Beaumont COA Orders ExxonMobil to Arbitrate Casualty Claims Related to Refinery Fire
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The Ninth District Court of Appeals in Beaumont has ordered ExxonMobil to arbitrate a dispute with an insurance company. In Lexington Insurance Co. v. Exxon Mobil Corp., et al., No. 09-16-00357-CV, (Tex. App. – Beaumont, April 27, 2017), a fire occurred at an ExxonMobil oil refinery in 2013. Unfortunately, several workers were hurt and two others were killed as a result.
Three of the injured workers were third-party contractors who were employed by Brock Services. Prior to the fire, ExxonMobil contracted with Brock Services to provide painting and other services at the Beaumont facility. As part of the contractor agreement, Brock Services was required to obtain a liability insurance policy and name ExxonMobil as an additional insured. Prior to commencing work at the oil refinery, Brock Services obtained an umbrella policy from Lexington Insurance Company.
Following the refinery fire, ExxonMobil demanded payment from Lexington Insurance under the terms of the umbrella policy. After the insurer did not respond to ExxonMobil’s claim, the oil company filed a lawsuit against Lexington Insurance in the 136th District Court of Jefferson County. Lexington Insurance responded to the lawsuit by filing a motion to compel the dispute to arbitration based on the language included in the umbrella policy that was purchased by Brock Services. The trial court denied the insurer’s motion and Lexington Insurance filed an interlocutory appeal with Texas’ Ninth District in Beaumont.
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