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Deepwater Horizon Sparks Suit Against Law Firm Suing Its Insurance CompanyLock Icon

2 min read

A Eureka Springs law firm is suing its insurance carrier for not footing the bill to battle a lawsuit.

The Parker Law Firm and its attorney, Tim Parker, want a federal judge to order Travelers Indemnity Co. of Hartford, Connecticut, to provide a defense to and pay any claim that might result from a lawsuit filed against them in New York.

In the New York case, PS Finance LLC of New York sued Parker and his firm last year over allegations that money that Parker’s client received for damages tied to the Deepwater Horizon oil rig explosion in 2010 should have gone to PS Finance. Parker denies that allegation.

PS Finance sued Parker and is seeking about $500,000 in damages, according to Parker’s lawsuit, filed last week in U.S. District Court in Fayetteville, where Parker is representing himself.

When PS Finance sued Parker, he asked Travelers to pay for a defense. It denied the request, saying he wasn’t covered under his general liability policy.

Parker disagreed. “The plain language of their own policy said they will,” he said.

In the meantime, a judge in New York denied Parker’s motion to have the case tossed. Instead, the case was sent to arbitration, where it is pending.

Parker said in his court filings that he’s spent about $20,000 on defending the case.

“I’ve been doing this 27 years and I’ve never seen anything like it,” Parker told Whispers. “I’ve been buying insurance from Travelers for right at 20 years.”

A spokesperson for Travelers didn’t immediately return a call for comment.

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