rwise exist under this poiicy for cairns.ag-rr^t an; 

insured based on work done for or on behalf of any insured by a contractor or 

subcontractor Is expressly excess over, and wilt not contribute with, the insurance 

required under this endorsement Mo duty to defend or Indemnify any insured 

under this policy for any claims that are or should be covered under the policies 

required of contractors and subcontractors under this endorsement will exist 

absent exhaustion of aii such contractors' and subcontractors1 policies. 

The insured understands thai this insurance policy has been issued upon these 

representations and warranties. 

ANF-ES 130(06/99) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 42 of 102
EXHIBIT 1 

16 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

CONTINUOU S OR PROGRESSIVE INJURY AND DAMAG t EXCLUSION 

This endorsement modifies insurance provided under thefollowing: 

COMMERCIAL GENERAL LIABILITY COVERAGE PAR I 

insuring Agreement under SECTION I. , Coverage A., paragraph b.(3), paragraph c„ 

and paragraph d , (1), (2), (3) are replaced by the following: 

This insurance does not apply to any damages because of or related to "bodiiy injury", 

"property damage", or "personal and advertising injury:" 

c . 

( 1 | which first existed, or alleged to have first existed, prior to the inception 

date of this Policy; or 

(2) which are, or are alleged to be, in the process of taking place prior to the 

inception date of this Policy, even if the actual or alleged "bodily injury", 

"property damage", or "personal and advertising injury" continues during 

this poiicy period; or 

{3) which were caused, or are alleged to have been caused, by the same 

condition which resulted in "bodiiy injury", "property damage", or "personal 

and advertising injury" which first existed priorto the inception date ot this 

Policy; 

W e shall have no duty to defend any Insured against any loss, claim, "suit", or other 

proceeding alleging damages arising out of or related to "bodiiy injury", "property 

damage", or "personal and advertising injury" to which this endorsement applies. 

ANF-ES 162 (7/05) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 43 of 102
EXHIBIT 1 

17 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ ST CAREFULLY, 

DESIGNATED WORK EXCLUSION - E.LF.S. 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

it is agreed thai this insurance does not apply to "bodily Injun/1, "property damage", or 

"personal and advertising injury" as respects the following: 

1. The design, manufacture, construction, fabrication, preparation, installation, 

application, maintenance or repair, including remodeling, service, correction, or 

replacement, of an "exterior insulation and finish system" (commonly referred to as 

synthetic stucco) or any part thereof, including the application or use of conditioners, 

primers, accessories, flashings, coatings, cauiklngs or sealants in connection with 

such a system. 

2. Any work or operations with respect to any exterior component, fixture or feature of 

any structure if any "exterior insulation and finish system" is used on any part of that 

structure. 

For the purposes of this endorsement, an "exterior Insulation and finish system" means 

a n exterior cladding or finish system used on any part of any structure, and consisting or 

1. A rigid or semi-rigid insulation board made of expanded polystyrene or other materials, 

and 

4^—T-he-a dhesivs and/or mechanical fasteners used to attach the Insulation boajxtic-Jjiesubstrate, and 

3. A reinforced base coat, and 

4. A finish coast providing surface texture and color. 

ANF-ES 175 (3/2002) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 44 of 102
EXHIBIT 1 

18 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY, 

EXCLUSION - EARTH MOVEMENT 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

This insurance does not apply to and the Company shall have no duty to defend any 

claim or "suit" seeking damages for "bodiiy injury", "property damage", or "personal and 

advertising injury" which was directly or indirectly, based upon or contributed to in whole 

or In part, arising out of, resulting from, or in any matter related to "earth movement" 

whether or not any such "earth movement" is combined with any other causes. 

The term "earth movement" includes, but is not limited to, earthquake, landslide, 

subsidence, mud flow, sinkhole, erosion, or the sinking, rising! shifting, expanding, 

vibrating or contracting of earth or soil, or any other movement of land, sol! or earth. 

ANF 032 (07/2005) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 45 of 102
EXHIBI T 1 

1 9 o f 5 4 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ ST CAREFULLY, 

CHANGES IN COMMERCIAL GENERAL LIABILITY 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABiLITY COVERAGE PART 

A. Exclusion Z f of SECTION I - COVERAGES, 

COVERAG E A. BODiLY INJURY AND PROPERT Y 

DAMAG E LIABILITY is replaced by the fallowing: 

Pollutio n 

( i ) "Bodiiy injury" or "property damage" which 

would not have occurred in whole or part but far 

ths actual, alleged or threatened discharge, 

dispersal- seepage migration, release or 

escape of "pollutants" at any time. 

This exclusion does not apply to: 

(a) "Bodily injury if sustained within a 

building which is or was at any time 

owned or occupied by, or ranted or 

loaned to. any insured and caused by 

smoke, fumes, vapor or soot produced by 

or originating from equipment that is used 

to heat, cool or debumidify the building, or 

equipment ffsat is used to heat water for 

personal use. by the building's occupants 

or their guests: or 

fb) "Bodily injur/' or "property damage" 

arising out of -heat smoke or fumes from 

others test for monitor clean up. remove 

contain, treat detoxify or neutralize, or in 

any way respond to. or assess the effects 

of. "pollutants"; or 

(by Claim or suit by or on behalf of a 

governmental authority for damages 

because of testing for. monitoring, 

cleaning up. removing, containing, 

treating, detoxifying or neutralizing, or in 

any way responding to or assessing the 

effects of. "pollutants" 

SECTION I - COVERAGES, COVERAG E B. 

PERSONAL AMD ADVERTISING INJURY 

LIABILITY is amended to add the following to 

paragraph 2. 

This insurance does not apply to: 

"Personal and advertising injury" to an "employee" of 

the insured, arising out of and in the course of 

employment by the insured. 

a "nestle lure" unless mat "hostile WWoccurred or originated' 

(!) At any premises, site or location 

which, is or was at any time used by 

or for any insured or others for the 

handling storage, disposal 

processing or treatment of waste" or 

(If) A,t any premises, site or location on 

which any insured or any 

contractors or subcontractors 

working directly or indirectly on any 

insured's behalf are performing 

operations to test for. monitor, clean 

up, remove, contain, treat detoxify, 

neutralize or in any way respond to. 

or assess the effects of. 

"pollutants". 

(2) Any loss, cost or expense arising out of any: 

(a) Request, demand, order or statutory or 

regulatory requirement that any insured or 

C. SECTION 111 - LIMITS OF INSURANCE is amended 

to add the following to paragraph 5.: 

The Each Occurrence Limit is the most we wlii pay 

regardless of the number of poltcy(ies) issued to an 

insured by us which may apply to the same 

"occurrence". 

D. Additionai Exclusions applicable to COVERAGE A. 

BODILY INJURY AND PROPERT Y DAMAGE 

LIABILITY and COVERAG E B. PERSONAL AN D 

ADVERTISING INJURY LIABILITY 

This insurance does not apply to: 

1. Punitive or Exemplary Damage 

ff a "suit" is brought against the insured for 

damages covered by this policy seeking both 

ANF 150 (07/05) Page 1 of 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 46 of 102
EXHIBI T 1 

2 0 o f 5 4 

compensatory and punitive or exemplary 

damages, we will afford a defense to such 

action. We wiil not have an obfigation to pay for 

any costs, interests or damages attributable to 

punitive or exemplary damages. This exclusion 

does not apply in any state where such 

endorsement is expressly prohibited by state 

law or insurance department regulations. 

2. Asbestos 

"Bodiiy injury", "property damage", or 'personal 

and advertising injury" arising out of 

aj The use of asbestos in constructing or 

manufacturing any good product or 

structure or 

b| The removal of asbestos from any goodproduct or structure: or 

c) The manufacture, transportation, storage, 

service Installation, use. safes, mining, 

distribution or disposal of asbestos or 

goods or products containing asbestos: or 

d) Inhaling, ingesting or prolonged physical 

exposure to asbestos or goods or 

products containing asbestos: or 

e) Any loss, cost or expense related to any 

of the above. 

3 Abuse or fwlcfestaticn : 

"bodiiy injury", "property damage" or "personal 

and advertising injury" arising out ot 

a) . The actual or threatened abuse or 

molestation by anyone of any person 

while in the cars, custody or control of any 

insured, or 

b) . The negligent 

L Empfoymen 6 

ii. investigation; 

iii. Supervision; 

iv. . Reporting to the proper authorities. 

or failure to so report; or 

v. Retention" 

of a person for who m any Insured is or 

ever was fegafly responsible and whose 

conduct would be excluded by Paragraph 

1. above. 

4. Communicable Disease / Sexual .Action 

"Bodiiy injury", "property damage", or "personal 

and advertising injury" arising out of the: 

a) Transmission, actual or alleged, of a 

communicable disease by any insured 

including but not limited to Acquired 

Immune Deficiency Syndrome (AIDS). 

b) Failure to perform services which were 

either Intended to or assumed to prevent 

communicable diseases or their 

transmission to others, or 

c) Sexual action, including but not limited to 

any verbal or nonverbal communication, 

behavior or conduct with sexual 

connotations or purposes, whether for 

sexual gratification, discrimination, 

intimidation- coercion or other purposeregardless of whether such action is 

afleged to be intentional or negligent. 

5 Professional Services 

"Bodily Injury" "property damage", or "persona7 

and advertising injury" arising out of the 

rendering or failure to render any professional 

service. 

6 Athletic Participants 

"Bodiiy injury", "property damage, or "personal 

ano advertising injury 1 io any person while 

practicing for or participating in any contest or 

exhibition of an athletic or sports nature 

7. Lead 

"Bodiiy injury", "property damage"- or "personal 

and advertising injury" arising out of exposure 

to. inhalation of. or ingestion of lead or any 

substance or matter containing lead or the 

residue of lead. 

3. Cross -Suits 

The [iabifity of any Named Insured for any 

"bodily injury', "property damage", or "personal 

and advertising injury" which is sustained by or 

occurs to any Named insured. 

9 Sulfates 

ANF 150 (07/05) Page 2 OT 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 47 of 102
EXHIBIT 1 

21 o f 5 4 

Any claim based in whole or in part for bodily 

injury or property damage which was, directly or 

indirectly, based upon or contributed to in whole 

or in part, arising out of. resulting from, or in 

any manner related to exposure to or the 

absorption of sulfates, whether such sulfates 

are in a pure form or were combined with any 

other chemical or material. 

10. Chromated Copper Arsenate (CCA) 

Any ioss or iiabiiity including but not limited to 

settlements, judgments, costs, charges, 

expenses, costs of investigations, or the fees of 

the attorneys, experts or consultants arising 

out of or In any way related, either directly or 

indirectly, to: 

a. Chromated copper arsenate, chromated 

copper arsenate products, chromated 

copper arsenate-containing materials or 

products including but not limited to 

manufacturing use. safe. Installation, 

removal or distribution activities: 

b. Exposure to, testing for. monitoring of 

cleaning up. removing, containing or 

treating of chromated copper arsenate, 

chromated copper arsenate products, 

chromated copper arsenate-containing 

materials or products. 

c. Any obfigation to investigate, settle or 

ffafefid, or indemnify acy-person against— 

activities: 

b. Exposure to. testing for monitoring of. 

cleaning up, removing, containing or 

treating of Fire Retardant Treated Wood. 

Fire Retardant Treated Wood products 

Firs Retardant Treated Wood -containing 

materials or products: 

c. Any obligation to investigate, settle or 

defend, or indemnify any person against 

any claim or "suit" arising out of or 

related in any way. either directly or 

indirectly, to. Fire Retardant Treated 

Wood Fire Retardant Treated Wood 

products. Fire Retardant Treated Wood -

containing materials or products. 

12. Silica. Silica Dust Or Mixed Dust 

. a . (1). "bodily injury*, "property damage' or 

medical expenses of an / type 

arising out ofthe Inhalator. 

ingestion, physical exposure to. 

absorption of. or toxic substance? 

from silica, silica dust or "mixed 

dust" in any form, or from any 

goods products or structures 

containing silica, silica dust or 

"mixed dusf in any form, or 

(2). "property damage" or devaluation of 

property arising from any form of 

silica, silica dust or "mixed dusf. ir 

any form. 

any claim or "suit" arising out of or 

related in any way. either directly or 

indirectly, to chrcmatsd copper arsenate, 

chromated copper arsenate products, 

chromated copper arsenate-containing 

materials or products. 

1 1 . Fire Retardant Treated (FRT) Wood 

Any ioss or liability. Including. but not limited to 

settlements, judgments, costs, charges, 

expenses, costs of investigations, or the fees of 

the attorneys, experts, o r consultants arising 

out of or in any way related, either directly or 

indirectly, to: 

a. Fire Retardant Treated Wood . Fire 

Retardant Treated Woo d products. Fire 

Retardant Treated Woo d containing 

materials or products, including but not 

limited to manufacturing, use- sale. 

Installation, removal or distribution 

event, material or product contributed 

concurrently or in any sequence to any 

such Injury or damage 

any ioss. cost or expenses arising cut of 

(1) . the existence of silica, silica dust or 

"mixed dusf. in any form, in any 

occupancy, structure or 

construction, or 

(2) . goods, products or structures 

containing silica, silica dust or 

"mixed dusf, in any form' 

any loss, cost or expenses arising out of; 

(1) . the manufacture, saletransportation distribution, use. 

installation handling or storage of 

silica, silica d ust or "mixed dusf. in 

any form, or 

(2) . the abating, testing for, monitoring. 

ANF 150 (07/05) !

age 3 of 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 48 of 102
EXHIBI T 1 

22 o f 54 

cleaning up, removing- containing, 

treating, detoxifying, neutralizing, 

remediating or disposing of, or In 

anyway responding to or assessing 

the effects of silica, silica dust or 

"mixed dust", in any form, or 

(31. any supervision, instructions, 

recommendations, requests 

warnings or advice given or which 

should have be given in relation to 

silica, silica dust or "mixed dusf. in 

any form, 

by any insured or by any other person or 

entity" 

"Mixed duat" Includes any dust particles from 

quartz, metallic or fibrous mineral 

E. SECTION V - DEFINITIONS is amended as folfows; 

1 "Employee" Includes a "leased worker" and a 

"tern pa rary worker" 

2. Paragraph 19. "Temporary worker" is amended 

as follows; 

Temporary worker means a person who 

is furnished to you to substitute for a 

permanent "employee"' on leave or to 

meet seasonal or short-term work load 

conditions. "Temporary worker" includes 

casuaf labor. 

ANF 150 (07/05) Page 4 of 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 49 of 102
EXHIBIT 1 

23 o f 54 

THIS ENDORSEMENT CHANGES THE- POLICY. PLEASE READ IT CAREFULLY. 

COURSE OF ROOFING OPERATIONS EXCLUSION 

Tnis endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LLABLUfTY COVERAGE PART 

This insurance does nos: apply to, and the company shall have no duty to defend: 

1- "property damage'' to any building or structure or to any property within such building or 

structurs resulting from, caused by, or arising out of water (water includes rain, hail, sleet, 

or snow). 

2 . consequential damages, including loss of use, resulting from such "property damage" 

described above. 

