Facts

On July 28, 2007, around 1:18 a.m., decedents Derik Faubion, age 19, his fiancee, Michell Mattison, age 19, their daughter, 2 months, and Mattison's siblings, age 4 and 2, were victims to a fire in their apartment, located at the Northgate Apartments in Lemorre.

Plaintiffs, who are the relatives of the decedents, witnessed the fire as they lived close by.

Six months prior to this fire, the property management company, Lemoore Real Estate and Property Management Inc., issued a letter informing residents that most units did not contain smoke detectors. Decedents' apartment provided no evidence that a smoke detector was in the unit.

Lemoore inspected the smoke detectors in the Northgate Apartments every six months and based upon those inspections, sent a letter notifying tenants that they found smoke detectors disconnected. Every smoke detector that was disconnected was replaced. The on-sight property manager checked the smoke detector in the subject unit three weeks before the fire occurred. This was indicated on the lease and confirmed in writing by Derik Faubion.

Plaintiffs filed suit against Lemoore Real Estate, as well as the owners of Northgate Apartments, Brian and Rebecca Kiniry, claiming negligent maintenance.

The Kiniry's settled.

Lemoore Real Estate operated and continues to operate a safe living environment.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged negligent maintenance of the premises for failure to ensure that smoke detectors were in each unit and for failure to keep the premises free of debris, which was contended to be the cause of the fire.

DEFENDANT'S CONTENTIONS:
Defendant Lemoore Real Estate claimed that the premises did possess smoke detectors and that it was safe.

Damages

Damages for emotional distress.

Injuries

Wrongful death.

Result

Plaintiffs were awarded $29 million. It was required that plaintiffs enter into a covenant not to execute the judgment against Lemoore Real Estate in exchange for an assignment of defendant's rights against its insurance company. Thus, the judgment does not impact Lemoore in any manner; Lemoore does not have to pay any attorney fees or any portion of the judgment. Lemoore's credit will also not be impacted by this judgment; it was and is fully protected.

Other Information

Public Mutual was the insurer for the Kinirys.