Preview
FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022
EXHIBIT A
FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022
North American Financial Lines Claims
82 Hopmeadow Street, Simsbury, CT 06070, United States
Phone: (860) 408-2409
E-mail: robbie.gerrick@chubb.com
February 4, 2022
Via E-Mail
AWeisbach@sigclean.com
Andrew Weisbach
Signature Cleaning Services, Inc.
231 W. 29th Street, Suite 607
New York, NY 10001
Re: Insured: Signature Cleaning Services Inc. dba Global Services & Signature
Cleaning Service
Policy No.: 8225-4168
Claim No.: KY22K2065074
Company: Federal Insurance Company
Subject: Alejandra Ramales et al.
Dear Mr. Weisbach:
This letter follows our previous correspondence acknowledging receipt of this matter on behalf of Federal
Insurance Company (“Chubb” or the “Company”). As set forth below, Chubb respectfully declines coverage for
this matter as the Complaint does not allege an Employment Claim under a current Chubb Policy. Please note,
that in addition to reviewing this matter for coverage under the most recent Policy, we have also analyzed this
matter as it relates to the prior action defended by Chubb styled, Rodney J. Sanchez, et al. v. Signature Cleaning
Services, Inc., et al., Claim No. 427282 (“Sanchez”). This letter does not modify the terms and conditions of the
Policy.
The Claim
On December 3, 2021, Chubb received notice of a draft lawsuit (the “Complaint”) to be brought by eight (8)
Plaintiffs, styled, Alexandra Ramales, et al. on behalf of themselves and all others similarly situated v. Signature
Cleaning Services, Inc, and Andrew Weisbach. The Complaint alleges wage and hour claims in violation of the
Fair Labor Standards Act and New York Labor Law for (i) altering time records to shave three (3) to five (5)
hours of work each week; (ii) directing Plaintiffs to perform off-the clock work; (iii) refusing to pay Plaintiffs for
time they spent traveling between the Defendants’ jobsites during the workday; (iv) failing to provide
uninterrupted meal breaks; and, (v) refusing to pay Plaintiffs for the additional hours they worked through their
breaks. The potential Plaintiffs include Alejandra Ramales, Laura Rodriquez, Jacinta Andrade, Jefferson
Rivandeneira, Elsa Simbana, Pedro De Law Cruz, Lemuel Morales, and Daniel Lara. Mr. Lemuel Morales and
Ms. Laura Rodriquez also assert unlawful retaliation and discrimination claims.
On January 20, 2022, Chubb was subsequently notified of a draft amended lawsuit (the “Amended Complaint”),
dated January 19, 2022 which added four potential Plaintiffs to the action, Leticia Valdez, Hector V. Morales
(a/k/a Omar Fernandez), Nestor Rojas Nunez and Ines Valencia (a/k/a Wendy Ortiz) and alleging similar wage
and hour violations. The Amended Complaint realleges the unlawful retaliation and discrimination claims by Mr.
Morales and Ms. Rodriquez. The Plaintiffs seek damages to include unpaid wages, injunctive relief, restraining
orders, interest, cost and attorney’s fees, compensatory, liquidated, and punitive damages.
FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022
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The Policy
Chubb issued ForeFront Portfolio, Policy No. 8225-4168 (the “Policy”) to Signature Cleaning Services Inc. dba
Global Services & Signature Cleaning Service for the period of May 12, 2018 to May 12, 2019. The Policy has a
limit of liability of $1 million, subject to a $20,000 self-insured retention. The Policy also contains an additional
Insuring Clause pursuant to Employment Practices Liability Coverage (“EPLC”) Section, Endorsement No.3,
which provides a $100,000 Wage and Hour Defense Cost Sublimit for Wage and Hour Claims.
Analysis of Provisions Relevant to the Claim
I. Coverage for the Complaint & Amended Complaint under the Policy:
Insuring Clause I (A) of the Employment Practices Liability Coverage (“EPLC”) Section provides coverage for
Loss on account of any Employment Claim firstmade against the Insureds during the Policy Period, or any
applicable Extended Reporting Period, for Wrongful Acts.
