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STATE OF WISCONSIN CIRCUIT COURT DANE COUNTY SOCIETY INSURANCE, A MUTUAL COMPANY, Case No.: 150 Camelot Drive Case Code: 30201 Fond du Lac, Wisconsin 54935, Plaintiff, IRISH HEART ENTERPRISES, LLC, 701 E. Washington Avenue, Suite 104 Madison, Wisconsin 53703, CANDLE HOLDER, LLC, 1220 Femrite Drive, Suite 202 Monona, Wisconsin 53716, PAISAN’S RESTAURANT, INC., 425 N. Frances Street Madison, Wisconsin 53703, YAHARA INN, LTD., 1524 Williamson Street Madison, Wisconsin 53703, D’ESPANA FOOD, LLC, 313 W. Johnson Street Madison, Wisconsin 53703, FOOD FIGHT, INC., 511 Monona Drive Monona, Wisconsin 53716, VINTAGE II, INC., 674 S. Whitney Way Madison, Wisconsin 53711, HARVEST RESTAURANT, LLC, 21 N. Pinckney Street Madison, Wisconsin 53703, RED SUSHI 2, LLC, 316 W. Washington Avenue, Suite 100 Madison, Wisconsin 53703, RSCHENK, INC., 114 E. Main Street Madison, Wisconsin 53703, HOT SOUP, LLC, Case 2020CV002068 Document 22 Filed 10-05-2020 Page 1 of 24 FILED 10-05-2020 CIRCUIT COURT DANE COUNTY, WI 2020CV002068 Honorable Frank D. Remington Branch 8

STATE OF WISCONSIN CIRCUIT COURT DANE COUNTY · 2020. 10. 5. · Fond du Lac, Wisconsin 54935, Plaintiff, IRISH HEART ENTERPRISES, LLC, ... You are hereby notified that the plaintiff

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  • STATE OF WISCONSIN CIRCUIT COURT DANE COUNTY SOCIETY INSURANCE, A MUTUAL COMPANY, Case No.: 150 Camelot Drive Case Code: 30201 Fond du Lac, Wisconsin 54935, Plaintiff, IRISH HEART ENTERPRISES, LLC, 701 E. Washington Avenue, Suite 104 Madison, Wisconsin 53703, CANDLE HOLDER, LLC, 1220 Femrite Drive, Suite 202 Monona, Wisconsin 53716, PAISAN’S RESTAURANT, INC., 425 N. Frances Street Madison, Wisconsin 53703, YAHARA INN, LTD., 1524 Williamson Street Madison, Wisconsin 53703, D’ESPANA FOOD, LLC, 313 W. Johnson Street Madison, Wisconsin 53703, FOOD FIGHT, INC., 511 Monona Drive Monona, Wisconsin 53716, VINTAGE II, INC., 674 S. Whitney Way Madison, Wisconsin 53711, HARVEST RESTAURANT, LLC, 21 N. Pinckney Street Madison, Wisconsin 53703, RED SUSHI 2, LLC, 316 W. Washington Avenue, Suite 100 Madison, Wisconsin 53703, RSCHENK, INC., 114 E. Main Street Madison, Wisconsin 53703, HOT SOUP, LLC,

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 1 of 24FILED10-05-2020CIRCUIT COURTDANE COUNTY, WI

    2020CV002068Honorable Frank D.Remington

    Branch 8

  • 118 S. Pinckney Street Madison, Wisconsin 53703, TK RESTAURANT, LLC, 27 E. Main Street Madison, Wisconsin 53703, KING ARTHUR, LLC, 14 W. Mifflin Street Madison, Wisconsin 53703, DEJA FOOD, LLC, 1 S. Pinckney Street, Suite 107 Madison, Wisconsin 53703, RISING DOUGH, INC., 916 Williamson Street Madison, Wisconsin 53703, D’ASIA FOOD, LLC, 1 S. Pinckney Street, Suite 107 Madison, Wisconsin 53703, GOTHAM BAGELS, INC., 112 E. Mifflin Street Madison, Wisconsin 53703, JK & JK, LLC, 8 N. Paterson Street Madison, Wisconsin 53703, and, FIELD TABLE, LLC, 10 W. Mifflin Street, Suite 110 Madison, Wisconsin 53703, Involuntary Plaintiff, v. AMERICAN TRANSMISSION COMPANY, LLC, W234N2000 Ridgeview parkway Court Waukesha, Wisconsin 53188, and, ABC INSURANCE COMPANY, Defendants.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 2 of 24

  • SUMMONS

    THE STATE OF WISCONSIN, To each person named above as a Defendant:

    You are hereby notified that the plaintiff named above has filed a lawsuit or other legal action

    against you. The complaint, which is attached, states the nature and basis of the legal action.

