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5th Circ. Clears Engineers In $300M Texaco Suit

Law360 (May 1, 2009, 12:00 AM EDT) -- Texaco Exploration and Production Inc. will not be able to recover $300 million in lost production from an engineering firm whose allegedly shoddy work delayed an oil rig's construction, after an appeals court ruled that the engineers were shielded from liability as “subcontractors” under a Texaco agreement.

Alleged inspection failures by AmClyde Engineered Products Co. Inc. resulted in a crane collapse that sent a 3,800 ton deck to the bottom of the Gulf of Mexico, but the company is protected by a Texaco agreement that excludes...
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