Explanation
This ordinance is submitted to settle a civil action known as City of Columbus v. Refuel Environmental Services, LLC, Case No. 09-CVG-13342, which the City of Columbus filed against Refuel Environment Services, LLC, on September 2, 2009, in the Court of Common Pleas for Franklin County, Ohio. The case arises out of a leak of biodiesel fuel from an underground storage tank at the Division of Refuse Collection Transfer Station located at 2100 Alum Creek Drive. On June 21, 2007, while Refuel employees were cleaning the tank, a piece of equipment accidentally fell into it and punctured its wall. Because the Refuel employees erroneously concluded that the puncture would not cause the tank to leak, they left the facility without telling anyone what had happened.
Unaware that the tank had been punctured the day before, the City refilled it with fuel on June 22, 2007. Thus began a leak of fuel that was not discovered until September 18, 2007. As a consequence of this leak, the City has incurred damages, including the lost value of leaked biodiesel fuel, the expense of environmental clean-up and remediation, and the lost value of a working fueling station at the Alum Creek facility.
Although Refuel's insurer, Greenwich Insurance Company ("XL"), originally agreed to defend Refuel in this case under a liability policy, XL later determined Refuel had breached the policy's cooperation clause. Thus, XL has taken the position that is has been relieved of any obligation to further defend or indemnify Refuel in this matter. After extensive factual investigation, discovery, and negotiations, the City Attorney and the Public Service Director have determined that, absent insurance coverage, Refuel lacks the financial wherewithal to pay most of the judgment that the City would likely obtain in this civil action. Consequently, the City Attorney and the Public Service Director believe that it is in the City's best interest to settle this matter for a total of Three Hundred...
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