    Within 45 days of receiving this summons, you must respond with a written answer, as that term

    is used in Chapter 802 of the Wisconsin Statutes, to the complaint. The court may reject or disregard any

    answer that does not follow the requirements of the statutes. The answer must be sent or delivered to the

    court, whose address is, 215 S. Hamilton St, Madison, Wisconsin 53703, and to the plaintiff’s attorney,

    whose address is, 839 N. Jefferson St. Ste. 200, Milwaukee, WI 53202. You may have an attorney help or

    represent you.

    If you do not provide a proper answer within 45 days, the court may grant judgment against you

    for the award of money and other legal action requested in the complaint, and you may lost the right to

    object to anything that is or may be incorrect in the complaint. A judgment may be enforced as provided

    by law. A judgment awarding money may become a lien against any real estate you own now or in the

    future, and may also be enforced by garnishment or seizure of property.

    Dated this 5th day of October 2020.

    GALANIS, POLLACK, JACOBS & JOHNSON, S.C.

    Attorneys for the Plaintiff

    Electronically Signed By: Christopher R. Steffe

    State Bar No.: 1086883 839 N. Jefferson St. Ste. 200

    Milwaukee, WI 53202 (414) 271-5400

    [email protected]

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 3 of 24

  • 1

    STATE OF WISCONSIN CIRCUIT COURT DANE COUNTY SOCIETY INSURANCE, A MUTUAL COMPANY, Case No.: 150 Camelot Drive Case Code: 30201 Fond du Lac, Wisconsin 54935,

    Plaintiff, IRISH HEART ENTERPRISES, LLC, 701 E. Washington Avenue, Suite 104 Madison, Wisconsin 53703, CANDLE HOLDER, LLC, 1220 Femrite Drive, Suite 202 Monona, Wisconsin 53716, PAISAN’S RESTAURANT, INC., 425 N. Frances Street Madison, Wisconsin 53703, YAHARA INN, LTD., 1524 Williamson Street Madison, Wisconsin 53703, D’ESPANA FOOD, LLC, 313 W. Johnson Street Madison, Wisconsin 53703, FOOD FIGHT, INC., 511 Monona Drive Monona, Wisconsin 53716, VINTAGE II, INC., 674 S. Whitney Way Madison, Wisconsin 53711, HARVEST RESTAURANT, LLC, 21 N. Pinckney Street Madison, Wisconsin 53703, RED SUSHI 2, LLC, 316 W. Washington Avenue, Suite 100 Madison, Wisconsin 53703, RSCHENK, INC., 114 E. Main Street Madison, Wisconsin 53703, HOT SOUP, LLC, 118 S. Pinckney Street

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 4 of 24FILED10-05-2020CIRCUIT COURTDANE COUNTY, WI

    2020CV002068Honorable Frank D.Remington

    Branch 8

  • 2

    Madison, Wisconsin 53703, TK RESTAURANT, LLC, 27 E. Main Street Madison, Wisconsin 53703, KING ARTHUR, LLC, 14 W. Mifflin Street Madison, Wisconsin 53703, DEJA FOOD, LLC, 1 S. Pinckney Street, Suite 107 Madison, Wisconsin 53703, RISING DOUGH, INC., 916 Williamson Street Madison, Wisconsin 53703, D’ASIA FOOD, LLC, 1 S. Pinckney Street, Suite 107 Madison, Wisconsin 53703, GOTHAM BAGELS, INC., 112 E. Mifflin Street Madison, Wisconsin 53703, JK & JK, LLC, 8 N. Paterson Street Madison, Wisconsin 53703, and FIELD TABLE, LLC, 10 W. Mifflin Street, Suite 110 Madison, Wisconsin 53703, Involuntary Plaintiffs, v. AMERICAN TRANSMISSION COMPANY LLC, W234N2000 Ridgeview Parkway Court Waukesha, Wisconsin 53188, and ABC INSURANCE COMPANY, Defendants.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 5 of 24

  • 3

    COMPLAINT

    NOW COMES the above-named Plaintiff, Society Insurance, A Mutual Company, by its

    attorneys, Christopher R. Steffe, Galanis, Pollack, Jacobs, & Johnson, S.C., and as and for its causes of

    action against American Transmissions Company LLC and ABC Insurance Company, hereby alleges and

    shows to the Court, upon information and belief, as follows:

    PARTIES

    1. Plaintiff Society Insurance, A Mutual Company (“Society”), is a domestic insurance corporation duly

    authorized to issue insurance within the State of Wisconsin and has a principal place of business located

    at 150 Camelot Drive, Fond du Lac, Wisconsin.

