In a notable ruling, a Texas federal court has decisively thrown out a $4.5 million claim lodged by an oil well repair company. The company sought additional insured coverage for expenses stemming from an incident at an offshore well, but the court found it lacked the standing to press such claims against the insurance carrier of the well owner.
Background of the Case
The dispute originated from an August 2020 blowout at a well near Bob Hall Pier in Corpus Christi, Texas, operated by Magellan E&P Holdings. Great White Well Control (GWWC) was contracted for well-control services. Following their intervention, GWWC pursued coverage under Magellan’s policy with Antares Underwriting Ltd., which was promptly denied.
In response, GWWC initiated litigation against Antares, Magellan, and its insurance broker in Texas state court in March 2021. Shortly thereafter, Magellan filed for Chapter 7 bankruptcy, putting a temporary halt to the proceedings.
Lloyd’s Unit Gets Oil Well Repair Co.’s $4.5M Claim Tossed: Judicial Findings and Rulings
U.S. District Judge Kenneth M. Hoyt dismissed the intervenor complaint by GWWC this Wednesday. His decision highlighted that GWWC was not considered an additional insured under Magellan’s policy at the time of the blowout, despite subsequent agreements intended to include them.