This exclusion does not apply to the "products-corspleted operations- hazard". 

ANF 161 (03/97) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 50 of 102
EXHIBI T 1 

24 of 5 4 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ ST CAREFULLY, 

EXCLUSION PRIOR COMPLETED OR ABANDONED WORK 

Tnis endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL Li ABILITY COVERAGE PART 

SCHEDULE 

Date: 

(if no entry appears above, the Date wiil be the inception date of the poiicy to which this 

endorsement is made part of) 

A. This insurance does not apply and the Company shall have no duty to defend any 

claim or "suit" seeking damages for "bodiiy injury", "property damage", or "personal 

and advertising injury" arising out of "your work": 

1. completed priorto the date shown in the schedule of this endorsement; or 

2. abandoned by the insured prior to the date shown in the schedule of this 

endorsement, 

B. Paragraph 16.a.(2).(c) of SECTION' V - DEFINITIONS is deleted in its entirety and 

replaced by the following: 

When that part ofthe work done at a job site has been put to its intended use by 

any person or organization. 

C. As used in this endorsement "abandoned" means: the failure to provide labor, 

materials or services for a period of ninety (90) days, despite the work set forth in 

the controiling construction project not being deemed complete by the Owner. 

ANF 164 (07/05) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 51 of 102
EXHIBIT 1 

25 o f 54 

THIS ENDORSEMENT CHANGES THE- POLICY. FLEASE READ IT CAREFULLY. 

AMENDMENT - EMPLOYER'S LIABILITY EXCLUSION 

(EXCLUSION - BODILY INJURY TO EMPLOYEES - ABSOLUTE) 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABDUTY" COVERAGE PART 

Exclusion e. Employer's Liability of item 2 . Exclusions, COVERAGE A- BODILY INJURY 

AND PROPERTY DAMAGE LIABILITY, SECTION I - COVERAGES is replaced by the 

follow ing: 

e. Employers Liability 

"Bodily Injury" to: 

fl> An "employee" or "temporary worker" of any insured arising out of and in die 

course of: 

(a) Empioyinerji by any insured; or 

(b) Performing duties related to the conduct of an insured's business; or 

(2) The spouse, child, parent, brother of sister of that "employee" or "temporary 

worker ' as a consequence of paragraph (1) above. 

This exclusion applies: 

(1) Whether an insured may be liable as an employer or in any other capacity; and 

( 2) To any obligation to share damages with or repay someone else who must pay 

damages because ofthe injury. 

ANT 168 (07/99) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 52 of 102
EXHIBIT 1 

2 6 o f 5 4 

THIS ENDORSEDDENT CHANGES THE POLICT. PLEASE READ IT CAREFULLY. 

AMENDMENT TO OTHER LNSURANCE CONDITION 

ibis endorsement modifies hisurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

Coalition 4. Other insurance of SECTION 

IV- C OMMERCLAL GENERAL LLABILJTY 

CONDITIONS is deleted in its entirety and is . 

replaced by the ibBowmg: 

4. Other hisurance 

a Primary Insurance 

This insurance is primary except when b. 

below applies. 

b. Excess Insurance 

This insurance is excess over any other 

insurance, whether primary, excess, 

contingent or on any other basis: 

f I) That is Fire. Extended Coverage. 

similar coverage for your work. 

( 2) That is Fire insurance tor premises 

rented to you oi temporarily occupied 

by you with permission ofthe owner, 

(3) That is insurance purchased by you to 

cover your liability as a tenant for 

ssproperty damage"' to premises rented 

to you or temporarily occupied by you 

with permission ofthe owner. 

(4) If the loss arises out ofthe maintenance 

or use of aircraft "autos'" or watercraft 

to the extent not subject to exclusion g. 

of Section I - Coverage A - Bodily 

Injury And Property Damage Liability, 

or 

(5) That is valid and collectible insurance 

available to you under any other policy 

When this insurance is excess, we will have 

no duty under Coverages A or B to defend 

the insured agamst any "suit"' if airy other 

insurer has a dory to defend ihe insured 

agamst that "HUT . If oo other insurer 

defends, we will undertake to do so. but we 

will be entitled to the insured's right against 

ail those other insurers. 

When this insurance is excess over other 

insurance, we will pay oniy the amount of 

the loss, if any, that exceeds the sum of 

-(I) The total amount that ail such ottoinsurance would pay for the loss in the 

absence of this insurance, and 

( 2) The total of all deductible and selfinsured amounts under all other 

insurance. 

If a loss occurs involving two or more 

policies, each of which states that its 

insurance will be excess, then our policy 

will contribute on a pro rata basis. 

MTF 17 0 04/00 ) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 53 of 102
EXHIBI T 1 

2 7 o f 5 4 

THIS EXDORSEMENT CHANGES THE POLICT. PLEASE READ IT CAREFULLY. 

EXCLUSION - MOLD 

This endorsement modifies insurance provided under the following: 

COMMERCLAL GENERAL LIABILITY COVERAGE PART 

This insurance does not apply to: 

1 '-Bodily injury: "property damage"\ or "personal and advertising mjury" arising out oh resulting 

from, or caused or contributed to by any fangus. mildew or mold or exposure to any iungus. 

miidew. or mold- or 

2. The costs of abatement mitigation removal or disposal of any fangus. mildew or mold. 

This exclusion also applies ter 

1. Anv supervision,, mstiuctiona recornmendatians, warnings or advice given or winch should have 

been save in connection with the above, and 

2. Any obligation to share damages with or repay someone else who must pay Damages because oi 

such injury or damage, either in equity or in tort 

i Th e duty t o dederrf-ur-^ay suina whioh may be owncQHagdcr the Sttgg^mgiaaFv Payments; 

piovisious ofth e policy. 

ANF 172 (01/01) 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 54 of 102
EXHIBIT 1 

28 o f 54 

COMMERCIAL GENERAL LIABILITY 

C G 00 0 1 12 04 

Various provisions in this poiicy restrict coverage 

Read the entire policy carefully to determine rights 

duties and what is and is not covered 

Throughout this policy the words 'you" and "your" refer 

to th e Named insured shewn in the Declarations, and 

any other person or organization qualifying as a 

Named Insured under this policy. The words "we", "us" 

and "our" refer to the company providing this insurance. 

T h e word "insured" means any person or organization 

qualifying as such under Section il - Wh o Is An insured 

Other words and phrases that appear in quotation 

marks have soecial meaning. Refer to Section V -

Definitions 

SECTION I - COVERAGE S 

COVERAG E A BODiLY INJURY AND PROPERTY 

DAMAG E LIABILITY 

1. Insurin g Agreemen t 

a. W e will Day those sums that the insured Decomes legally obligated to pay as damages because of "bodiiy injury" or "property damage" t o 

which this insurance applies W e will have the 

right and duty to defend the insured against any 

"suit" seeking those damages However w e wiii 

have no duty to defend the insured against any 

"suit" seeking damages for "bodily injury" or 

>oue i Ly ddiiidua" LcnM-iich this insurance, dog e 

not apply. W e may. at our discretion, investigate any "occurrence" arid settle any claim or 

"suit" that may result But. 

( 1 1 The amount w e will pay for damages is 

limited as described in Section SI! - Limits 

Of Insurance; and 

{2} our right and duty to defend ends when w e 

have used up the applicable iimit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. 

No other obligation or liability to pay sums or 

cerform acts or services is covered unless^explicitly provided for under Supplementary payments - Coverages A and S, 

b. I his insurance applies to "bodiiy injury" and 

"property damage" only if 

{1} The "bodily injury" or "property damage" is 

caused by an "occurrence" that takes, place 

.in the "coverage territory 

(2) The "bodiiy injury" or "property damage" 

occurs during the policy period: and 

(3) Prior to the poiicy period, no insured listed 

under Paragraph'1. of Section Ii - Who Is 

An Insured and no "employee" authorized 

by you to give or receive notice of an "occurrence" or ciaim, knew that the "bodily injury" or "property damage" had occurred, in 

whole or in pad. If such a listed insured or 

authorized "employee" knew, prior to the 

policy period, that the "bodily injury" or 

"property damage" occurred, then any continuation, change or resumption of such 

"bodily injury" or "property damage" during 

or after the poiicy period will be deemed to 

have been known prior to the poiicy period 

c, "Bodiiy injury" or 'property damage' which 

occurs during the policy period and was not 

prior to the policy cenod, known to have occurred by any insured listed under Paragraph 1. 

of Section II - Who is An Insured or any "employee" authorized by you to give or receive notice of an "occurrence" or claim, includes any 

continuation, change or resumption of t-faai-

"bodlly injury" or "property damage" after the 

end ofth e policy period, 

d. "Bodily Injury" or "property damage" wiil be 

deemed to have been known to have occurred 

at the earliest time when any insured listed under Paragraph 1 . of Section If -Wh o Is An Insured or any "employee" authorized by you to 

give or receive notice of an "occurrence" or 

claim: 

<1) Reports ait or any part, ofth e "bodily injury" 

or "properly damage" to us or any other insurer; 

{2} Receives a written or verba! demand or 

claim, for damages because of the "bodily 

injury" or "property damage": or 

{3} Becomes aware by any other means that 

"bodily injury" or "property damage" has occurred or has begun to occur. 

CO 00 01 12 04 ISO Properties, Inc., 2u03 »age 1 of 1S 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 55 of 102
EXHIBIT 1 

29 o f 54 

s. Damages because of "bodily injur/" include 

damages claimed by any person or organization for care, loss of sen/ices or death resulting 

at any time from the "bodiiy injur/'. 

2. Exclusion s 

This insurance does not appiy to. 

a. Expecte d Or intended Injur y 

"Bodily Injury" or "property' damage" expected 

or intended from the standpoint of the insured 

This exclusion does not appiy to "bodily injury" 

resulting from the use of reasonable force to 

protect persons or property 

b, Contractua l Liability 

"Bodily Injur/" or "property damage" for which 

the insured is obligated to pay damages by 

reason of the assumption of liability in a contract or agreement. This exclusion does net 

apply to liability for damages 

(1) That the insured would have in the absence 

of the contract or agreement; or 

(2) Assumed in a contract or agreement that is 

an "insured contract', provided the "bodily 

injury" or "property damage" occurs subsequent to the execution of the contract or 

agreement Solely for th e purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party 

other than an insured are deemed to be 

damages because of "bodily injury" or 

"property damage", provided: 

(a) • Liability to such party' for or for the cost 

nf that P 3^

8

 dafonsa has also^ been 

and 

.(b) Such attorney fees and litigation expenses are for defense of that party 

against a civil or alternative dispute resolution proceeding in which damages to 

which this insurance applies are alleged. 

c. Liquor Liability 

"Bodily injur/" or "property damage" for which 

any insured may 'ce held liable by reason of: 

(1) Causing or contributing to the intoxication of 

any person: 

(2) The furnishing of alcoholic beverages to a 

person under the legal drinking age or under the influence of aicohoi: or 

(3) Any statute, ordinance or regulation relating 

to the sale gift, distribution or use of alcoholic beverages. 

This exclusion applies only if you are In the 

business of manufacturing, distnbuting. selling, 

serving or furnishing alcoholic beverages 

d. Workers' Compensation An d Similar Laws 

Any obligation of the Insured under a workers' 

compensation disability benefits or unemployment compensation law or any similar law. 

e. Employer'5 Liability 

"Bodily injury" to 

(1) An "employee" of the insured arising out of 

and in the course of 

(a) Employment by the insured; or 

(b) Performing duties related to the conduct 

ofth e insured's business, or 

{2) The spouse child, parent brother or sister 

of that "employee" as a consequence of 

Paragraph (1) above. 

This exclusion applies 

|1) Whether the insured may be liable as an 

^mnjnyer or in any other nsnnnity; and 

(2) To any obligation to share damages with or 

repay someone else who must pay damages because of the injury 

This exclusion does not apply to liability assumed by the insured under an "insured contract". 

Page 2 of 16 © ISO Properties, Inc., 2003 C S 00 01 12 04 O 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 56 of 102
EXHIBIT 1 

30 o f 5 4 

f. Pollution 

(1) "Bodily injury" or "property damage" arising 

out ofth e actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants": 

(a) At or from any premises, site or location 

which is or was at any time owned or 

occupied by or rented or loaned to. any 

insured. However this subparagraph 

dees not apply to: 

(i) "Bodily injury" if sustained within a 

building and caused by smoke, 

fumes, vapor or scot produced by or 

originating from equipment that is 

used to heat cool or debumidily the 

building, or equipment that is used to 

heat water for personal use, by the 

building's occupants or their guests. 

(ii) "Bodily injury" or "property damage" 

for which you may be held liable if 

you are a contractor and the owner 

or lessee of such premises site or 

location has been added to your policy as an additional insured with respect to your ongoing operations performed for that additional insured at 

that premises, site or location and 

such premises, site or location is not 

and never was owned or occupied 

bv or rented or loaned to. any insured, other than that additional insured: or 

(iii) "Bodily injury" or "property damage" 

arising out of heat, smoke or fumes 

' fmma'ocgdiefire"; ~~ 

(d) At or from any premises, site or location 

on which any insured or any contractors 

or subcontractors working directly or indirectly on any insured's behaif are performing operations if the "pollutants" are 

brought on or to the premises, sits or location in connection with such operations by such insured, contractor or subcontractor. However, this subparagraph 

does not apply to: 

(i) "Bodily injury" or "property damage" 

ansing out ofthe escape of fuels, lubricants or other operating fluids 

which are needed to perform the 

normal eiectroai. hydraulic or mechanical functions necessary for the 

operation of "mobile equipment' or 

its parts, if such fuels lubricants or 

other operating fluids escape from a 

vehicle part designed to hold store 

or receive them This exception does 

not apply if the "bodiiy injury" or 

"property damage" arises out of the 

intentional discharge, dispersal or release of the fuels lubricants or other 

operating fluids or if such fuels, lubricants or other operating fluids are 

brought on or to the premises, site or 

location with the intent thai they be 

discharged, dispersed or released as 

pad of the operations being performed by such insured, contractor 

or subcontractor: 

(Ii) "Bodiiy injury" or "property damage" 

sustained within a building and 

i^iuseu by \im ielease of ga 

(b) At or from any premises, site or location 

which is or was at any time used by or 

for any Insured or others for the handling, storage, disposal, processing or 

treatment of waste. 

