Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 1 of 8 PageID: 80

Charles D. Cole, Jr.

Newman Myers Kreines Gross Harris
14 Wall Street
New York, New York 10005-2101
(212) 619-4350
Attorneys for Defendant Raymond A. Gill, Jr.

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW JERSEY
_______________________________________
:
ACE AMERICAN INSURANCE :
COMPANY, :
:
Plaintiff, :
vs. : No. 10-cv-3305 (JAP) (DEA)
:
RAYMOND A. GILL, JR., :
:
Defendant. :
_______________________________________:

ANSWER OF RAYMOND A. GILL, JR.

Defendant Raymond A. Gill, Jr., residing at 1177 Ocean Avenue, Sea Bright,

New Jersey 07760, answering the complaint, alleges:

Background

1. Denies the allegations contained in paragraph 1, except admits that this

action is filed under the federal Declaratory Judgment Act, 28 U.S.C. § 2201, by Ace to

determine its rights and obligations under an insurance policy issued by Ace.

2. Admits the allegations contained in paragraph 2.

Jurisdiction and Venue

3. Admits the allegations contained in paragraph 3.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 2 of 8 PageID: 81

4. Denies the allegations contained in paragraph 4, except admits that venue

is proper in this district and that Valvano Insurance Agency resides in New Jersey.

5. Admits the allegations contained in paragraph 5.

6. Admits the allegations contained in paragraph 6.

The Parties

7. Admits the allegations contained in paragraph 7.

8. Admits the allegations contained in paragraph 8.

9. Denies the allegations contained in paragraph 9, except admits that

Raymond A. Gill, Jr. is a natural person who resides in New Jersey.

10. Denies the allegations contained in paragraph 10, except admits that

Valvano Insurance Agency is organized under the laws of the State of New Jersey with a place

of business in New Jersey.

11. Admits the allegations contained in paragraph 11.

12. Denies the allegations contained in paragraph 12, except admits that

Valvano was an insurance agent in New Jersey and an agent of Raymond A. Gill, Jr.

The Insurance Policy

13. Denies the allegations contained in paragraph 13, except admits that

Valvano solicited from and negotiated with Ace for a contract of marine insurance to insure the

M/Y Continuance for risks arising out of the defendant’s ownership and operation of the

vessel.

14. Denies the allegations contained in paragraph 14, except admits that

Valvano submitted a marine-insurance application to Ace.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 3 of 8 PageID: 82

15. Denies the allegations contained in paragraph 15, except admits that the

marine-insurance application contained a section entitled “Operation of Vessel.”

16. Admits the allegations contained in paragraph 16.

17. Denies the allegations contained in paragraph 17, except admits that the

defendant signed the second page of the marine-insurance application.

18. Denies the allegations contained in paragraph 18.

19. Admits the allegations contained in paragraph 19.

20. Denies the allegations contained in paragraph 20, except admits that Ace

issued an insurance binder.

21. Admits the allegations contained in paragraph 21.

22. Admits the allegations contained in paragraph 22.

23. Denies the allegations contained in paragraph 23.

24. Denies the allegations contained in paragraph 24.

25. Denies the allegations contained in paragraph 25, except admits that Ace

issued policy No. YKR Y0859076A, which became effective on February 2, 2010 and which

was to continue in force until February 2, 2011. This policy is the subject of this action.

26. Denies knowledge or information sufficient to form a belief as to the

allegations contained in paragraph 26.

27. Admits the allegations contained in paragraph 27.

28. Admits the allegations contained in paragraph 28.

29. Denies the allegations contained in paragraph 29.

30. Denies the allegations contained in paragraph 30.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 4 of 8 PageID: 83

31. Denies the allegations contained in paragraph 31.

32. Denies the allegations contained in paragraph 32.

33. Denies the allegations contained in paragraph 33.

34. Denies the allegations contained in paragraph 34.

35. Admits the allegations contained in paragraph 35.

36. Admits the allegations contained in paragraph 36.

37. Denies the allegations contained in paragraph 37.

38. Denies the allegations contained in paragraph 38.

39. Denies the allegations contained in paragraph 39, except admits that the

policy issued by Ace is governed by the general maritime law.

