FILED: NEW YORK COUNTY CLERK 03/17/2011

NYSCEF DOC. NO. 1

INDEX NO. 650720/2011 RECEIVED NYSCEF: 03/17/2011

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK X ACE AMERICAN INSURANCE COMPANY, as subrogee of Reed Elsevier, Inc. Plaintiff, - against FREEMAN DECORATING CO. Defendant, X
TO THE ABOVE NAMED DEFENDANTS: YOU ARE HEREBY SUMMONED to answer the complaint in this action and to serve a copy of your answer, or, if the complaint is not served with this summons, to serve a notice of appearance, on the Plaintiff s Attorneys within twenty (20) days of the service of this summons, exclusive of the day of service (or within thirty (30) days after the service is complete if this summons is not personally delivered to you within the State of New York); and in case of your failure to appear to answer, judgment will be taken against you by default for the relief demanded in the complaint.

Index No.: SUMMONS Plaintiff designates New York County as place of trial The Basis of Venue is none of the parties reside in state CP LR 503 (a) Plaintiff s place of business 2 Newton Place, Suite 350 Newton, Massachusetts

Dated: New York, New York March 16, 2011 COZEN O'CONNOR Attorneys for Plaintiffs BY: /. 4c6tal ,),67 Vincent P. Pozzuto, 45 Broadway, 23rd Floor New York, New York 10006 (212) 908-1284
DEFENDANTS' ADDRESSES:

Freeman Decorating Co. 1421 W. Mockingbird Lane Dallas, Texas

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK X ACE AMERICAN INSURANCE COMPANY, as subrogee of Reed Elsevier, Inc. Plaintiff, - against FREEMAN DECORATING CO. Defendant, X Plaintiff, Ace American Insurance Company as subrogee of Reed Elsevier, Inc., by its attorneys, COZEN O'CONNOR, complaining of Defendant Freeman Decorating Co., alleges the following upon information and belief: Index No.:

COMPLAINT

PARTIES
1. The Plaintiff, Ace American Insurance Company, as subrogee of Reed Elsevier,

Inc. (hereinafter "Ace"), is a foreign corporation duly organized and existing under the laws of the State of Pennsylvania, having a principal place of business located at 436 Walnut Street, Philadelphia, Pennsylvania, and at all times relevant hereto, was authorized to conduct business as an insurance company in the State of New York, including the issuing of policies of insurance. 2. The Plaintiff's subrogor, Reed Elsevier, Inc., (hereinafter "Reed"), is a foreign

corporation duly organized and existing under the laws of Massachusetts, with a principal place of business at 2 Newton, Place, Suite 350, Newton, Massachusetts. 3. The Defendant, Freeman Decorating Co., (hereinafter "Freeman"), is a foreign

corporation duly organized and existing under the laws of the State of Iowa, with a principal place of business located at 1421 W. Mockingbird Lane, Dallas, Texas. 4. Freeman regularly transacts business in New York State.

5. State. 6.

Freeman derives substantial revenue from its transaction of business in New York

Freeman expected or reasonably should have expected its actions to have

consequences in New York State.

FACTS

7.

Reed is in the business of providing professional information to the Science,

Medical, Legal, Risk Management and Business communities. 8. to Reed. 9. On or about May 15, 1998, Reed entered into a contract with Freeman for Plaintiff Ace, an insurance company, issued a commercial general liability policy

Freeman to provide decorating services for various events conducted by Reed. The term of the contract was through October 31, 2006. 10. On or about November 3, 2005, Reed entered into an agreement with New York

Convention Center Operating Corporation whereby Reed was granted a license to utilize the Jacob K. Javits Convention Center for the purpose of conducting an event to be called the International Vision Expo. 11. On or about April 2, 2006, Dennis Hufford, a Freeman employee, was injured

during the course of his work for Freeman, and during the course of Freeman providing decorating services to Reed for the International Vision Expo. event, pursuant to Reed's contract with Freeman. 12. Dennis Hufford and his wife Lauren Hufford filed a lawsuit arising out of the

accident of April 2, 2006, (Hufford v. New York Convention Center Operating Corporation et aL, Index No.: 108846/06), venued in Supreme Court of the State of New York, New York

County, naming as defendants New York Convention Center Operating Corporation, New York Convention Center Development Corporation, Reed Elsevier, Inc. and Reed Exhibitions USA. 13. Pursuant to its ageement with New York Convention Center Operating

Corporation, Reed was obligated to defend, hold harmless and indemnify New York Convention Center Operating Corporation from all claims for any injury to any person arising in any way in connection with the use and enjoyment by Reed of the Jacob K. Javits Convention Center. 14. New York Convention Center Operating Corporation settled the direct claims

asserted against it in the Hufford lawsuit for $1,600,000. 15. In order to fulfill its contractual obligation to New York Convention Center

Operating Corporation, Reed agreed to pay the Huffords $1,600,000 on behalf of the New York Convention Center Operating Corporation. 16. Pursuant to its obligations under the aforementioned policy of insurance, plaintiff

Ace has paid and/or will pay the Huffords one million six hundred thousand dollars ($1,600,000), in order to cover Reed's contractual liability to the New York Convention Center Operating Corporation, and is therefore entitled to recover the same amount from Freeman pursuant to its legal and equitable rights of subrogation.

FIRST CAUSE OF ACTION CONTRACTUAL INDEMNIFICATION

17. Pursuant to the contract between Reed and Freeman, Freeman is obligated to

indemnify and hold Reed harmless from any claims arising out of or occasioned by the performance by Freeman, its subcontractors or other third parties otherwise acting under the direction of Freeman of Freeman's obligations under the contract. 18. On April 2, 2006, Dennis Hufford was employed by Freeman and performing

work for Freeman pursuant to Freeman's contract with Reed when he was injured.

19.

Dennis Hufford and his wife brought suit against, amongst others, New York

Convention Center Operating Corporation for his injuries. 20. Pursuant to the contract between New York Convention Center Operating

Corporation and Reed, Reed was obligated to defend, hold harmless and indemnify New York Convention Operating Corporation for the Huffords' claims. 21. Ace, as the commercial general liability insurer for Reed, paid directly to the

Huffords $1,600,000, in order to cover Reed's contractual indemnity liability to the New York Convention Center Operating Corporation. 22. Ace, as the subrogee of Reed, is now entitled to recover from Freeman

$1,600,000, in addition to attorneys' fees and expenses incurred, pursuant to Freeman's contractual liability to Reed. SECOND CAUSE OF ACTION COMMON LAW INDEMNIFICATION/CONTRIBUTION 23. The damages sustained by Huffords were due to the primary and active

negligence, carelessness and recklessness of defendant Freeman and Ace a/s/o Reed is entitled to common law indemnification and/or contribution from Freeman for all or part the one million six hundred thousand dollars ($1,600,000) Ace paid to the Huffords in order to cover Reed's contractual liability to the New York Convention Center Operating Corporation, in addition to attorneys' fees and expenses incurred. WHEREFORE, Plaintiff requests that this Court enter judgment against the Defendant for the amount of One Million and Six Hundred Thousand Dollars ($1,600,000), together with

pre-judgment and post-judgment interest, attorney's fees, the cost of this suit and such other relief as this Court deems just and proper. Dated: New York, New York March 16, 2011 Respectfully submitted, COZEN O'CONNOR Attorneys for Plaintiff

BY: Vincent P. Pozzuto 45 Broadway New York, New York 10006 (212) 908-1284