Mayronne Mud & Chemical Corp. v. T-W Drilling Co.

J. SKELLY WRIGHT, District Judge.

The only issues presented by this litigation are whether the claim of Oil Field Barges, Inc. for damage to its barge, and the claim of the Mayronne Mud & Chemical Corporation for damage to its mud aboard the barge, caused by a blowout of an oil well being drilled by the T-W Drilling Company for Humble Oil Company, are covered under T-W’s comprehensive liability policy with The Travelers Indemnity Company, and whether Travelers’ refusal to pay such claims is arbitrary, capricious or without probable cause, subjecting the insurer to penalties and attorneys’…