When a new bridge over the Red River was built by the Oklahoma Department of Transportation in 2019, it was damaged when the adjacent old bridge was blown up and demolished.
ODOT reviewed the completed bridge and “complained to contractor L&N Bridge, LLC of Antlers that part of the new bridge looked defective or damaged which caused L&N to install a new beam.
It resulted in an additional $500,000 in costs and led to a lawsuit by the bridge contractor L&N Bridge, LLC against Energetic Services LLC, Austin Powder Company and Terpo Seismographic Services, Inc. The bridge contractor sued to recover the costs of repairing the new bridge.
Admiral Indemnity Company insured Energetic Services which is in the dynamite contracting business. In turn, Admiral Indemnity Company contended it should not have been named as a defendant in the suit, arguing that Oklahoma is a “no direct action” jurisdiction where it is improper for a plaintiff to sue a liability insurer with which a plaintiff has no privity.
This week, a Federal judge in Muskogee disagreed and ruled against Admiral Indemnity.
“The allegations plead by L&N in its petition are sufficient, at this time, to establish that L&N was an insured on the Admiral insurance policy which was required for this specific project with ODOT,” wrote Magristrate Judge D. Edward Snow.
