Hermitage Insurance Company v. JVC Sandblasting & Painting, LLC

Filing 26

CONSENT JUDGMENT entered as set out. Signed by Judge Kristi K. DuBose on 1/2/2013. (mca)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
HERMITAGE INSURANCE COMPANY,
Plaintiff,
vs.
JVC SANDBLASTING & PAINTING,
LLC, and ALLIED STEEL
CORPORATION, INC.,
Defendants.

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CIVIL ACTION NO. 12-0194-KD-N

CONSENT JUDGMENT
Plaintiff Hermitage Insurance Company (Hermitage) and defendant Allied Steel Corporation
Inc., (Allied) executed and filed their joint stipulation to consent judgment. (Doc. 22) Defendant
JVC Sandblasting and Painting, LLC (JVC) did not execute the stipulation. Accordingly, it is
hereby ORDERED, ADJUDGED, and DECREED, that as to plaintiff Hermitage and defendant
Allied:
1.

That Allied retained the services of JVC to sandblast and paint

approximately 596 steelpilings that were to be used at a job site in Belle Chase,
Louisiana.
2.

That upon completion of JVC’s work, and after the steel pilings were

released into Allied’s care, custody and control, the paint applied by JVC did not
adhere to the steelpilings and began to flake and/or crack. That the steel pilings
had to repainted and reworkedby a company other than JVC at a cost of
approximately $419,000 out of whichAllied paid $113,000.
3.

That Allied asserts JVC’s work was faulty and has made a demand upon

JVC, andHermitage, for reimbursement of the costs associated with the repair
and/or replacementof JVC’s work.
4.

That Allied’s claim against JVC arises entirely out of the alleged improper

work and/orworkmanship of JVC and no claim is being made for damage to

personal property orother parts of the structure.
5.

That Hermitage issued a commercial general liability policy to JVC

bearing policy number HGL/567860-11 with effective dates ofMay 23, 2011
through May 23, 2012. [Doc. 1, Exhibit A, copy of policy].
6.

The Hermitage policy issued to JVC provides coverage for bodily injury

and propertydamage caused by an “occurrence”. The term “occurrence” is defined
in the policy as “an accident, including continuous or repeated exposure to
substantially the same generalharmful conditions.” (Doc. 1 Exhibit A)
7.

That JVC’s alleged improper application of paint to the steel pilings is not

an“occurrence” under the Hermitage policy. USF&G v. Warwick, 446 So.2d
1021(Ala.1984) and Town & Country Property, LLC v. Amerisure Ins. Co., ___
So.3d ___,2011 WL 5009777 (Ala. Oct. 21, 2011). Therefore, Allied stipulates
and agrees that the Hermitage policy does not provide coverage for its claims in
this matter.
8.

That the Hermitage policy contains several clear and unambiguous

exclusions which preclude coverage for Allied’s claim. Including, but not limited
to, Exclusion (l) Damage To Your Work, which precludes property damage to
“your work” arising out of it or any part of it. (Doc. 1 Exhibit A)
9.

That Allied stipulates and agrees that the “your work” exclusion contained

in theHermitage policy excludes all damages claimed by Allied in this matter.
10.

That Allied stipulates and agrees that it is not entitled to recover any

benefits or proceedsof the commercial general liability policy issued by
Hermitage to JVC.
11.

That the costs of this action, as to Allied only, are taxed as paid. That

Hermitage, at its discretion, may elect to seek costs against the remaining
Defendant, JVC.
DONE and ORDERED this 2nd of January, 2013.
s / Kristi K. DuBose
KRISTI K. DuBOSE
UNITED STATES DISTRICT JUDGE

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