In 2019, a massive explosion rocked the Philadelphia Energy Solutions (PES) refinery, sending shockwaves through the surrounding community and causing extensive damage. The explosion, triggered by a ruptured pipe carrying hydrofluoric acid, resulted in fires, air pollution, and injuries to workers and nearby residents. In the aftermath of the disaster, affected individuals have sought legal action to hold PES and other responsible parties accountable for negligence and safety violations. Now, as lawsuits related to the refinery explosion move forward, victims may have new opportunities to pursue justice and compensation for their losses.
If you or a loved one suffered injuries or health complications due to the PES refinery explosion, legal options may be available. At Kherkher Garcia, our experienced oil and gas injury attorneys are following the latest developments in these lawsuits and are prepared to fight for the rights of those affected by industrial incidents.
Read on to learn more about the ongoing litigation and how you can take action.
PES Refinery Explosion Details
On June 21, 2019, a catastrophic explosion and fire erupted at the PES refinery in South Philadelphia, Pennsylvania. Operated by Philadelphia Energy Solutions Refining and Marketing (PESRM), this facility was the largest oil refining complex on the East Coast, processing 335,000 barrels of crude oil daily. The explosion resulted in the closure of the refinery and led to the bankruptcy of its owner, Philadelphia Energy Solutions.
Following a comprehensive investigation, the U.S. Chemical Safety Board (CSB) determined that the explosion was caused by a ruptured, corroded pipe elbow in the hydrofluoric acid alkylation unit. This component, originally manufactured by Babcock & Wilcox (B&W) in the 1970s, ultimately failed, triggering the disaster. Federal, state, and local agencies, including the Occupational Safety and Health Administration (OSHA), the U.S. Environmental Protection Agency (EPA), and the Philadelphia Fire Department, collaborated to examine the incident’s causes and consequences.
Legal Fallout and Bankruptcy Proceedings
As a result of the explosion, the EPA filed a claim in U.S. Bankruptcy Court in Delaware, ultimately reaching a $4.2 million settlement regarding environmental liabilities associated with the incident. However, legal disputes surrounding liability for the explosion did not end there.
PESRM and the PES Liquidating Trust, along with several insurance providers – including Westport, XL, Allianz, HDI, Zurich, and Lloyd’s syndicates – filed a lawsuit against B&W in Pennsylvania state court. The lawsuit alleged negligence, strict liability, and breach of implied warranties related to the faulty pipe elbow. In response, B&W sought to have the lawsuit dismissed in bankruptcy court, arguing that its 2000 Chapter 11 reorganization plan discharged all claims against it arising from pre-2000 activities.
Court Ruling: B&W Must Face Liability Claims
B&W contended that its confirmed bankruptcy reorganization plan from 2000 precluded any non-asbestos-related claims linked to its pre-bankruptcy products. The company argued that its plan’s broad definition of “contingent claims” should encompass future liabilities arising from its prior industrial components. However, the court rejected B&W’s argument and determined that the claims against it must be evaluated under the Fifth Circuit’s prepetition-relationship test. Under this test, a bankruptcy discharge only applies if two conditions are met:
- The future injury must have been relatively certain to manifest and attributable to the debtor at the time of bankruptcy.
- The debtor must have been able to identify potential claimants and provide them with proper notice of the bankruptcy proceedings.
The court found that while B&W had notified Sunoco, the refinery’s previous owner, during its bankruptcy, there was insufficient evidence to conclude that the elbow joint’s failure was foreseeable in 2000. Because this factual question remained unresolved, the court refused to dismiss the Pennsylvania state court claims against B&W.
Bankruptcy Law and Successor Liability
B&W also attempted to avoid liability by invoking provisions in its bankruptcy plan that disclaimed successor liability. However, the court ruled that the issue of whether B&W can be held liable under successor liability principles is a matter of Pennsylvania state law, not federal bankruptcy law. The judge emphasized that these defenses must be argued in the Pennsylvania court where the lawsuit is pending.
What This Means for Industrial Injury Claims
The court’s ruling has significant implications for industrial accident lawsuits and corporate liability in bankruptcy cases. It highlights the limitations of bankruptcy discharge protections when future claims arise from long-standing industrial components. Companies that manufacture industrial equipment must recognize that liability for defects may persist long after a bankruptcy reorganization is completed.
By denying B&W’s motion for summary judgment, the court has allowed PESRM, the PES Liquidating Trust, and their insurers to continue pursuing their lawsuit in Pennsylvania state court. B&W must now defend itself against claims that its failure to ensure the safety of its product played a role in the devastating refinery explosion.
How Kherkher Garcia Helps Victims of Industrial Incidents
Industrial workplaces, including refineries, chemical plants, construction sites, and manufacturing facilities, are often hazardous environments. Workers in these industries face significant risks of accidents, injuries, and exposure to toxic substances. When industrial incidents occur due to negligence, defective equipment, or unsafe working conditions, victims and their families may be left facing medical bills, lost income, and emotional distress.
At Kherkher Garcia, we are committed to helping those affected by industrial accidents seek justice and obtain the compensation they deserve.
Comprehensive Legal Support for Industrial Injury Victims
At Kherkher Garcia, our legal team has extensive experience handling cases involving industrial incidents. We understand the complex regulations governing industrial workplaces, including Occupational Safety and Health Administration (OSHA) standards and state safety laws. Our attorneys work diligently to investigate incidents, identify liable parties, and build strong legal claims for our clients.
Our firm provides comprehensive legal support for victims of various industrial incidents, including:
- Explosions and Fires. Industrial facilities often contain volatile substances that can lead to catastrophic explosions and fires. These incidents cause severe burns, respiratory injuries, and fatalities.
- Toxic Exposure. Workers may be exposed to hazardous chemicals, leading to serious illnesses. Examples include respiratory disorders, neurological conditions, and even cancers.
- Equipment Failures. Defective machinery, improperly maintained equipment, and mechanical failures can result in crush injuries, amputations, and other severe trauma.
- Falls and Structural Collapses. Unsafe work environments, lack of fall protection, and structural failures can cause life-threatening injuries to workers and bystanders.
Investigating Industrial Accidents to Prove Liability
Determining liability in an industrial accident case requires an in-depth investigation and a thorough understanding of workplace safety laws. Kherkher Garcia works with industry experts, engineers, and safety professionals to analyze evidence, reconstruct accidents, and establish negligence. Furthermore, we gather crucial documentation such as:
- OSHA investigation reports
- Workplace safety records
- Witness statements
- Surveillance footage
- Equipment maintenance logs
By building a strong case, we help injured workers and their families pursue claims against negligent employers, equipment manufacturers, subcontractors, and other liable parties.
Maximizing Compensation for Industrial Injury Victims
Victims of industrial accidents may be entitled to compensation for medical expenses, lost wages, pain and suffering, and long-term disability. Our attorneys fight for maximum compensation by negotiating with insurance companies and, if necessary, taking cases to trial. We understand the tactics used by corporations and insurers to minimize payouts, and we aggressively advocate for our clients’ rights.
Protecting the Rights of Industrial Workers
At Kherkher Garcia, we believe that industrial workers deserve safe workplaces and accountability when negligence leads to harm. Our legal team is dedicated to protecting the rights of injured workers and ensuring that those responsible for industrial incidents are held accountable. If you or a loved one has been injured in an industrial accident, contact Kherkher Garcia today. Start a free consultation and learn how we can help you seek justice.
Get started now by calling us at 713-333-1030. You can also reach out to us online via our website contact form.
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