4/3/08                   Press Release

District Court Rules That Sundial Roof Collapse Falls Under RCSC Insurance Coverage

Denny Nichols, President of the Recreation Centers of Sun City, Inc. Board of Directors, is pleased to announce that the U.S. District Court has denied Cincinnati Insurance Company’s motion for summary judgment on the rejection of RCSC’s claim for the Sundial Recreation Center roof collapse. RCSC’s cross-motion for summary judgment on coverage was granted, indicating that the damage is covered under RCSC’s insurance policy with Cincinnati.

In summary judgment, a court makes a determination or judgment about a case without a full trial. After denying RCSC’s claim for the Sundial roof collapse on February 12, 2007, Cincinnati Insurance filed a motion for summary judgment. The motion sought a declaration that Cincinnati owed RCSC nothing under the insurance policy. RCSC filed a counterclaim for breach of contract and filed a cross-motion for summary judgment on the issue of coverage. Cincinnati Insurance’s motion was entirely denied and RCSC’s cross-motion on the issue of coverage was granted.

President Nichols expressed RCSC’s satisfaction about the decision. “We are very pleased with this news,” he said. “There are still some other claims that remain to be worked out, but RCSC has been vindicated with this ruling. The Sundial collapse should have been covered, and the court has recognized that.” Nichols added that the amount of damage that was covered and which should be paid was not determined by this court. According to him, it is expected that the amount will be decided in a subsequent proceeding or settlement.

The Sundial repair project continues to progress and has an expected completion date of August 2008.

Contact: Lindsay Frost, RCSC Communications Coordinator 623-876-3060, ext. 3087; lfrost@sunaz.com.


Recreation Centers
 of Sun City, Inc.

10626 W. Thunderbird Blvd.
Sun City, AZ 85351
email
news@sunaz.com
 

Tel 623-561-4600
Fax 623-561-4601
 

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