Employment Claim means, in relevant part, a written demand for monetary damages or non-monetary relief,
including but not limited to a written demand for reinstatement, reemployment or re-engagement; or a civil
proceeding commenced by the service of a complaint or similar pleading which is brought and maintained by or
on behalf of any past, present or prospective Employee against any Insured for a Wrongful Act in connection with
any actual or alleged Breach of Employment Contract, Discrimination, Harassment, Retaliation, Workplace Tort
or Wrongful Employment Decision. See EPLC Section II (G), Definitions, Employment Claim.
Although Mr. Morales and Ms. Rodriquez assert Employment Practices Wrongful Acts of unlawful retaliation
and discrimination in the Complaints, there is no coverage for the Complaint or the Amended Complaint because
the Claim was first made after the expiration date of the Policy (May 12, 2019). As the Claim was first made
outside of the Policy Period, this matter fails to trigger Insuring Clause I (A) and thus no defense or
indemnification will be provided.
We also note Endorsement No. 3 of the EPLC Section amends the Policy to provide an additional Insuring Clause
and Defense Costs sublimit of $100,000 for Wage and Hour Claims first made against such Insureds during the
Policy Period. Wage and Hour Claim is defined, in relevant part, as a written demand for monetary damages or
non-monetary relief; or a civil proceeding commenced by the service of a complaint or similar pleading; which
is brought and maintained by or on behalf of any past, present or prospective Employee, Executive or Independent
Contractor, against any Insured for a Wage and Hour Violation.
The Complaint and Amended Complaint both contain Wage and Hour Violations as defined and constitute a
Wage and Hour Claim under the Policy. However, as previously noted, the Claim was first made outside of the
Policy Period and thus this matter fails to trigger the Insuring Clause under Endorsement No. 3. Therefore, no
defense will be provided by Chubb under the Defense Costs sublimit.
II. Coverage for the Complaint & Amended Complaint as they relate to the Sanchez matter:
As you know, the Sanchez matter contained allegations of Wage and Hour Violations as defined by EPLC
Endorsement No. 3. Thus, the Policy afforded defense coverage for Sanchez as the Wage and Hour Claim was
made and reported within the Policy Period. We note Sanchez did not include any allegations of Employment
Practices Wrongful Acts to constitute an Employment Claim under the Policy. We further note Endorsement No.
3 does not delete or amend the definition of Claim or Employment Claim under the Policy. As such, Sanchez is
not an Employment Claim or Claim as defined.
FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022
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Related Claims as defined in General Terms and Conditions Section II (R) means all Claims for Wrongful Acts
based upon, arising from, or in consequence of the same or related facts, circumstances, situations, transactions
or events or the same or related series of facts, circumstances, situations, transactions or events. As previously
discussed, Wage and Hour Claims as defined by Endorsement No. 3 do not constitute a Claim or Employment
Claim as defined by the Policy. As such, while the Complaint and Amended Complaint meet the definition of
both an Employment Claim and Wage and Hour Claim, they cannot be considered a Related Claim with respect
to Sanchez which is not a Claim under the Policy.
Because the Complaint and Amended Complaint were not made during the Policy period and are not related to
the Sanchez matter, coverage is precluded in its entirety for this matter. We recommend the Insured notify its
current EPL carrier as well as its prior and current D&O carrier.
This letter addresses only those Policy provisions that appear pertinent at this time in light of the facts currently
known and available to us, without accepting or implying that the allegations have any factual or legal merit. We
reserve the right to review all coverage issues and not merely those raised by any additional information or
evidence. By limiting Policy references to those cited, we do not waive any other Policy provisions. If you have
any additional information that you believe may have bearing upon our analysis of coverage in this matter, please
advise us immediately.
Should you wish to take this matter up with the New York State Department of Financial Services, you may file
with the Department either on its website at http://www.dfs.ny.gov/consumer/fileacomplaint.htm or you may
write to or visit the Consumer Assistance Unit, Financial Frauds and Consumer Protection Division, New York
State Department of Financial Services, at: One State Street, New York, NY 10004; One Commerce Plaza,
Albany, NY 12257; 1399 Franklin Avenue, Garden City, NY 11530; or Walter J. Mahoney Office Building, 65
Court Street, Buffalo, NY 14202.
We hope this letter was helpful in identifying potential coverage issues for this Claim. If you have any
questions, please do not hesitate to contact me.