Facts

40. Denies the allegations contained in paragraph 40, except admits that

Valvano presented to Ace a property-loss notice.

41. Denies the allegations contained in paragraph 41.

42. Denies the allegations contained in paragraph 42, except admits that Ace

issued a reservation of rights.

43. Denies the allegations contained in paragraph 43, except admits that on

May 3, 2010 Ace wrote a declination letter to the defendant.

44. Denies the allegations contained in paragraph 44.

Answering the First Claim

45. Repeats the answers to the allegations contained in paragraph 45.

46. Admits the allegations contained in paragraph 46.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 5 of 8 PageID: 84

47. Admits the allegations contained in paragraph 47.

48. Admits the allegations contained in paragraph 48.

49. Denies the allegations contained in paragraph 49.

50. Denies knowledge or information sufficient to form a belief as to the

allegations contained in paragraph 50.

51. Denies the allegations contained in paragraph 51, except admits that the

vessel was laid up afloat.

52. Denies the allegations contained in paragraph 52.

53. Denies the allegations contained in paragraph 53.

54. Denies the allegations contained in paragraph 54.

55. Denies the allegations contained in paragraph 55.

Answering the Second Claim

56. Repeats the answers to the allegations contained in paragraph 56.

57. Denies the allegations contained in paragraph 57.

58. Paragraph 58 is a statement of law and not of fact, and no admission or

denial is required.

59. Paragraph 59 is a statement of law and not of fact, and no admission or

denial is required.

60. Denies the allegations contained in paragraph 60.

61. Denies the allegations contained in paragraph 61.

62. Denies the allegations contained in paragraph 62.

63. Denies the allegations contained in paragraph 63.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 6 of 8 PageID: 85

DEFENSES

64. Ace American Insurance Company’s request for declaratory relief should

be denied (and relief granted in favor of Raymond A. Gill, Jr.) because Ace American

Insurance Company is estopped by its conduct and the conduct of Valvano Insurance Agency

and Marine Underwriters Agency.

65. Ace American Insurance Company’s request for declaratory relief should

be denied (and relief granted in favor of Raymond A. Gill, Jr.) because of mutual mistake.

66. American Insurance Company’s request for declaratory relief should be

denied (and relief granted in favor of Raymond A. Gill, Jr.) because of the unclean hands of

Ace American Insurance Company.

67. Ace American Insurance Company’s request for declaratory relief should

be denied (and relief granted in favor of Raymond A. Gill, Jr.) because of the waiver of Ace

American Insurance Company.

68. Ace American Insurance Company’s request for declaratory relief should

be denied (and relief granted in favor of Raymond A. Gill, Jr.) because the marine-insurance

policy should be reformed to delete the so-called lay-up warranty.

CONCLUSION

Wherefore, this court should enter a judgment declaring that Ace American

Insurance Company is obligated to provide insurance coverage to Raymond A. Gill, Jr. for the

loss of the M/Y Continuance under Ace American Insurance policy number YKR Y0859076 A

and awarding interest, costs, and attorney’s fees.

Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 7 of 8 PageID: 86

Dated: New York, New York

September 22, 2010

Charles D. Cole, Jr. _________________

Charles D. Cole, Jr.
Newman Myers Kreines Gross Harris
Attorneys for Defendant Raymond A. Gill, Jr.
14 Wall Street
New York, New York 10005-2101
(212) 619-4350
Case 3:10-cv-03305-JAP -DEA Document 7 Filed 09/22/10 Page 8 of 8 PageID: 87

CERTIFICATE OF SERVICE

I certify that on September 22, 2010 the answer of Raymond A. Gill, Jr. was

served on the attorney for Ace American Insurance Company,

Marianne May, Esq.

Cozen O’Connor
45 Broadway Atrium 16th Floor
New York, New York 10006,

by filing it with the court using the CM/ECF system.

s/Charles D. Cole, Jr. _________________

Charles D. Cole, Jr.
Newman Myers Kreines Gross Harris
Attorneys for Defendant Raymond A. Gill, Jr.
14 Wall Street
New York, New York 10005-2101
(212) 619-4350