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LOUISIANA RECORD

Friday, March 29, 2024

Island Operating seeks to recoup its costs during a legal battle

Insurance claim

LAFAYETTE – A contractor and its insurance provider are seeking to recoup the costs they incurred during a case for which they allege no responsibility.

Island Operating Co. Inc. and its insurer Underwriters at Lloyds, Syndicate 1036, filed a declaratory suit on March 23 in the U.S. District Court for the Western District of Louisiana, Lafayette/Opelousas Division against Exterran Energy Solutions LP, et al, and American Zurich Insurance Co., and/or its related affiliations.

The plaintiffs asserts that they were sued for damages in a case titled Craig Ball v. Summit Staffing, et al. in the District Court for Harris County, Texas, 29th Judicial District in 2011. They assert that they were operating under a master service contract to provide platform operators to Devon Energy to man its offshore production platforms and had no involvement in the injury pertaining to Craig Ball.

The plaintiffs allege that defendant Zurich was the comprehensive general liability Insurer of Exterran at the time of Ball’s alleged injuries, including contractual liability insurance, under which Island Operating falls. Furthermore, the plaintiffs allege that Zurich owes an additional insured obligation to Island Operating, including the obligation to provide a defense to Island Operating for the Ball claim.

However, Exterran and Zurich asserted claims directly against Island Operating on their own in an alleged attempt to recoup all medical and compensation benefits paid to Ball or on his behalf, and to obtain a future credit against compensation and medical benefits owed to Ball, which claims also sought to establish the alleged fault of Island Operating. However, plaintiffs assert that on Nov. 5, 2015, all remaining matters against all parties were finally dismissed with prejudice due to defendants reaching a settlement with Ball.

Regardless of the dismissal, plaintiffs still allegedly incurred expenses, fees and costs in successfully defending themselves against the Ball claim, which was dismissed via voluntary dismissal.

They are now asking the court to award them with all the costs and expenses they incurred while defending themselves against the claims along with all legal and contractual interests owned to them. They are represented by Hal J. Broussard and Ped C. Kay from Broussard & Kay LLC in Broussard.

U.S. District Court for the Western District of Louisiana Case number 6:16-cv-00391-DDD-PJH

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