    2. Involuntary Plaintiff Irish Heart Enterprises, LLC, d/b/a Brass Ring (“Irish Heart”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 701 E. Washington Avenue, Suite 104, in Madison, Wisconsin. Society is not

    making any claims against Irish Heart; rather, it is named as an involuntary plaintiff pursuant to Section

    803.03(2) of the Wisconsin Statutes because Society’s rights arise from subrogation.

    3. Involuntary Plaintiff Candle Holder LLC, d/b/a The Roman Candle (“Candle Holder”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 1220 Femrite Drive, Suite 202, in Monona, Wisconsin. Society is not making any

    claims against Candle Holder; rather, it is named as an involuntary plaintiff pursuant to Section

    803.03(2) of the Wisconsin Statutes because Society’s rights arise from subrogation.

    4. Involuntary Plaintiff Paisan’s Restaurant, Inc., (“Paisan’s”) is a domestic corporation duly authorized

    to conduct business within the State of Wisconsin and has a principal place of business located at 425

    N. Frances Street in Madison, Wisconsin. Society is not making any claims against Paisan’s; rather, it

    is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin Statutes because

    Society’s rights arise from subrogation.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 6 of 24

  • 4

    5. Involuntary Plaintiff Yahara Inn, Ltd., d/b/a Mickey’s (“Yahara Inn”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 1524 Williamson Street in Madison, Wisconsin. Society is not making any claims against

    Yahara Inn; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the

    Wisconsin Statutes because Society’s rights arise from subrogation.

    6. Involuntary Plaintiff D’Espana Food LLC, d/b/a Estrellon (“D’Espana”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 313 W. Johnson Street in Madison, Wisconsin. Society is not making any claims against

    D’Espana; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin

    Statutes because Society’s rights arise from subrogation.

    7. Involuntary Plaintiff Food Fight, Inc., (“Food Fight”) is a domestic corporation duly authorized to

    conduct business within the State of Wisconsin and has a principal place of business located at 511

    Monona Drive in Monona, Wisconsin. Society is not making any claims against Food Fight; rather, it

    is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin Statutes because

    Society’s rights arise from subrogation.

    8. Involuntary Plaintiff Vintage II, Inc., (“Vintage II”) is a domestic corporation duly authorized to

    conduct business within the State of Wisconsin and has a principal place of business located at 674 S.

    Whitney Way in Madison, Wisconsin. Society is not making any claims against Vintage II; rather, it is

    named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin Statutes because

    Society’s rights arise from subrogation.

    9. Involuntary Plaintiff Harvest Restaurant, LLC, (“Harvest”) is a domestic corporation duly authorized

    to conduct business within the State of Wisconsin and has a principal place of business located at 21

    N. Pinckney Street, in Madison, Wisconsin. Society is not making any claims against Harvest; rather,

    it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin Statutes because

    Society’s rights arise from subrogation.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 7 of 24

  • 5

    10. Involuntary Plaintiff Red Sushi 2, LLC, (“Red Sushi”) is a domestic corporation duly authorized to

    conduct business within the State of Wisconsin and has a principal place of business located at 316 W.

    Washington Avenue, Suite 100, in Madison, Wisconsin. Society is not making any claims against Red

    Sushi; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin

    Statutes because Society’s rights arise from subrogation.

    11. Involuntary Plaintiff RSCHENK, Inc., d/b/a Capital Take Out (“RSCHENK”) is a domestic corporation

    duly authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 114 E. Main Street, in Madison, Wisconsin. Society is not making any claims against

    RSCHENK; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the

    Wisconsin Statutes because Society’s rights arise from subrogation.

    12. Involuntary Plaintiff Hot Soup, LLC, d/b/a Sardine (“Hot Soup”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 118 S. Pinckney Street, in Madison, Wisconsin. Society is not making any claims against

    Hot Soup; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin

    Statutes because Society’s rights arise from subrogation.

    13. Involuntary Plaintiff TK Restaurant, LLC, d/b/a Tavernakaya (“TK”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 27 E. Main Street in Madison, Wisconsin. Society is not making any claims against TK;

    rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the Wisconsin Statutes

    because Society’s rights arise from subrogation.