( c j Which are or were at any time transported, handled, stored, treated, disoosed of. or processed as waste by or 

for 

d ; Any insured: or 

(It) Any person or organization for who m 

you may be legally responsible; or 

fumes or vapors from materials 

brought into that building in connection with operations being performed 

by you or on your behalf by a contractor or subcontractor; or 

(III) "Bodiiy injury" or "property damage" 

arising out of heat smoke or fumes 

from a "hostile fire", 

{a? At or from any premises, site or location 

on 'which any insured or any contractors 

or subcontractors working directly or indirectly on any insured's behalf are performing operations if the operations are 

to test for, monitor, clean up, remove, 

contain, treat, detoxify or neutralize, or in 

any way respond to. or assess the effects of, "pollutants" 

CG 00 61 12 04 ©IS O Properties, Inc.. 2003 Page 3 o f IS • 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 57 of 102
EXHIBIT 1 

3 1 o f 5 4 

(2) Any less, cost or expense arising out of any: 

(a) Request, demand, order or statutory or 

regulatory requirement that any insured 

or others test for, monitor, clean up, remove, contain, treat detoxify or neutralize, or in any way respond to, or assess 

the effects of, "pollutants"- or 

(b) Claim or "suit' by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning 

up. removing, containing, treating, detoxifying or neutralizing, or in any way 

responding to, or assessing the effects 

of. "pollutants" 

However, this paragraph does not appiy to 

liability for damages because of "property 

damage" that the insured would have in the 

absence of such request, demand order or 

statutory or regulatory requirement or such 

claim or "suit" by or on behalf of a governmental authority. 

g . Aircraft, Aut o Or Watarcraft 

"Bodily injury" or "property damage" arising out 

of the ownership, maintenance, use or entrustment to others of any aircraft "auto" or watercraft owned or operated by or rented or 

loaned to any insured Use includes operation 

and "loading or unloading" 

This exclusion applies even if the claims 

against any insured allege negligence or other 

wrongdoing in the supervision, hiring, employment, training or monitoring of others by that 

insured, if the "occurrence" which caused the 

"bodilv injury" or "property damage" involved 

m e ownership maintenance, use or enuusF 

merit to others of any aircraft, "auto" or watercraft that is. owned or operated by or rented or 

loaned to any insured. 

Thi s exclusion does not apply to: 

(1) A watercraft while ashore on premises you 

o wn or rent 

{2} A watercraft you do not own that is: 

(a) Less than 26 feet long; and 

(b\ Not being used to carry persons or 

property for a charge, 

(31 Parking an "auto" on. or on the ways next 

to, premises you own or rent, provided the 

"auto" is not owned by or rented or loaned 

to you or the insured 

(4) Liability assumed under any "insured contract" for the ownership, maintenance or 

use of aircraft or watercraft; or 

(5) "Bodily injury" or "property damage" arising 

out of 

(a) The operation of machinery or equipment that is attached to or part of. a 

land vehicle that would qualify under the 

definition of "mobile equipment" if it were 

not subject to a compulsory or financial 

responsibility' law or other motor vehicle 

insurance law in the state where it is licensed or principally garaged: or 

(b) the operation of any of the machinery or 

equipment listed in Paragraph f.{2) or 

f.(3) of the definition of "mobile equipment". 

h. Mobile Equipmen t 

"Bodilv injury" or "property damaqe" arising out 

o f 

(1) The transportation of "mobile equipment' by 

an "auto" owned or operated by or rented or 

loaned to any insured: or 

(2) The use of "mobile equipment" in, or while 

in practice for. or while being prepared for. 

any prearranged racing, speed, demolition, 

or stunting activity, 

i. War 

"Bodily Injury" or "property damage", however 

caused, arising, directly or indirectly out of 

(1) War, including undeclared or civil war 

(2) Warlike action by a military force inciudlng 

action in hindering or defending against an 

actual or expected attack, by any government, sovereign or other authority using 

milita^v-eemennci or other agents; or -

(3) insurrection, rebellion, revolution, usurped 

power or action taken by governmental authority in hindering or defending against any 

of these. 

J. Damage To Property 

"Property damage" to: 

(1) Property you own, rent, or occupy, including 

any costs or expenses incurred by you. or 

any other person, organization or entity-, for 

repair, replacement, enhancement, restoration or maintenance of such property for any 

reason, including prevention of injury to a 

person or damage to another's property 

(2) Premises you sell, give away or abandon, if 

the "property damage" arises out of any part 

of those premises; 

(3) Property loaned to you, 

(4) Personal property In the care, custody or 

control of the Insured: 

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(5) That particular part of real property on which 

you or any contractors or subcontractors 

working directly or indirectly on your behalf 

are performing operations, if the "property 

damage" arises out of those operations, or 

(S) That particular part of any property that 

must be restored repaired or replaced because "your work" was incorrectly performed on it. 

Paragraphs (1), (3) and (4} of this exclusion do 

not apply to "properly damage" (other than 

damage by fire) to premises including the contents of such premises rented to you for a period of 7 or fewer consecutive days. Aseparate 

limit of insurance applies to Damage T o Premises Rented T o You as described In Section Hi 

- Limits Of insurance. 

Paragraph (2) of this exclusion does not appiy if 

the premises are "your work" and were never 

occupied, rented or held for rental by you 

Paragraphs (3), (4), (5} and (6) of this exclusion 

do not apply" to liability assumed under a sidetrack agreement. 

Paragraph (6) of this exclusion does not apply 

to "property'damage" included in the "productscompleted operations hazard". 

fc„ Damag e T o Your Produc t 

"property damage" to "your product" arising out 

of it or any part of it 

\. Damag e T o Y o u r Work 

"Property damage" to "your work" arising out of 

it or any part of it and included in th e "productsnnmpjefert nperofions hazard" 

This exclusion does not apply if the damaged 

work or the work out of which the damage 

arises was performed on your benalf by a subcontractor. 

mi. Damag e T o Impaired Propert y Of Propert y 

Not Physicall y injured 

"Property damage" to "Impaired property" or 

property that has not been physically injured, 

arising out of 

f t ) A defect, deficiency. Inadequacy or dangerous condition in "your product" or 'Vour 

work"; or 

(2) A delay or failure by you or anyone acting 

on your behalf to perform a contract or 

agreement in accordance with its terms. 

This exclusion does not appiy to the loss of use 

of other property- arising out of sudden and accidental physical injury to "your product" or 

"your work" after it has been put to its intended 

use. 

n. Recall Of Products, Work Or impaired 

Property 

Damages claimed for any loss cost or expense 

Incurred by you or others for the loss of use 

withdrawal, recall, inspection, repair replacement, adjustment, removal or disposal of: 

(1) "Your product"; 

(2) 'Your work"; or 

(3) "Impaired property'; 

if such product, work, or property is withdrawn 

or recalled from the market or from use by any 

person or organization because of a known or 

suspected defect, deficiency inadequacy or 

dangerous condition in it. 

o. Personal And Advertising Injury 

"Bodily injury" arising out of "personal and advertising injury" 

p. Electronic Data 

Damages arising out of the loss of. loss of use 

of. damage to. corruption of, inability to access 

or inability to manipulate electronic data 

As used in this exclusion, electronic data 

means information, facts or programs stored as 

or cn. created or used on. or transmitted to or 

from computer software, including systems and 

applications software, hard or floppy disks, CD -

ROM S tapes drives, ceils, data processing 

devices or any other media which are used with 

electronically controlled equipment 

Exclusions c, through n. do not apply to damage 

by fire to premises while rented to you or temporarily occupied by you with permission ofthe owner. A 

separate limit'of insurance applies to tnic cc/g ^ 

as described in Section liS — Limits Of Insurance. 

COVERAGE B PERSONA L AND ADVERTISING 

INJURY LIABILITY 

1. Insuring Agreement 

a. W e will pay those sums that the insured becomes legally obligated to pay as damages because of "personal and advertising Injury" to 

which this insurance applies. W e wiil have the 

right and duty to defend the insured against any 

"suit" seeking those damages. However, we will 

have no duty to defend the insured against any 

"suit" seeking damages for "personal and advertising injury" to which this insurance does 

not apply W e may, at our discretion, investigate any offense and settle any claim or "suit" 

that may result. But 

( 1 ) The amount we will pay for damages is 

limited as described in Section Hi - Limits 

Of Insurance: and 

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(2) Our right and duty to defend end when we 

have used up the applicable limit of insurance in the payment of judgments or settlements under Coverages A or B or medical expenses under Coverage C. 

No other obligation or liability to pay sum s or 

perform acts or services is covered unless explicitly provided for under Supplementary Payments - Coverages A and B. 

b. This insurance applies to "personal and advertising injury' caused by an offense arising out of 

your business but only if the offense was committed in the "coverage territory" during the policy period. 

2. Exclusion s 

This insurance does not apply t o 

a. Knowing Violation Of Right s Of Anothe r 

"Personal and advertising injury" caused by or 

at the direction of the insured with the knowledge that the act would violate the rights of another and would inflict "personal and advertising injury". 

b. Materia! Published Wit h Knowledge Of 

Falsit y 

"Personai and advertising injury" arising out of 

oral or written publication of material, if done by 

or at the direction of the insured with knowledge of its falsity. 

c . Materia! Published Prior To Poiic y Period 

"Personal and advertising injury" arising out of 

oral or written publication of material whose 

first publication took place before the beginning 

— ofth e policy period. 

d . Criminal Act s 

"Personal and advertising injury" arising out of 

a criminal act committed by or at the direction 

ofth e insured. 

e. Contractua l Liability 

"Personal and advertising injury" for which the 

insured has assumed liability in a contract .or 

agreement. This exclusion does not apply to liability for damages that the insured would have 

in the absence ofth e contract or agreement. 

f. Breac h Of Contract 

"Personal and advertising injury" arising out of 

a breach of contract, except an implied contract 

t o use another's advertising idea in your "advertisement" 

g. Qualit y Or Performance Of Good s - Failure 

To Confor m To Statements 

"Personal and advertising injury" arising out of 

the failure of goods, products or services to 

conform with any statement of quality or performance made in your "advertisement". 

h. Wrong Description Of Prices 

"Personal and advertising Injun/" arising out of 

the wrong description of the price of goods 

products or services stated in your "advertisement'. 

L Infringement Of Copyright, Patent, 

Trademark Or Trade Secret 

"Personal and advertising injur/' arising cut of 

the infringement of copyright, patent, trademark, trade secret or other intellectual property 

rights 

However this exclusion, does not apply to infringement, in your "advertisement", of copyright, trade dress or slogan. 

j . Insureds In Media And Internet Type 

Businesse s 

"Persona! and advertising injury" committed by 

an Insured whose business Is. 

Advertising, broadcasting, publishing or 

telecasting: 

(2) Designing or determining content of websites for others: or 

(3) An internet search, access, content or service provider. 

However this exclusion does not apply to 

Paragraphs 14.a., b. and c , of "personal and 

advertisino injury" unoer the Definitions uectlon. 

For the purposes of this exclusion, the placing 

of frames, borders or finks, or advertising, for 

you or others anywhere on the internet, is not 

by itself, considered the business of advertising, broadcasting, publishing or telecasting. 

k. Electronic Chatrooms Or Bulletin. Boards 

"Persona! and advertising injury" arising out of 

an electronic chatroom or bulletin board the insured hosts, owns, or over which the insured 

exercises control. 

I. Unauthorized Use Of Another's Name Or 

Product 

"Personal and advertising injury" arising out of 

the unauthorized use of another's name or 

product In your e-maif address, domain name 

or metatag, or any other similar tactics to mislead another's potential customers 

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m. Pollution 

"Personal and advertising injury" arising out of 

the actual, alleged or threatened discharge, 

dispersal, seepage, migration, release or escape of "pollutants" at any time. 

n. Poiiution-Related 

Any loss, cost or expense arising out of any: 

(1] Request, demand, order or statutory or 

regulatory requirement that any insured or 

others test for monitor, clean up, remove, 

contain, treat, detoxify or neutralize, or in 

anv way respond to. or assess the effects 

of.'"pollutants", or 

(2) Ciaim or suit by or on behalf of a governmental authority for damages because of 

testing for. monitoring, cleaning up, removing, containing, treating detoxifying or neutralizing or in any way responding to or assessing the effects of "pollutants" 

o. War 

"Personai and advertising injury", however 

caused, arising, directly or indirectly, out o f 

(1) VYar. including undeclared or civil war: 

(2) Warlike action by a mi'rtan/ force, including 

action in hindering or defending against an 

actual or expected attack, by any government, sovereign or other authority using 

military personnel or other agents: or 

(3) Insurrection, rebellion, revolution, usurped 

power, or action taken by governmental authority in hindering or defending against any 

of these. 

b. W e will make these payments regardless of 

fault. These payments will not exceed the applicable limit of insurance We will pay reasonable expenses for: 

(1) First aid administered at the time of an 

accident; 

(2) Necessary medical surgical, x-ray and 

dental sen/ices, including prosthetic devices, and 

(3) Necessary ambulance, hospital, professional nursing and funeral services 

2. Exclusion s 

W e will not pay expenses for "bodily injury": 

a. An y Insured 

T o any insured except 'Volunteer workers". 

b. Hired Person 

To a person hired to do work for or on behalf of 

any insured or a tenant of any insured. 

c. injury On Normal!-/ Occupied Premises 

To a. person injured on that part of premises 

you own or rent that the person normally occupies. 

d . Worker s Compensation And Similar Law s 

To a person, whether or not an "employee" of 

any insured, if benefits for the "bodily injury" are 

payable or must be provided under a workers' 

compensation or disability benefits law or a 

similar law 

e. Athletic s Activities 

T o a person Injured while practicing, instructing 

or participating in any Physical exercises or 

games sports, or athletic contests 

f. Products-Completed Operations Hazard 

Included within the "products-completed operations hazard". 

g. Coverag e A Exclusions 

Excluded under Coverage A. 

SUPPLEMENTAR Y PAYMENTS - COVERAGE S A 

A N D B 

1, W e wiil pay. with respect to any ciaim w e investigate or settle, or any "suit" against an insured we 

defend: 

a. Ail expenses we incur 

b. Up to $250 for cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the 

Bodily Injury Liability Coverage applies. W e do 

not have to furnish these bonds 

1. Insuring Agreement 

a . W e will pay medical expenses as described 

below for "bodily injury" caused by an accident: 

j i ) On premises you own or rent; 

(2) On ways next to premises you own or rent 

or 

<3) Because of your operations, 

provided that 

{1} The accident takes piace In the "coverage 

territory" and during th e policy period; 

{2} Th e expenses are incurred and reported to 

us within one year of the date of the accident; and 

(3) The injured person submits to examination, 

at our expense, by physicians of our choice 

a s often as we reasonably require. 

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c. Th e cost of bonds to release attachments, but 

oniy for bond amounts within the applicable 

limit of insurance. W e do not have to furnish 

these bonds. 

d. All reasonable expenses Incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to 5250 a day 

because of time off from work. 

e. AH costs taxed against the insured in the "suit" 

f. Prejudgment interest awarded against the 

insured on that part of the judgment we pay if 

we make an offer to' pay the applicable limit of 

insurance, w e wiil not pay any prejudgment interest based on that period of time after the offer. 

g. All Interest on the full amount of any judgment 

that accrues after entry of the judgment and before we have paid, offered to pay, or deposited 

in court the part of the judgment that is within 

the applicable limit of insurance 

These payments will not reduce the limits of insurance. 

