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Mid-Continent Cas. Co. v. Bay Rock Operating Co., No. 09-50984

By FindLaw Staff on August 05, 2010 8:40 AM

Mid-Continent Cas. Co. v. Bay Rock Operating Co., No. 09-50984, involved an action by an insurer seeking a declaration that damages awarded against defendant in an underlying suit arising out of an oil well accident were not covered by the policy at issue.  The court of appeals affirmed summary judgment for defendant on the grounds that 1) the insurer was collaterally estopped from re-litigating the subrogation right at issue because it was in privity with defendant; 2) defendant's subrogee's lack of an ownership interest in one well did not defeat defendant's claim for coverage; and 3) defendant showed that the costs at issue were related to property damage and thus covered by the policy.

As the court wrote:  "Appellant Mid-Continent Casualty Company ("Mid-Continent") appeals the district court's grant of summary judgment in favor of Appellees Bay Rock Operating Company ("Bay Rock"), the Feliciana Corporation, Duncan Underwood, Everett DeSha, the Seeligson Oil Company, and St. Paul Surplus Lines Insurance Company ("St. Paul"), as subrogee of Hollimon Oil Corporation ("HOC"). We AFFIRM."

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