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Favorable settlement for plaintiff insurer in product liability action.

Certain Underwriters at Lloyd's, London
March 2009

Insurer receives favorable settlement.

In March 2009, a favorable settlement was entered into for the intervening plaintiff insurer in a product liability action. Donato, Minx, Brown & Pool served as plaintiff's counsel for the insurer.

The facts.

The plaintiff insured was in the foundry business and required nitrogen gas for an ion nitriding process. The defendant company contracted to deliver nitrogen gas to the insured to use in this process and installed a bulk storage system at the insured's premises for the delivery of nitrogen. This bulk storage system would store liquid nitrogen at the premises and convert it into gas prior to delivery. However, the system did not contain a low temperature cutoff, and, as a result, the liquid nitrogen entered a metal foundry, causing cryogenic embrittlement to a carbon steel search tank and eventually resulting in an explosion. Donato, Minx, Brown & Pool represented the insurer as intervening plaintiff and obtained a favorable settlement for the insurer.

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