Atty: Texas plant that blew up carried $1M policy

[steve2470]

Source: AP

DALLAS (AP) — A lawyer says that the Texas fertilizer plant that exploded last month, killing 14 people, injuring more than 200 others and damaging or destroying property for blocks in every direction was only insured for up to $1 million in liability.

Tyler lawyer Rancy C. Roberts said Saturday that he and other attorneys who have filed lawsuits against West Fertilizer's owners were told Thursday about the size of its policy.

An insurance industry group estimates that it may have caused up to $100 million in damage.

An attorney for United States Fire Insurance Co., of Morristown, N.J., confirmed the policy details to the Dallas Morning News (http://dallasne.ws/107cRT9 ). It didn't name the attorney. A company lawyer didn't immediately respond to a phone message Saturday left at his office by The Associated Press.

Read more: http://www.seattlepi.com/news/texas/article/Atty-Texas-plant-that-blew-up-carried-1M-policy-4488734.php

[SunSeeker]

1. Sounds like a shell corporation--in which case the owners may be held personally liable. nt

[awoke_in_2003]

37. Being this is Texas...

the owners are free and clear.

[SunSeeker]

38. Even Texas law allows for piercing the corporate veil under these circumstances.

At least in theory...

http://taxlaw.sprouselaw.com/Texas%20Law%20on%20Piercing%20Corporate%20Veil.pdf

[durablend]

2. But I thought everything was BIGGER in Texas?!? n/t

[Posteritatis]

6. Does hubris count? (nt)

[Politicalboi]

3. They only need

99 million more. How could they get away with that? Oh that's right, they regulated themselves. Can I insure my car for $100.00 liability too?

[CanonRay]

4. Here comes the bankruptcy filing!

and everybody will get screwed. Unregulated capitalism, don't you know.

[GitRDun]

10. Exactly Right

The owners most likely distributed all of the profits out to themselves over the years so they'll sit back fat and happy with their millions while all those damaged get to drool over the lousy insurance policy and the few scraps left in the company's bank account...that's Perry's capitalism...and no one will go to jail.

[cui bono]

12. It's not just Perry's capitalism. It's America's capitalism. n/t

[Blue_Tires]

33. It's just capitalism, period...

See the story of Nationair, who sprung up from nowhere to becoming overnight one of Canada's biggest airlines...Not one person involved in that mess ever took responsibility or served a day in jail...

[Hosnon]

21. Does the company have no assets left?

I imagine they do, in which case there should be more than just the insurance to compensate victims and survivor's relatives.

[Archae]

5. That building owner in Bangladesh was busted, while trying to flee.

He's facing major charges, and has had all his assets frozen.

It's past time company owners who through cutting corners like this Texas plant get busted and their assets frozen.

[Blue_Tires]

34. +1

Enron was truly a watershed event because almost everyone involved got to keep their freedom and money...Because of that, now every corporate crook expects to

[annabanana]

7. Yup.. Texas sure is business-friendly. . .n/t

[okaawhatever]

8. Let's see if the town or someone sues a regulatory agency to cover damages. hmmm....... nt

[okaawhatever]

9. This company sued Monsanto and at the time had 30 lawyers at 12 firms. There's money somewhere. stor

Many documents in the case are sealed, and the public documents don’t reveal the names of the plant’s then-current owners. Texas corporation records list the president of the company as Donald R. Adair, and show a business operating as Adair Grain Inc. at the same address.

Texas Grain Storage was represented by roughly 30 lawyers at 12 firms, according to court records. One lawyer who represented Texas Grain said the suit stalled in 2010 after a magistrate judge denied a request to certify the case as a class action. The lawyer said Texas Grain appealed the ruling, and that a district judge has yet to rule on the appeal. The last public filing in the case was in 2010

http://blogs.wsj.com/corporate-intelligence/2013/04/18/before-the-blast-west-fertilizers-monsanto-lawsuit/



I'm thinkin there may be a few more bucks under the mattress.

[SunSeeker]

27. 30 lawyers x $400/hr x 2000 hrs/yr = $24,000,000/yr.

Keeping 30 lawyers busy ain't no chump change.

[heaven05]

11. they

will file chapter 11 and avoid paying anything.

[Thinkingabout]

13. This is a low down shame, as owner of a small residential HVAC company, we carried $2M insurance.

How this company only carried $1M is beyond comprehension. BTW, I am in Texas also but in this case a total lack of responsibility on the part of those in charge. To have on hand large amounts of explosive materials and the next story they tell is there has been some break-ins then why have this amount of supplies. If the truth be known, it was probably purchased some time back when prices was low and this is what results. For those who don't like welfare, this is a case of corporate welfare, it will be the tax payers picking up the tab, and this is probably not an act of God as Sandy was.

