SANFORD, N.C. -- The Pantry Inc. has filed a complaint in federal court against a pair of insurance companies, saying both are shirking their responsibilities to pay out on costs The Pantry incurred after underground storage tank (UST) leaks, reported The Triangle Business Journal.
The retailer said American Safety Indemnity Co. of Georgia and Gulf Underwriters Insurance Co. of Connecticut are denying coverage for claims that are covered in whole or in part by their policies.
Confusion over who should pay out what money is a matter [image-nocss] of timing, said the report. Gulf Underwriters Insurance issued The Pantry a policy that provided coverage for tank releases occurring from Jan. 1, 1985, through Dec. 14, 2004, according to the newspaper, citing The Pantry's suit. The policy was worth up to $10 million in payouts to The Pantry, it said.
American Safety Indemnity gave The Pantry a policy that covered leaks from Dec. 14, 2004, to Dec. 14, 2006, the report said. It was worth an aggregate amount of $2 million in payouts, it added.
But while The Pantry discovered the tank releases after Dec. 14, 2004, it isn't clear that the leaks actually occurred after that date. Thus, the insurance companies can't agree on who owes money for which leak despite information provided on the leaks by The Pantry.
"For months, the parties have investigated and negotiated regarding these sites, and The Pantry has provided both carriers with all information requested," the suit said. "Nonetheless, both carriers continue to deny coverage for claims that the investigation has shown to be covered in whole or in part by their respective policies, with each carrier pointing at the other as the responsible party."
Representatives for The Pantry, including lawyers and company spokespersons, were not available for comment.
Headquartered in Sanford, N.C., The Pantry is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with revenues for fiscal 2006 of approximately $6 billion. As of June 28, 2007, the company operated 1,642 stores in 11 states under several banners, including Kangaroo Express, its primary operating banner.
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