PROVIDENCE, R.I. -- Seven insurance inspection companies and insurance brokers sued after a fire at a Rhode Island nightclub killed 100 people have agreed to pay $262,500 to survivors and victims' relatives, according to court papers filed Monday.
It is the third settlement in the last week stemming from the Feb 20. 2003, fire at The Station nightclub in West Warwick, which began when a pyrotechnics display from the 1980s rock band Great White set ablaze cheap packaging foam used as soundproofing around the stage. Eight of those whod died had ties to Connecticut.
Members of the band offered $1 million to the victims' families and survivors last week, and club owners Jeffrey and Michael Derderian reached an $813,000 settlement agreement.
More than $176 million has now been offered by the dozens of people and companies sued after the fire. All the settlements require the approval of the more than 300 people suing, as well as of the federal judge overseeing the case.
The companies involved in the most recent settlement were accused in the lawsuits of failing to thoroughly inspect the club for safety hazards before issuing insurance policies to its owners. Victims' lawyers and prosecutors have said the club was cluttered with building and fire code violations.
The defendants include Essex Insurance Company; Underwriter's at Lloyd's, London; Surplex Underwriters Inc; V.B. Gifford & Company, Inc.; Gresham & Associates of R.I., Inc; Gresham & Associates of Rhode Island, Inc., and Anchor Solutions Company, Inc.
The companies did not admit any wrongdoing. Their lawyers either did not return phone messages or declined to comment.
A judge had earlier dismissed them from the case, saying the companies did not owe any burden to the club's patrons. The victims' lawyers appealed that decision, and the companies agreed to settle while the appeal was pending.
All the major defendants sued after the fire have agreed to settle in the last year, including Clear Channel Broadcasting, whose local rock radio station ran advertisements for the Great White concert and whose disc jockey was a master of ceremonies, and brewer Anheuser-Busch, whose local Budweiser distributor helped promote the show.
The next step will be determining how much settlement money each plaintiff will receive. Francis McGovern, a Duke University law professor, has been appointed to meet with the plaintiffs and work out a distribution formula.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Fire tears through old Lawrence mill Cars collide; 1 into Peabody business building New Hampshire police seize 322,000 prescription pills Dump truck takes out utility pole in Topsfield Flaming truck leaves cloud of smoke in Framingham
