Professional Documents
Culture Documents
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SUMMONS
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Index No.:
COMPLAINT
Recall Total Information Management, New 10th Street LLC, affiliates of those
companies including CitiPostal, Inc., and any other entity that has received, directly or
indirectly, benefits under policy number MCP9842297-01, is a New York corporation
engaged in the insurance business with a statutory home office located at One Liberty
Place, 165 Broadway, 32nd Floor, New York, New York 10006, and a principal place of
business at 1400 American Lane, Schaumburg, Illinois.
-116556400v.1
2.
principal place of business at 100 Church Street, New York, New York.
Venue and Jurisdiction
3.
The court has jurisdiction over the defendant. The defendant regularly
conducts business in the County of New York and maintain offices in the County of New
York.
5 North 11th Street and 20 North 12th Street, Brooklyn
5.
In January 2015, New 10th Street LLC owned the 117,000 square foot
constructed in or around 1984, was a 60,000 +/- square foot warehouse that included a
pump room for sprinkler equipment. Building B, constructed in or around 1996/1997,
was a 22,000 +/- square foot warehouse and loading dock. Building C, constructed in or
around 1999/2000, consisted of two components a warehouse and a four story structure
used for offices and recreational space.
7.
Building B.
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Breezeway
Loading
Dock
Breezeway
10th Street LLC entered into a lease agreement for the building with
warehousing.
9.
building. Section 6 of the lease agreement required CitiPostal, Inc. to utilize insurance
proceeds to pay for building repairs necessitated by damage caused by fire.
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10.
10th Street LLC transferred the property to New 10th Street LLC, subject to
Recall, which maintains its principal offices at One Recall Center, 180
The New York City Fire Department [FDNY] recognizes that sprinkler
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14.
sprinkler system.
January 31, 2015 Fires
15.
On January 31, 2015 at approximately 4:26 a.m., the heat from a small fire
in the buildings breezeway caused one or two sprinkler heads to activate. The sprinkler
head activation also caused the fire alarm to transmit a signal to the monitoring company.
16.
The FDNY incident report states that the dispatch center sent first
responders to the building at 4:29 a.m. FDNY personnel arrived at 4:36 a.m. A copy of
the incident report is attached as Exhibit A.
18.
FDNY members took complete control of the building, including the area
The FDNY incident report describes the situation found upon arrival and
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21.
By closing the main water supply valve, FDNY personnel made the
FDNY personnel did not advise Recall personnel that they made the
sprinkler system inoperable, and left the building unprotected, by closing the main water
supply valve.
24.
The FDNY incident report states that all personnel left the site by 5:51
25.
a.m.
26.
the breezeway fire, a Recall worker entered Building B through a man door adjacent to
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the breezeway roll-up door on the 11th Street side of the building. As the worker moved
towards the center of the building, he saw an orange glow. The worker instructed a
second employee to call the FDNY.
27.
The buildings fire alarm system activated at 6:32 a.m., 47 minutes after
Because NYFD personnel had shut off the sprinkler systems main water
supply valve following the breezeway fire, and left the building unprotected, the fire
spread quickly.
29.
Insurance Coverage
30.
-716556400v.1
32.
2015 fire at the building. Claimed losses included, but were not limited to, demolition
expenses, debris removal expenses, building damage, business property damage, business
interruption, and emergency response expenses. Zurich continues to adjust the claim and
to date has made payments exceeding $50,000,000.
33.
Pursuant to the terms of the insurance policy, and the applicable law,
Zurich is subrogated to its insureds rights and claims if the company pays a loss caused
by the actions and/or inactions of a third party.
34.
The actions and/or inactions of the FDNY created the conditions which
caused the January 31, 2015 fire discovered at approximately 6:32 a.m.
Zurich is
therefore subrogated to its insureds rights against the City of New York.
NOTICE OF CLAIM
35.
complaint, Zurich filed the required notice with the City. Zurich demanded that the City
adjust and pay the claim. A copy of the claim notice, and the Citys acknowledgement of
the notice, are attached as Exhibit B.
36.
complaint, Recall filed a notice with the City. Recall demanded that the City adjust and
pay the claim. A copy of the claim notice, and the Citys acknowledgement of the notice,
are attached as Exhibit C.
37.
More than 30 days have elapsed since Zurich and Recall presented their
claims to the City. The City has neglected and/or refused to pay the claims.
38.
Zurich is bringing this action within one year and ninety days of the event
at issue.
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COUNT I
39.
There was a special relationship between the FDNY and Zurichs insured
based in part on the FDNY taking complete control of the building during the initial
incident.
41.
reasonable care when responding to the initial breezeway fire on January 31, 2015 at
approximately 4:29 a.m.
42.
The FDNY breached the duty owed in one or more of the following ways:
a.
b.
Failing to advise Recall personnel that they shut off the main valve
to the sprinkler system thereby rendering the system inoperable.
c.
d.
e.
f.
g.
h.
16556400v.1
43.
i.
j.
k.
