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Insurance Company Sues Texas Brine Company Over Sinkhole Claim

Posted on Dec 05, 2013

An insurance company has filed a federal lawsuit against Texas Brine Company claiming that the chemical company knew the dangers associated with their mining decisions – and that the massive sinkhole created by the company should have been prevented.

According to the Associated Press, Liberty Insurance underwriters Inc. states in their lawsuit that company reports and emails show that Texas Brine knew about the dangers of creating a cavern along the outer face of a salt dome in Assumption Parish in Louisiana – and that they continued mining products from the cavern even when they knew disaster was likely.

The mining of the salt dome has created a 26-acre sinkhole in the area that has devastated the community. Over the last 15 months, 150 area homes have been evacuated, while others have been bought out. At the same time, nearby storage caverns have also been emptied.

Texas Brine Company and Occidental Chemical Corp, the company that leased the land to Texas Brine Company, is now facing a barrage of lawsuits related to the sinkhole damage. This most recent lawsuit was filed in a Houston courthouse in October. The first hearing will take place in mid-January.

Liberty is Texas Brine’s third insurer in line and stands to lose $50 million if they cannot prove that the mining company knew the risk of a sinkhole forming.

The Voss Law Firm assists companies with a wide variety industrial insurance claims. To learn more about our legal services, or to request a free, private consultation with one of our Texas industrial insurance claim attorneys, call 888-614-7730.

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