Houston bankruptcy court OKs $52M insurance settlement for industrial explosion victims
The explosion, caused by a 2,000-gallon propylene tank, killed three people and caused property damage as far away as a half-mile.
A Harris County bankruptcy judge approved a $52 million insurance settlement in favor of victims of an industrial explosion that killed three people and damaged 450 homes. On January 26, 2023, U.S. Bankruptcy Judge Marvin Isgur approved the settlement presented by the legal team of Porter Hedges.
In a prepared statement, Porter Hedges noted that the explosion was caused by a 2,000-gallon propylene tank. It killed two workers of Watson Grinding and Manufacturing and a neighbor. It also caused property damages as far away as a half-mile.
The explosion in West Houston led to Watson Grinding and Watson Valve filing for bankruptcy protection on Feb. 6, 2020.
During the case, Porter Hedges represented the Official Committee of January 24 Claimants. Following confirmation of the liquidation plan, Porter Hedges had represented Ron Bankston as the Watson Grinding liquidating trustee.
In approving the settlement, Judge Isgur said, “When I look back to the first few hearings we had, and of course, every lawyer wanted to get the best they could for their own client, everybody also realized that the way to do this was with community action and so there was an organized effort to pull everyone together in a way to maximize the recovery to the clients overall and that has proven to be very effective.”
The related cases are In re: Watson Grinding & Manufacturing Co. and In re: Watson Valve Services, Inc. in the United States Bankruptcy Court for the Southern District of Texas Houston Division.
The settlement involved multidistrict litigation and resulted in a qualified settlement fund that was paid into by insurers Indian Harbor, RSUI, UFL, Navigators and PIIC, according to the settlement order.
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