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Wiseman Oil Co. Inc Reaches Settlement in Mediation

Saturday, July, 27, 2013


A case against Wiseman Oil Co. Inc has been resolved through mediation.  The demands that TIG Insurance Co. should provide coverage have been resolved.  The Environmental Protection Agency had focused in on the insurance company after an investigation regarding a $26 million Superfund site cleanup.  The court documents were officially entered into federal court in Pennsylvania on July 17th

 

Both sides had been embroiled in a bitter battle regarding indemnity.  Wiseman was accused previously of polluting a site where their oil refinery was located between 1978 and 1982.  The case developed after the EPA argued that Wiseman (along with several other similar defendants) were responsible for cleanup efforts that would have to take place, which was authorized under the Comprehensive Environmental Response, Compensation and Liability Act. 

 

In 2009, the EPA signed a consent decree document involving 36 other companies in agreement for the initial start to cleanup work and past cost reimbursement.  Those companies formed a trust and named Wiseman as another contributor towards the pollution in the area.  Wiseman alleges that the company had to spend nearly $700,000 in legal fees to respond to those claims from both the trust and the EPA, and finally agreed to a figure of $350,000 to each party. 

 

Wiseman company representatives expressed frustration with their insurance policy, stating that they had tried to receive information numerous times with no assistance.  Since that date, the case had been dragging on in court until mediation exercise finally allowed the parties to reach a conclusion.  A report determined that the insurance company, TIG, failed to establish applicability of exclusions under which they were denying their coverage. 

 

The mediation opportunity presented an alternative to the numerous motions and court hearings that the dispute was headed for, allowing a more expedient resolution for all the parties involved.