Insurer Off Hook For $2M Katrina Oil Spill Settlement

Law360, New York (February 24, 2010, 1:41 PM EST) -- A federal judge has affirmed an earlier ruling that Mid-Continent Casualty Co. does not have to indemnify Eland Energy Inc. and Sundown Energy LP for a $2 million settlement in an underlying class action over oil spills in the aftermath of hurricanes Katrina and Rita in 2005.

Judge Sidney Fitzwater of the U.S. District Court for the Northern District of Texas issued the ruling Monday, affirming an October decision that granted plaintiff Mid-Continent partial summary judgment.

The dispute began when crude oil leaked from the defendants'...
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