QBE wins judgment in dispute over decommissioned pipeline machines – Enterprise Insurance

A federal appeals court overturned a lower court and ruled in favor of QBE Insurance Corp. in a lawsuit over a decommissioned microtunnelling machine.

James W. Fowler Co., based in Dallas, Oregon, used the machine while building a pipeline in North Dakota in 2017 when earth movements prevented it from moving and was shut down at a depth of about 30 meters below the surface. according to court records in James W. Fowler Co. v. QBE Insurance Co.

After QBE refused to compensate Fowler for the loss, the company filed a lawsuit in the U.S. District Court in Portland, Oregon. The court ruled in Fowler's favor, ruling that the company alleged "direct physical loss".

A unanimous appeal court with three judges overturned the

Judgment in a tripartite opinion in which the parties and their experts say: "Disputed whether the (machine) cannot be reimbursed and (if it is reimbursable) whether the recovery costs would be disproportionately high."

"This dispute is real and material, so it precluded a summary judgment for Fowler," the panel said, overturning the lower court and remitting the case for further trial.

The lawyers on the case did not respond to requests for comment.

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