Insurance company alleges ExxonMobil committed breach of contract

By Robbie Hargett | Nov 13, 2015

An insurance company is suing an oil and gas company, alleging non-performance under a propane sales agreement.

National Union Fire Insurance Company of Pittsburgh, as subrogee of TransMontaigne Product Services, filed a lawsuit Nov. 10 in the Houston Division of the Southern District of Texas against ExxonMobil Gas & Power Marketing Company, a division of ExxonMobil Corporation, alleging breach of contract and negligence.

According to the complaint, on Nov. 1, 2012, TransMontaigne entered into a propane sales agreement with ExxonMobil. On Nov. 13, 2013, the suit says, there was a fire at ExxonMobil King Ranch Gas Plant, which the defendant ExxonMobil said constituted a force majeure event and excused performance under the agreement with TransMontaigne.

ExxonMobil suspended production for approximately one year and did not supply product to TransMontaigne, causing financial losses to the plaintiff, the lawsuit states.

National Union seeks to recover damages of more than $1 million and attorney fees. It is represented by attorney Loren R. Smith of Kelly & Smith in Houston.

Houston Division of the Southern District of Texas case number 4:15-cv-03315.

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