Lexington Must Cover Gas Well Damage: Judge

Law360, New York (April 22, 2010, 1:43 PM EDT) -- A federal judge has ruled that Lexington Insurance Co. owes basic coverage to North American Interpipe Inc. for $1.7 million in damages to a natural gas well caused by the rupture of casing manufactured by the company.

Lexington cannot deny coverage based on an argument that the rupture was the result of a defective casing manufacturing process, Judge Ewing Werlein Jr. said in an opinion issued Wednesday in the U.S. District Court for the Southern District of Texas.

The judge declined to rule on whether the...
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