Michael E. Haglund, OSB No. 772030

Email : mhaglund @hk-law. corn

Christopher Lundberg, OSB No. 941084

email: clundbers@hk-law.com

METROFAB, INC., an Oregon corporation,

Plaintiff,

V

HAGLUND KE_L-LEY LLP

200 S.W. Market Street, Suite 1777

Portland, Oregon 9120I

Phone: (503)225-0777

Facsimile: (503) 225-1257

Attorney for Plaintiff

IN THE LINITED STATES DISTRICT COURT

DISTRICT OF OREGON

(Eugene Division)

FARMERS INSURANCE EXCHANGE, a

California corporation,

Case No.:

COMPLAINT

(28 u.S.C. $ 1332)

(Demand For Jury Trial)

Defendant.

INTRODUCTION

1. Plaintiff Metrofab, Inc. is a family-owned agricultural equipment

fabrication and repair company that also provides cold storage in a facility leased to

Metrofab in Hubbard, Oregon. This case arises out of the refusal of defendant Farmers

Insurance Exchange to provide business interruption loss coverage to Metrofab pursuant

to the terms of a property and casualty policy providing this coverage to plaintiff as a coinsured.

Haglund Kelley, LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tet (503) 225-0777 / Fax: (503) 22s-1257

Pl01

PAGE 1 _ COMPLAINT

Case 6:16-cv-00579-MC Document 1 Filed 04/04/16 Page 1 of 4
PARTIES

2. Plaintiff Metrofab, Inc. is an Oregon corporation, with its principal place

of business in Hubbard, Oregon. Plaintiff is engaged in the business of fabricating and

repairing agricultural equipment and providing cold storage for farm products at a leased

facility in Hubbard, Oregon.

3. Defendant Farmers Insurance Exchange is a California corporation

engaged in the business of commercial insurance doing business under the name

"Farmers Insurance Group. "

JURISDICTION

4. Under 28 U.S.C. $ 1332, this Court has jurisdiction by virtue of diversity

of citizenship between the parties and the amount in controversy exceeding $75,000.

BACKGROUND

5. Farmers Insurance Group sells insurance products through a national

system of insurance brokers who hold themselves out as Farmers' agents.

6. In April 2073, Metrofab worked through Farmers' agent Lennie Anderson

to secure property and casualty insurance on its behalf and that of the lessor of the

building in which plaintiff operates its business.

7. In May 2013, defendant issued a commercial insurance police insuring the

building in which plaintiff operates its business and listing plaintiff as an additional

insured in connection with coverage for business interruption loss and extra expense.

8. At all material times between li4ay 2013 and November 2075, defendant

directed billings for the premiums due on the property and casualty policy issued to

Haglund Kelley, LLP

200 SSØ Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 / Fax: (503) 225-L257

Pl01

PAGE 2 _ COMPLAINT

Case 6:16-cv-00579-MC Document 1 Filed 04/04/16 Page 2 of 4
plaintiff and its lessor solely to Metrofab and mailed those invoices to plaintiff's Hubbard

address. Plaintiff paid all premiums due to defendant in a timely manner.

9. On November 8, 2015, Metrofab's manufacturing and cold-storage facility

was destroyed by a fire.

10. As a result of the total loss of its facility, Metrofab suffered and will

continue to suffer business interruption and extra expense losses in the estimated amount

of $600,000.

1 1. On or about February 8,2076, Metrofab requested in writing that Farmers

Insurance Group confirm Metrofab's entitlement to insurance coverage for business

income loss and extra expense in connection with the November 8, 2015 fire loss. In

response, Farmers Insurance Group denied coverage.

12. Metrofab has complied with all conditions precedent to a recovery under

the insurance policy issued by defendant.

13. By denying Metrofab's business income loss and extra income claim,

Farmers Insurance Group has breached its obligations to provide insurance coverage to

Metrofab as required by defendant's insurance policy.

14. Metrofab estimates its damages at $600,000, but will prove those damages

more precisely at trial.

15. Under ORS 742.061, Metrofab is entitled to an award of its reasonable

attorneys' fees incurred in prosecuting this case.

Haglund Kelley, LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777,/ Fax: (503) 225-1257

Pl01

PAGE 3 _ COMPLAINT

Case 6:16-cv-00579-MC Document 1 Filed 04/04/16 Page 3 of 4
V/HEREFORE, Plaintiff prays for a judgment against defendant in the amount of

$600,000, plus its reasonable attorneys' fees, costs and disbursements incurred herein.

Dated this 4th day of April,2016.

HAGLUND KELLEY, LLP

By: s/ Michael E. Haelund

Michael E. Haglund, OSB No. 772030

Attorney for Plaintiff

Trial Attorney: Michael E. Haglund

Haglund Kelley, LLP

200 SW Market Street, Suite 1777

Portland, OR 97201

Tel: (503) 225-0777 / Fax: (503) 225-1257

Pl01

PAGE 4 _ COMPLAINT

Case 6:16-cv-00579-MC Document 1 Filed 04/04/16 Page 4 of 4