 American company Exxon Mobil has filed a suit against Steadfast Insurance Company, alleging that the latter company should have covered damages Exxon had to pay for an employee’s personal injury.
Danny Denmon sued Exxon in June 2006 after he alleged he sustained work injuries on Exxon’s premises. When Exxon found out about the case they demanded that Steadfast defend and indemnify it, but the insurance company refused to do so.
The suit stated: “The insurers' denial of coverage is a breach of their contractual obligation to ExxonMobil.” However, as Steadfast refused to cover Exxon, the company claims it was forced to settle the case without the benefit of insurance coverage.
As a result, Exxon is seeking the full amount of its financial loss, unspecified damages, legal fees plus a declaratory judgment stating that Steadfast has waived all rights to deny coverage and indemnity to Exxon. Thus, this refusal is a breach of the insurance company’s contractual obligations. Updated on 19/11/2008
|