Lexington On Hook For $7.5M Salt Mine Damage: 10th Circ.

By Kat Greene (March 11, 2014, 6:22 PM EDT) -- The Tenth Circuit on Tuesday reversed an earlier win for Lexington Insurance Co., finding the insurer was still on the hook for $7.5 million in damages to a salt mine, even though its client reported water streaming into the mine years after the problem was actually found.

The three-judge panel ruled that, though Lyons Salt Co. waited too long to notify its insurer of the problem, that fact alone isn't enough to relieve Lexington of its obligation to cover its client as agreed, according to Tuesday's decision.

Lexington argued that, because Lyons waited at least two years to alert it to...

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