PPGMR Client Lion Oil Wins Policy Limits Argument

United States District Judge Susan Hickey ruled in favor of Lion Oil, a subsidiary of Delek US Holdings, Inc. and client of PPGMR Law, on an important coverage issue in a case stemming from the rupture of an Exxon Mobile Corp. pipeline.  Judge Hickey ruled that certain coverage grants are subject to only the policies' total $700 million limit, stating "the plain language of the policy taken as a whole is susceptible to only one reasonable construction."

Lion Oil sued its insurers in 2013 over the denial of coverage under an all-risk policy related to business interruption losses resulting from ExxonMobil's extended shutdown of its North Line pipeline system.  Lion Oil kept its facility running but alleges losses of $44 million in earnings and $36 million in additional expenses for costly alternative transportation, sale and storage contracts.

Jury trial began last week, and is set to conclude this week in El Dorado, Arkansas.