Path of the complaint
01:00 AM EDT on Thursday, August 5, 2004
March 5, 2003: The state Department of Labor and Training's Division of Workers' Compensation files a complaint against the company that owned The Station, Derco LLC, and its owners, Jeffrey and Michael Derderian. The complaint charges that The Station had no workers' compensation coverage for nearly three years before the nightclub burned to the ground on Feb. 20.
April 1, 2003: At a hearing before the state Department of Labor and Training, lawyers for the Derderians admit the nightclub owners failed to purchase the required workers' compensation coverage.
April 9, 2003: The state labor department orders Derco LLC to pay $1,066,000 for violating the workers' compensation law. The order by the labor department's chief legal counsel and hearing officer in the case, Louis J. Vallone, says that the state law on limited liability companies prevents the assessment of penalties against the Derderians personally. The Derderians appeal the penalty against Derco LLC to the state Workers' Compensation Court.
May 9, 2003: The state Department of Labor and Training's associate attorney, Bernard P. Healy, appeals to the state Workers' Compensation Court requesting that the $1.06-million penalty be assessed against the Derderians personally.
July 25, 2003: State Workers' Compensation Court Judge Bruce Q. Morin upholds the $1.06-million penalty against Derco LLC and rules that state law allows for the assessment of a penalty personally against the Derderians. The Derderians appeal.
Oct. 24, 2003: A three-judge appeals panel of the Workers' Compensation Court upholds the $1.06-million penalty against Derco LLC and remands the matter of personal liability to the state Department of Labor and Training. The Derderians appeal to the state Supreme Court.
Nov. 12, 2003: State Supreme Court Chief Justice Joseph R. Weisburger agrees to stay the $1.06-million penalty against Derco LLC until the court determines whether it will hear the case on appeal. The court declines to consider an appeal on the issue of personal liability at this time.
Feb. 27, 2004: The state labor department's chief legal counsel, Louis J. Vallone, rules that the Derderians cannot be held personally liable for the $1.06-million penalty because they are members/managers of a limited liability company. Healy, the labor department's associate legal counsel, appeals Vallone's ruling to the state Workers' Compensation Court.
Aug. 4, 2004: State Workers' Compensation Court Judge John Rotondi hears arguments from lawyers representing the Derderians and the state labor department on whether the Derderians can be held personally liable for the $1.06 million. Rotondi says he will issue a ruling from the bench Wednesday.
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