Source: https://litigation.consusgroup.com/2017/03/29/the-insurance-empire-strikes-back-associated-electric-gas-insurance-services-limited-v-duke-energy-corporation-duk/
Timestamp: 2019-04-23 06:46:14+00:00

Document:
03-29-2017 – Associated Electric Gas Insurance Services just filed for declaratory relief in Charlotte in an apparent response to Duke’s lawsuit over coal cleanup.
AEGIS Insurance Services, Inc. is a wholly-owned subsidiary of AEGIS.
Energy”), is a Delaware corporation.
Carolina limited liability company. None of the members of Defendant Duke Energy Carolinas, LLC is a citizen of the state of New Jersey or a citizen or subject of a foreign state. All of the limited liability company member interests in Duke Energy Carolinas, LLC are directly owned by Duke Energy Corporation.
Carolinas, LLC is in Charlotte, North Carolina.
Duke Power Company (“Duke Power”).
Carolina limited liability company. Upon information and belief, none of the members of Defendant Duke Energy Progress, LLC is a citizen of the state of New Jersey or a citizen or subject of a foreign state. Upon information and belief, all of the limited liability company member interests in Duke Energy Progress, LLC are directly owned either by Duke Energy Corporation or Progress Energy, Inc. Upon information and belief, Progress Energy, Inc. is a North Carolina Corporation with its principal place of business in Raleigh, North Carolina.
Progress, LLC is in Raleigh, North Carolina.
Carolina Power & Light Company (“CP&L”).
Jurisdiction is proper in this Court pursuant to 28 U.S.C. §§ 1332 and 2201.
If AEGIS is viewed as a citizen of Bermuda, this is an action between citizens of a state and a citizen of a foreign state within the meaning of 28 U.S.C. § 1332(a)(2). Alternatively, if AEGIS is viewed as a citizen of New Jersey, this is an action between citizens of different states within the meaning of 28 U.S.C. § 1332(a)(1).
Energy Progress, LLC, are interested parties within the meaning of 28 U.S.C. §2201.
Venue is proper in this Court pursuant to 28 U.S.C § 1391(b), (c) and (d).
This is an action for declaratory judgment pursuant to 28 U.S.C. §§ 2201 for the purpose of determining a question of actual controversy between the parties as will be described more completely in this Complaint.
This action involves policies issued to Duke Power from 1979 to 1985.
All of the policies listed in paragraph 20 were delivered to Duke Power at its headquarters in Charlotte, North Carolina.
Duke Power at all times dealt with AEGIS about claims under the policies listed in paragraph 20.
Ranger Insurance Company about claims under the policies listed in paragraph 20.
AEGIS, including its wholly owned subsidiary, AEGIS Insurance Services, Inc., had actual authority to accept notice, administer claims, and pay claims under the policies listed in paragraph 20.
Duke Power understood that AEGIS, including its wholly owned subsidiary, AEGIS Insurance Services, Inc., had actual authority to accept notice, administer claims, and pay claims under the policies listed in paragraph 20.
Ranger Insurance Company to handle the claims that are the subject of this action.
This action involves policies issued to CP&L from 1981 to 1985.
All of the policies listed in paragraph 31 were delivered to CP&L at its headquarters in Raleigh, North Carolina.
CP&L at all times dealt with AEGIS about claims under the policies listed in paragraph 31.
Insurance Company about claims under the policies listed in paragraph 31.
AEGIS, including its wholly owned subsidiary, AEGIS Insurance Services, Inc., had actual authority to accept notice, administer claims, and pay claims under the policies listed in paragraph 31.
CP&L understood that AEGIS, including its wholly owned subsidiary, AEGIS Insurance Services, Inc., had actual authority to accept notice, administer claims, and pay claims under the policies listed in paragraph 31.
Since at least the 1920s, Duke Power and CP&L, and their successors, have operated power plants in North Carolina and South Carolina.
Burning coal creates coal combustion residuals (“CCRs”).
impoundments, landfills, and other areas at their power plants.
or could be, responsible for liabilities arising from CCRs.
17, 1996 and was to remain in effect for 180 days.
The Duke Power Standstill Agreement tolled all statutes of limitation while the agreement was in effect.
The Duke Power Standstill Agreement was extended several times by the parties through January 31, 2001.
In or around 1996, Duke Power estimated its costs to address CCRs at the sites identified in paragraph 46.
While the Duke Power Standstill Agreement was in effect, Duke Power demanded that AEGIS pay a substantial amount of money for its CCR liabilities.
AEGIS and Duke Power never reached an agreement about CCR liabilities.
AEGIS denied Duke Power’s claims for CCR liabilities.
AEGIS never paid money for Duke Power’s claims.
The Duke Power Standstill Agreement terminated on January 31, 2001, and the statute of limitations resumed running the next day.
responsible for liabilities arising from CCRs.
CP&L’s CCR liabilities (the “First CP&L Standstill Agreement”).
