King County Sues Insurer Over Stormwater Pipe Fix Costs

SEATTLE, WA - King County is suing an insurance company to recoup some $20 million spent to fix a wet weather overflow pipe in the Magnolia neighborhood.

The county wastewater division in September 2016 discovered that a new conveyance pipe, which empties into a storage facility near Smith Cove Park, was full of dirt. That blockage prevented overflow from making it to the 1.5 million gallon Magnolia Wet Weather Storage tank.

According to court records, Ace American Insurance Co. insured the pipe construction project. During construction in 2014, the main outflow pipe was damaged. Walsh, the county's construction contractor, fixed the damage, and Ace reimbursed them. But the pipe was still fractured, according to the county, allowing debris to get into the main outflow pipe. That debris caused blockages and led to the September 2016 issue.

In recent months, Ace has simply not responded to the county's insurance claims, according to court records. The insurer has told the county that it won't pay the claims because the insurance policy expired in December 2015.

But a King County investigation found that the pipe was damaged while the policy was still in effect. King County and Walsh presented those findings to Ace, according to court documents, but the insurer never responded.

King County is suing Ace in federal court, accusing the insurer of breach of contract and negligence. The county wants Ace to pay the $20 million pipe repair claim, plus other costs.

Correction: An earlier version of this story contained significant errors, confusing the West Point Treatment Plant and the Magnolia Wet Weather Facility. The earlier story also incorrectly stated that the pipe at the center of this lawsuit leaked "raw sewage and wastewater to Puget Sound for months."

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