[cynzke]

14. Claim Denied.

The insurance company will deny claims. Most liability policies have exclusions for coverage if damages occur as a result of illegal activities or violation of regulations.

[Liberal_in_LA]

15. well' that's not going to be enuff

[timdog44]

16. Maybe the citizens

of Texas will have to step up to the plate. That would be the fair thing to do as Texas was suppose to monitor the plant.

A story in Reuters says "Fertilizer plants and depots must report to the DHS when they hold 400 lb (180 kg) or more of the substance. Filings this year with the Texas Department of State Health Services, which weren't shared with DHS, show the plant had 270 tons of it on hand last year." They stored over 1350 times the amount of ammonium nitrate than was allowed. Sounds like in the neighborhood of terrorism to me.

[Nay]

24. That's what I think should happen. All the charitable Texas churches and Randians need to

pass the hat for the $100 million. After all, that's all that's needed in these free enterprise situations -- charity for the victims of corporations. That should take care of it.

[Omaha Steve]

17. In the early 90's Vaughn Oil (Omaha) carried a 5 million umbrella policy

He had 5 trucks that on any night were parked outside with gas, kerosene, and or diesel on them. There was no inside garage for the trucks.

Just saying...

[Iliyah]

18. Nah, the people in West will be

told its the liberals and gays fault, and rush out and buy more guns.

On a serious note, I believe they can sue the State of Texas. 14 dead, many injured and a town destroyed and the owner will probably walk away to start up another business.

[TexasTowelie]

23. Unlikely.

For tort claims the state is able to claim sovereign immunity. The Legislature would have to grant permission for any lawsuits that enter the civil justice system. Damages would also be capped to a per occurrence limit of $500,000 for the entire occurrence and $250,000 per person. Property damage is limited to $100,000.

Texas Tort Claims Act
http://www.mehaffeyandwatson.com/PracticeAreas/PersonalInjury/TexasTortClaimsAct/tabid/91/Default.aspx

[Loudestlib]

26. It's a good thing they passed that tort reform....

[Sunlei]

19. When you google west fertilizer plant listed as ~50 million a year,the owner owns several companies.

He can pay for everything. And face criminal charges.

[Nay]

25. But will he? nt

[DallasNE]

32. I'm Sure They Are Protected By LLP Laws

So neither the owners nor the other companies they own can be sued. They also will have transferred cash assets to other companies accounts, probably back dating details to cover up when the exchange took place. The people of West, TX are screwed and it will all be legal.

[BobbyBoring]

20. For Christ sakes

I carry 3 mil. on our little rinky dink landscape company. Worst I can do is take out a roof with an errant tree drop. Somethings really wrong here.

[Sunlei]

28. I can't even lease a venue for a small training club without proof of temp. 3 mil. insurance cover.

Something IS very wrong there.

[htuttle]

22. Many taxicabs carry $500,000 a piece

They were insured at the same level as two taxicabs.

[Spitfire of ATJ]

29. Perry likes to strut around in jeans,...sue him so that's all he can afford.

[NYtoBush-Drop Dead]

30. That's Texas for ya.

Butt hole of the nation.

[dem in texas]

31. That's right, we don't need all those laws and regulations to hinder business in Texas

Yes, we don't need regulations on businesses here in Texas, that would hinder their ability to make more money. I know that because my governor has said so. Not to worry about 14 people dead, 200 injured, some critically, 3 schools destroyed, many homes and stores are demolished. How will we pay for all this damage? Not by digging in Perry's precious rainy day fund, you can bet on that. Oh I have a idea, lets just cut more old and disabled people off Medicaid. And reduce the payments to schools, after all we can handle that, we are not at the bottom. Another state, Mississippi has worst schools than Texas.

[davidpdx]

35. I think the $100 million might be a low number

it could be much higher than that. As someone noted down thread, the insurance company will probably deny the claim for the $1 million due to negligence. If the company is an LLC, than in Chapter 11 the worst that could happen is everything is liquidated. I'm not sure the land the plant was on would be worth anything without a major clean up occurring.

[Pachamama]

36. Wow! Even I have an Umbrella Policy and Liability Policy that covers my family & home for $2MM!!

Amazing....I have it in event someone got injured on our property and sued.....likelihood extremely low, but I just want it in case. Meanwhile, this plant has explosive material and carries only $1MM???

WTF?