This is the case of Orange Cup Drive In LLC v. Mid-Continent Casualty Co., in the Court of Appeals for the Fifth District of Texas at Dallas.
In a recent court ruling, Mid-Continent Casualty Co. has emerged victorious in a legal battle over fraud and deceptive trade claims stemming from a gas station leak that contaminated soil and cost millions of dollars in environmental cleanup costs. A Texas court of appeals upheld Mid-Continent’s win over its insured’s fraud and deceptive trade claims, in the litigation’s second appearance before the court.
The insurance coverage dispute between Mid-Continent and Orange Cup Drive In LLC began after the convenience store operator attempted to open an inactive gas station at a Mabank, Texas, store. When it tested the system, three lines leaked, contaminating the soil, according to court documents. Following the incident, Mid-Continent paid some of the losses claimed by Orange Cup under the insurance policy, but not others, prompting litigation. Some of the unpaid claims included Orange Cup’s $180,000 claim for soil removal and a $3 million claim for construction-related costs.