    14. Involuntary Plaintiff King Arthur LLC, d/b/a Wisconsin Brewing Tap Haus (“King Arthur”) is a

    domestic corporation duly authorized to conduct business within the State of Wisconsin and has a

    principal place of business located at 14 W. Mifflin Street, in Madison, Wisconsin. Society is not

    making any claims against King Arthur; rather, it is named as an involuntary plaintiff pursuant to

    Section 803.03(2) of the Wisconsin Statutes because Society’s rights arise from subrogation.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 8 of 24

  • 6

    15. Involuntary Plaintiff Deja Food, LLC, d/b/a L’Estoile Restaurant (“Deja Food”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 1 S. Pinckney Street, Suite 107, in Madison, Wisconsin. Society is not making

    any claims against Deja Food; rather, it is named as an involuntary plaintiff pursuant to Section

    803.03(2) of the Wisconsin Statutes because Society’s rights arise from subrogation.

    16. Involuntary Plaintiff Rising Dough, Inc., d/b/a Madison Sourdough (“Rising Dough”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 916 Williamson Street in Madison, Wisconsin. Society is not making any claims

    against Rising Dough; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of

    the Wisconsin Statutes because Society’s rights arise from subrogation.

    17. Involuntary Plaintiff D’Asia Food LLC, d/b/a Sujeo (“D’Asia”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 1. S. Pinckney Street, Suite 107, in Madison, Wisconsin. Society is not making any claims

    against D’Asia; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the

    Wisconsin Statutes because Society’s rights arise from subrogation.

    18. Involuntary Plaintiff Gotham Bagels, Inc., (“Gotham Bagels”) is a domestic corporation duly

    authorized to conduct business within the State of Wisconsin and has a principal place of business

    located at 112 E. Mifflin Street in Madison, Wisconsin. Society is not making any claims against

    Gotham Bagels; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the

    Wisconsin Statutes because Society’s rights arise from subrogation.

    19. Involuntary Plaintiff JK & JK LLC, d/b/a LJ’s Sports Tavern & Grill (“JK & JK”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 8 N. Paterson Street in Madison, Wisconsin. Society is not making any claims

    against JK & JK; rather, it is named as an involuntary plaintiff pursuant to Section 803.03(2) of the

    Wisconsin Statutes because Society’s rights arise from subrogation.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 9 of 24

  • 7

    20. Involuntary Plaintiff Field Table LLC, d/b/a Merci Bar Bistro and Lounge (“Field Table”) is a domestic

    corporation duly authorized to conduct business within the State of Wisconsin and has a principal place

    of business located at 10 W. Mifflin Street, Suite 110, in Madison, Wisconsin. Society is not making

    any claims against Field Table; rather, it is named as an involuntary plaintiff pursuant to Section

    803.03(2) of the Wisconsin Statutes because Society’s rights arise from subrogation.

    21. Defendant American Transmissions Company LLC (“ATC”) is a domestic corporation duly authorized

    to conduct business within the State of Wisconsin with a principal place of business located at

    W234N2000 Ridgeview Parkway Court, in Waukesha, Wisconsin. ATC’s registered agent for purposes

    of service of process within the State of Wisconsin is CT Corporation System, 301 S. Bedford Street,

    Suite 1, Madison, Wisconsin.

    22. Defendant ABC Insurance Company, as the liability insurer for ATC, is designated by a fictitious name

    pursuant to Section 807.12 of the Wisconsin Statutes.

    FACTS

    23. Society incorporates the preceding paragraphs herein by reference.

    24. At all times material and relevant hereto, ATC owned, operated, and was responsible for inspecting and

    maintaining a certain substation transformer (“Blount T4”) located at the Blount substation in Madison,

    Wisconsin.

    25. On or about July 16, 2019, and July 17, 2019, ATC performed inspections at the Blount substation,

    including of Blount T4. See Press Release 1, attached hereto and marked as Exhibit A.

    26. Either prior to or as a part of the inspections, ATC observed anomalies within the power tap changer

    contained within Blount T4. See Exhibit B attached hereto.

    27. On or about July 19, 2019, Blount T4 failed and exploded, causing significant blackouts, brownouts,

    and/or power surges in the Madison, Wisconsin area (“the explosion”).

    28. Upon investigation, ATC concluded that the power tap changer within Blount T4 failed, which

    generated combustible gases and caused the explosion. See Press Release 2, attached hereto and marked

    as Exhibit C.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 10 of 24

  • 8

    29. Prior to the explosion, ATC was aware that the power tap changer was in danger of imminent failure.

    See Press Release 2, attached hereto and marked as Exhibit C.