2. If w e defend an insured against a "suit" and an 

indemnitee of the insured is aiso named as a party 

to the "suit", w e wil! defend that indemnitee if all of 

the following conditions are me t 

a. Th e "suit" against the indemnitee seeks damages for which the insured has assumed the liability of the Indemnitee in a contract or agreement that is an "insured contract"; 

to, This insurance applies to such liability assumed 

by the Insured: 

c. i ne obligation ro aefend. or tne cost of the 

defense of. thai indemnitee, has also been assumed by the insured in the same "insured 

contract"; 

d . Th e allegations in the "suit" and the information 

w e know about the "occurrence" are such that 

no conflict appears to exist between the interests of the insured and the interests of the indemnitee, 

e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee 

against such "suit" and agree that we can assign the sam e counsel to defend the insured 

and the indemnitee; and 

f. Th e indemnitee: 

(1) Agrees iri writing to: 

(a) Cooperate with us in the investigation, 

settlement or defense of the "sufi"; 

(b) Immediately send us copies of any demands, notices, summonses or legal 

papers received in connection with the 

"suit'; 

(c) Notify any other insurer whose coverage 

is available to the indemnitee; and 

(d) Cooperate with us with respect to coordinating other applicable Insurance 

available to the indemnitee, and 

(2) Provides us with written authorization to-

(a) Obtain records and other information 

related to the "suit"; and 

(b) Conduct and control the defense of the 

indemnitee in such "suit". 

So long as the above conditions are met. attorneys' fees incurred by us in the defense of that indemnitee, necessary litigation expenses incurred 

by us and necessary litigation expenses incurred 

by the indemnitee at our request wiil be paid as 

Supplementary Payments Notwithstanding the 

provisions of Paragraph 2.b.(2) of Section i — Coverage A -- Bodily injury And Property Damage Liability' such payments will not be deemed to be 

damages for "bodiiy injury" and "property damage" 

and will not reduce the limits of insurance. 

Our obligation to defend an insured's indemnitee 

and to pay for attorneys* fees and necessary litigation expenses as Supplementary Payments ends 

when: 

a. W e have used up the applicable limit of insurance in the payment of judgments or settlements: or 

b. The conditions set forth above, or the terms of 

the agreement described in Paiayiaph f 

above are no longer met. 

SECTIO N Ii - WHO IS AN INSURED 

1. if you are designated In the Declarations as: 

a. An Individual, you and your spouse are insureds, but only with respect to the conduct of a 

business of which you are the sole owner 

b. A partnership or joint venture you are an insured. Your members, your partners, and their 

spouses are aiso insureds, but only with respect to the conduct of your business 

c A limited liability company, you are an insured. 

Your members are also insureds, but oniy with 

respect to the conduct of your business. Your 

managers are insureds, but oniy with respect to 

their duties as your managers. 

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d. An organization other than a partnership, joint 

venture or limited liability' company, you are an 

insured. Your "executive officers" and directors 

are insureds but only with respect to their duties as your officers or directors. Your stockholders are also insureds but only with respect 

to their liability as stockholders. 

e. A trust you are an insured. Your trustees are 

also Insureds but only with respect t o their duties as trustees. 

2. Each of the following is also an insured 

a. Your "volunteer workers" only while performing 

duties related to the conduct o f your business 

or your "employees" other than either your 

"executive officers" (if you are an organization 

other than a partnership, joint venture or limited 

liability company) or your managers (if you are 

a limited liability company), but oniy for acts 

within the scope of their employment by you or 

whi'e performing duties related to the conduct 

of your business However none of these "emoioyees" or "volunteer workers" are insureds 

for' 

(1) "Bodily injury" or "personal and advertising 

injury": 

(a) T o you. to your partners or member s Id 

you are a partnership or joint venture), to 

your members (if you are a limited liability company) to a co-"employee' while 

in the course of his or her employment 

or performing duties related to the conduct of your business or to your other 

"volunteer workers" while performing duties related to the conduct of your business; -

(b) To the spouse, child, parent, brother cr 

sister of that co-"employee" or "volunteer 

worker" as a consequence of Paragraph 

f1Ma) above. 

( c j For which there is any obligation to 

share damages with or repay someone 

eise who must pay damages because of 

the injury described in Paragraphs (11(a) 

or (b) above; or 

(d) Arising out of his or her providing or 

failing to provide professional health 

care services. 

(2) "Property damage" to property: 

fa) Owned, occupied or used by. 

(b) Rented to, in the care, custody or control 

of, or over which physical control is being exercised for any purpose by 

you, any of your "employees", 'Volunteer 

workers", any partner or member (if you are 

a partnership or joint venture), or any member (if you are a limited liability company) 

b. Any person (other than your "employee" or 

'Volunteer worker") or any organization while 

acting as your rea! estate manager 

c. Any person or organization having proper temporary custody of your property if you di e but 

oniy: 

(1) With respect to liability arising out of the 

maintenance or use of that property: and 

(2) Until your legal representative has been 

appointed. 

' d. Your legal representative if you die. but only 

w t h respect to duties as such. That representative will have all your rights and duties under 

this Coverage Part. 

3. Any organization you newly acquire or form, other 

than a partnership, joint venture or limited liability 

company, and over which you maintain ownership 

or majority interest, will qualify as a Named Insured 

if there is no other similar insurance available to 

that organization. However: 

a. Coverage under this provision is afforded only 

until the 90th day after you acquire or form the 

organization or the end of the policy period, 

whichever Is earlier' 

b. Coverage A does not apply to "bodiiy injury" or 

"property damage" that occurred before you 

acquired oi if« j the uiyai ikali u i, uud 

c Coverage B does not apply to "personal and 

advertising injury" arising out of an offense 

committed before you acquired or formed the 

organization. 

No person or organization is an insured with respect 

to the conduct of any current or past partnership, joint 

venture or limited liability company that is not shown 

as a Named Insured in the Declarations. 

SECTION HI - LIMITS OF INSURANC E 

1. The Limits of Insurance shown in the Declarations 

and the rules below fix the most w e will pay regardless of the number o f 

a. Insureds; 

b. Claims made or "suits" brought: or 

c . Persons or organizations making claims or 

bringing "suite", 

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2. The Genera! Aggregate Limit is the most we will 

pay for the sum of: 

a. Medical expenses under Coverage C; 

b. Damages under Coverage h, except damages 

because of "bodily injury" or "property damage" 

included in the "products-completed operations 

hazard"; and 

c. Damages under Coverage B. 

3. The Products-Completed Operations Aggregate 

Limit is the most we will pay under Coverage A for 

damages because of "bodily injury" and "propertydamage" included in the "products-completed operat'ons hazard". 

4. Subject to 2. above, the Personal and Advertising 

injur/ Limit is the most we will pay under Coverage 

8 for th e sum of all damages because of all "personal and advertising injury" sustained by any on e 

person or organizaton 

5. Subject to 2. or 3. above, whichever applies the 

Each Occurrence Limit is th e most we will pay for 

t h e su m o f 

a. Damages under Coverage A; and 

fa. Medical expenses under Coverage C 

because of all "bodily injury" and "property dam -

age" arising out of any one "occurrence" 

6. Subject to 6. above, the Damage To Premee s 

Rented T o You Limit is the most we will pay under 

Coverage fk for damages because of "property 

damage " to any one premises, while rented to you. 

or in the case of damage by fire, while rented t o 

you or temporarily occupied by you with permission 

of the owner. 

7. SubjesHo - S, above, theHytedloal expense Limit is" 

tne mos t we will pay under Coverage G for aii 

medical expenses because of "bodily injury" sus -

tained by any one person. 

The Limits of Insurance of this Coverage Part apply 

separately to each consecutive annual period and to 

any remaining period of less than 12 months, starting 

with the beginning of the policy period shown in th e 

Declarations unless the poiicy period is extended 

after issuance for an additional period of less than 12 

months, in that case, the additional' period will be 

deemed part ofth e last preceding period for purposes 

of determining the Limits of Insurance. 

SECTIO N IV - COMMERCIAL GENERAL . LIABILITY 

CONDITIONS 

1, Bankruptc y 

Bankruptcy or insolvency of the insured or of the 

insured's estate will not relieve us of our obligations under this Coverage Part. 

2. Duties In i he Event Of Occurrence, Offense, 

Claim Or Suit 

a. You must see to It that w e are notified as soon 

as practicable of an "occurrence" or an offense 

which may result in a claim To the extent possible, notice should include: 

(1) How, when and where the "occurrence" or 

offense took piace; 

(2) The names and addresses of any injured 

persons and witnesses, and 

(3) The nature and location of any injury or 

damage arising out of the "occurrence" or 

offense. 

b. If a claim is made or "suit" is brought against 

any insured, you must: 

(1) Immediately record the specifics of the 

claim: or "suit" and the date received: and 

{2} Notify us as soon as practicable. 

You must see to it that we receive written notice of the claim or "suit" as scon as practicable. 

c. You and any other involved insured mus t 

(1) Immediately send us copies of any demands, notices summonses or legal papers received in connection with the claim 

or "suit"; 

(2) Authorize us to obtain records and other 

information; 

(3) Cooperate with us in the Investigation or 

settlement of the claim or defense against 

the "suit"' and 

(4? Assist us—-upon our request in tno on 

forcement of any right against any person or 

organization which may be liable to the insured because of injury or damage to which 

this insurance may also apply 

d. No insured will, except at that insured's own 

cost, voluntarily make a payment, assume any 

obligation, or incur any expense, other than for 

first aid, without our consent 

3. Legal Actio n Against Us 

No person or organization has a right under this 

Coverage Part: 

a. To join us as a party or otherwise bring us into 

a "suit" asking for damages from an insured; or 

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EXHIBI T 1 

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b, i o sue us on this Coverage Part unless ail of 

its terms have been fully complied with. 

A person or organization may sue us to recover on 

an agreed settlement or on a final judgment 

against an insured: but we will not be liable for 

damages that are not payable under the terms of 

this Coverage Pad or that are in excess ofth e applicable limit of Insurance An agreed settlement 

means a settlement and release of liability signed 

by us the insured and the claimant or the claimant's legal representative 

4. OtherInsuranc e 

if other valid and collectible insurance is available 

to the insured for a loss we cover under Coverages A or B of this Coverage Part,- our obligations 

are limited as follows 

a. Pri mar y Insurance 

This insurance is primary except when b. beiow 

applies if this insurance is primary cur obligations are not affected unless any of the other 

insurance Is also primary Then we will share 

with ail that other insurance bv the metncd described in c. beiow. 

b. Ex ces s insurance 

This insurance is excess over 

( 1 ! Any of the other insurance, whether primary excess, contingent or on amy other 

basis: 

(a) That is Fire. Extended Coverage 

Builders Risk Installation Risk or similar 

coverage for '"your work": 

(b) That is Fire insurance for premises 

sd to yotra - temporarily occupied bv 

Whe n this insurance is excess, we wiil have r o 

duty under Coverages A or B to defend the insured against any "suit" if any other insurer has 

a duty to defend the insured against that "suit" 

If no other insurer defends, w e will undertake to 

do so. but w e will be entitled to the insured's 

rights against all those other insurers 

Whe n this insurance is excess over other insurance, w e will pay only our share of the 

amount of the loss, if any. that exceeds the 

sum of: 

(1) The total amount that al" such other insurance would pay for the loss in the absence 

of this insurance; and 

(2) The total of all deductible and self-insured 

amounts under all that other insurance 

W e will share the remaining loss, if any with 

any other insurance that is not described in this 

Excess insurance provision and was not 

bought specifically t o apply In excess of the 

Limits of insurance shown In the Declarations 

of this Coverage Part. 

c d Metho d Of Sharing 

If all of the other insurance permits contribution 

by equal shares, w e wil! follow this method 

also Under this approach- each insurer contributes equal amounts until It has paid its applicable limit of insurance or none of the loss remains, whichever comes first. 

if any or tne otner insurance does not permit 

contribution by equal shares, we will contribute 

by limits. Under this method, each insurer's 

share is based on the ratio of Its applicable limit 

of insuFaose-te-tne total applicable limits of inzcan 

you with permission of the owner 

(c) Thai is insurance purchased oy you to 

cover your liability as a tenant for "property damage" to premises rented to you 

or temporarily occupied by you with 

permission of the owner; or 

f d ) If the ioss arises out of the maintenance 

or use of aircraft "autos" or watercraft to 

the extent not subject to Exclusion g . of 

Section i - Coverage A - Bodily Injury 

And Property Damage liability 

| 2 j Any other primary insurance available to 

you coverng liability for damages arising 

out of the premises or operations, or the 

products and completed operations, for 

which you have been added as an additional insured by attachment of an e m 

dorsement 

surance of aii insurers. 

5. Premium Audit 

a. W e will compute all premiums for this Coverage Part in accordance with our rules and 

rates. 

b. Premium shown in this Coverage Part as advance premium is a deposit premium only. At 

the close of each audit period we will compute 

the earned premium for that period and send 

notice to the first Named Insured. The due date 

for audit and retrospective premiums is the 

date shown as the due date on the bill. If the 

sum of the advance and audit premiums paid 

for the policy period is greater than the earned 

premium, w e will return the excess to the first 

Named Insured. 

c . The first Named insured must keep records of 

the information we need for premium computation, and send us copies at such times as we 

may request. 

C O 00 01 1 2 04 © ISO Properties, Inc., 2003 Page 11 of 15 • 

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EXHIBIT 1 

39 o f 54 

6. Representations 

By accepting this poiicy you agree: 

a. Th e statements in the Declarations are accurate and complete: 

b. Those statements are based upon representations you made to us; and 

c. W e have issued this poiicy in reliance upon 

your representations 

7. Separation Of insureds 

Except with respect to the Limits of Insurance, and 

any rights or duties specifically assigned in this 

Coverage Part to the first Named Insured, this insurance applies 

a. As rf each Named Insured were the oniy 

Named Insured and 

b, Separately to each insured against whom claim 

is made or "suit" is brought. 

S, Transfe r Of Right s Of Recover y Agains t Other s 

T o Us 

If the insured has rights to recover all or part of any 

payment we have made unce ' this Coverage Part, 

those rights are transferred to us. The insured 

must do nothing after loss t o impair them. At our 

request the insured will bring "suit" or transfer 

those rights to us and help us enforce them. 

9. Whe n We D o Mot Renew 

If we decide not to renew this Coverage Part, we 

wtii mail or deliver to the first Named Insured 

shown in the Declarations wntten notice of the 

nonrenewal not less than 30 days before the expiration date 

H- , ^o e I ; ^led , ;m,„ '-• ^ m-gUnn; ^/;ii TJ- s: iffiortfrrproof of notice. 

SECTION V - BErlNSTlGN-S 

1 , "Advertisement" means a notice that Is broadcast 

or published to the general public or specific market segments about your goods, products or services for the purpose of attracting customers or 

supporters For the purposes of this definition. 

a . Notices that are published Include material 

placed on the Internet or cn similar electronic 

means of communication; and 

b. Regarding web-sites, only that part of a website that Is about your goods, products or services for the purposes of attracting customers 

or supporters is considered an advertisement. 

2. "Auto" means: 

a . A land motor vehicle, trailer or semitrailer 

designed for travel on public roads including 

any attached machinery or equipment; or 

b. Any other land vehicle that is subject to a compulsory or financial responsibility law or other 

motor vehicle Insurance law in the state where 

it is licensed or principally garaged. 

However "auto" dees not include "mobile equipment". 

