ACE Insurance Litigation Watch Highlights Masco Corporation Bad Faith Lawsuit Against ACE Insurance Group

NEW YORK--(BUSINESS WIRE)-- ACE Insurance Litigation Watch, the online repository for lawsuits against the ACE Ltd. insurance company (NYSE: ACE), today highlighted a bad faith lawsuit by Milgard Manufacturing Inc., a division of the Masco Corporation (NYSE: MAS) against a company in the ACE Insurance Group. In the Milgard Manufacturing Inc. litigation, Illinois Union Insurance Co., an ACE Ltd. subsidiary, is charged with, among other wrongdoings, improperly denying payment of an insurance claim in bad faith.

The litigation by Milgard Manufacturing against the ACE Ltd. subsidiary arises from a product liability lawsuit pending against Milgard Manufacturing in Oregon State Court regarding damage to a building in which Milgard brand windows were installed. Milgard claims that the underlying lawsuit falls within the scope of a general liability policy issued to Milgard by the Ace Group subsidiary, Illinois Union, and that Illinois Union has a duty to defend and indemnify Milgard. Illinois Union, according to the Milgard lawsuit, has engaged in misconduct, wrongfully denying coverage to Milgard on multiple occasions.

Milgard Manufacturing Inc. filed its lawsuit against Illinois Union in Washington Federal Court on December 23, 2010. The underlying lawsuit for which Milgard seeks coverage, Pacific Realty Associates v. Baugh Construction Oregon Inc. et. al., is proceeding in Washington County, Oregon. Illinois Union has not yet filed an answer to Milgard’s complaint.

The Illinois Union Insurance Company is overseen by ACE Group executive Brian E. Dowd. ACE Ltd. (NYSE:ACE), which was recently added to the S&P 500 index, is the ultimate parent of companies in the ACE Insurance Group.

ACE Insurance Litigation Watch is currently tracking more than 170 cases in Federal courts alone. The ACE Litigation Index includes recent complaints by companies such as MI-Swaco, Pespi Co., and Ticketmaster LLC that are similar to the allegations contained in the Milgard lawsuit.

Visit www.ACEinsurancewatch.com for more information, including files related to the Milgard case. ACE Insurance Litigation Watch is not affiliated with the ACE Insurance Group in any way.