Columbia Gas of Massachusetts Pays $143M to Settle Class Actions Over Fires, Explosions
Plaintiffs attorneys and attorneys for Columbia Gas of Massachusetts announced Monday the company had agreed to settle numerous class actions stemming from fires and explosions in three Massachusetts communities.
July 29, 2019 at 01:52 PM
3 minute read
Columbia Gas of Massachusetts has agreed to settle multiple class actions arising out of the September 2018 Merrimack Valley fires and explosions for $143 million.
The fires and explosions killed an 18-year-old in his driveway, injured more than 20 people and impacted thousands of residents and businesses in Lawrence, Andover and North Andover, Massachusetts. The explosions were caused from an over-pressurization in the system that Columbia Gas owns.
Plaintiff attorneys and NiSource, the parent company of Columbia Gas, announced the settlement Monday morning.
Residents and businesses will be able to submit claims after the settlement receives final approval from the court, which is expected to occur before the end of the year.
Plaintiff's co-lead counsel, Frank Petosa of Morgan & Morgan's Boston office, said the settlement was fair. He said the company “operated in good faith, in both the claims process to help people, and were willing partners to get to where we were able to get today.”
As part of the settlement agreement, more than 10 class actions and many individual claims, which were consolidated, will be dropped. Petosa said the only claims that can still move forward are those dealing with bodily injury and those that casualty insurers are pursuing against the company.
“Many individuals and companies might have been compensated for out-of-pocket expenses, but we don't believe they have yet to be compensated for the impact it had on their day-to-day lives, meaning for residents displaced and lives destroyed,” Petosa said. “Our goal is to make sure everyone is made whole.”
In a statement from Columbia Gas' website, Joe Hamrock, NiSource's chief executive officer and president, said the settlement is an important step.
“What happened last September was tragic, and we will always be mindful of its impact on our customers and everyone in the communities we serve, including those represented by this settlement,” Hamrock said. “Today marks another important step forward, as we continue to fulfill our commitment to residents and businesses. We are pleased that we have reached a resolution so swiftly, and we thank the mediator, as well as all involved who helped us achieve this result.”
In addition to the settlement, NiSource said it dedicated about $1 billion to recovery efforts, including restoration work on houses and businesses, and sourcing and installing equipment and about 18,500 new appliances.
Representing the gas company were Melick & Porter attorney John Rooney III, of Southborough, Massachusetts, and J. Brian Jackson, of McGuireWoods in Charlottesville, Virginia. Neither responded to a request for comment Monday.
Assisting Petosa were John Roddy of Bailey & Glasser, Elizabeth Graham of Grant & Eisenhofer, and Leo Boyle and Brad Henry of Meehan, Boyle, Black & Bogdanow.
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