3. "Bodily injury" means .bodily Injun/, sickness or 

disease sustained by a person, including death resulting from any of these at any time. 

4. "Coverage territory 4' means. 

a. The United States of America (including its 

territories and possessions). Puerto Rico and 

Canada; 

b. Internationa! waters or airspace, but only if the 

mjury or damage occurs in the course of travel 

or transportation between any places included 

in a, above; or 

c. All other parts of the world if the injury or damage arises out of: 

(1) Goods or products made or sold by you in 

the territory described in a. above; 

(2) The activities of a person whose home is in 

the territory described in a. above, but Is 

away for a short time on your business, or 

{3! "Personal and advertising injury" offenses 

that take place through the Internet or similar electronic means of communication 

provided the insured's responsibility to pay damages Is determined in a "suit" on the merits, in the 

territory described in a. above or in a settlement 

we agree to. 

5. "Employee" includes, a "leased worker". "Employed' dcoo notinciude>eP4empcraiy woiLed. 

6. "Executive officer' means a person holding any of 

the officer positions created by your charter, constitution, by-laws or any other similar governing 

document 

7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to 

-be. 

8. "Impaired property" means tangible property, other 

than "your product" or "your work", that cannot be 

used or is less useful because: 

a. It Incorporates "your product" or 'your work" 

that is known or thought to be defective, deficient, inadequate or dangerous, or 

b. You have failed to fulfill the terms of a contract 

or agreement; 

If such property can be restored to use b y 

a. The repair, replacement, adjustment or removal of "your product" or "your work"; or 

Pag e 12 o f IS © ISO Properties, inc., 2003 CG 00 01 12 04 • 

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EXHIBIT 1 

40 o f 54 

b. Your fulfilling the terms of the contract or 

agreement. 

3. "Insured contract" means, 

a. A contract for a lease of premises. However 

that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented 

io you or temporarily occupied by you with 

permission ofth e owner <s not an "insured contract"; 

b. A. sidetrack agreement. 

c. Any easement or license agreement, except in 

connection with construction or demolition operations on or within 50 feet of a railroad; 

d . An obligation, as required by ordinance, to 

indemnify a municipality except in connection 

with wor k for a municipality 

e. An elevator maintenance agreement: 

f. That part of any other contract or agreement 

pertaining to your busoes s (.nciuding an indemnification of a municipality in connection 

w l h work performed far a municipality) under 

whicn you assume the tort liability of another 

party to pay for "bodiiy >oun/" or propert y damage" to a third person or organization I ort liability means a liability that would be imposed 

by law in the absence of any contract or 

agreement. 

p

aragrap h f, does not include that part of any 

contract or agreement: 

(1) That indemnifies a railroad for "bodi'y injury" 

or ''property damage" arising out of co m 

str. mi-inn nr demolition nnem-rions within 50 

Teet or any railroad property ana artecTing 

any railroad bridge or trestle, tracks, roadbeds, tunnel, underpass or crossing; 

1*2) That indemnifies an architect, engineer or 

surveyor for injur/ or damage arising out o f 

(a) preparing, approving or failing to prepare or approve, maps shop drawings, 

opinions, reports, surveys, field orders 

change orders or drawings and specifications; or 

(b) Giving directions or instructions, or failing to give them if that is the primary 

cause ofth e injury or damage: or 

(3) Under which the insured, if an architect, 

engineer or surveyor, assumes liability for 

an injury or damage arising out of the insured's rendering or failure to render professional services Including those listed In 

(2) above and supervisory, inspection, architectural or engineering activities. 

10. "Leased worker" means a person leased to you by 

a labor leasing firm under an agreement between 

you and the labor leasing firm, to perform duties 

related to the conduct of your business "Leased 

worke d does not include a 'temporary worker'. 

1 1 . "Loading or unloading" means the handling of 

property: 

a. After it is moved from the place where it is 

accepted for movement into or onto an aircraft, 

watercraft or "auto"; 

b. While it is in or on an aircraft, watercraft or 

"auto"; or 

c. While it is being moved from an aircraft watercraft or "auto" to the place where it is finally delivered, 

but "loading or unloading" does net include the 

movement of property by means of a mechanical 

device, other than a hand truck, that is not attached to the aircraft, watercraft or "auto" 

12. "Mobile equipment' means any of the following 

types of land vehicles including any attached machinery or equipment 

a. Bulldozers, farm machinery, forkfifts and other 

vehicles designed tor us e principally off public 

roads; 

b. Vehicles maintained for use solely on or next to 

premises you own or rent; 

c. Vehicles that travel on crawter treads, 

d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: 

(1) Power cranes, shovels, loaders, diapers or 

drills: or ' "~ ~ 

(2) Road construction or resurfacing equipment 

such as graders, scrapers or rollers, 

e. Vehicles not described in a., h,, c, or d. above 

that are not self-propelled and are maintained 

primarily to provide mobility to permanently attached equipment of the following types: 

f t ) Air compressors, pumps and generators 

including spraying, welding, buiiding cleaning, geophysical exploration, lighting and 

well sen/icing equipment; or 

{2} Cherry pickers and similar devices used to 

raise or lower workers; 

f. Vehicles not described in a., c. or d . above 

maintained primarily for purposes other than 

the transportation of persons or cargo. 

However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment' but will be 

considered "autos": 

CG00 01 12 04 © ISO Properties, inc.. 2003 Page 13 of 16 

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EXHIBI T 1 

4 1 o f 5 4 

( 1 ) Equipment designed primarily for: 

(a) Snow removal, 

(b) Road maintenance, but not construction 

or resurfacing; or 

(c) Street cleaning: 

(2) Cherry pickers and similar devices mounted 

on automobile or truck chassis and used to 

raise or lower workers' and 

(3) Air compressors, pumps and generators 

including spraying, welding, building cleaning, geophysical exploration, lighting and 

well servicing equipment. 

However, "mobile equipment' does net include any 

land vehicles that are subject to a compulsory or 

financial responsibility law or other motor vehicle 

insurance law In the state where it Is licensed or 

principally garaged Land vehicles subject to a 

compulsory or financial responsibility law or other 

motor vehicle insurance law are considered 

"autos" 

13. "Occurrence" means an accident, including continuous or repeated exposure to substantially the 

sam e general harmful conditions 

14. "Personal and advertising mjury" means injury, 

including consequential "bodily injury", arising out 

of one or more of the following offenses: 

a , False arrest detention or imprisonment: 

b. Malicious prosecution: 

t , The wrongful eviction from, wrongful entry into 

or invasion of the right of private occupancy of 

a room, dwelling or premises that a person cccopies committed by or on behalf of its owner. 

landlord or lessor:— 

d . Oral or written publication, in any manner, of 

material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services, 

a. Oral or written publication, in any manner, of 

material that violates a person's right of privacy; 

f. The use of another's advertising idea in your 

"advertisement"; or 

g. Infringing upon another's copyright trade dress 

or slogan in your "advertisement" 

15. "Pollutants' mean any solid, liquid, gaseous or 

thermal irritant or contaminant, including smoke, 

vapor soot, fumes, acids, alkalis, chemicals and 

waste. Waste includes materials to be recycled 

• reconditioned or reclaimed. 

16. "Products-completed operations hazard'" 

a. Includes all "bodily injuny" and "property damage" occurring away from premises you own or 

rent and arising out of 'your product' or 'your 

work" except: 

(1) Products that are still in your physical possession: or 

(2) Work that has not yet been completed or 

abandoned. However, "your work" will be 

deemed completed at the earliest ofth e following times: 

(a) When all of the work called for in your 

contract has been completed, 

(b) When all of the work to be done at the 

job site has been completed if your contract calls for work at more than one job 

site. 

(c) When that part ofth e work done at a job 

site has been put to its intended use by 

any person or organization other than 

another contractor or subcontractor 

working on the same project 

Wor k that may need service, maintenance, 

correction, repair or replacement, but which 

is otherwise 'complete will be treated as 

completed. 

b, Does not include "bodily injury" or "property 

damage" arising out of: 

( 1 ) Th e transportation of property, unless the 

injury or damage arises out of a condition in 

or on a vehicle not owned or operated by 

you, and that condition was created by the 

"loading or unloading" of that vehicle by any 

insured; : 

(2) Th e existence of tools, uninstailed equipment or abandoned or unused materials; or 

(3) Products or operations for which the classification, listed In the Declarations or in a policy schedule, states that productscompleted operations are subject to the 

General Aggregate Limit. 

17. "Property damage" means: 

a. Physical injury to tangible property, including all 

resulting loss of use of that property. All such 

' loss of use shall be deemed to occur at the 

time of the physical injury that caused it; or 

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EXHIBI T 1 

42 o f 54 

b. Loss of use of tangible property' that is not 

physically injured. All such loss of use shall be 

deemed to 'occur at the time of the "(occurrence" that caused it 

For the purposes of this insurance electronic data 

is not tangible property 

As used in this definition electronic data means information facts or programs stored as or on. created or used on. or transmitted to or from computer software including systems and applications 

software, hard or floppy disks. CD-ROMS tapes 

drives, cells, data, processing devices or any other 

media which are used with electronically controlled 

equipment. 

18."Suit' means a civil proceeding in which damages 

. because of "bodily injury", "property damage" or 

"personal and advertising injury" to which this insurance applies are alleged. "Suit' includes 

a. An arbitration proceeding in which such damages are claimed and t o which the insured 

must submit or does submit with our consent: 

or 

b. Anv other alternative dispute resolution proceeding In which such damages are claimed 

a nd to which the insured submits with our consen t 

13.

frrempor3iy worker" means a person who is furnished t o you to substitute for a permanent "employee" on leave or to meet seasonal or short-term 

workload conditions. 

20."Volunteer worker' means a person who is not 

your "employee", and who donates his or her work 

and acts at the direction of and within the scope of 

duties determined bv you, and is not paid s fde. 

2 1 . 'Your product': 

a. Means: 

(1) Any goods or products, other than real 

property, manufactured, sold, handled, distributed or disposed of by 

(a) You: 

(b) Others trading under your name: or 

(c) A person or organization whose business or assets you have acquired; and 

(2) Containers (other than vehicles), materials, 

parts or equipment furnished in connection 

with such goods or products 

b. Includes 

(1) Warranties or representations made at any 

time with respect to the fitness, quality, durability performance or use of 'your product"; and 

{2] The providing of or failure to provide warnings or instructions. 

a Does not Include vending machines or other 

property rented to or located for the use of others but not sold. 

22. "Your work"' 

a. Means 

/ I) Wor k or operations performed by you or on 

your behalf; and 

(2) Materials, parts or equipment furnished in 

connection with such work or operations. 

b. Includes 

(1) Warranties or representations made at any 

Hr i li Hit ^nf-ro the fitn. " ' 

salary or other compensation by you or anyone 

else for thert work performed for you. 

quality, du 

rability performance or use of "your work", 

and 

(2) The providing of or failure to provide warnings or Instructions. 

CG 00 01 12 04 © ISO Properties, Inc., 2003 Page 15 of 16 • 

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EXHIBI T 1 

43 o f 5 4 

COMMERCIAL GENERAL LIABILITY 

CG 00 67 03 05 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

I his endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

A. The following exciusicn is added to Paragraph 2., 

Exclusion s of Section i - Coverage A - Bodil y 

Injun/ An d Propert y Damage Liability: 

2. Exclusion s 

This insurance dees not appiy to' 

DISTRIBUTION OF MATERIAL IN 

VIOLATION OF STATUTES 

"Bodiiy injury*' or "property damage" arising directly or indirectly cut of any action or omission 

that violates or is alleged to violate' 

a. The Telephone Consumer Protection Act 

(TCPA;. including any amendment of or addition tc such law or 

to. The CAN-SPAM Act of 2003. including any 

amendmen t of or addition to such law or 

c. Any statute,.ordinance or rsaulatian, other 

than me TCPA or CAN-SPAM Act of 20030 

that prohibits or limits the sending, transmitting, communicating or distribution of material or information. 

B. Trie following exclusion is added to Paragraph 2., 

Exclusions of Section 1 - Coverage B - Personal And Advertising Injury Liability: 

2. Exclusions 

This insurance does not apply to: 

DISTRIBUTION OF MATERIAL IN 

"VIOLATION OF STATUTES 

"Personal and advertising injury" arising directly 

or Indirectly out of any action or omission that 

violates or is alleged to violate 

a. The Telephone Consumer Protection Act 

(TCPA) including any amendment of or audition to such iaw: or 

b. The CAN-SPAM Act of 2003, including any 

amendment of or addition to such law: or 

c. Any statute, ordinance or regulation, other 

fhan tha TCPA or CAN-SPAIV1 Act of 2003. 

that prohibits or limits the sending, Transmitting, communicating or distribution of material or infarmation. 

CG 00 57 03 05 © ISO Properties, inc.. 2004 Pags 1 of 1 • 

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I 

EXHIBI T 1 

44 o f 5 4 

POLICY NUMBER ; 35-101224 3 3 ) Prime 

C G 03 0 0 01 36 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

I I (~~ I j i n i I t—< i »— 1 nop «4l S 1 9 v i i\s 3 • f i /L& iii \ , rThis endorsement modifies insurance provided under the following: 

COMMERCIAL GENERA L LIABILITY COVERAG E PAR T 

PRODUCTS/COMPLETE D OPERATIONS LIABILITY COVERAGb PART 

SCHEDULE 

Coveraaa. Amoun t and Basis of Deductible 

PER CLAIM or PER OCCURRENCE 

Bodiiy Injury Liability $ $ 

OR 

Property Damage Liability -$ $ 

OR 

Bodiiy UhLnj Liability and/or •? $ 

Property Damage Liability Combined 

fif no entry appears above, information required to compiete this endorsement will be shown in the Declarations 

as applicable to this endorsement.] 

APPLICATIO N OF ENDORSEMENT (Enter beiow any limitations on the application of this endorsement. If no 

limitation is entered tf e deductibles appiy to damages for all "bodily injury" and "property damage", however 

caused): 

A. Our obligation under the Bodiiy Injury Liability and 

Property Damage Liability Coverages to pay 

damages on your behalf applies only to the 

amount of damages ir excess of any deductible 

amounts stated in the Schedule above as applicable to such coverages. 

EL Yo u ma y select a deductible amount on either a 

per ciaim or a per "occurrence" basis. Your selected deductible applies to the coverage option 

and to the basis of the deductible indicated by the 

placement ofthe deductible amount in the Schedule above. The deductible amount stated in trie 

Schedule above applies as follows: 

1 . PE R CLAI M BASIS , if the deductible amount 

indicated in the Schedule above is on a per 

claim basis, that deductible applies as follows: 

a. Under Bodiiy injury Liability Coverage, to 

all damages sustained by any one person 

because of "bodiiy injury": 

b. Under Property Damage Liability Coverage, to all damages sustained- by any one 

person because of "property damage": or 

c. Under Bodiiy injury Liability and/or Property 

Damage Liability Coverage Combined, to 

all damages sustained by any one person 

because of: 

(1) "Bodily injury": 

(2) "Property damage": or 

(3) "Bodily injury" and "property damage" 

combined 

as the result of any one "occurrence". 

if damages are claimed for care, ioss of services or death resulting at any time from ''bodiiy 

injury", a separate deductible amount wiil -be 

applied to each person making a ciaim for 

such damages. 

