Launderer connected to UPMC mold crisis sues 2 insurers for denying coverage

April 13--Already facing three lawsuits in connection with the UPMC mold crisis, launderer Paris Companies sued two insurance companies Wednesday for denying coverage in the legal battle.

Paris filed a lawsuit alleging breach of contract in Allegheny County Court of Common Pleas against Westfield Insurance Co. of Westfield Center, Ohio, and Zurich American Insurance Co. of Schaumburg, Ill.

The lawsuit contends both insurance companies say the other is responsible for coverage in the recent legal claims against Paris. Westfield provided umbrella insurance coverage to Paris from 2012 through 2017, except for 2014 when Zurich was the insurer.

Both insurance companies say the lawsuits triggered the policy coverage of the other, according to the lawsuit.

"This filing is a necessary step to protect our reputation," Paris CEO Dave Stern said in a statement Wednesday. "The insurers' denial of coverage relates to policy coverage dates and has nothing to do with any perceived negligence by Paris. Our reputation has been earned over three decades by providing safe, hygienically clean linens to more than 100 hospitals and health care facilities in five states, including Pennsylvania, Ohio, New Jersey, New York and West Virginia."

Bucks County attorney James Clark, who is representing Westfield, could not be reached for comment Wednesday. Zurich has not listed its lawyers in legal documents.

At least six people have died after contracting fungal infections inside a UPMC facility since 2014. Five families have taken legal action in connection with the mold incidents. Among them, two cases have settled for $1.35 million apiece.

A source of the fungal infections has not been determined, although a previous Centers for Disease Control and Prevention source pointed to a ventilation system in the UPMC Presbyterian cases.

In January, an internal UPMC report surfaced indicating heavy mold growth was found in linens delivered by Paris to UPMC Montefiore. UPMC hired Andrew Streifel, a hospital environment specialist, to investigate Paris Healthcare Linen Services, a subsidiary of Paris Companies.

As part of the investigation, Streifel inspected a linen cart delivered by Paris to UPMC Montefiore on Feb. 2, 2016. Samples showed "heavy fungal growth" of rhizopus in the "wet sheets collected from the UPMC laundry carts," he wrote.

After the report came to light, Paris was added as a defendant to three lawsuits filed by family members of the patients against UPMC.

Paris has maintained that its products are safe.

"The Pennsylvania Department of Health and the Centers for Disease Control have said the facts of the UPMC mold cases don't support the conclusion that infections resulted from exposure to linens," Stern said.

Ben Schmitt is a Tribune-Review staff writer. Reach him at 412-320-7991 or bschmitt@tribweb.com .

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