PROVIDENCE -- The owners of The Station nightclub, scene of the state's
deadliest fire, have asked the state's highest court to review a
more-than-$1-million penalty they received for failing to have workers'
compensation insurance.
Jeffrey and Michael Derderian, and their company, Derco LLC, also asked
the state Supreme Court to postpone collecting the penalty while the
case is being reviewed, according to court documents released today.
The West Warwick nightclub was destroyed Feb. 20 after a band's
pyrotechnics ignited flammable foam used around the stage as
soundproofing. One hundred people were killed. Four employees were among
the dead.
The state Department of Labor and Training in April penalized Derco
$1.07 million for not having workers' compensation insurance during the
more than three years the Derderians operated the club.
The amount was the maximum possible -- $1,000 for each day the club
operated without the workers' insurance. It was the largest of its kind
ever imposed by the state.
In July, a Workers' Compensation Court judge upheld the penalty and
ruled the labor department could also assess it against the brothers
personally.
The Derderians' attorneys appealed, arguing the amount was excessive,
unconstitutional and out of line with previous penalties.
A three-judge appeals panel of the state Workers' Compensation Court
disagreed with all of the arguments, ruling last month to uphold the
earlier order.
If there had been workers' compensation insurance at the club, the
families of the dead employees would have been eligible for $15,000 for
burial and other expenses plus a portion of the deceased's lost wages.
A grand jury is weighing whether criminal charges are warranted, and
several lawsuits have been filed against the Derderians and the band,
Great White.