    30. The explosion caused an interruption of the business operations of a variety of Society’s insureds

    including, but not limited to, those listed supra.

    31. At all times material and relevant hereto, there was in full force and effect a policy of insurance between

    Society and Irish Heart that provided, among other types of insurance coverage, property damage and

    business interruption coverage to Irish Heart.

    32. After a full investigation of the facts and pursuant to the policy of insurance between Society and Irish

    Heart, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $3,852.27 for the aforementioned damage.

    33. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Candle Holder that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Candle Holder.

    34. After a full investigation of the facts and pursuant to the policy of insurance between Society and Candle

    Holder, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $1,833.18 for the aforementioned damage.

    35. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Paisan’s that provided, among other types of insurance coverage, property damage

    and business interruption coverage to Paisan’s.

    36. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    Paisan’s, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $5,350.91 for the aforementioned damage.

    37. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Yahara Inn that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Yahara Inn.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 11 of 24

  • 9

    38. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    Yahara Inn, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $3,499.89 for the aforementioned damage.

    39. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and D’Espana that provided, among other types of insurance coverage, property

    damage and business interruption coverage to D’Espana.

    40. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    D’Espana, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $3,672.00 for the aforementioned damage.

    41. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Food Fight that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Food Fight.

    42. After a full investigation of the facts and pursuant to the policy of insurance between Society and Food

    Fight, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $44,106.35 for the aforementioned damage.

    43. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Vintage II that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Vintage II.

    44. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    Vintage II, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $3,984.79 for the aforementioned damage.

    45. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Harvest that provided, among other types of insurance coverage, property damage

    and business interruption coverage to Harvest.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 12 of 24

  • 10

    46. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    Harvest, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $3,334.20 for the aforementioned damage.

    47. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Red Sushi that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Red Sushi.

    48. After a full investigation of the facts and pursuant to the policy of insurance between Society and Red

    Sushi, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $16,550.33 for the aforementioned damage.

    49. Pursuant to the policy of insurance between Society and Red Sushi, Red Sushi was required to pay a

    deductible of $1,000.00.

    50. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and RSCHENK that provided, among other types of insurance coverage, property

    damage and business interruption coverage to RSCHENK.

    51. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    RSCHENK, Society determined that it was reasonable and necessary to pay to or on behalf of its insured

    the sum of $2,092.96 for the aforementioned damage.

    52. Pursuant to the policy of insurance between Society and RSCHENK, RSCHENK was required to pay

    a deductible of $500.00.

    53. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Hot Soup that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Hot Soup.

    54. After a full investigation of the facts and pursuant to the policy of insurance between Society and Hot

    Soup, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $10,484.77 for the aforementioned damage.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 13 of 24

  • 11

    55. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and TK that provided, among other types of insurance coverage, property damage and

    business interruption coverage to TK.

    56. After a full investigation of the facts and pursuant to the policy of insurance between Society and TK,

    Society determined that it was reasonable and necessary to pay to or on behalf of its insured the sum of

    $2,237.48 for the aforementioned damage.

    57. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and King Arthur that provided, among other types of insurance coverage, property

    damage and business interruption coverage to King Arthur.

    58. After a full investigation of the facts and pursuant to the policy of insurance between Society and King

    Arthur, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $2,231.93 for the aforementioned damage.

    59. Pursuant to the policy of insurance between Society and King Arthur, King Arthur was required to pay

    a deductible of $1,000.00.

    60. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Deja Food that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Deja Food.

    61. At all times material and relevant hereto, there was in full force and effect a policy of insurance between

    Society and Rising Dough that provided, among other types of insurance coverage, property damage

    and business interruption coverage to Rising Dough.

    62. After a full investigation of the facts and pursuant to the policy of insurance between Society and Rising

    Dough, Society determined it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $12,133.63 for the aforementioned damages.

    63. Pursuant to the policy of insurance between Society and Rising Dough, Rising Dough was required to

    pay a deductible of $1,000.00.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 14 of 24

  • 12

    64. At all times material and relevant hereto, there was in full force and effect a policy of insurance between

    Society and D’Asia that provided, among other types of insurance coverage, property damage and

    business interruption coverage to D’Asia.

    65. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    D’Asia, Society determined it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $2,335.10 for the aforementioned damages.

    66. After a full investigation of the facts and pursuant to the policy of insurance between Society and Deja

    Food, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $13,184.17 for the aforementioned damage.

    67. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Gotham Bagels that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Gotham Bagels.

