Lexington Insurance Company has asked the U.S. District Court for the Southern District of Texas in Houston to rule that Liberty owes nothing to Texas Brine Company, LLC for claims related to the sinkhole in Bayou Crone in Assumption Parish, Louisiana. Lexington argued in court filings that its policies expired more than 15 years before the sinkhole occurred in 2012.
The sinkhole occurred when a salt dome collapsed while Texas Brine was drilling to extract brine used in the petrochemical industry. Lexington has argued that the coverage does not apply because Texas Brine knew it was drilling too close to the edge of the salt dome.
In August 2014, a settlement of a class action lawsuit related to the sinkhole was approved for $48.1 million for a class of approximately 270 local residents.
For more information, contact Toni Ellington at (504) 599-8500.
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