John B. Thomas, partner, Hicks ThomasFreeport LNG Explosion: Zachary Industrial Evades $400M Damages Claim in Bankruptcy Court
A Houston bankruptcy judge dismissed a consequential damages claim against Zachary Industrial Inc., finding there was no gross negligence involved in the Freeport LNG Terminal explosion.
December 16, 2024 at 06:30 PM
2 minute read
What You Need to Know
- The lion's share of damages claims against Zachary Industries for the Freeport LNG Terminal 2022 explosion were dismissed in bankruptcy court.
- The damages claims for lost profits and business interruption totaled about $400 million. Damages claims remain, but they are capped at $1 million.
- U.S. Bankruptcy Judge Marvin Isgur said that the amended complaint against Zachary Industries "fails to plead gross negligence sufficiently."
U.S. Bankruptcy Judge Marvin Isgur of the Southern District of Texas granted Zachary Industries Inc.'s motion to dismiss claims for consequential damages related to the June 2022 explosion at the Freeport LNG Terminal.
Isgur stated in his verbal order, delivered Friday, that claimant FLNG Liquefaction LLC failed to prove Zachary was liable for gross negligence.
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