COURT RULES INSURER MUST PAY JUDGMENT FOR OIL WELL EXPLOSION

By TONI ELLINGTON

A Texas court has denied an attempt by Travelers Property Casualty Company to overturn an $8.5 million judgment related to the cleanup of a 2011 explosion at an Eagle Oil & Gas Company well in north Texas.  The basis for Travelers’ motions for judgment as a matter of law and reconsideration of the court’s rulings on summary judgment was that a federal jury found that the insurer did not prove the company was negligent.

Travelers lost on both motions, and was ordered to pay Eagle.  The jury found that the insurer did not prove that Eagle could have done more to prevent the 2011 well blowout.  Therefore, the court found that Travelers must pay Eagle the amount of the judgment, plus attorneys’ fees and interest under Texas prompt payment law.  The jury found that Eagle was entitled to coverage under its control-of-well insurance policy with Travelers.

The explosion occurred when well operators were attempting to clear a stuck port at the Eagle well. The case, Eagle Oil & Gas Co., et al. v. Travelers Property Casualty Co. America, et al., Case No. 7:12-cv-00133, was filed in the U.S. District Court for the Northern District of Texas.

For more information, contact Toni Ellington at (504) 599-8500.