Arclight Capital Partners, LLC v. Freepoint Commodities LLC

── Arclight Capital Partners, LLC v. Freepoint Commodities LLC ── Court: Superior Court of Delaware Date: May 18, 2026 Category: General IN THE SUPERIOR COURT OF THE STATE OF DELAWARE ARCLIGHT CAPITAL PARTNERS, ) LLC; ARCLIGHT ENERGY ) PARTNERS FUND VI, L.P.; and ) LIMETREE BAY HOLDINGS, LLC, ) ) Plaintiffs, ) ) and ) ) FREEPOINT COMMODITIES LLC, ) ) Plaintiff-Intervenor, ) v. ) C.A. No. N24C-11-227 PRW ) CCLD LEXINGTON INSURANCE CO., ) ) Defendant. ) Submitted: February 24, 2026 Decided: May 18, 2026 Upon The ArcLight Entities’ Motion for Partial Summary Judgment on Coverage for Pre-Tender Defense Costs, DENIED. Upon Plaintiff-Intervenor Freepoint Commodities LLC’s Motion for Partial Summary Judgment on Issue of Coverage for “Pre-Tender” Defense Costs, DENIED. Upon Defendant Lexington Insurance Company’s Cross-Motion for Partial Summary Judgment Regarding Pre-Tender Defense Costs GRANTED. MEMORANDUM OPINION AND ORDER Jennifer C. Wasson, Esquire, and Ryan D. Kingshill, Esquire, POTTER ANDERSON & CORROON LLP, Wilmington, Delaware; Robin L. Cohen, Esquire, Alexander M. Sugzda, Esquire, and W. Alex Harris, Esquire, COHEN ZIFFER FRENCHMAN & MCKENNA LLP, New York, New York, Attorneys for Plaintiffs ArcLight Capital Partners, LLC, ArcLight Energy Partners Fund VI, L.P., and Limetree Bay Holdings, LLC. R. Eric Hacker, Esquire, MORRIS JAMES LLP, Wilmington, Delaware; Eric M. Gold, Esquire, and Lauren N. Smith, Esquire, PILLSBURY WINTHROP SHAW PITTMAN LLP, Washington, District of Columbia, Attorneys for Plaintiff- Intervenor Freepoint Commodities LLC. Kurt M. Heyman, Esquire, Aaron M. Nelson, Esquire, Denise S. Kraft, Esquire, and Luke P. Edwards, Esquire, HEYMAN ENERIO GATTUSO & HIRZEL LLP, Wilmington, Delaware; Kendall J. Burr, Esquire, and Jay Patterson, Esquire, MCDOWELL HETHERINGTON LLP, Houston, Texas, Attorneys for Defendant Lexington Insurance Company. WALLACE, J.  This case involves an insurance coverage dispute flowing from an oil refinery and storage terminal in the U.S. Virgin Islands (“USVI”).1 The coverage concerns class-action lawsuits relating to pollution from the Refinery. The parties dispute whether the Insurer owes pre-tender defense costs outlaid by the Insureds before the Insurer was notified of the underlying lawsuits covered by the policy. The insurance policy at issue is Contractors Pollution Liability Policy No. CPO 20726893 (“Policy”).2 The parties have competing cross-motions for summary judgment on the issue of pre-tender costs that predate notice to the Insurer. As well, the Insurer moves for summary judgment on the Policy’s coverage of Plaintiff ArcLight Capital Partners, LLC (“ACP”). For the foregoing reasons, the Court GRANTS the Insurer’s Cross-Motion for Partial Summary Judgment on pre-tender costs and ArcLight Capital Partners, LLC’s coverage. As a result, Plaintiffs’ and Intervenor-Plaintiff’s Motions for Partial Summary Judgment are DENIED. 1 See generally The ArcLight Entities’ Br. in Supp. of their Mot. for Partial Summ. J. on Coverage for Pre-Tender Defense Costs at 4 (D.I. 68) [hereinafter “ArcLight Op. Br.”]. For simplicity’s sake, the Court will refer to the facilities as “the Refinery” and “the Terminal.” 2 See Combined Answering Br. in Opp’n to the ArcLight Pls.’ Mot. for Partial Summ.