    68. After a full investigation of the facts and pursuant to the policy of insurance between Society and

    Gotham Bagels, Society determined that it was reasonable and necessary to pay to or on behalf of its

    insured the sum of $2,548.26 for the aforementioned damage.

    69. Pursuant to the policy of insurance between Society and Gotham Bagels, Gotham Bagels was required

    to pay a deductible of $500.00.

    70. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and JK & JK that provided, among other types of insurance coverage, property damage

    and business interruption coverage to JK & JK.

    71. After a full investigation of the facts and pursuant to the policy of insurance between Society and JK

    & JK, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $2,508.36 for the aforementioned damage.

    72. At all times material and relevant hereto, there were in full force and effect a policy of insurance

    between Society and Field Table that provided, among other types of insurance coverage, property

    damage and business interruption coverage to Field Table.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 15 of 24

  • 13

    73. After a full investigation of the facts and pursuant to the policy of insurance between Society and Field

    Table, Society determined that it was reasonable and necessary to pay to or on behalf of its insured the

    sum of $3,035.80 for the aforementioned damage.

    74. Pursuant to the policy of insurance between Society and Field Table, Field Table was required to pay

    a deductible of $1,000.00.

    FIRST CAUSE OF ACTION: NEGLIGENCE AGAINST AMERICAN TRANSMISSION COMPANY LLC

    75. Society incorporates the preceding paragraphs herein by reference.

    76. At all times material and relevant hereto, ATC was negligent by its acts and omissions leading up to

    the explosion including, but not limited to, failing to maintain, inspect, repair, and/or keep Blount T4

    in good condition.

    77. ATC’s negligence was a proximate cause of the aforementioned damages.

    SECOND CAUSE OF ACTION: LIABILITY OF ABC INSURANCE COMPANY

    78. Society incorporates the preceding paragraphs herein by reference.

    79. At all times material and relevant hereto, ABC Insurance Company had in full force and effect one or

    more policies of liability insurance that provided coverage to American Transmission Company,

    insuring it against liability for the aforementioned damages, and agreeing to pay to any and all amounts

    which it may become legally obligated to pay for the aforementioned damages. By virtue of these

    policies, ABC Insurance Company is a proper party in this action pursuant to Section 803.04 of the

    Wisconsin Statutes.

    80. ABC Insurance Company is directly liable to Plaintiff for the damages caused by its insured, pursuant

    to Section 632.24 of the Wisconsin Statutes.

    WHEREFORE, for the foregoing reasons, Society Insurance, A Mutual Company, demands

    judgment against American Transmission Company and ABC Insurance Company in the amount to be

    determined at trial, pursuant to the laws of the State of Wisconsin, together with costs, disbursements,

    attorney fees and whatever other relief the Court deems appropriate.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 16 of 24

  • 14

    Dated this 5th day of October, 2020.

    GALANIS, POLLACK, JACOBS & JOHNSON, S.C. Attorneys for Plaintiff Society Insurance, a Mutual Company

    Christopher R. Steffe State Bar No. 1086883

    P.O. Address: 839 N. Jefferson St. Ste. 200 Milwaukee, WI 53202 Tel.: (414) 271-5400 Fax: (414) 271-5571 Email: [email protected]

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 17 of 24

  • Media Line: (877) 506-6117 — [email protected] Madison substation cleanup and cause investigation underway

    Posted on July 19, 2019 Last updated July 22, 2019 at 4:40 p.m.

    PEWAUKEE, Wis. – Around 7:30 a.m. on Friday, July 19, an explosion and fire at the joint ATC/Madison Gas & Electric Blount Street Substation and East Campus Substation in Madison caused an ATC 69-kV/138-kV transformer to fail. The specific cause of the fires are not yet known.

    By 8:50 a.m. on July 19, the fires at Blount Street and East Campus substations in Madison were contained, and no injuries were reported. We also worked with MGE to restore power to the Madison area as quickly and safely as possible.

    Following the fire at the Blount Street Substation in Madison on Friday, the Department of Natural Resources has been on site coordinating with ATC and our environmental contractors during cleanup activities. The impact of the fire was largely contained within the substation. Over the weekend, the remaining insulating fluid from the damaged transformer was removed, and some fluid was recovered from outside the substation. Overall cleanup within the substation continues. The second fire at the East Campus Substation resulted in minor damage.

    An ATC project team has been formed to determine the condition of the damaged substation equipment, make necessary repairs and investigate the cause. Members of the team are on site today. As previously communicated, ATC believes the fire is related to an electrical failure. We do not believe it was related to outdoor temperatures, which were around 80 degrees at the time of the fire early Friday morning.

