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