Pac-Van claims CHS did not provide it protection against lawsuit

By John Suayan, Galveston Bureau | Oct 18, 2012

GALVESTON - Pac-Van Inc. has filed suit against CHS Inc. on allegations the defendant failed to provide it protection during a lawsuit in 2010, recent court documents say.

A lawsuit filed Oct. 17 in Galveston County District Court asserts the parties executed a lease to a work trailer in 2008 which required CHS to insure itself and Pac-Van against loss or damage to the vehicle at the defendant's expense.

An apparent on-the-job accident with the trailer resulted in litigation against Pac-Van, however, CHS, doing business as CHS Cooperatives, did not comply with contractual obligations to apply coverage and a legal defense on the plaintiff's behalf, the suit says.

According to the original petition, CHS denied any responsibility for the claims outlined in the case against Pac-Van despite "its clear assumption of the maintenance and all risks associated with the trailer itself."

Pac-Van adds it was prompted "to defend itself, to incur a substantial sum of money in attorney's fees and expenses, and to settle the underlying lawsuit for a reasonable amount to avoid the risk of trial."

The defendant has not issued any reimbursement for the settlement of the claims, the complainant insists.

Consequently, Pac-Van seeks approximately $200,000 in damages.

It is represented by attorney Karen M. Alvarado with Brothers, Sepulveda & Alvarado P.C. in Houston.

Galveston County 212th District Court Judge Susan Criss is presiding over the case.

Case No. 12-cv-2248

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