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A Utility Is A 'contractor'where Its Work Contributes To The Overall Project

Monday, August 01, 2011 03:00 am

 

Insurance -- Subrogation

RLI Insurance Co. v. Southern Union Co., d/b/a Missouri Gas Energy, 2011 Mo. App. Lexis 743 (May 31, 2011)

A construction contract protected a utility company, which provided essential work to the project, as a thirdparty beneficiary.

Triumph Foods LLC (Triumph) hired A. Epstein andSons International, Inc. (Epstein) to perform construction on its hog processing plant. When a natural gas explosion, caused by an uncapped gas valve, occurred, Triumph sought and won $8 million from Epstein's insurer, RLI Insurance Company (RLI), to rebuild. Triumph also sought recovery of lost business income damages from Missouri Gas and Energy (MGE), which had constructed a gas distribution line from the gas main to the plant and installed a gas meter regulating equipment at the plant. Claiming to be a thirdparty beneficiary, MGE successfully hid behind a waiver of subrogation provision in the T [...]

 
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