Sincerely,
RTGerrick
Robbie Gerrick
Claim Director, Employment Practices Liability
Chubb North American Financial Lines Claims
cc:
victoria.troccoli@advocatebrokerage.com
glenn.binday@advocatebrokerage.com
Preview
FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022 EXHIBIT A FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022 North American Financial Lines Claims 82 Hopmeadow Street, Simsbury, CT 06070, United States Phone: (860) 408-2409 E-mail: robbie.gerrick@chubb.com February 4, 2022 Via E-Mail AWeisbach@sigclean.com Andrew Weisbach Signature Cleaning Services, Inc. 231 W. 29th Street, Suite 607 New York, NY 10001 Re: Insured: Signature Cleaning Services Inc. dba Global Services & Signature Cleaning Service Policy No.: 8225-4168 Claim No.: KY22K2065074 Company: Federal Insurance Company Subject: Alejandra Ramales et al. Dear Mr. Weisbach: This letter follows our previous correspondence acknowledging receipt of this matter on behalf of Federal Insurance Company (“Chubb” or the “Company”). As set forth below, Chubb respectfully declines coverage for this matter as the Complaint does not allege an Employment Claim under a current Chubb Policy. Please note, that in addition to reviewing this matter for coverage under the most recent Policy, we have also analyzed this matter as it relates to the prior action defended by Chubb styled, Rodney J. Sanchez, et al. v. Signature Cleaning Services, Inc., et al., Claim No. 427282 (“Sanchez”). This letter does not modify the terms and conditions of the Policy. The Claim On December 3, 2021, Chubb received notice of a draft lawsuit (the “Complaint”) to be brought by eight (8) Plaintiffs, styled, Alexandra Ramales, et al. on behalf of themselves and all others similarly situated v. Signature Cleaning Services, Inc, and Andrew Weisbach. The Complaint alleges wage and hour claims in violation of the Fair Labor Standards Act and New York Labor Law for (i) altering time records to shave three (3) to five (5) hours of work each week; (ii) directing Plaintiffs to perform off-the clock work; (iii) refusing to pay Plaintiffs for time they spent traveling between the Defendants’ jobsites during the workday; (iv) failing to provide uninterrupted meal breaks; and, (v) refusing to pay Plaintiffs for the additional hours they worked through their breaks. The potential Plaintiffs include Alejandra Ramales, Laura Rodriquez, Jacinta Andrade, Jefferson Rivandeneira, Elsa Simbana, Pedro De Law Cruz, Lemuel Morales, and Daniel Lara. Mr. Lemuel Morales and Ms. Laura Rodriquez also assert unlawful retaliation and discrimination claims. On January 20, 2022, Chubb was subsequently notified of a draft amended lawsuit (the “Amended Complaint”), dated January 19, 2022 which added four potential Plaintiffs to the action, Leticia Valdez, Hector V. Morales (a/k/a Omar Fernandez), Nestor Rojas Nunez and Ines Valencia (a/k/a Wendy Ortiz) and alleging similar wage and hour violations. The Amended Complaint realleges the unlawful retaliation and discrimination claims by Mr. Morales and Ms. Rodriquez. The Plaintiffs seek damages to include unpaid wages, injunctive relief, restraining orders, interest, cost and attorney’s fees, compensatory, liquidated, and punitive damages. FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022 Page 2 The Policy Chubb issued ForeFront Portfolio, Policy No. 8225-4168 (the “Policy”) to Signature Cleaning Services Inc. dba Global Services & Signature Cleaning Service for the period of May 12, 2018 to May 12, 2019. The Policy has a limit of liability of $1 million, subject to a $20,000 self-insured retention. The Policy also contains an additional Insuring Clause pursuant to Employment Practices Liability Coverage (“EPLC”) Section, Endorsement No.3, which provides a $100,000 Wage and Hour Defense Cost Sublimit for Wage and Hour Claims. Analysis of Provisions Relevant to the Claim I. Coverage for the Complaint & Amended Complaint under the Policy: Insuring Clause I (A) of the Employment Practices Liability Coverage (“EPLC”) Section provides coverage for Loss on account of any Employment Claim firstmade against the Insureds during the Policy Period, or any applicable Extended Reporting Period, for Wrongful Acts. Employment Claim means, in relevant part, a written demand for monetary damages or non-monetary relief, including but not limited to a written demand for reinstatement, reemployment or re-engagement; or a civil proceeding commenced by the service of a complaint or similar pleading which is brought and maintained by or on behalf of any past, present or prospective Employee against any Insured for a Wrongful Act in connection with any actual or alleged Breach of Employment Contract, Discrimination, Harassment, Retaliation, Workplace Tort or Wrongful Employment Decision. See