Insurer seeks court aid in tar damages on turnpike
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When it was over, an estimated 1,000 vehicles from 16 states had been caked or spattered with the tar-like goo that leaked from a tanker truck on the Pennsylvania Turnpike on the night of Nov. 22.
Now, things may be getting sticky in court, as lawyers and insurance companies try to sort through damage claims that may exceed the money available to pay them.
The Travelers Indemnity Co. of Hartford, Conn., insurer of the company that owned the leaking truck, has deposited $1 million into a bank account supervised by U.S. District Court and has begun what it hopes will be an expedited process of dealing with the damage claims.
But its lawyers have acknowledged in court filings that $1 million -- the maximum payable under the terms of the insurance policy -- is not enough to cover all of the claims filed so far, and has asked Judge Joy Flowers Conti to appoint a special master to oversee distribution of the money. Travelers has agreed to pay for the overseer.
Meanwhile, the tanker's owner, MTS Transport of Stevensville, Md., filed a federal court complaint last week accusing another insurer, Hallmark Specialty Insurance Co. of Texas, of refusing to pay on an excess liability policy that it said provided an additional $4 million of coverage.
The outcome of that dispute may determine whether claimants recover all of the costs of repairing or replacing their vehicles.
Court documents identify the material that leaked as asphalt flux, commonly used in roofing. On the night of Nov. 22, in a driving rainstorm, the MTS tanker entered the turnpike at New Castle, traveling east, and spilled the chemical over a 40-mile stretch of highway extending to the Oakmont service plaza.
Drivers behind the tanker found themselves in an abyss of sludge. The material stuck to tires, penetrated engines and forced scores of vehicles off the highway.
The turnpike commission later sent out crews to spread salt, sand and cinders on the spilled goo and push it off the road with snow plows.
In court filings, Travelers Insurance listed more than 900 people who have filed damage claims and nearly 80 insurance companies that said they represent additional claimants. Another claimant is the turnpike commission, which notified Travelers that it is calculating the damage and cleanup costs and "you will be billed accordingly."
An attorney for Travelers referred a reporter to the publicly filed court documents, saying they fully explained the current status of the case. Attorneys for MTS and Hallmark could not be reached.
In its filing, Travelers cited two specific cases to buttress its assertion that $1 million likely won't cover all of the damages. Bill and Nicole Androutsopoulos of Georgia spent $1,187 to repair their damaged Acura. Dennis Porter of Illinois said it would cost $1,146 to repair his Toyota Highlander.
Some drivers have already had their claims resolved by their insurance companies, which may then seek recovery from Travelers or Hallmark.
James Abrams of Johnstown spent about $200 to have his Hyundai Elantra cleansed of tar that built up on the tires and undercarriage, but he still smells tar when he runs the heater. He said his insurer, State Farm, covered the cost.
"This was a relatively mild problem, compared to some people," Mr. Abrams said.
Tom Jungling of Hampton was less fortunate. With only liability coverage on the family's older second car, a 1999 Oldsmobile, he had to foot the $750 bill to replace all four tires and repair damage to a wheel well. His only hope for reimbursement is through the court case.
"I'm not sure what the recourse is at this point," he said. "Anything going through the court system, I don't expect rapid action on it."
Still, he said, he had better luck than others. From conversations with insurance adjusters, he has heard that a Lexus with 60 miles on the odometer was declared a total loss, as was a Mercedes "two weeks off the showroom floor."
"With those kinds of claims, that million doesn't go very far," he said.
In an apparent effort to determine a cause for the leak, MTS has gone to Allegheny County Common Pleas Court seeking to subpoena surveillance video from Marathon Petroleum Co. The petition does not elaborate on the reasons, and MTS attorney John T. Pion could not be reached.
The tanker's driver, George E. Delaney, 50, of Glen Burnie, Md., has been charged with failure to secure loads in vehicles and disobeying a police officer's order not to move the truck from the Oakmont service plaza after the accident. The charges are pending before District Judge C. Douglas Loughner in Big Beaver.
First Published December 26, 2011 12:00 am
