Mid-Continent Casualty Co. Emerges Victorious In a Legal Battle Over Gas Station Contamination

January 13, 2023

In the case’s initial appearance before the Texas appellate court, a panel determined in late August 2020 that the trial court correctly axed Orange Cup’s breach of contract claim, finding that Mid-Continent did not breach the insuranc

e policy. In its opinion, the panel backed the insurer’s position that it wasn’t obligated to pay Orange Cup’s remaining coverage claims because it never received documentation related to the convenience store operator’s soil testing.

Once the suit was remanded, Mid-Continent moved to defeat all of Orange Cup’s remaining claims – including those for violations of the Texas Insurance Code and Prompt Payment Act, deceptive trade practices, bad faith and fraud, a move that was granted by the trial court.
Seeking to revive its case, Orange Cup told the Texas appellate panel on appeal that its extracontractual claims are viable and were wrongfully dismissed, despite the appellate court’s prior August 2020 determination that Mid-Continent did not breach the insurance policy. However, the panel was unpersuaded by all of Orange Cup’s contentions.