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Pillsbury trial team seeks insurance for Lion Oil over pipeline rupture

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World Pipelines,

An interesting insurance coverage trial has just gotten underway before a jury in an Arkansas courtroom, as Lion Oil Co. seeks US$80 million in claims from 14 different insurance companies stemming from the 2012 breach of a pipeline delivering oil from Louisiana to a Lion refinery.

A team of lawyers from Pillsbury is tasked with proving that the insurers unfairly denied claims for the pipeline rupture, which resulted in a shutdown of operations for more than 10 months for extensive tests and repairs.

The North Line pipeline was built in 1956 and operated by Exxon-Mobile. It carries some 4400 bbls of oil across 200 miles to reach the Lion facility for refining. The company asserts that the comprehensive risk policies it purchased should collectively cover it for business interruption losses from Exxon’s closure. The insurance companies denying claims include Lloyd’s, ACE and XL Insurance America.

Pillsbury’s trial team is head by Washington insurance litigator Geoffrey Greeves, who told jurors on the opening day that Lion Oil had lived up to its name and handled the lion’s share of work in processing the enormous insurance claim, which was rejected in 2013. Co-leading the counsel on the case is Pillsbury Washington, DC partner Peter Gillon, who co-heads the firm's insurance recovery practice.

Edited from source by Stephanie Roker

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