Chartis Sued Over Coverage for Sulfuric Acid Leak

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Blackwater New Orleans v. American International Specialty Lines (E.D.Louisiana, May 7, 2010) 

In February 2009, Blackwater New
Orleans LLC, a chemical storage company, discovered a sulfuric acid leak in an
above-ground storage tank at its Westwego,
Louisiana facility.  The company transferred the remaining
contents of the tank to a second tank, which also began to leak.  The company then moved the acid to barges
owned by a third party.   

Westwego’s city attorney sent the
company a letter demanding cleanup pursuant to city and state environmental codes.  Chartis Specialty Insurance Co. (“Chartis”)
denied coverage for transfers of certain products, labor and equipment costs,
and costs for materials related to cleanup.

 

On May 7, 2010, the company filed
a declaratory judgment action in the United States District Court for the
Eastern District of Louisiana seeking a judgment that Chartis is obligated
under a pollution legal liability select policy to pay for any costs, including
labor, required by environmental cleanup regulations.  The policy defines cleanup expenses as
“reasonable and necessary expenses, including legal expenses incurred . . . for
the investigation, removal, remediation . . . or disposal of soil,
surfacewater, groundwater or other contamination . . . to the extent required
by environmental laws.”   The complaint
also asserts causes of action for breach of contract and violation of a Louisiana statute
requiring prompt payment of claims.  The
complaint seeks full coverage and attorney’s fees. 


For a copy of the complaint click here

Toni Frain and Jeff Kingsley

https://www.goldbergsegalla.com/attorneys/Frain.html

https://www.goldbergsegalla.com/attorneys/Kingsley.html