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Insurance fight over cost of 37-acre sinkhole

4 years 1 month 1 week ago Friday, October 03 2014 Oct 3, 2014 October 03, 2014 6:08 AM October 03, 2014 in News
Source: Associated Press
By: Janet McConnaughey

NEW ORLEANS - The operator of a collapsed brine mine that apparently created a 37-acre sinkhole in south Louisiana has asked the state insurance commissioner to make an insurance company pay on a $50 million policy.

New York-based Liberty Insurance Underwriters Inc. has asked the federal court in Houston to rule that it owes nothing because Texas Brine LLC ignored warnings of possible disaster if it kept mining.

Texas Brine on Thursday released the complaint it sent a day earlier to Insurance Commissioner Jim Donelon. The company says that its claims are reasonable - and that Liberty breached confidentiality by basing allegations on privileged material provided by Texas Brine to its insurers and by making that material public.

Liberty did not immediately respond to a request for comment about this week's action.

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