Free Answer to Complaint - District Court of Delaware - Delaware

Case 1:06—cv—00763-G|\/IS Document 12 Filed 01/23/2007 Page 1 of 4
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
CONTINENTAL CASUALTY COMPANY, §
Plaintiff, g
v. g Case N0. 06-763-GMS
GOOD GUYS, INC. and g
COMPUSA, INC., §
Defendants. g
ANSWER OF GOOD GUYS, INC. AND COMPUSA, INC.
Defendants, Good Guys, Inc. (‘“Good Guys") and CompUSA, Inc. ("CompUSA"), make
the following response to Plaintiffs Complaint.
In response to the numbered paragraphs of the Complaint, Defendants CompUSA and
Good Guys respond as follows:
1. CompUSA and Good Guys are without knowledge or information sufficient to
form a belief as to the truth of the averments in paragraph l.
2. CompUSA and Good Guys admit the averments of the first sentence in paragraph
2. CompUSA and Good Guys admit that CompUSA purchased the stock of Good Guys in or
about September 2003, and deny the remaining averments of the second sentence of paragraph 2.
3. CompUSA and Good Guys admit the first sentence in paragraph 3 but deny the
remaining avennents of paragraph 3.
4. CompUSA and Good Guys admit the averments of paragraph 4.
5. CompUSA and Good Guys admit the averments of paragraph 5.
6. Paragraph 6 of the Complaint repeats, restates, and realleges the averments of
paragraphs 1-5 and does not require an admission or denial; however, to the extent that this
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Case 1 :06—cv—00763-GIVIS Document 12 Filed 01/23/2007 Page 2 of 4
paragraph contains factual averments, CompUSA and Good Guys deny the trtrth of the
averments in paragraph 6.
7. CompUSA and Good Guys admit the averments of paragraph 7.
8. CompUSA and Good Guys admit the Policies provided insurance coverage of
certain liabilities of Good Guys. CompUSA and Good Guys deny the remaining averments of
paragraph 8.
9. CompUSA and Good Guys deny the averments contained in paragraph 9.
10. CompUSA and Good Guys admit that the Policies provided insurance coverage of
certain liabilities of Good Guys. CompUSA and Good Guys are without knowledge or
information sufficient to form a belief as to the truth of the remaining averments of paragraph 10.
11. CompUSA and Good Guys admit that the Policies required premium payments,
identified deductible amounts, and provided for premium audits. CompUSA and Good Guys are
without knowledge or information sufficient to form a belief as to the truth of the remaining
averments of paragraph 11.
12. CompUSA and Good Guys admit that the Policies provided insurance coverage of
certain liabilities of Good Guys. CompUSA and Good Guys deny the remaining averrnents of
the first sentence of paragraph 12. CompUSA and Good Guys deny the averments of the second
sentence of paragraph 12. CompUSA and Good Guys admit the averments contained in the third
and fourth sentences of paragraph 12.
13. CompUSA and Good Guys admit the avennents of paragraph 13.
14. CompUSA and Good Guys admit that the confirmation letter for each of the
Policies contains a provision regarding interest, to be based on the daily equivalent of 5 percent
per annum plus the Ninety (90) Day Commercial Paper Dealer rate in effect on the first Friday of
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Case 1 :06—cv—00763-GIVIS Document 12 Filed 01/23/2007 Page 3 of 4
each month a payment is past due, as published in the Midwest Edition of the Wall Street
J oumal. CompUSA and Good Guys deny the remaining averments contained within paragraph
14.
15. CompUSA and Good Guys admit that CompUSA and Good Guys have refused to
pay $527,950 to Plaintiff. CompUSA and Good Guys deny the remaining avemients of
paragraph 15.
16. Paragraph 16 of the Complaint repeats, restates, and realleges the averments of
paragraphs 1-15 and does not require an admission or denial; however, to the extent that this
paragraph contains factual averments, CompUSA and Good Guys deny the tmth of the
averments in paragraph 16.
17. CompUSA and Good Guys admit that the Policies provided insurance coverage of
certain liabilities of Good Guys, and admit that Good Guys has made certain payments to
Plaintiff in connection with the Policies. CompUSA and Good Guys deny the remaining
averments contained in paragraph 17. l
18. CompUSA and Good Guys admit that Plaintiff has made demand upon
Defendants for payment of $527,950 to Plaintiff CompUSA and Good Guys deny the
remaining averments contained in paragraph 18.
19. CompUSA and Good Guys admit that CompUSA and Good Guys have refused to
pay $527,950 to Plaintiff. CompUSA and Good Guys deny the remaining averments of
paragraph 19.
FIRST AFFIRMATIVE DEFENSE
Plaintiffs claims are barred by the applicable statute oflimitations.
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Case 1:06-cv-00763-G|\/IS Document 12 Filed 01/23/2007 Page 4 of 4
SECOND AFFIRMATIVE DEFENSE
Plaintiffs Complaint as to Defendant CompUSA fails to state a claim upon which relief
can be granted.
THIRD AFFIRMATIVE DEFENSE
Plaintiffs claims are barred by the parol evidence rule.
FOURTH AFFIRMATIVE DEFENSE
Plaintiffs claims are barred by the doctrine of waiver.
WHEREFORE, having fully answered the averments of Plaintiff s Complaint,
Defendants CompUSA and Good Guys demand that the Complaint be dismissed with prejudice,
with the costs thereof taxed to Plaintiff, and that Defendants recover their reasonable attomeys’
fees and costs incurred in defending this action, and an award of all other relief that the Court
deems just and equitable.
Date: January 23, 2007 SMITH, KATZENSTEHJ & FURLOW LLP
Lo :1 -
Robert J. Katz nstein (ID No. 378)
Laurence V. Cronin (ID No. 2385)
800 Delaware Avenue, 10th Floor
P.O. Box 410
Wilmington, DE 19899
(302) 652-8400
rjl<@sl OF COUNSEL: Attorneys for Defendants Good Guys, Inc. and
Theodore W. Daniel (TX Bar ID 05336240) CompUSA, Inc.
Joseph Dirik (TX Bar ID 24036485)
J ENKENS & GILCHRIST,
A Professional Corporation
1445 Ross Avenue, Suite 3700
Dallas, Texas 75202
Telephone: 214-855-4500
Telecopy: 214-855-4300
[email protected]
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