1996 and was to remain in effect for 180 days.
The First CP&L Standstill Agreement tolled all statutes of limitation while the agreement was in effect.
In or around 1996, CP&L estimated its costs to address CCRs at the sites identified in paragraph 60.
AEGIS pay a substantial amount of money for its CCR liabilities.
In 2002, CP&L expanded the negotiations to include two other CCR sites, Mayo and Asheville.
AEGIS and CP&L never reached an agreement about CCR liabilities.
AEGIS denied CP&L’s claims for CCR liabilities.
AEGIS never paid money for CP&L’s CCR claims.
Through a letter dated February 26, 2011, CP&L tried to renew its claim for the eight sites described in paragraphs 60 and 69.
June 16, 2011 and was to remain in effect for 180 days.
In or around 2011, CP&L estimated its costs to address CCRs at the sites identified in paragraph 76.
In a letter dated July 29, 2011, CP&L again demanded that AEGIS pay substantial amounts of money to resolve CP&L’s CCR claims.
In a letter dated November 16, 2011, AEGIS informed CP&L that AEGIS’s position remained unchanged.
In AEGIS’s November 16, 2011 letter, AEGIS informed CP&L that “coverage is not available” for CP&L’s CCR claims.
On or about January 17, 2012, the statute of limitations on CP&L’s CCR claims, if not already expired, resumed running.
Duke Energy’s August 29, 2016 letter addressed the same Duke Power and CP&L sites in North Carolina and South Carolina as were addressed in the earlier claims.
Duke Energy contends that its costs to remediate alleged third-party property damage arising from CCRs either exceed the retentions or limits underlying the AEGIS policies, or threaten to do so.
Duke Energy’s Form 10-K Report filed with the Securities & Exchange Commission on February 24, 2017 indicates Duke Energy Carolinas, LLC has recorded a liability for CCRs of $2.032 billion and that Duke Energy Progress, LLC has recorded a liability for CCRs of $2.209 billion.
Duke Energy notified AEGIS that coverage may be owed to Duke Energy under the terms of the policies, issued before 1987, by or on behalf of AEGIS to Duke Power and CP&L.
Paragraphs 1 through 92 are repeated and realleged as if fully set forth again.
Duke Energy seeks coverage from AEGIS for CCR-related liabilities arising from the same sites for which Duke Power had sought coverage from AEGIS for CCR-related liabilities in the 1990s, the Duke Power Ash Sites.
Duke Energy seeks coverage under the same policies under which Duke Power sought coverage in the 1990s.
AEGIS did not pay Duke Power’s CCR claims in the 1990s.
North Carolina General Statutes Section 1-52 provides that an action upon a contract, obligation or liability arising out of a contract, express or implied, must be commenced within three years.
The limitations period in North Carolina General Statutes Section 1-52 begins to run on a contract claim when the right to institute and maintain a suit arises.
Duke Power’s claim in 1996, and Duke Power was free to commence that suit no later than November 1, 2000, the day after the Duke Power Standstill Agreement terminated.
More than three years have elapsed since Duke Power’s right to institute and maintain suit against AEGIS for coverage for its CCR liabilities arising from the Duke Power Ash Sites accrued.
CCR liabilities arising from the Duke Power Ash Sites has expired.
AEGIS is entitled to a declaratory judgment pursuant to 28 U.S.C. § 2201 that Duke Energy’s claim for coverage for its CCR liabilities arising from the Duke Power Ash Sites is barred by the statute of limitations.
Paragraphs 1 through 102 are repeated and realleged as if fully set forth again.
Duke seeks coverage from AEGIS for CCR-related liabilities arising from the same sites for which CP&L had sought coverage from AEGIS for CCR-related liabilities in the 1990s, the CP&L Ash Sites.
Duke seeks coverage under the same policies under which CP&L sought coverage in the 1990s.
AEGIS did not pay CP&L’s CCR claims in the 1990s.
CP&L’s right to institute and maintain a suit with respect to its CCR liabilities arising from the CP&L Ash Sites accrued when AEGIS denied payment of CP&L’s claim in 1996, and CP&L was free to commence that suit no later than January 17, 2012, the day after the Second CP&L Standstill and Confidentiality Agreement terminated.
More than three years have elapsed since CP&L’s right to institute and maintain suit against AEGIS for coverage for its CCR liabilities arising from the CP&L Ash Sites accrued.
CCR liabilities arising from the CP&L Ash Sites has expired.
AEGIS is entitled to a declaratory judgment pursuant to 28 U.S.C. § 2201 that Duke Energy’s claim for coverage for its CCR liabilities arising from the CP&L Ash Sites is barred by the statute of limitations.
Declaring that Duke Energy’s claim for coverage from AEGIS for its CCR liabilities arising from the CP&L Ash Sites is barred by the statute of limitations.

References: § 1332
 § 1332
 §2201
 § 1391
 § 2201
 § 2201