With respect to "property damage", person includes an organization. 

CO 03 00 01 SS Copyright Insurance Services uffice, inc., 1994 Page 1 of 2 O 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 71 of 102
EXHIB 

4 5 o: 

2. PER OCCURRENCE BASIS. If the deductible 

amount indicated in the Schedule aboye is on 

a "per occurrence" basis, that deductible 

amount applies as follows: 

a. Under Bodily injury Liability Coverage, to 

ail damages because of "bodily injury": 

b. Under Property Damage Liability Coverage, to all damages because of "property 

damage"; or 

c. Under Bodily Injury Liability and/or Property 

Damage Liability-Coverage Combined, to 

aii damages because of: 

(1) "Bodily injur/'; 

(2) "Property damage"; or 

(3} "Bodiiy injury" and "property damage" 

combined 

as the result of any one "occurrence", regardless of tne number of persons or organizations 

who sustain damages because of that "occurrence". 

T 1 

54 

C. The terms of this insurance, including those with 

respect to; 

1 . Our right and duty to defend trie insured 

against any "suits" seeking those damages: 

and 

2. Your duties in'the event of an "occurrence", 

claim, or "suit" 

apply imespective of the application of trie deductible amount. 

D. We may pay any pad or all of the deductible 

amount to effect settlement, of any claim or "suit" 

and, upon notification of the action taken, you 

shall pramptfy reimburse us for such part ofth e 

deductible amount as has been paid by us. 

Page 2 of 1 Copyright, Insurance Services office, Inc., f 994 C G 0 3 00 01 96 • 

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EXHIBI T 1 

46 o f 54 

POLiCY NUMBER: COMMERCIAL GENERA L LIABILITY 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. 

fTM ~W 1 1 8 0 

tea & S^s- isas' o M 1 W o Rl K 

Tnis endorsement modifies insurance provided under tne fallowing; 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

PRODUCTS/COMPLETE D OPERATIONS LIASILITY COVERAGE PART 

SCHEDULE 

Descriptio n of you r work : 

Construction management for a fee 

flf no entry appears above, informatior required to ccmplst s tfcjs endorsement wiii be shown in the Declarations as 

applicable to the endorsement; 

This insurance does not appiy to "bodiiy injury" or "property damage" included in the "products-completed operations razard" and arising out of "your work" shown in the Schedule. 

CG 21 34 C M 01 8T Copyright, insurance Services OfRce. inc., 1986 Page 1 of 1 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 73 of 102
EXHIBIT 1 

4 7 o f 5< 

THIS ENDORSEMENT CHANGES THE POLICY. 

COMMERCIAL GENERAL LIABILITY 

CG 21 47 07 98 

PLEASE READ IT CAREFULLY. 

mis endorsement modifies insurance provided under the following' 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

The foHowing exclusion is added to Paragraph 2,, 

Exclusion s of Section I - Coverag e A - Bodily 

Injury An d Property Damag e Liability: 

This insu ranee does not apply to: 

"Bodily injur/' to 

(1} A person arising out of any: 

(a) Refusal to employ that person: 

ib) Termination of that person's employmen t or 

(c) Employment-related practices, policies 

acts or omissions, such as coercion 

demotion evaluation, reassignment, 

discipline, defamation, harassment humiliation or discrimination directed at 

that person: or 

12} The spouse, child, parent brother or sister 

of that person as a consequence of "bodily 

injury" to that person at whom any of the 

employment-related practices described in 

Paragraphs (a), (b). or (c) above is directed. 

This 

(1) Whether the insured may be liable as an 

employer or in any other capacity and 

12.) - To any obfigation to shars damages with or 

repay someone else who must pay damages because of the injury. 

B, The following exclusion is added to Paragraph ?... 

Exclusions of Section 1 - Coverage B - Personal An d Advertising Injur/ Liability; 

This insurance does not apply to: 

"Personal and advertising injury" to. 

(1) A person arising out of any: 

(a) Refusal to employ that person" 

i b ) Termination of that person's employmen t or 

(c) Employment-related practices policies, 

acts or omissions, such as coercion, 

demotion, evaluation reassignment, 

discipline, defamation, harassment humiliation or discrimination directed at 

that person: or 

(2) The spouse, child, parent brother or sister 

of that person as a consequence of "persona! and advertising injury" to that person 

at whom any of the employment-related 

practices described in Paragraphs (a), fb). 

or ic) above is directed. 

! his exclusion applies 

(1) Whether the insured may be liable as an 

employer or In any other capacity and 

(2) To any obligation to share damages with or 

repay someone else who must pay damages because ofth e injury. 

CG 21 47 07 88 Copyright Insurance Services Office, inc.. 139/ Fane 1 of 1 

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EXHIBIT 1 

48 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

EXCLUSIO N - DESIGNATE D OPERATION S COVERE D B Y A 

UIM^ULSUATE U (VvKMr-u r j INSUKMI^ C rKOor\A M 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

SCHEDUL E 

Description and Location of Operationis). 

1 ALL OPERATIONS AT LOCATION S AT WHIC H TH E INSURED WAS AT ANY TIME COVERED 

UNDER A WRAP-UP PROGRA M AND 

2. OPERATIONS AT ANY LOCATION FOR OR RELATED T O THE INSURED'S WOR K UNDER A 

WRAP-UP PROGRAM. 

flf no entry appears above information required to complete this endorsement will be shown m the 

Declarations as applicable to this endorsement.) 

T h e following exclusion is added to paragraph 

2. Exclusions of COVERAGE A-BODiL Y 

INJURY AND PROPERTY DAMAGE LIABILITY' 

(Section 1 — Coverages) 

This nsurance does not apply to "bodiiy injury1' 

or 'property damage' arising out ei^hef^mif— 

ongoing operations or operations included within 

the -products-completed operations hazard* at 

the location described m the Schedule of this 

endorsement, as a consolidated (wrap-up) 

insurance program has been provided by the 

prime contractor/project manager or owner of 

the construction project in which you are 

involved 

This exclusion applies whether or not the 

consolidated (wrap-up) insurance program: 

{1} Provides coverage identical to that provided 

by this Coverage Part: 

f 2 | Has limits adequate to cover all claims, or 

{3} Remains in effect 

CG2154A 7/2005 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 75 of 102
EXHIBIT 1 

49 o f 5 4 

COMMERCIAL GENERAL LIABILITY 

CG 22 43 07 98 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

EXCLUSIO N - ENGIN E 

•3SIONAL LIABILITY 

This endorsement modifies insurance provided under the following: 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

T he following exclusion is added to Paragraph 2,, 

Exclusion s of Section I — Coverag e A - Bodil y 

Injur y An d Propert y Damage Liabilit y and Paragraph 2., Exclusion s of Sectio n i — Coverage B -

Persona l And Advertising Injury Liability. 

Tnis insurance does not apply to "bodily injury", 

"property damage" or "personal and advertising 

injury" arising out of the rendering of or failure to 

render any professional services by you or any engineer, arcnitect or surveyor who is either employed by 

you or performing work on your behalf in such capacity 

Professional sen/ices include. 

1. Th e preparing, approving, or failing to prepare or 

approve, maps, shop drawings, opinions, reports, 

surveys, field orders, change orders or drawings 

and specifications; and 

2. Supervisory, inspection, architectural or engineering activities. 

CG 22 4 3 07 98 Copyright, insurance Services Office, Inc., 19S Page 1 of• rr 

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EXHIBI T 1 

5 0 o f 5 4 

POLICY NUMBER ; COMMERCIAL GENERAL LIABILITY 

CG 24 26 07 04 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

This endorsement modifies insurance provided under the following: 

COMMERCIA L GENERAL LIABILITY COVERAGE PAR T 

Paragraph 9. ofth e Definition s Section is replaced 

fay the following: 

9. "Insured contract" means: 

a. A contract for a lease of premises. However, that portion ofth e contract for a lease 

of premises that indemnifies any person or 

organization for damage by fire to premises 

while rented to you or temporarily occupied 

by you with permission of the owner is not 

an "Insured contract"; 

b. A sidetrack agreement: 

c. Any easement or license agreement, except in connection with construction or 

demolition operations on or within 50 feet 

of a railroad; 

d. A n obligation, as required by ordinance, to 

indemnify a murfcipaJty, except in connection with work for a municipality: 

e. An elevator maintenance agreement: 

f. That part nf any other contract or agreemen t pertaining to your business (including 

an indemniti cation of a municipality in connection with work performed for a municlpafity) under which yau assume the tort liability of another party to pay for "bodily 

injury" or "property damage" to a third person or organization, provided the "bodily 

injury" or "property damage" is caused, in 

whole or in part, by you or by those acting 

on your behalf. Tort liability means a liability i'nat would be imposed by law in the absence of any contract or agreement. 

Paragraph! f. does not include that part of 

any contract or agreement: 

(1) That indemnifies a railroad for "bodily 

Injun/" or "property damage" arising out 

of construction or demolition operations, 

within 50 feet of any railroad property 

arid affecting any railroad bridge or 

trestle, tracks, road-beds, tunnel, underpass or crossing; 

(2> That indemnifies an architect; engineer 

or surveyor for injury or damage arising 

out of. 

(a) Preparing, approving, or failing to 

prepare or approve, maps, shop 

drawings, opinions, reports, surveys, 

field orders, change orders or drawings and specifications; or 

(by Giving directions or instructions, or 

failing to give them, if that is the 

primary cause of the injury or <Jan> 

age:o r 

(3) Under which the insured, if an architect, 

engineer or surveyor, assumes liability 

for an injury or damage arising out of 

the insured's rendering or failure to render professional sen/ices, including 

those listed in (2) above and supervisory, inspection, architectural or engineering activities. 

C G 24 2S 07 04 © iSO Properties, inc.. 2004 Page 1 of 1 • 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 77 of 102
EXHIBIT 1 

5 1 o f 5 4 

IL 01 42 09 08 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

OREGON CHANGES - DOMESTIC PARTNERSHIP 

This endorsement modifies insurance provided under the following. 

COMMERCIAL AUTOMOBILE COVERAGE PART 

COMMERCIAL GENERAL LIABILITY COVERAGE PART 

COMMERCIAL LIABILITY UMBRELLA COVERAGE PART 

ELECTRONI C DATA LIABILITY COVERAGE PART 

EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE PART 

FARM COVERAGE PART 

FARM UMBRELLA LIABILITY POLICY 

LIQUOR LIABILITY COVERAGE PART 

MEDICAL PROFESSIONAL LIABILITY COVERAGE PART 

OWNER S AND CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART 

POLLUTION LIABILITY COVERAGE PART 

PRODUC T WITHDRAWAL COVERAGE PART 

PRODUCTS/COMPLETE D OPERATiONS LIABILITY COVERAGE PART 

UNDERGROUN D STORAGE TAN K POLiCY 

A. To e term "spouse" is replaced by the following 

Spouse or individual who is in a domestic partnership recognized under Oregon law 

B, Under the Commercial Auto Coverage Part the 

term "family member" is replaced by the following: 

'Famil y member 1' means a person related to the 

1 , individual Named Insured by btood adoption, 

marriage or domestic partnership recognized 

; inicAr nrsgnc l;w -j,;hn a resident nf s; ;r.hMamed Insured's household. Including a ward 

or foster child: or 

2. Individual named in the Schedule by blood, 

adoption, marriage or domestic partnership 

recognized under Oregon law, who is a resident of the individual's household, including a 

war d or foster child, if the Drive Other Ca r 

Coverage — Broadened Coverage For Named 

individual Endorsement is attached. 

C. With respect to coverage for the ownership, maintenance, or use of "covered autos" provided under 

the Commercial Liability Umbrella Coverage Part, 

the term "family member" is replaced by the following: 

"Family member" means a person related to you 

by btood. adoption, marriage or domestic partnership recognized under Oregon law. who is a resident of your household. Includina a ward or foster 

child. 

IL 01 42 0 9 OS ©IS O Properties, Inc., 2007 Page 1 of 1 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 78 of 102
EXHIBIT 1 

52 o f 54 

COMMERCIAL GENERAL LIABILITY 

CG 21 73 01 08 

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. 

*ORISM 

This endorsement modiries insurance provided under the following 

COMMERCIAL GENERAL LIABiLITY COVERAGE PART 

LIQUOR LIABILITY COVERAGE PART 

OWNER S AN D CONTRACTORS PROTECTIVE LIABILITY COVERAGE PART 

POLLUTION LIABILITY COVERAGE PART 

PRODUCTS/COMPLETED OPERATIONS LIABILTY COVERAGE PART 

RAILROAD PROTECTIVE LIABILITY COVERAGE PART 

UNDERGROUN D STORAGE TANK POLICY 

A, Th e following exclusion is added 

This insurance does not apply to 

TERRORIS M 

"Any injury or damage" ansmg, directly or indirect iy. out of a "certified act of terrorism" 

B. Tne following definitions are added 

1. For the purposes of this endorsement, "any 

injury or damage" means any injury or damage 

covered under any Coverage Part to which this 

endorsement Is applicable ana includes but is 

not limited to "bodily injury" "property damage" "personal and advertising injury", "injury" 

or "environmental damage" as may be defined 

in any applicable Coverage Part. 

2. "Certifiea act of terrorism" means an act that is 

certified by tne Secretary of the Treasury, in 

concurrence with the Secretary of State and 

the Attorney General of the United states, to 

be an act of terrorism pursuant to the federal 

Terrorism Risk insurance Act. The criteria contained in the Terrorism Risk Insurance Act for a 

"certified act of terrorism" include the following: 

a. The act resulted in insured fosses in excess 

of So million in the aggregate, attributable to 

all types of insurance subject to the Terrorism Risk Insurance Ac t and 

b. The act is a violent act or an act that is 

dangerous to human life, property or infrastructure and is committed by an individual 

or individuals as part of an effort to coerce 

the civilian population of the United Statesor to influence the policy or affect the conduct of the United States Government by 

coercion ' 

CG 21 7 3 01 08 © ISO Properties, inc., 200 r Page 1 of 1 • 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 79 of 102
EXHIBI T 1 

5 3 o f 5 4 

POLiCY NUMBER; 36-1 01 2243 9 COMMERCIA L GENERAL LIABiLITY 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ ST CAREFULLY. 

EXCLUSION - DESIGNATED WORK 

l his endorsement modifies insurance provided under the fallowing: 

COMMERCIAL GENERAL LIABILITY' COVERAGE PART 

PRODUCTS/COMPLETE D OPERATIONS LIABILITY COVERAGE PART 

SCHEDULE 

Descriptio n of you r work: 

ANY AND ALL OPERATiONS AMD CROSS SUITS UNDER LICENSE* 15613 7 

FOR ELEET CORP 

(if no entry appears above, information required to complete this endorsement will be shown in the Declarations as 

applicable to this endorsement.) 