    ATC conducts routine inspections and maintenance on all of our equipment. Inspections were performed in the Blount Street Substation on Tuesday and Wednesday last week. As part of those inspections, we identified one component within the substation that we felt required additional review, and we made plans to analyze further this week. That component is part of our investigation. We do not want to draw any conclusions until we review all possibilities. Our goal is to determine the cause with reasonable certainty before the end of the month.

    As reported Friday afternoon, other transmission infrastructure in the greater Madison area is sufficient to accommodate electric load while repairs are being made at the Blount Street Substation.

    ATC thanks Madison’s Fire and Police departments for the quick response to maintain public safety. We also thank officials from the city of Madison and the community for their patience as we worked with Madison Gas & Electric to restore power as quickly and safely as possible.

    We will continue to provide information to the media via news releases, Twitter, and our website. We ask the media to continue to work with us to provide the most accurate information to the public.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 18 of 24

    mailto:[email protected]

  • https://madison.com/wsj/news/local/environment/atc-identifies-cause-of-july-19-transformer-explosion-part-failure-called-very-rare-event/article_1e350676-ab28-50eb-975e-39d25b5db037.html

    ALERT TOP STORY

    ATC identifies cause of July 19 transformer explosion; partfailure called 'very rare event'

    Chris Hubbuch | Wisconsin State JournalOct 3, 2019

    ACT NOW! Subscribe $5 for 5 mo.

    The Madison Fire Department battles a fire July 19 after a transformer exploded at a Madison Gas &Electric substation at 722 E. Main St. Some 13,000 homes and businesses lost power Downtownand on the Isthmus. American Transmission Co. announced Wednesday it had identified the partthat had failed, causing the explosion.

    STEVE APPS, STATE JOURNAL ARCHIVES

    ATC identifies cause of July 19 transformer explosion; partSHARE THIS

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    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 19 of 24

  • A

    +22 Photos: Explosion and fire in Downtown Madison leaves thousandswithout power

    merican Transmission Company has identified the part that caused atransformer to explode last summer in a Madison substation.

    In a news release Wednesday, ATC said a voltage regulator — known as a “loadtap changer” — within the 138-kilovolt transformer failed and ignitedcombustible gases at about 7:40 a.m. on July 19, rocking the Downtown areaand leaving thousands of customers without power on the hottest day ofthe year.

    After an annual sample of gases taken from the transformer in June showedchanges, ATC ordered a follow-up test in July, consulted an industry expert andmade additional inspections on July 15, 16 and 17, said spokeswoman AnneSpaltholz. ATC had planned to shut down the transformer for a more detailedinspection on July 22.

    Spaltholz said the part had been in service for about 35 years and had a lifeexpectancy of 50 to 60 years. She said ATC is conducting internal reviews andconsulting industry peers to determine if any work practices should be changed.

    “This is an extremely rare event,” Spaltholz said. “We’ll continue to take a look atanything surrounding this event to see if there’s anything we can do differently.”

    +7 Photos: Fire-damaged transformer moved

    Working with a consultant from the nonprofit Electric Power Research Institute,ATC engineers disassembled the damaged 130-ton transformer after it wasremoved from the Blount Street substation on Sept. 4.

    A spokesman for the Wisconsin Public Service Commission, which regulates

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    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 20 of 24

  • utilities, said the commission “will review the results and the events surroundingthe outage to see if there is a need for further involvement.”

    Spaltholz said a replacement transformer has been moved into the substation andis expected to be in service by mid-October.

    Contractors for ATC are continuing cleanup efforts including treatment of180,000 gallons of water and firefighting foam as well as an investigation into theextent of groundwater contamination from chemicals in the foam.

    The explosion triggered a smaller fire at a substation near the UW-Madisoncampus which is connected by an underground power line.

    There were no injuries reported in either fire.

    Spaltholz commended Madison Gas & Electric for restoring power later that day.

    “The bottom line — we were extremely fortunate that no one was hurt,” Spaltholzsaid. “Certainly it was an inconvenience for customers to be without power on anuncomfortable day.”

    Be the first to know

    Chris Hubbuch | Wisconsin State JournalCovers energy and the environment for the Wisconsin State Journal. Rhymes with Lubbock.Contact him at 608-252-6146.

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    ATC identifies cause of July 19 transformer explosion; partSHARE THIS

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    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 21 of 24

  • Officials under fire for not publicizing highPFAS levels in Lake Monona aftersubstation fireOct 3, 2019

    Water samples collected on July 25 at storm sewer outlets near apopular shoreline fishing area showed high concentrations of fluorinated chemicals -- broadly referredto as PFAS -- that could accumulate in fish.

