A recent Texas Lawyer story, “$6.2 Million in Attorney Fees, Costs Awarded in Hurricane Katrina Insurance Litigation,” reports that even though it’s been almost 10 years since Hurricane Katrina pounded the Gulf Coast and damaged the oil and gas production facilities owned by Cox Operating, the company only recently was awarded a combined total of $6,297,903 in attorney fees and expenses.

On Feb. 26, Cox’s insurance carrier, St. Paul Surplus Lines Insurance Company, was ordered to make these payments by Judge Gary H. Miller, U.S. District Judge for the Southern of Texas.  These attorney fees and costs follow a hefty judgment of $25,394,218 awarded to Cox in 2014.

At the time of the hurricane, St. Paul provided insurance coverage to Cox, and its working interest owners, for pollution cleanup cost liability up to $1 million per incident under a commercial general liability insurance policy, according to the order.  In addition, St. Paul also provided an additional layer of insurance coverage to Cox for pollution cleanup cost liability up to $20 million per incident under an umbrella excess liability policy.  When Cox filed its claim for coverage after the hurricane, St. Paul maintained that certain costs, including expenses unrelated to cleaning up or remediating pollution, were not covered, according to the order.  The dispute between Cox and St. Paul had led to protracted litigation that is still ongoing.

In the amended final judgment, dated Jan. 10, 2014, Judge Miller ordered St. Paul to pay Cox the following amounts: $9,465,103 for monetary damages resulting from St. Paul’s breach of excess insurance policy: $13,064,948 for interest on the amount of contract damages at the rate of 18 percent per year as a result of St. Paul’s failure to pay Cox promptly pursuant to the Texas Insurance Code; and $2,864,167 for prejudgment interest on the amount of contract damages at the rate of 5 percent a year.

On Feb. 26, Judge Miller ruled in the final judgment that Cox should recover the following from St. Paul: $309,410 in costs; $59,512 in nontaxable expenses related to attorney fees; $5,396,281 for legal services performed throughout the entry of the amended final judgment; $480,948 for legal services performed in connection with the appeal of the amended final judgment to the U.S. Court of Appeals for the Fifth Circuit; and $51,750 for legal services that would be performed in connection with the preparation of briefing in the Texas Supreme Court if a question or questions were certified by the Fifth Circuit and accept by the Texas Supreme Court.