CHARLESTON – The City of South Charleston has sued four companies, saying they didn’t properly help when equipment failed at the city’s Community Center and Ice Arena.
The city filed its complaint in Kanawha Circuit Court against Johnson Controls Inc., A.O. Smith Corporation, Ferguson Enterprises LLC and Bedivere Insurance Company doing business as OneBeacon Insurance Company.
According to the complaint, the city has purchased a property insurance policy through OneBeacon since 2010 for equipment damage, including equipment at the South Charleston Community Center and the South Charleston Ice Arena.
In 2013, the city entered an agreement with Johnson Controls for maintenance on equipment at the two facilities.
In the fall of 2014, the steam boiler at the Community Center needed replaced. The city bought a replacement hot water boiler made by A.O. Smith, distributed by Ferguson Enterprises, installed by Johnson Controls and insured by OneBeacon. It included a five-year warranty. In August 2019, the new boiler broke.
The city says A.O. Smith, Ferguson Enterprises and Johnson Controls all deny liability and responsibility to replace the boiler under the warranties. As a result, the city had to purchase another boiler for almost $25,000.
In addition, the city says the compressor at the Ice Arena needed to be rebuilt in 2017, and the chiller evaporator needed to have its tubes replaced. The city says Johnson Controls confirmed the rebuild and tube replacement was covered under the maintenance agreement, but it says the company refused to perform the work.
After that, the city terminated the agreement with Johnson Controls.
On January 23, 2020, the chiller evaporator for the Ice Arena broke. The city says that happened because of Johnson Controls’ refusal to do the maintenance work. When the chiller evaporator broke, the ammonia in the tubes contaminated the entire system, and the cost to replace the system will be nearly $370,000. The city says OneBeacon has denied the claim.
The city accuses the defendants of breach of implied warranty and express warranty regarding the boiler issue. It also accuses Johnson Controls of breach of contract and negligence regarding the chiller evaporator and OneBeacon of denial of the insurance claim, bad faith and violations of the Unfair Trade Protection Act.
It seeks compensatory damages for the cost of the replacement of the boiler at the Community Center as well as the cost of the replacement of the chiller evaporator, compressor, condenser, heat exchangers, other accessory parts and equipment and labor at the Ice Arena. It also seeks damages for loss on income because of the closure of the Ice Arena from January 23, 2020, to March 15, 2020. It also seeks punitive damages from OneBeacon as well as pre- and post-judgment interest, attorney fees, court costs and other relief.
South Charleston is being represented by Michael J. Del Guidice of Ciccarello, Del Guidice & LaFon in Charleston. The case has been assigned to Circuit Judge Tera Salango.
Kanawha Circuit Court case number 20-C-1046