Straughen Et Al V. Dalbo, Inc

On February 15, 2024, the Colorado jury awarded Plaintiff Steven Straughen $30 million against BHS Inc. in the present personal injury case resulting from an on-site injury caused by the explosion of a negligently installed storage tank.

Case Background

On August 17, 2021, Plaintiff Steven Straughen filed a lawsuit claiming negligence against BHS Inc. before the United States District Court, Colorado (Denver). The case was assigned to Judge Nina Y. Wang and referred to Magistrate Judge Susan Prose. [Case number: 1:21cv2230]

Cause

Edge Energy II LLC (“Edge”) operated and oversaw the Simpson Pad 26 oil and gas production site in Weld County, Colorado. Skyline Well Testing, LLC (“Skyline”) was hired by Edge to manage flowback operations at the site, involving the monitoring and operation of equipment to extract a mixture of water, oil, and natural gas vapors from wells. The process included directing Produced Fluids through separator vessels to segregate water from oil and gas vapors.

Edge contracted BHS Inc. to supply storage tanks for water and oil at the site. Defendant BHS Inc. allegedly delivered ten tanks in poor condition. The tanks had defects like pin holes, internal fractures, compromised liners, corrosion, and improperly attached pipes. Schneider Summit Services, LLC (“Summit”) was hired by Edge to supervise operations at the site. However, Summit purportedly failed to conduct thorough inspections of the tanks or the flow back system, neglecting safety protocols. The poor condition of the BHS tanks allowed oxygen to infiltrate the system. It created a flammable atmosphere in the tanks and vent hoses.

On December 12, 2019, during routine monitoring by Skyline employees, an explosion occurred at the site. Plaintiff Steven Straughen from Skyline was monitoring when they noticed smoke and heard a “pop” sound, leading to an explosion in water tank #4. The blast threw Straughen approximately 27 feet away. Following the incident, OSHA investigators attributed the explosion to oxygen entering the tanks due to their compromised condition.

Injury

As a direct consequence of the explosion, Straughen experienced severe and lasting physical and psychological injuries, necessitating extensive medical care. He incurred past and future medical expenses, lost wages, non-economic damages, and permanent physical impairment and disfigurement. Consequently, Straughen’s injuries deprived his wife, Ashley Straughen, of his care, companionship, and household support. She devoted substantial time to caring for him, including attending medical appointments, managing household duties, and single-handedly caring for their children.

Damages

The Plaintiff, Steven Straughen requested a jury trial. He sought a judgment against Defendant BHS, seeking damages to assess during the trial, along with pre- and post-judgment interest, costs, and fees for expert witnesses. Straughen had incurred over $200,000.00 in medical expenses due to the Defendant’s negligence. They also sought any additional relief that the Court deemed fair and appropriate.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff: Steven Straughen
    • Counsel for Plaintiff: Kurt M. Zaner | Adam Leon Fonta | Lia R. Rottman
  • Defendant: BHS, Inc.
    • Counsel for Defendant: Derek Harold MacKay | Elizabeth LaVance | Jennifer W. Vedra | Kate L. McDonald | Nathaniel R. Jordan

Claims

Plaintiff claimed that BHS had a duty to ensure that the tanks installed on the site were safe and in good working condition. BHS neglected its duties by negligently and carelessly failing to install tanks in proper working order. Instead, BHS opted to install tanks with numerous defects such as pinholes, internal fractures, compromised liners, long-standing corrosion, a broken nipple, and at least one open pipe.

BHS did not conduct thorough inspections of the tanks before or after delivery to the site, nor did it address the existing problems with the tanks. Moreover, BHS neglected to safely install the tanks by grounding them at the Site. This failure to properly install and maintain the tanks directly led to the explosion and the injuries sustained by Mr. Straughen.

Defense

The Defendant denied the allegations and asserted affirmative defenses. It was stated that BHS’s potential liability to Plaintiffs, if it existed, could be reduced or eliminated due to Plaintiffs’ own comparative negligence or actions of third parties beyond BHS’s control.

Furthermore, it was claimed that equitable doctrines such as estoppel, laches, acquiescence, and unclean hands might play a role in diminishing Plaintiffs’ claims and potential damages.

Jury Verdict

On February 15, 2024, the Colorado jury returned a $30 million verdict in favor of Plaintiff Steven Straughen. The jury unanimously found that BHS Inc. had been negligent and such negligence had caused injuries to the Plaintiff. The jury also found that non-parties Skyline Well Testing, LLC  and Schneider Summit Services, LLC had been negligent. No contributory negligence on the Plaintiff’s part was found. The jury apportioned 80% of the negligence to BHS Inc., 15% to Skyline Well Testing, and 5% to Schneider Summit Services.

The breakdown of the $30 million jury verdict is as follows:

  • Non-economic losses, excluding physical impairment: $15 million
  • Economic losses: $10 million
  • Damages for physical impairment: $5 million

Court Documents:

Available upon request