Energy Company Awarded $41.6M In Insurance Contract Dispute

 Tuesday, May 16, 2017

 Insurance News Net

A Houston jury awarded Prime Natural Resources Inc. $41.6 million in an insurance breach of contract dispute with certain underwriters at Lloyd’s, London, over offshore oil facilities damaged by Hurricane Rita 12 years ago. After six weeks of testimony, the state district court jury in Harris County awarded a remarkable $27.3 million in punitive damages after finding the insurers not only breached the contract, but also violated the state insurance code. Actual damages were $1.8 million for the insurers’ failure to cover repairs from the 2005 storm and $10.9 million for bad faith. The jury also awarded $1.6 million in legal fees.
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