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An appellate court in California has issued a decision in a case stemming from a massive explosion at a pipeline owned by Kinder Morgan, Inc., that further expands the reach of the "professional services" exclusion in commercial general liability ("CGL") insurance policies.
5 deaths, extensive property damage
On November 9, 2004, an excavator operated by Mountain Cascade, Inc. ("MCI"), a contractor for East Bay Municipal Utility District ("EBMUD") at a project at Walnut Creek, California, punctured a high-pressured petroleum line owned by Kinder Morgan. Gasoline was released into the pipe trench and was ignited by the welding activities of Matamoros Pipelines, Inc., a subcontractor working for MCI. The resulting explosion and fire killed five employees and seriously injured four other employees. Extensive property damage also occurred.
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