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June 13, 2008

Update: Station fire defendant offers $25M settlement

PROVIDENCE – In the latest in a series of settlement offers, the last “big pocket” defendant in The Station nightclub fire lawsuits has agreed tentatively to pay $25 million to the fire victims and their families.

The new settlement offer was made by Sealed Air Corporation, a publicly traded company headquartered in Elmwood, N.J., which manufactures polyethylene foam. It was filed this afternoon in U.S. District Court in Providence.

Because Sealed Air is the last “big pocket” defendant sued by the fire victims and their families, the tentative settlement agreement increases the likelihood that the case will never go to trial.

The new settlement offer by Sealed Air brings the pool of money offered to victims so far to $148.115 million. But all of the settlement offers are only tentative at this point. The fire victims and their families won’t be getting any of the money anytime soon.

While the plaintiffs’ lawyers have agreed to the settlements “in principle,” the settlements hinge on the approval of all of the victims, the approval of Senior U.S. District Court Judge Ronald R. Lagueux, the filing of documents that would preserve claims against other defendants and the court’s approval of a special master’s plan for divvying up the money.

One hundred people died in the fire at The Station on Feb. 20, 2003 and more than 200 others were injured. The fire began after Daniel M. Biechele, the manager for the rock band Great White, set off fireworks at the outset of the show. Sparks from the fireworks ignited highly flammable foam that was used as soundproofing.

The victims’ lawsuits alleged that Sealed Air manufactured the polyethylene foam that was underneath the highly flammable polyurethane foam that Jeffrey and Michael Derderian installed as soundproofing after buying The Station in 2000.

In a statement released after the tentative pact was filed, Sealed Air said:

"Our hearts go out to the families affected by this terrible tragedy. In order to reach a resolution, we have agreed to a settlement in principle, and our insurance carriers have agreed to fully fund the settlement. Though Sealed Air was not responsible for the fire, we believe that this result is in the best interest of all concerned. The settlement is subject to Court approval."

Extra: Keep up with coverage of the aftermath of The Station nightclub in this continuing report.

-- Journal staff writer Tracy Breton

Posted by Andrea Panciera  at 5:48 PM | Permalink

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