The FDNYs breach of duty was a direct and proximate cause of the
By:
Christopher Konzelmann, Esquire
Attorneys for Plaintiff
7 Times Square, Suite 2900
New York, New York 10036
(212) 244-9500
-1016556400v.1
Exhibit A
16535582v.1
Exhibit B
16535583v.1
eCLAIM Receipt
You have successfully filed your claim.
By successfully filing your claim, you have certified that all information provided is true and correct to
the best of your knowledge and belief. You also understand that the willful making of any false
statement of material fact herein may subject you to criminal penalties and civil liabilities.
Please allow up to 30 days to receive an email acknowledging your claim.
If you have any questions please contact 212-669-3916.
Your Receipt Number is the following:
201500016968
You uploaded:
Claim Form: 1
Supporting Documents:0
4/29/2015 10:46 AM
Claimant Last Name:Zurich American Insurance Company
Claimant First Name:See below
Last Name:
Firm or First Name:
First Name:
Relationship to
the claimant:
Claimant Information
*Last Name:
*First Name:
See below
Address:
Address:
Address 2:
Suite 1800
City:
Philadelphia
State:
PENNSYLVANIA
Zip Code:
19103
Tax ID:
Address 2:
City:
Schaumburg
State:
ILLINOIS
Zip Code:
60196
Country:
USA
2158646334
*Email Address:
konzelmannc@whiteandwilliams.com
*Retype Email
Address:
konzelmannc@whiteandwilliams.com
Format: MM/DD/YYYY
Date of Birth:
Phone #:
Soc. Sec. #
*Date of Incident:
Time of Incident:
4:30 AM
*Location of
Incident:
Address:
Address 2:
City:
N e w York
State:
NEW YORK
Borough:
BROOKLYN (KINGS)
HICN:
(Medicare #)
Date of Death:
Phone:
*Email Address:
*Retype Email
Address:
Occupation:
City Employee? ('Yes ( No (" NA
Gender
("" Male
Property Clerk
Voucher Number:
District Attorney
Release Number:
Claimant Zurich American Insurance Company issued policy number MCP98412297-01 to Recall Holdings LTD. The
policy provided coverage to various Recall Holdings LTD affiliates and/or subsidiaries, including Recall Corporation,
the entity that operated the storage facility at 5 N 11th Street and 20 N 12th Street, Brooklyn.
The New York City Fire Department responded to a small and controlled fire at the Recall facility on January 31, 2015
at approximately 4:30 a.m. The fire had been contained by the building's zoned sprinkler system. FDNY members
disabled the entire system leaving the building without any sprinkler system protection.
FDNY members left the site approximately one hour after arrival but never fully extinguished the fire. FDNY members
did not advise of their departure nor did they take sufficient steps to make sure the building was safe, that the fire
was fully extinguished, or that the sprinkler system was returned to service. The fire rekindled, spread, and ultimately
destroyed the building. Preliminarily, this claim is based on four alleged errors. First, failing to fully extinguish the fire
before leaving the site. Second, disabling the entire sprinkler system. Third, failing to restore the sprinkler system
before leaving the site. Fourth, failing to advise the building occupants that they had disabled the entire sprinkler
system.
Recall Holdings LTD and its affiliates and/or subsidiaries insured under the policy submitted claims to Zurich
American Insurance Company seeking recovery for their losses. Claimed losses include, but are not limited to, the
building, property in the building, demolition expenses, debris removal expenses, business interruption losses,
emergency response expenses, and third party liability claims from customers, the building owner, and surrounding
businesses. This specifically includes damage to the structure owned by New 10th Street, LLC.
Zurich American Insurance Company has made or will make in the future payments that ultimately go to New 10
Street, LLC due to certain contractual relations.
The claimants submitting this notice are Zurich American Insurance Company as subrogee of Recall Holdings LTD,
Recall Corporation, Recall Total Information Management, New 10 Street, LLC, affiliates and/or subsidiaries of those
companies, and any other entity that may receive, directly or indirectly, policy benefits. Zurich American Insurance
Company may bring the claims its own name, or in the names of the entities that receive policy benefits, including
those identified in the preceding sentence.
Recall Corporation and/or its affiliated companies have submitted or will submit in the future a separate notice.
The items of
damage claimed
are (include dollar
amounts):
e claim adjustment process is ongoing. Zurich American Insurance Company may pay in excess of $60,000,000.00
among other things, damage to the building, property in the building, demolition expenses, debris removal
penses, business interruption losses, emergency response expenses, and third party liability claims from customers,
building owner, and surrounding businesses.
Witness 1 Information
Witness 4 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Witness 2 Information
Witness 5 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Witness 3 Information
Witness 6 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Police Information
DAccident Report
ElAided Report
E]Complaint Report
Insurance Information
Do you have insurance?
C Yes
1' No
C" Yes
C' No
\ `
Yes
C" No
Is payment pending?
C` Yes
C`" No
Insurance Company
Zurich American Insurance Company
Name:
1400 American Lane
Total Amount
Claimed:
$60,000,000.00
Address 2:
City:
Schaumburg
State:
ILLINOIS
Zip Code:
60196
Policy#:
MCP9842297-01
Phone #:
Deductible Amount:
Address:
Plate #:
Agent Name:
1 certify that all information contained in this notice is true and correct to the best of my knowledge and belief. l understand that the willful
making of any false statement of material fact herein will subject me to criminal penalties and civil liabilities.
