Confidential
Settlement – $850,000Facts
On Oct. 18, 1995, a fire destroyed a processing and cold storage facility at plaintiff's plant located in Lost Hills. The fire originated in the area where a conveyor system penetrated the exterior wall of the building. The cause of the fire was determined to have been the ignition of combustible materials during welding operations to enlarge the chute that transferred material from the outside conveyor to an inside conveyor. The fuel for the fire was the polystyrene foam sandwich insulation panels attached to the ceiling of the building. The plaintiff brought this action against the defendant manufacturer of the panels based on strict liability and negligence theories of recovery.
Settlement Discussions
The plaintiff made a policy limits demand for $1 million upon defendant in May 1997. Defendant offered $160,000 to plaintiff at mediation.
Damages
The plaintiff claimed damages in excess of $20 million for damage to the building, lost contents, extra expenses and lost profits, less a set-off of $1,840,000 for previous settlement contributions.
Other Information
The settlement was reached approximately two years and three months after the case was filed. A mediation was held on Aug. 7, 1998 before retired judge Gerald K. Davis, resulting in the reported settlement.
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