Chubb Insurance sues Ritz-Carlton Residences for $2.5M in water damage payouts
Chubb Insurance has sued The Residences at the Ritz-Carlton, Westchester to get back $ 2.5 million paid to residents whose apartments were flooded in 2018.
Chubb and four affiliates paid insurance claims to owners of 10 apartments who were damaged when a six-inch water pipe broke on the 45th floor of the luxury apartment building at 1 Renaissance Square, White Plains.
The largest claim, $ 975,929, was paid to Louis Cappelli, according to the complaint filed May 6 in the Westchester Supreme Court. He developed the two Ritz condominium towers and the Ritz-Carlton Hotel between 2007 and 2009.
The other insurance claims ranged from nearly $ 6,000 for a second-floor apartment to $ 659,444 for two penthouse apartments owned by Manhattan Properties LLC.
The adjacent Ritz-Cartlon Hotel – recently renovated and renamed The Opus, Westchester – was not damaged by the flood.
George A. Fuller Co., part of the Cappelli organization, is also credited as defendant, as the general contractor who built Frank & Lindy Plumbing & Heating Inc. to work on the building.
Insurance law allows the insurer to request compensation for claims for damage caused by a third party. Chubb has accused the Ritz Carlton Residences, contractors and other entities of gross negligence.
The Ritz-Carlton and George Fuller Co. did not respond to emails asking their side of the story.
The flood incident was the second in eight years.
In 2010, a hot water pipe was out of order in 25th floor of Tower 2, allowing thousands of gallons of pressurized water to flow through the interior and damage nearly every floor below, according to a 2012 lawsuit filed by Travelers Indemnity.
Travelers paid $ 2.4 million in claims to the Residences at the Ritz-Carlton Westchester and other entities. The insurer then sought reimbursement from two plumbing companies and George Fuller Co. The dispute was settled in 2016.