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The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

INDEMNITY INSURANCE COMPANY OF NORTH AMERICA et al v. W&T OFFSHORE INC

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

Case Number: 
4:12-cv-02469 Search Pacer
Court Type: 
Federal
US District Court: 
Southern District of Texas
Date Filed: 
Sep 17 2012

"11. On or about September 12, 2008, Hurricane Ike struck the Gulf of Mexico, and it is alleged that Hurricane Ike damaged over 150 offshore platforms in which W&T had an interest.

12. On September 19, 2008, W&T gave notice to Excess Liability Underwriters of potential claims for losses to its offshore platforms, and, on September 24, 2008, W&T gave additional notice specifically of potential claims for ROW/D.

13. Braemar Steege, Inc. was appointed loss adjuster for W&T’s claims under the Package Policy, the Underlying Liability Policies, and the IINA Excess Policy, and Braemar Steege has furnished periodic reports of its investigation and adjustment of W&T’s claims.

14. Braemar Steege reported in its Status Advice of February 12, 2012 (attached as Exhibit 2) that W&T has submitted OEE and Physical Damage claims under the Package Policy for which approved costs exceed $150,000,000. Braemar Steege forecasts that W&T’s OEE and Physical Damage “claims will exhaust their underlying Package Policy limit of US$150,000,000 (100%) which will force all ROW/D charges to fall upon W&T’s excess program.” Braemar Steege also reported that the ROW/D claims are estimated to exceed $50,000,000, and it is expected that W&T will submit a formal payment request for the ROW/D expenses to Excess Liability Underwriters for payment under the IINA Excess Policy in the third quarter of 2012.
Coverage Issue

15. This is an action for declaratory judgment pursuant to 28 U.S.C. § 2201 to settle important questions concerning W&T’s claims for excess liability insurance coverage. The purpose is to determine Excess Liability Underwriters’ obligations to W&T under the IINA Excess Policy. An actual case and controversy exists regarding whether coverage is afforded under the terms, conditions, provisions, limitations, and exclusions of the IINA Excess Policy for the claims and damages alleged.

16. A declaration by this Court regarding these issues will confer certainty on the parties relative to their rights and obligations under the IINA Excess Policy.

17. Excess Liability Underwriters are entitled to declaratory judgment against W&T because there is no coverage under the IINA Excess Liability Policy for the ROW/D claims.

18. The IINA Excess Policy contains the following provisions:

Section I Coverage states:

We will pay on behalf of the Insured those sums in excess of the Retained Limit that the Insured becomes legally obligated to pay by reason of liability imposed by law or assumed by the Insured under an Insured Contract because of Bodily Injury, Property Damage, Personal Injury or Advertising Injury that takes place during the Policy Period and is caused by an Occurrence happening anywhere in the world. The amount we will pay for damages is limited as described in INSURING AGREEMENT III, LIMITS OF INSURANCE.
If we are prevented by law or statute from paying on behalf of the Insured, then we will, where permitted by law or statute, indemnify the Insured for those sums in excess of the Retained Limit.
Section III Limits of Insurance, paragraph D states in part:

If the applicable limits of insurance of the policies listed in the SCHEDULE OF UNDERLYING INSURANCE or of other insurance providing coverage to the Insured are reduced or exhausted by payment of one or more claims that would be insured by our Policy we will:
1. In the event of reduction, pay in excess of the reduced underlying limits of insurance; or
2. In the event of exhaustion of the underlying limits of insurance, continue in force as underlying insurance."

The provided text is an excerpt from a document filed in this case. For a full understanding of the case, one should read the complete court file, including the response.

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