First Specialty Insurance Corp. v. Epic Management Inc., et al.

Date: March 27, 2006

Verdict/Settlement (breakdown): $340,000 settlement

State: New Jersey

Background: In April 2003, Rowan University in Glassboro, N.J., was in the process of constructing a new science building. Before that, The Frank A. McBride Co. Inc. and U.S. Process Inc. had engaged in various construction activities using components supplied by Spears Manufacturing Co. On April 1, 2003, various construction activities were being undertaken on the fourth floor of the new science building by McBride and U.S. Process and under the supervision and direction of Epic Management Inc. when a catastrophic water leak occurred on the floor and caused substantial property damage to the entire building. Upon investigation, the water leak was believed to have occurred when the PVC union coupling, manufactured and sold by Spears Manufacturing Co. and part of the deionization system, failed.

The water leak resulted in damages in excess of $300,000, which was paid by First Specialty Insurance Corp. to Rowan. First Specialty is the subrogee of Rowan.

First Specialty sued Epic Management, McBride, U.S. Process and Spears on Nov. 19, 2004, in the U.S. District Court for the District of New Jersey.

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