Exhibit C
16551686v.1
eCLAIM Receipt
You have successfully filed your claim.
By successfully filing your claim, you have certified that all information provided is true and correct to
the best of your knowledge and belief. You also understand that the willful making of any false
statement of material fact herein may subject you to criminal penalties and civil liabilities.
Please allow up to 30 days to receive an email acknowledging your claim.
If you have any questions please contact 212-669-3916.
Your Receipt Number is the following:
201500016972
You uploaded:
Claim Form: 1
Supporting Documents:0
4/29/2015 2:14 PM
Claimant Last Name:Recall Corp.
Claimant First Name:see below
I am filing:
6i Attorney is filing.
Matthew D. Stockwell
Address:
1540 Broadway
Last Name:
First Name:
Relationship to
the claimant:
Address 2:
Claimant Information
*Last Name:
Recall Corp.
*First Name:
see below
Address:
Address 2:
City:
Norcross
State:
GEORGIA
City:
New York
State:
NEW YORK
Zip Code:
10036
Tax ID:
Phone #:
2128581000
*Email Address:
matthew.stockwell@pillsburylaw.com
*Retype Email
Address:
matthew.stockwell@pillsburylaw.com
Zip Code:
Country:
*Date of Incident:
Time of Incident:
4:30 AM
*Location of
Incident:
SA
Format: MM/DD/YYYY
Date of Birth:
Soc. Sec. #
HICN:
(Medicare #)
Date of Death:
Phone:
*Email Address:
*Retype Email
Address:
Occupation:
City Employee?
Gender
Address:
t" Female
(e
Other
Address 2:
City:
State:
Borough:
Property Clerk
Voucher Number:
District Attorney
Release Number:
NEW YORK
*Manner in which
claim arose
In the early morning hours (-4:30 am) of January 31, 2015, the Fire Department of New York (FDNY) responded to a
small fire at claimant's warehouse(s) that was located at 5 N 11th Street and 12 N 12th Street, Brooklyn, NY. The fire
was initially contained by the facility's zoned sprinkler system. While elements of the FDNY were gaining control of
the fire, others went and disabled all zone's of the warehouse's fire sprinkler system. This left the warehouse without
protection from fire.
After less than an hour, and before the fire was fully extinguished, the FDNY departed from the warehouse(s). The
FDNY gave no notice of its departure; nor did it provide any instructions or install any safeguards against further fire.
As a result, the fire regained strength and began to spread.
The FDNY was called back to the warehouse(s) but by the time the FDNY returned, the fire was uncontrollable.
Eventually, the fire consumed the entire warehouse(s) and its contents; it was a total loss. Claimants loss was, in
whole or in part, caused by the acts and/or omissions of the FDNY.
The loss of real and personal property and the resulting disruption of claimant's business has damaged claimant in an
amount in excess of $70,000,000. The loss includes the physical structure, demolition/debris removal, third-party
claims (from customers that lost materials, to their customers, to the building owner and surrounding businesses and
neighbors), rebuilding obligations and options, and administrative and incident response costs. In addition,claimant
will seek indemnity/contribution for any third-party claims brought against it.
Recall Corp. provides this notice for itself and its affiliates (including but not limited to CitiPostal, Inc. and CitiStorage,
Inc.), insurers, and assigns.
The items of
damage claimed
are (include dollar
amounts):
As of this writing, claimant has lost or incurred over $70,000,000 in damages and incurred and expected liabilities
from the loss of real and personal property, and the resulting disruption of claimant's business. This includes loss of
the physical structure; demolition/debris removal; third-party claims (from customers that lost materials, to their
customers, to the building owner and surrounding businesses and neighbors); rebuilding obligations and options;
and administrative and incident response costs. In addition, claimant anticipates that its liabilities and damages will
continue to grow as additional private parties and public agencies assert (and claimant defends) claims, assessments,
and other costs against the claimant.
Witness 1 Information
Witness 4 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Witness 2 Information
Witness 5 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Witness 3 Information
Witness 6 Information
Last Name:
Last Name:
First Name:
First Name:
Address
Address
Address 2:
Address 2:
City:
City:
State:
State:
Zip Code:
Zip Code:
Police Information
Li Accident Report
LiAided Report
Complaint Report
Insurance Information
Yes
(" No
Yes
('No
Yes
C No
(`"Yes
C" No
Is payment pending?
Plate #:
Deductible Amount:
Insurance Company Zurich Insurance
Name:
Address:
Address 2:
Tower 2 Floor 5
City:
Schaumberg
State:
ILLINOIS
Zip Code:
60196
Policy #:
MCP9842297-01
Phone #:
Total Amount
Claimed:
$70,000,000.00
Format: Do not
include "$"or ,".
Agent Name:
I certify that all information contained in this notice is true and correct to the best of my knowledge and belief. I understand that the willful
making of any false statement of material fact herein will subject me to criminal penalties and civil liabilities.