Texas high court orders another look at refinery settlement dispute - Business Insurance

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Texas high court orders another look at refinery settlement dispute - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Texas high court orders another look at refinery settlement dispute by Louise Esola Claims Disputes , Workers Comp Coverage , Workplace Safety Oct 13, 2026 The Texas Supreme Court on Friday ordered an appeals court to reconsider whether a contractor must reimburse refinery companies for part of a settlement over a fatal workplace fire. A January 2016 fire at the Galveston Bay Refinery in Texas City injured 15 Industrial Specialists employees and one other contractor’s employee. One Industrial employee later died, according to records in Blanchard Refining Company LLC and Marathon Petroleum Company LP v. Industrial Specialists LLC , before the Texas Supreme Court. The fire occurred in a regenerator vessel during refinery turnaround work. The injured workers sued the refinery companies and other contractors. Texas workers compensation law barred Industrial’s employees from suing Industrial, according to an earlier Supreme Court opinion in the case. The injury lawsuits settled for $104 million, with Blanchard and Marathon responsible for $86 million. The refinery companies then sued Industrial for reimbursement under their service contract. The contract required Industrial to cover certain injury-related losses but excluded losses attributable to the refinery companies’ negligence. The companies argued they could deduct their own share of fault and recover the remainder. Industrial argued the agreement did not expressly authorize reimbursement when the companies shared responsibility for the injuries. A trial court awarded the companies $46.48 million in damages, plus interest and attorney fees. The appeals court reversed, finding the contract insufficiently explicit to enforce that allocation of liability under Texas law. The Supreme Court directed the appeals court to reconsider its decision in light of S&B Engineers & Constructors Ltd. v. Scallon Controls Inc. , a subsequent ruling addressing contractual indemnity. Both sides argued that decision supported their position. The high court vacated the appellate judgment and returned the case for further proceedings, expressing no view on whether Industrial ultimately must reimburse the companies. 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