The Port of Longview, which had been suing its insurance carriers
over the cost of cleaning up contaminated sites that the port wants to
redevelop, has decided to accept a settlement with three of the companies.
On February 9, port commissioners agreed to a $950,000
settlement offered by Arrowood Indemnity Co, Indemnity Marine Assurance Co. and
Marine Indemnity Insurance Co. of America, following a closed-door session at
the seaport.
The port had sued 20 insurance carriers in total who operate
under the Lloyd’s of London insurance exchange, saying the insurers are
liable for costs to clean up the two contaminated sites. The case against the
other 17 companies is continuing in a jury trial this week in Cowlitz County
Superior Court.
The case
against the other 17 companies is continuing in a jury trial this week in
Cowlitz County Superior Court.
The insurance company attorneys have argued that the
insurance exchange shouldn’t be responsible for damages caused decades ago by other
industries. The contamination was discovered in the late 1980s and is expected
to cost millions of dollars to clean up.
The contaminated sites are a former International Paper Co.
creosote plant which was used for treatment of wood products on about five
acres of land, and a rail line at the port’s west end, where an underground
pipe leading from a storage tank to Berth 1 leaked bunker fuel decades ago.
The port wants to clear the contaminated soil and replace it
with new, clean fill in order to attract developers.
