GableGotwals Secures Key Appellate Victory in an Insurance Dispute on behalf of a Major Energy Company

November 13, 2025 | GableGotwals is pleased to announce a significant appellate win on behalf of a major energy company in its ongoing insurance coverage litigation against certain Underwriters that provided liability insurance coverage to an oilfield service company that performed a faulty cement job on an oil and gas well drilled by our client in Texas. In a recent decision, the United States Court of Appeals for the Fifth Circuit reversed in part and affirmed in part the District Court’s order dismissing our client’s claims.

The Fifth Circuit’s ruling is a significant win, as the Court reversed the dismissal of our client’s claims seeking to enforce Underwriters’ duties to defend and indemnify, allowing those critical claims to proceed on remand. The Court affirmed the dismissal of our client’s insurance bad faith claim.

The case involves our client’s efforts to hold Underwriters responsible for paying several million dollars in damages arising from the faulty cement job performed on the well. The major energy company contends the faulty cement job required it to remove a 7,000-foot cement plug from the well, remediate the well, plug and abandon the well, and ultimately drill and complete an entirely new replacement well.

“This is a fantastic result for our client. It can be difficult to obtain a reversal from the Fifth Circuit, particularly in an insurance coverage case, and we are pleased with the Court’s decision,” said John Sullivan, Shareholder at GableGotwals. According to the Bar Association of the Fifth Circuit and based on information from the Clerk’s office from July 2024 to June 2025, only 6.1% of appeals originating from federal courts in Texas resulted in a reversal.

The GableGotwals team was led by John Sullivan, with key assistance from Amy Fogleman and Brian Tully.

About GableGotwals

GableGotwals® is a full-service law firm with more than 100 attorneys and 70 other business professionals in Oklahoma and Texas. We represent a diversified client base across the nation, and our connections and reach are global. Fortune 500 corporations, privately owned companies, entrepreneurs, foundations, and individuals entrust us every day with the stewardship and strategic management of their legal challenges.