This insurance does net apply to "bodiiy injury" or "properry damage" included in the "products-completed operations hazard" and arising out of "your work" shown in the Schedule. 

CG 21 34 01 87 Copyright Insurance Services Office, Inc , f 986 Page 1 of 1 O 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 80 of 102
EXHIBIT 1 

54 o f 54 

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY, 

This endorsement modifies insurance provided under the following: 

COMMERCIA L GENERAL LIABILITY COVERAG E PART 

PRODUCTS/COMPLETED OPERATiONS LIABILITY COVERAGE PART 

SCHEDULE 

Description of your work: 

- Ne w construction of a dwelir g and work within, or on. the premises of a dwelling prior to the cerSfTcatB of 

occupancy of ths owner regardless of whether the dwelling is a custom home or Ihe dwelling is 

built as part of a tract or a multi-dwelling development 

(If no entry appears above information required to complete this endorsement will be shown in the Declarations as 

applicable to this endorsement i 

This insurance does not apply to "bodily Yjury" or "property damage" included in the "products-completed operations hazard' and arising out of "your work" shown m the Schedule. 

CG 21 34 HR 01 87 Copyright Insurance Services Office. Inc . 1986 Page 1 of 1 • 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 81 of 102
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

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12 

13 

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15 

16 

18 

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21 

22 

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24 

Az> 

26 

\>\HlRliB^ERTIFY THAT THE FORC 

V A TRUE C0PYf>THE ORIGINAL TH 

IN THE CIRCUIT COURT OF THE STATE OF OREGON 

FOR THE COUNTY OF LINCOLN 

X L SPECIALTY INSTJKANCE 

COMPANY, 

Plaintiff, 

) Case No. 

OMPLAJNT 

v s . 

VITEK CONSTRUCTION, LLC. _ 

O'HALLORAN CONSTRUCTION, and 

DOES I through 25, inclusive, 

Defendants. 

/ 

} 

) 

) (Breach of Contract, N egl igence) 

) 

) Amount in. Controversy: $624,191,93 

) Filing fee due pursuant to ORS 21.160 (l)(c) 

) 

> DEMAND FOR JURY' TRlAJL 

) 

) 

COMES NOW, Plaintiff XL Specialty Insurance Company ("XL") and alleges as 

follows. 

PARTIES AND BACKGROUND 

1. 

Plaintiff XL is a Delaware corporation with its principle place of business in Stamford 

Connecticut. XL is an insurance company authorized to do business and doing business in the 

State of Oregon. At all relevant times, XL maintained in full force and effect a policy of 

iri5urariop nnrnboxod fP\ A 6000925-0 J covering ISE Pronerties Inc.. DBA.: West Coast Inn ("West 

Coast Inn"). 

Page 1 - COMPLAINT

 99 1 

Thenell Law Group, P.C. 

12909 SW 68* Pkwy., Suite 320 

Portland, Oregon 97223 

Telephone: (503) 372-6450 

Facsimile: (503) 372-64-96 

EXHIBIT 2 

L of 8 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 82 of 102
1 

2 

3 

4 

5 

6 

T t 

8 

9 

10 

11 

12 

13 

14 

15 

16 

ty 

18 

1 G 

X .V 

20 

21 

22 

23 

24 

25 

26 

2 . 

West Coast Inn operates a three story Inn building, commonly known as an 

"EconoLodge," located at 1713 NW 21st Street, Lincoln City OR. West Coast Inn is not a part}' 

to this action. 

3 . 

Defendant Larry O'Halloran, dba O'Halloran Construction ("O'Halloran") is an 

individual who resides and does business in Oregon. Plaintiff Is informed and believes and 

based thereon alleges that O'Halloran is and at all relevant times was a contractor licensed by the 

state of Oregon under license number 184438. 

4. 

Plaintiff is informed and believes and based thereon alleges that Defendant Vitek 

Construction LLC ("Vitek") is a Limited Liability Company authorized to do business and doing 

business in Oregon. Plaintiff is informed and believes and based thereon alleges that Vitek is a 

contractor licensed by the state of Oregon under license number 191601. 

5. 

wn or aooLit jNoveinuei i4 , zuiu , w » i ^Ocut im i wnuav^ u v^ui^vi^ ^ ^ '.a.. — 

Install a new rooTon the'West Coast Inn buildinglocated al 1713 NW 21 st Street,'Lincoln City, 

Oregon. The Contract provided for a 15 year warranty on materials, and a five year warranty on 

workmanship. A true and correct copy of the Contract is attached hereto as Exhibit 1. 

6. 

Plaintiff is informed and believes and based thereon alleges that O'Halloran subcontracted 

some or all ofthe roofing work to Defendant Vitek. 

7. 

Plaintiff is informed and believes and based thereon alleges that O'Halloran and Vitek 

are the agents, employees, supervisors or representatives of each other. 

/ / / 

Page 2 - COMPLAINT

 99 1 

Thenell Law Group. P.C. 

12909 SWSS1"Pkwy, Suite320 EXHIBI T 2 

Portland. Oregon 97223 

Telephone: (503) 372-6450 2 of 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 83 of 102
! 8. 

Plaintiff Is informed and believes and based thereon alleges that on or about November 

16, 2010, O'Halloran and Vitek installed a Poly Vinyl Chloride (PVC) single ply roof upon the 

West Coast Inn building. The installation was improper, defective, below the standard of care, 

and in violation of the contract provisions, in particular, the installation utilized dissimilar and 

incompatible materials, the workmanship utilized inadequate fasteners and fastening methods to 

secure the roof to the structure, the roof was improperly installed upon the structure, allowing it 

to fail. 

9. 

On or about March 12, 2012, the roof blew off in a moderate wind, causing damage to the 

structure and interior ofthe West Coast Inn. Plaintiff is mtormed and believes and based thereon 

alleges that local codes, to which the roof was to be installed, required that the roof be able to 

withstand winds of at least 105rnph. Plaintiff is informed and believes and based thereon alleges 

that the roof actually failed in wind speeds of less than 55.2mph. 

10. 

T5/"o.r-^ ^(-v.r.rt-f- Tt-itt. ^^f^^r-j^A rlomorcao lira Ksiil/-!l-nrr ciT^A KTICIriip-QC! a recruit rrf fK^ Qotirvnc n~F 

i 

17 I O'Halloran and Vitek. West Coast Inn filed an insurance claim, and XL paid policy benefits to 

18 • West Coast Inn in the approximate amount of $624,191.93, a more precise sum to be presented 

19 at trial. 

20 11. 

21 In that XL paid policy benefits to West Coast Inn, it is subrogated to the interests of West 

22 Coast Inn, and stands in the shoes of West Coast Inn for the purposes of bringing this lawsuit. 

23 j// / 

!// / 

25 |// / 

26 / / / 

i 1 Page 3 - COMPLAINT ^ i 

1 

t 

Theiseli Law Group, P.C. 

12909 SW 68* Pkwy., Suite 320 _ ? 

Portland, Oregon 97223 £.AHi.tf.Ll 

Telephone: (503) 372-6450 3 of 8 

Facsimile: (503) 372-6496 

1 i: 

2 I 

-> ! 

i 

4 | 

I t 

5 I 

6 \ 

7 I 

8 I 

9 -

10 i 

1 ? i. A 

12 j 

13 j 

14 J 

15 II 

16 J 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 84 of 102
1 ' FIRST CLAIM FOR RELIEF 

2 (Against Defendant O'Halloran) 

3 COUNTI 

4 (Breach of Contract) 

5 For Count I of their claim for relief against Defendant O'Halloran, Plaintiff alleges as 

6 follows: 

T I 

8 

12. 

Plaintiff re-alleges paragraphs one through eleven, above, as well as the Contract attached 

9 hereto as Exhibit 1. 

10 13. 

I * ! 1 I | Under the Contract, O'Halloran agreed to property install roofing, using the appropriate 

12 | standard of care, in accordance with local codes, to be permitted and inspected by the Lincoln 

13 f City Building Department. 

14 14. 

15 Under the Contract, O'Halloran agreed to warrant the roof for 15 years, and warrant 

16 

17 15. 

18 Plaintiff is informed and believes and based thereon alleges that West Coast Inn paid 

iy 0 ' H--~>l'on->n all ^mounts due under the contract and did not breached the contract in any manner. 

20 16. 

21 O'Halloran breached the contract in the following respects: 

22 a) By failing to adequately supervise the work of Vitek; 

23 

24 

b) By failing to install the roof materials adequately; 

c) By failing to fasten the roof materials adequately; 

25 d) By failing to warrant the workmanship for five years: 

26 e) By failing to warrant the roof materials for 15 years; 

. Page 4 - COMPLAINT

 99 1 

Theneil Law Group, P.C. 

!2SS^S

 EXHIBIT 2 

Telephone: (503) 372-6450 4 of 8 

Facsimile: (503) 372^496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 85 of 102
J 

4 

5 

6 

7 

8 

9 

10 

1 1 

J L x 

12 ' 

i 

13 | 

14 | 

15 I 

1 U

 If: 

f) By failing to build and/or supervise construction of the roof consistent with 

applicable building codes; 

g) By failing to provide his services as expeditiously as is consistent with 

professional skill and care and the orderly progress of the construction on the 

West Coast Inn; and 

h) By perfoiming his work in a manner that resulted in the defects alleged above. 

COUNT II 

(Negligence) 

For Count II of its claim for relief against Defendant O'Halloran, Plaintiff alleges as 

follows. 

Plaintiff re-alleges paragraphs one through sixteen, above, as well as the Contract 

attached hereto as Exhibit 1, 

18. 

As a result of his role in providing services to West Coast Inn, and independent of Ms 

anv- ncrrA-^niPrnc n'TTQllnrart aw^d West C<>asf Inn a dutv tn neri'orm his work in a 

good and workmanlike manner, in accordance with industry "standards and codes, as well as local 

building codes. 

19. 

O'Halloran breached his duties to West Coast Inn in respects alleged in paragraph 16 

above in a manner that resulted in physical damage to property and other damages. 

20. 

Plaintiff paid policy benefits to West Coast Inn as a result of the damages caused by 

defendants, and each of them. In so doing, Plaintiff became the subrogee of West Coast Inn and 

25 It stands in Its shoes with regard to recovering damages to the extent of policy benefits paid. 

26 f|/7 / 

I j Page 5 - COMPLAINT 9? £ 

I I Tfieuetl Law Group, P.C. 

j ! 12909 SW 68* Pkwy., Suite320 FYFTTRTT 7 

l j Portland, Oregon 97223 iWU±LJ±L± £ 

ff Telephone: (503) 372-6450 5 Of 8 

' j Facsimile: (503) 372-6496 

17 ! 

IS J 

19 1 

20 ? 

21 

22 

23 

74 I 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 86 of 102
1 

2 

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SECOND CLAIM FOR RELIEF 

(Against Vitek Construction LLC) 

COUNT I 

(Negligence) 

For Count II of Its claim for relief against Defendant Vitek, Plaintiff alleges as follows. 

21. 

Plamtiff re-alleges paragraphs one through, twenty, above, as well as the Contract 

attached hereto as Exhibit 1. 

22, 

As a result of its role in providing services to West Coast Inn under contract with 

I'TT.ll, , .A --^A^^^-^Aer^i- A^^+icis* iiniioi* a-n^f \/V-r£*V rvtxroH ^XfT£*c^" r'ncicf XT\T\ 3 

duty to perform Its work in a professional manner, in accordance with industry standards and 

codes, as well as local building codes. 

23. 

Vitek breached its duties to West Coast Inn in respects alleged in paragraph 16 (b) 

that resulted in physical damage to property and other damages. 

24. 

Plaintiff paid policy benefits to West Coast Inn as a result of the damages caused by 

defendants, and each of them. In so doing. Plaintiff became the as subrogee of West Coast Inn 

and stands in its shoes with regard to recovering damages to the extent of policy benefits paid. 

/ / / 

/ / / 

/ / / 

/ / / 

/ / / 

/ / / 

Page 6 - COMPLAINT 991 

Thenell Law Group, P.C. 

12909 SW 6r Ffcwy., Sdte 320 

Portland, Oregon 97223 iiAtii. £>X 1 

Telephone: (503) 372-6450 6 o f 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 87 of 102
1 WHEREFORE, Plaintiff prays for judgment in its favor and against Defendants, as 

2 follows: 

n 

J 1. For the sum of $624,191.93 and for other damages representing policy benefits 

4 paid to date, and which may increase with the passage of time; 

5 2. For Plaintiffs costs, disbursements, and interest; 

o J . For Plaintiffs reasonable attorney fees allowed under ORS 20.096 or as otherwise 

7 allowed by contract or law; and 

8 : 4. For such other relief the Court deems just and equitable. 

9 DATED this 13* day of March, 2014. 

10 

THENELL LAW GROUP, P.C. 

12 | 

13 

14 ' 

15 • 

Daniel E. Thenell, OSB #971655 

Email: dan@thenelllawaroup.eom 

Of Attorneys for Plaintiff 

16

 1 

17 

IS 

19 

20 

21 

22 

23 

25 | 

26 | 

Page 7 - COMPLAINT 591 

I" 

X 

Thenell Law Group, P.C. 

12909 SW SS"1 Pkwy., Suite 320 

Portland, Oregon 97223 EXHIBI T 2 

Telephone: (503) 372-6450 7 of 8 

Facsimile: (503) 372-6496 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 88 of 102
11/24/2010 Gmaif - new roof contract 

new roof eon tract C^s 

-Scot, Jone s <iamfor8veitrf» 

vD3- Sv l "73<7!>" 

aff.com> 

1 message 

oha!loranlk@froirtler.com <ohaik>ranJk@frontfer.com> 

To: iamfofevei-Wessed@gmail.com 

OTlailoran Construction 

Larry O'Halloran 

317 S W Filbert S t 

McMinnville, Or. 97128 

CCB# 184438 

971-241-9360 

0O 

reused JI1-22-10 

Mon , Nov 22, 2010 at 6:34 PM 

7 ^ 

Project Description and invoice: Wes t Coast Inn 

1713 N W 21 Street, Lincoln City Or 97367 

"Remove a!i 3 layers of existing roofing. Dispose of ait debris. 

* Re-roof wth Vereico PVC single ply membrane, (BO mill) replace aii 

vents with new roof vents. 

Aii work will be approved and inspected by Lincoln City Building Department. 

* You r new roof comes with a 15 year Manufacturers Warranty; and a 5 year Warranty on 

wortcntanshfp, 

* The PV C membrane comes in 6 tt. and 101 . roils, W e always minimize our searas. and will do 

so o n your project as well. 

* Ail seaming is self adhesive and wfH be torched together. 

help creating proper drainage. 

* Versico material has afreacfy been ordered and will be delivered within a week. 

* W e will watch the weather and will begin the project when there is a 3 day window of good 

weather. 

* Completion time is about 5 working days tor n beginning of project. 

* Due t o the rainy, winter season and the condition ofthe existing roof. "Time is ofthe Essence" 

the (weather petrrtitting) project must be completed no later than December 15th to mM more 

damage to beiSding. 

* We dan't expect any additional fequirernefrts that could affect price due t o Lincoln City 

Building Department. 

