Supreme Court Upholds $30 million Judgment over Pipeline Explosion Death and Sale of Company

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The Oklahoma Supreme Court has upheld a $30 million judgment against two Enterprise Products Partners LP units over a 2010 Texas pipeline explosion that killed a worker and led to the failure of the company that had employed him.

The ruling came in a Washington county lawsuit filed by C and H Power Line Construction Company whose employee, James Neece was killed while operating a large auger and ruptured an underground high pressure natural gas line. It was June 7, 2010 when Neece struck an unmarked gas pipeline. The blast severely injured another employee. As the high court noted, C and H had called the Texas One-Call system to have companies in the work area mark their lines.

“Although Enterprise was notified within the proper time, it did not mark its line,” stated the court in its ruling. C and H was in the process of selling the company and had a letter of intent for $33 million up front with an earn-out provision for $10 million more. The company claimed the blast caused the collapse of the company, resulting in a sale of the firm at substantially less than its value at the time of the accident.

The jury awarded $26 million in actual damages and $1 million in punitive damages. the trial court also entered judgment including $3,476,160 in pre-judgment interest for a total award of $30,476,160.

Enterprise claimed the court failed to give the proper instruction on negligence.

“We hold that the trial court did not make any error requiring reversal or remand,” ruled the justices in Tuesday’s ruling.