Insurance Firm Sued in Gas Leak Case

An oil company fined almost $50,000 after three workers died in a 1994 gas leak has sued an insurance company, claiming that the firm has refused to pay any possible damages that may come from seven lawsuits filed on behalf of the victims.

Attorneys for Schlumberger Well Services filed the breach-of-contract suit earlier this week in Ventura County Superior Court, asking a judge to force Gulf Underwriters Insurance Co. to honor the policy.

Three men died and four others were seriously injured on Aug. 10, 1994, when a group of oil workers was overcome with carbon monoxide, according to the Ventura County coroner.

Schlumberger is disputing in lawsuits that the workers were poisoned from carbon monoxide, according to court papers. Nonetheless, the company wants the insurer to pay any court costs, settlements or damages arising from seven lawsuits filed last year on behalf of the dead and injured oil workers.

“The defendant has a duty to defend and indemnify the plaintiff in the seven consolidated matters,” the suit contends.

Representatives for Gulf Underwriters could not be reached for comment on Tuesday.

But a December letter from a Gulf senior claims adjuster to the oil firm said the $185,000 policy did not cover the perforation technique that the workers were using at the time of the fatal accident.

Schlumberger and another firm were each fined more than $45,000 for violating state safety standards.