* Contract and any changes on part of Wes t Coast Inn, and O'Halloran Construction must be 

made in writing by both fn-Joa Chp and Larry CHaftoran. 

Tofai price $ 27,800.00, 

Down payment received on 11-18-10 $ 12,350.00 

Balance due upon completion $ 15,450.00 

Thank; you, Larry CHaitcran 

htip;}://rrBlf.gQogte.cG'rn/ma!{/u/G!r?ui=:... Exhibit 1 

Page MAIT 2 

i/2 

8 of 8 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 89 of 102
CIRCUI T COUR T 

R

- t D RECEIVED , 

MAR j i m 

O'CLOCK 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

i •=; 

IN THE CIRCUIT COURT OF THE STATE OF OREGON 

FOR THE COUNTY OF LINCOLN 

ALPHA-C INCORPORATED a/k/a ISE 

PROPERTIES, INC. d/b/a WEST COAST 

DSTN, 

Plaintiff., 

v s . 

LARRY O'HALLORAN CONSTRUCTION, 

LLC, an Oregon limited liability corporation, 

VITEK CONSTRUCTION, LLC, an Oregon 

limited liability corporation, 

Case No. HOf f #4 

COMPLAINT & JURY TRIAL DEMAND 

(Negligence) 

Prayer: $110,000.00 

NOT SUBJECT TO MANDATORY 

ARBITRATION 

Fee Authority; ORS 21.160(1)(C) 

Defendants. 

For its Complaint, Plaintiff alleges as fohows: 

1. 

mteriaHiBte s herein. Plaintiff was-an Oregon Corporation with its principal place_ :Ari-

"TtT 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

of business in Lincoln County, Oregon, that owned and operated an Econo Lodge hotel located 

in Lincoln City, Oregon (referred to hereafter as the "Econo Lodge"). 

2. 

At all material times herein, Defendant Larry O'Halloran Construction, LLC 

("O'Halloran"), was an Oregon limited liability corporation based in McMinnville, Oregon, and 

a licensed Oregon contractor. Defendant O'Halloran performed and/or controlled some or all of 

the remodeling and constraction work at the Econo Lodge that forms the basis of this Complaint. 

n 

j _ 

At all material times herein. Defendant Vitek Construction, LLC ("Vitek"), was an 

Oregon limited liability corporation based in McMinnville, Oregon, and a licensed Oregon 

ras e i - COMPLAINT 

EXHIBIT 3 

1 o f 5 

WHIPPLE S DUYCK. P C 

Attorneys at law 

1500 SW First Ave Suite 1170 

Portland, OR 9/201 

503 222 6004 

503 222 3191 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 90 of 102
1 contractor. Defendant Vitek performed and/or controlled some or all ofthe remodeling and 

2 construction work at the Econo Lodge that forms the basis of this Complaint 

3 4. 

4 Al l or substantially ail of the acts and omissions alleged herein occurred in Lincoln City, 

5 Oregon. 

6 5. 

7 On or around November 15,2010, Plaintiff hired Defendant O'Halloran to replace the 

g roof at its Econo Lodge hotel. 

9

 6. 

10 Thereafter Defendant O'Halloran and Defendant Vitek, a subcontractor, removed the 

11 Econo Lodge's existing roof and re-roofed the Econo Lodge. 

12 7. 

13 Defendants completed their re-roofing work on or around February 2, 2011. 

14 

15 On or around March 14, 2012, the roof ofthe Econo Lodge failed, causing extensive 

~\6 flooding and water damage throughout all three levels of ihe Econo Lodge: 

17 9. 

1 g Defendants were responsible for the quality of all labor and materials used in the 

19 construction and re-roofing at the Econo Lodge and for the work their agents 

20 10-

21 Defendants were responsible to ensure that the Econo Lodge was re-roofed so as to be 

22 free from defects and in a manner so as not to leak, fail or cause property damage. Defendants 

71 were also responsible for ensuring the Econo Lodge was remodeled and repaired in a 

24 weatherproof and workmanlike manner. 

25 / / / 

26 // / 

T% -v ^ m f-r>r A TXT - r EXHIBIT 3 WHIPPL E a DUYCK . P c 

Pa£6 2 - COMPLAIN i „ ~ ,- Attorneys st Law 

- Z O X .: 1500 S W Firs; Ave. Suite 11/0 

Portland. OR 9/201 

503 222 6004 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 91 of 102
1 11-

2 The resultant roof failure, leaks, water intrusion and property damage at the Econo Lodge 

3 are the result of Defendants' defective constraction, remodeling and repair, and non-compliance 

4 with Industry standards, manufacturer specifications and guidelines, and other applicable 

5 specifications, including, but not limited to, the following: 

6 1. Failure to properly Install and inspect the roof; 

7 2. Failure to properly install and inspect the roofing materials: 

8 3. Failure to follow the proper nail pattern when installing the roof; 

9 4. Failure to properly nail the roofing materials to the structure; 

5. Failure to perform work in a reasonable and workmaiilike manner; 

11 6. Such other specifications of negligence to be alleged upon completion of discovery. 

12 

13 . The roof failure, leaks, water Intrusion and property damage at the Econo Lodge caused 

14 by the above defects rendered portions of the Econo Lodge unusable for a period of time. 

15 Extensive repairs were necessary to correct the roof failure, leaks, water intrusion and property 

Tg damage and to minimize the real, substantial and imminent risk of further property damage and 

17 loss. 

18 

19 

20 

21 

77 

24 

25 

26 

As a result and the conduct set forth above, Plaintiff suffered substantial uninsured losses, 

and is entitled to recover damages in an amount to be proven at trial and currently estimated to 

be $ 110,000 in the following specifics: payment of a $5,000 deductable towards repair work; 

payment for "code improvement" repairs estimated at $20,000; public adjuster costs estimated at 

71 $85,000. 

14. 

Plaintiff is also entitled to post judgment interest at a rate of nine percent (9%) per annum 

on any award. 

r , , TM r." T EXHIBI T 3 WH.PPLE.OUVCKP C 

Page 3- COMPLAINT 3 of 5 ^orfSKfG.m. 

Portland. OR 37201 

503 222 5004 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 92 of 102
I FIRST CLAIM FOR RELIE F 

n iT^e^li^encc — All Defendants) 

3 15. 

4 Plaintiff re-alleges and incorporates paragraphs 1 through 12 above as if fully set forth 

5 herein. 

6 16-

7 Each of the Defendants had an independent duty to ensure that the Econo Lodge was 

8 remodeled and re-roofed in a weatherproof, workmanlike manner, in compliance with all 

9 industry and manufacturer standards and specifications and to ensure that the Econo Lodge roof 

10 did not fail, leak, or otherwise cause property damage. 

11

 17

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12 Defendants knew, or reasonably should have known, that failure to use reasonable care 

and comply with applicable plans, Industry and manufacturer standards and specifications in 

14 overseeing, directing and undertaking the re-roofing and repair of the Econo Lodge would cause 

damage to the Econo Lodge as described In paragraphs 11 through 12, supra. 

1 

i o 

~16 

17 Plaintiff relied on Defendants to perform their duties with reasonable care, and in 

1 g compliance with all applicable plans, regulations and industry and manufacturer standards and 

19 specifications. 

20 19. 

21 Defendants breached their duty to Plaintiff by falling to use reasonable care and failing to 

comply with all applicable plans and industry and manufacturer standards and specifications m 

o verse sir* ry QiYQCtiiiQ, ajicl uxi cicri n K tiic rs-rooiiiig axici rep sir of the Econo Loogc. 

20. 

Defendants performed their work negligently by the conduct described in paragraph 11 

26 above. 

EXHIBI T 3 WHIPPLE & DUYCK. P.C. 

Page 4 - COMPLAINT 4 of 5 .oosSlL,, TM 

Portland. OR 97201 

9 7 

2 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 93 of 102
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A c p +oT-^Q e ^ahlf = rhYf=r t anr l nrnximflt e result of Defendants' negligence, Plaintiff has 

suffered damages and is entitled to recover those damages and interest as set forth above in 

paragraphs 13 through 14. 

WHEREFORE, Plaintiff prays for the following relief: 

A. Economic damages in an amount to be proven at trial not to exceed $110,000; 

B. Interest at a rate of nine percent (9%) per annum; 

C. Plamtiff's costs and disbursements incurred herein; and 

D. For any other appropriate relief that the Court deems just and equitable. 

DATED y i this H day of March, 20 L 

WHIPPLE & DUYCK, P.C. 

Daniel L. Duyck, OSB #972529 

dduvck@whippleduyck.com 

Eric D. Wilson, OSB#044556 

T5~ 

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Of Attorneys for Plaintiff 

Trial Attorney: Daniel L. Duyck 

2 1 

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EXHIBIT 3 

5 o f 5 

WHIPPLE & DUYCK P C 

Attorneys 3t Law 

1500 SW First Ave Suite 11 rO 

Portland. OR 97201 

503 222 6004 

503 222 51S1 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 94 of 102
EXHIBIT D 

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UNITED STATES CIRCUIT COURT 

FOR THE STATE OF OREGON - MULTNOMAH COUNTY 

VITEK CONSTRUCTION, LLC, 

Plaintiff, 

vs. 

NAVIGATORS INSURANCE COMPANY, a 

foreign corporation, 

Defendant. 

No. 14CV07180 

NOTICE OF APPEARANCE 

TO: The Clerk of the Court 

AND TO: All parties and their counsel of record, 

PLEASE TAKE NOTICE that the undersigned hereby appear on behalf of Defendant 

Navigators Insurance Company (hereinafter 'Navigators") in the above-captioned matter, 

without waiving of the question or defense of: 

1) lack of jurisdiction over the subject matter; 

2) lack of jurisdiction over the person; 

3) there may be another action pending between the same parties for the same cause; 

4) insufficiency of summons or process; 

5) insufficiency of services of summons or process; 

6) Plaintiff does not have the legal capacity to sue; 

NOTICE O F APPEARANC E - 1 

S:\FILBS\OBalIoran, Larry 14O52\Ple3dir.gs\l40624 Notice of AppearanceMULTNOMAH, doc 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN., SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206) 467-5444 F: (206) 467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 96 of 102
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7) the party asserting the claim is not the real party in interest; 

8) the action may not have been commenced within the time limited by the applicable 

statute; 

9) failure to state a claim upon which relief may be granted; 

10) failure to join a necessary party under Rule 29; and 

11) improper venue. 

In addition to the foregoing, Navigators specifically reserves the right to seek 

adjudication of any and all insurance coverage issues in the United States District Court of 

Oregon, which has jurisdiction over the subject matter and parties to the coverage action, and 

which is the proper venue for adjudication of those issues. 

You are hereby directed to serve all future pleadings or papers accepting process upon the 

undersigned attorneys at the address stated below. 

DATED this 1s t day of July, 2014. 

Thomas Lether, OSB #101708 

1848 Westlake Ave N., Suite 100 

Seattle, WA 98109 

Telephone: (206) 467-5444 

Facsimile: (206) 467-5544 

tlether@letherlaw. com 

Attorneys for Plaintiff The Navigators 

Insurance Company 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN., SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206) 467-5444 F: (206) 467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 97 of 102
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CERTIFICATE OF SERVICE 

The undersigned certifies that on the date below stated they caused the foregoing to be 

served upon the below party(ies) at the address(es) and by the method(s) so indicated. 

Gary G. Norris 

1006 NE 3r d St. 

Suite A 

McMinnville, OR 97128 

Attorney for Plaintiff 

Email 

USPS 

ECF Notice 

Facsimile 

DATED this 1s t day of July, 2014. 

Hugh Engel, Paralegal 

NOTIC E OF APPEARANC E - 3 

S:\HLES\0'Halloran, Larry 14052\PleadingsU40624 Notice of Appearance -

MULTNOMAH, do c 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN., SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206)467-5444 F: (206)467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 98 of 102
EXHIBIT E 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 99 of 102
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UNITED STATES CIRCUIT COURT 

FOR THE STATE OF OREGON - MULTNOMAH COUNTY 

VITEK CONSTRUCTION, LLC, No. 14CV07180 

Plaintiff, NOTICE OF REMOVAL 

vs. 

NAVIGATORS INSURANCE COMPANY, a 

foreign corporation, 

Defendant. 

TO: The Clerk of the Court 

AND TO: Plaintiff Vitek Construction, LLC and their counsel of record, 

NOTICE IS HEREBY GIVEN that on this day, Defendant Navigators Insurance 

Company (hereinafter "Navigators") in the above-captioned matter, filed in the United States 

District Court for the District of Oregon, a Notice of Removal of such action to the United States 

District Court: for the District of Oregon at Eugene Division pursuant to USC § 1441. A copy of 

the Notice of Removal is attached hereto and served herewith. 

You are also advised that Navigators, by filing a copy of the Notice of Removal with the 

Clerk of the Circuit Court for the State of Oregon for the County of Multnomah has affected this 

NOTICE OF REMOVAL - 1 LETHER & ASSOCIATES, PLLC 

S:\FILES\0'Halloran, Larry 14052\Pleadmgs\140623 Notice of Removal -

MULTNOMAH.doc 

1848 WESTLAKE AVE N. , SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206)467-544 4 F: (206)467-554 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 100 of 102
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removal in accordance 28 U.S.C. § 1441(a). Pursuant to 28 U.S.C, § 1441(a), this Court is to no 

longer proceed with (his case unless this case is remanded back to this Court. 

Finally, the basis for removal is complete diversity of citizenship between the parties and 

the matter in controversy exceeds the sum of $75,000.00 pursuant to and in accordance with 28 

U.S.C. § 1332(a)(1). 

DATED this 3rd day of July, 2014. 

Thomas Lfether, OSB # 101708 

1848 Westlake Ave N., Suite 100 

Seattle, WA 98109 

Telephone: (206) 467-5444 

Facsimile: (206) 467-5544 

tlether@letherlaw.com 

Attorneys for Defendant The Navigators 

Insurance Company 

NOTIC E OF REMOVA L - 2 

S:\FILES\0'Halloran, Larry 14052\Pleadings\140623 Notice of Removal -

MULTNOMAH.do c 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVEN., SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206) 467-5444 F: (206) 467-5544 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 101 of 102
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CERTIFICATE OF SERVICE 

The undersigned certifies that on the date below stated they caused the foregoing to be 

served upon the below party(ies) at the address and by the method so indicated. 

Gary G. Norris 

1006 NE 3r d St. 

Suite A 

McMinnville, OR 97128 

Attorney for Plaintiff 

Email 

yC_ USPS 

_ EOF Notice 

Facsimile 

DATED this 3rd day of July, 2014. 

NOTIC E O F REMOVA L - 3 

S:\FILES\OTMLoran, Larry 14052\Pleadings\140623 Notice of Removal -

MULTNOMAH.do c 

LETHER & ASSOCIATES, PLL C 

1848 WESTLAKE AVE N., SUITE 100 

SEATTLE, WASHINGTON 98109 

P: (206)467-544 4 F: (206)467-554 4 

Case 6:14-cv-01073-MC Document 1 Filed 07/03/14 Page 102 of 102