Digital Extra: The Station Fire

A Workers' Compensation Court judge denies a request to dismiss part of the case involving a $1.06-million penalty against Jeffrey and Michael Derderian.

01:00 AM EDT on Thursday, August 12, 2004

BY LYNN ARDITI
Journal Staff Writer

PROVIDENCE -- The owners of The Station nightclub yesterday lost a bid to dismiss part of the state's workers' compensation case that would hold them personally liable for the $1.06-million penalty against their company.

Jeffrey and Michael Derderian's company, Derco LLC, is facing a penalty of $1,000 for each day that the West Warwick nightclub was without the required insurance coverage for its employees. The Station fire on Feb. 20, 2003 killed 100 people, including 4 nightclub workers, and injured more than 200 others.

The Derderians have appealed the penalty against their company to the state Supreme Court.

Meanwhile, then state labor director Marvin D. Perry appealed to the state Workers' Compensation Court for permission to hold the Derderians personally responsible for the $1.06 million.

The Derderians filed a motion to dismiss the appeal.

In yesterday's ruling, Judge John Rotondi rejected the Derderians' argument that the labor director's right of appeal was eliminated when the General Assembly amended the state workers' compensation law last July.

"The legislature did not intend to remove the director's right of appeal," Rotondi wrote in his decision. "Thus, it is clear that this court was not divested of its subject matter jurisdiction over this appeal."

Rotondi postponed until next week a decision on whether the Derderians can be held personally liable for the $1.06-million penalty.

"I don't know why" the judge postponed that portion of his ruling, said Bernard Healy, a lawyer for the state Department of Labor and Training. The two parts of the case were filed separately, he said, with the motion to dismiss coming first.

A court clerk said yesterday that the judge will issue a written decision on the personal liability issue on Wednesday.

Lynn Arditi, a Journal staff writer, can be reached by e-mail at larditi [at] projo.com