Mid-Continent Freed From Covering $1M Salt Mine Suit

By Juan Carlos Rodriguez (October 31, 2012, 9:12 PM EDT) -- A New Mexico federal judge ruled Wednesday that Mid-Continent Casualty Co. has no duty to cover a bankrupt brine well operator in litigation over the company's extraction of salt from an underground cavern that allegedly destabilized neighboring properties' structures.

U.S. District Judge William P. Johnson said that although many factors weighed in favor of a judgment for mining company I&W Inc. and Circle S Feed Store LLC — which sued I&W and won $1 million in the underlying suit, and was also named as a defendant by Mid-Continent — the insurer is not liable due to an umbrella provision in the...

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