    Explosion cleanup could take 2 months,street closed next to substationJul 26, 2019

    Madison officials said American Transmission Co. will keep the700 block of East Main Street closed so workers can stage theirequipment next to the Blount Street substation.

    ATC to remove transformer as part ofinvestigation into July explosionAug 31, 2019

    Using a process similar to a plane crash investigation, AmericanTransmission Company will dismantle a damaged transformer todetermine what caused the July 19 explosion that left thousands without power in Downtown Madison.

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    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 22 of 24

  • Media Line: (877) 506-6117 — [email protected] ATC provides update on Madison substation fires

    Posted on October 2, 2019 Cause traced to mechanical failure of a voltage regulating component; DNR directing environmental cleanup; new transformer to be operational this month

    PEWAUKEE, Wis. – American Transmission Co. is working on activities relating to the recent fires at Blount and East Campus substations in Madison and providing information regarding the cause, status of the environmental cleanup and efforts to restore the electrical equipment. As background, an ATC transformer caught fire at Madison Gas & Electric’s Blount Street Substation in Madison, Wisconsin, at 7:39 a.m. on Friday, July 19, 2019. A few minutes later a second fire occurred at the East Campus Substation. The two substations are electrically connected by underground cables. Both fires were extinguished by approximately 9 a.m.

    “We are grateful that no one was hurt during this incident, and we are thankful to the city of Madison, the fire department and the police for helping to keep everyone safe,” said Paul Roehr, ATC vice president of Operations. “We apologize for the inconvenience the community experienced for not having power on a hot summer day. We are thankful to Madison Gas & Electric for working with us to restore power safely and quickly that same day.”

    Cause investigation complete ATC investigated the cause of the transformer fire with assistance from an expert from the Electric Power Research Institute. EPRI is an independent, nonprofit organization that conducts research in the electricity sector.

    Together, ATC and EPRI performed a visual inspection of the damaged transformer at Blount Substation a few days after the fire and then conducted a controlled teardown of the transformer to disassemble and inspect the condition of various components to better understand the cause.

    As previously shared, prior to the fire ATC had been closely monitoring a component on the Blount transformer because of observed anomalies. ATC consulted with the component manufacturer, conducted additional inspections July 15, 16 and 17, and made plans to take the transformer out of service for a detailed internal inspection on Monday, July 22.

    “Based on our experience and consultation with the manufacturer, we took prudent action in scheduling the outage,” said Jim Vespalec, ATC director of Asset Planning and Engineering. “While the transformer suffered considerable damage in the fire, the inspection and teardown showed that the failure originated in the voltage regulating component due to mechanical failure, generating combustible gases and resulting in a fire.”

    Failures like this are extremely rare, and ATC is conducting internal reviews and consulting industry peers to identify if any changes in work practices are necessary.

    Environmental cleanup continuing ATC continues to work in coordination with and under the direction of the Department of

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 23 of 24

    mailto:[email protected]

  • Natural Resources to contain, collect and properly dispose of the transformer’s insulating fluid and the water used to extinguish the fire.

    There were approximately 18,000 gallons of insulating fluid in the transformer to insulate and cool the electrical components. A significant portion of the insulating fluid was recovered and collected into tanks for recycling under the direction of the DNR.

    The DNR also asked ATC to contain and collect water from the stormwater system that the fire department used to extinguish the fire. With high lake levels at the time of the fire, there is no reason to believe any water was discharged into the waterways. The DNR also asked ATC to test for concentration levels of PFAS, which is a chemical in firefighting foam used to contain the fire. ATC is working with the city of Madison and the DNR to treat approximately 180,000 gallons of recovered water to remove PFAS.

    Additional monitoring and coordination with the DNR will continue to determine if further action may be needed.

    New transformer in place ATC has been working to get the transmission equipment at Blount Substation back to working order. A new transformer sits on a new concrete pad in the substation, and the necessary electrical connections and tests are being completed with the goal of putting the new transformer in service by mid-October.

    Within a week of the fire, ATC made immediate transmission repairs at the East Campus Substation to make it operational. More permanent repairs are planned for 2020.

    Case 2020CV002068 Document 22 Filed 10-05-2020 Page 24 of 24

    2020-10-05 Society's Summons2020-10-05 Society's ComplaintCOMPLAINT

    Exhibit A - Press Release 1Exhibit BExhibit C - Press Release 2