Lexington Escapes $11.5M Salt Mine Flood Coverage Suit

Law360, New York (May 23, 2013, 2:53 PM EDT) -- A Kansas federal judge has freed Lexington Insurance Co. from covering $11.5 million in salt mine water damage, ruling Wednesday that the mine owner should have reported the water inflow issues when they first occurred rather than waiting until catastrophic flooding was imminent.

Lyons Salt Co. and BSC Holdings Inc., Lyons' sole shareholder, had argued that the all-risk and business interruption provisions of its policy forces Lexington to reimburse investigation and repair costs related to the water inflow problem, but U.S. District Judge Eric F. Melgren...
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