วันศุกร์ที่ 12 ธันวาคม พ.ศ. 2551

Case over for blast victims


Karen Savini saw two homes destroyed in a chemical explosion at a factory in Danversport two years ago, costing her thousands of dollars and saddling her with several hundred thousand dollars in new mortgage debt.

But she expects to get only about 20 cents for every $1 she spent to rebuild her properties, as part of a $7 million settlement to resolve a class action lawsuit. The settlement fulfills terms of the nonprofit Danversport Trust set up by residents and business owners.

"There isn't a lot of money to go around," said Savini, whose homes are on Bates and Riverside streets. "A lot of people lost a lot of money with this. None of us will be getting very much."

Multiple lawsuits filed by insurance companies against CAI Inc. of Georgetown and Arnel Co. of Danvers, which jointly operated the factory, are also covered in the settlement. Residents formed the nonprofit Danversport Trust last year to work out a settlement. Separately, a class action lawsuit was filed by a boat owner in December 2006. Lawyers for each group decided last year to work together on a single settlement.

The $7 million represents the total amount of insurance the two companies carried on the factory, which exploded in a fireball Nov. 22, 2006. More than 100 homes, including 26 that had to be torn down and rebuilt, were damaged, along with businesses, boats, and personal property. People have until Nov. 30 to file claims for the settlement. About 200 to 300 claims could be received by the deadline, a lawyer for the residents said.

The settlement calls for $5.5 million to go to insurance companies that have already paid claims estimated at $25 million to residents, businesses, boat owners, and other victims. Since insurance companies are receiving about 20 cents on the dollar paid out, residents can expect to receive the same rate, a lawyer for residents said.

"There is really no explanation as to why they only had $7 million," said Peter A. Lagorio, one of three lawyers representing residents. "It's clear there is not a lot to go around."

Savini said residents, many of whom lived in hotels or apartments for more than a year, know there is limited insurance to go around. But that does not mean they are happy, she said.

"People are just not happy with how their lawyers handled things," she said. CAI and Arnel "lawyers were pretty tough."

W. Paul Needham, a lawyer for CAI and Arnel, said the settlement agreement was the safest financial route for the company. "It was settled for insurance coverage," he said. "It allowed them to move on with their business. It was hard to say 'no' to that."

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