EPLC Section II (G), Definitions, Employment Claim. Although Mr. Morales and Ms. Rodriquez assert Employment Practices Wrongful Acts of unlawful retaliation and discrimination in the Complaints, there is no coverage for the Complaint or the Amended Complaint because the Claim was first made after the expiration date of the Policy (May 12, 2019). As the Claim was first made outside of the Policy Period, this matter fails to trigger Insuring Clause I (A) and thus no defense or indemnification will be provided. We also note Endorsement No. 3 of the EPLC Section amends the Policy to provide an additional Insuring Clause and Defense Costs sublimit of $100,000 for Wage and Hour Claims first made against such Insureds during the Policy Period. Wage and Hour Claim is defined, in relevant part, as a written demand for monetary damages or non-monetary relief; or a civil proceeding commenced by the service of a complaint or similar pleading; which is brought and maintained by or on behalf of any past, present or prospective Employee, Executive or Independent Contractor, against any Insured for a Wage and Hour Violation. The Complaint and Amended Complaint both contain Wage and Hour Violations as defined and constitute a Wage and Hour Claim under the Policy. However, as previously noted, the Claim was first made outside of the Policy Period and thus this matter fails to trigger the Insuring Clause under Endorsement No. 3. Therefore, no defense will be provided by Chubb under the Defense Costs sublimit. II. Coverage for the Complaint & Amended Complaint as they relate to the Sanchez matter: As you know, the Sanchez matter contained allegations of Wage and Hour Violations as defined by EPLC Endorsement No. 3. Thus, the Policy afforded defense coverage for Sanchez as the Wage and Hour Claim was made and reported within the Policy Period. We note Sanchez did not include any allegations of Employment Practices Wrongful Acts to constitute an Employment Claim under the Policy. We further note Endorsement No. 3 does not delete or amend the definition of Claim or Employment Claim under the Policy. As such, Sanchez is not an Employment Claim or Claim as defined. FILED: NEW YORK COUNTY CLERK 03/02/2022 05:03 PM INDEX NO. 650985/2022 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/02/2022 Page 3 Related Claims as defined in General Terms and Conditions Section II (R) means all Claims for Wrongful Acts based upon, arising from, or in consequence of the same or related facts, circumstances, situations, transactions or events or the same or related series of facts, circumstances, situations, transactions or events. As previously discussed, Wage and Hour Claims as defined by Endorsement No. 3 do not constitute a Claim or Employment Claim as defined by the Policy. As such, while the Complaint and Amended Complaint meet the definition of both an Employment Claim and Wage and Hour Claim, they cannot be considered a Related Claim with respect to Sanchez which is not a Claim under the Policy. Because the Complaint and Amended Complaint were not made during the Policy period and are not related to the Sanchez matter, coverage is precluded in its entirety for this matter. We recommend the Insured notify its current EPL carrier as well as its prior and current D&O carrier. This letter addresses only those Policy provisions that appear pertinent at this time in light of the facts currently known and available to us, without accepting or implying that the allegations have any factual or legal merit. We reserve the right to review all coverage issues and not merely those raised by any additional information or evidence. By limiting Policy references to those cited, we do not waive any other Policy provisions. If you have any additional information that you believe may have bearing upon our analysis of coverage in this matter, please advise us immediately. Should you wish to take this matter up with the New York State Department of Financial Services, you may file with the Department either on its website at http://www.dfs.ny.gov/consumer/fileacomplaint.htm or you may write to or visit the Consumer Assistance Unit, Financial Frauds and Consumer Protection Division, New York State Department of Financial Services, at: One State Street, New York, NY 10004; One Commerce Plaza, Albany, NY 12257; 1399 Franklin Avenue, Garden City, NY 11530; or Walter J. Mahoney Office Building, 65 Court Street, Buffalo, NY 14202. We hope this letter was helpful in identifying potential coverage issues for this Claim. If you have any questions, please do not hesitate to contact me. Sincerely, RTGerrick Robbie Gerrick Claim Director, Employment Practices Liability Chubb North American Financial Lines Claims cc: victoria.troccoli@advocatebrokerage.com glenn.binday@advocatebrokerage.com