On August 27, 2016, at about 8:26 a.m., a railroad tank car sustained a 42-inch long crack in its tank shell shortly after being loaded with 178,400 pounds of liquefied compressed chlorine at the Axiall Corporation Natrium plant in New Martinsville, West Virginia. Over the next 2.5 hours, the entire 178,400-pound chlorine load was released, forming a large vapor cloud that migrated south along the Ohio River valley.
According to the chemical company’s claims, the recently repaired rail car ruptured inside the Axiall plant, causing as much as $400 million in corrosion and other damages to equipment. The 12 insurers denied the company’s claims, noting that policies “excluded corrosion, faulty workmanship, and contamination.”
Axiall sued the insurers for breach of contract and bad faith.