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Court: Insurer won't pay for Derderian defense

11:38 AM Tue, Jul 07, 2009 |
Katie Mulvaney    Email

PROVIDENCE, R.I. -- A Superior Court judge has ruled that Michael A. and Jeffrey A. Derderians' insurance company does not have to pay the costs of defending the brothers against criminal charges that arose from The Station nightclub fire in 2003.

The brothers, who owned the West Warwick club, faced 200 counts of involuntary manslaughter stemming from the February 20, 2003, blaze that claimed 100 lives. The nightclub became engulfed in flames after pyrotechnics set off by a band manager set fire to flammable foam the brothers had installed to soundproof the building. The band manager was also criminally charged.

After the fire, the Derderians asked the court to declare that their insurer, Essex Insurance Co., had to cover their criminal defense costs. Essex argued the brothers were not entitled to such a defense under their policy.

Superior Court Judge Alice B. Gibney sided with the company June 25, finding that the allegations contained in their criminal indictment were not covered by the policy because they did not constitute a lawsuit.

The Derderians pleaded no contest to 100 counts of manslaughter in the blaze. Michael was sentenced to four years in the Aduclt Correctional Institutions and was released from prison late last month. Jeffrey was ordered to perform 500 hours of community service. Daniel M. Biechele, the band manager who triggered the fireworks that started the fire, pleaded guilty and was sentenced to four years in prison.

In September 2008, seven insurance inspection companies and insurance brokers, along with Derderians agreed to a $176-million settlement with the fire victims. Members of the band, Great White, offered $1 million to the victims and their families, and the Derderians offered $813,218.82 -- the balance of a liability insurance policy they had on their club through the Essex Insurance Company.



Read a projo.com special report on the fire and its aftermath.

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Comments

Roger said:

The Station Nightclub Fire should be remembered for its historical significance as:
1. The worst case of Fire deaths in RI, and possibly in the US.
2. The worst case of totally preventable fire deaths in the US.
3. The worst case of multiple deaths injustice perpetrated by the US Legal System, (i.e. 100 cases of second degree murder that should have been brought against the Derderians, the Building Inspector, and the Fire Inspector; but that resulted in penalties less than adequate for one death, against 3 people.)
4. The worst case of accessories after the fact of 100 murders, and 100 cases of assault and suffering via fire, committed by those entrusted with the enforcement of our laws and management of the US Legal System.
5. A true case of injustice that allows the Station Fire to be listed in a category of horror and injustice that has the Holocaust as its number one member.




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