Leggett offers settlement in deadly nightclub fire

Leggett and co-defendants William T. Burnett & Co., General Foam Corp. and FFNC Corp. filed the settlement offer May 12 in U.S. District Court in Providence, R.I. All plaintiffs in the case and the court must approve the offer.

The Feb. 20, 2003, fire at The Station nightclub in West Warwick started when fireworks set off by the tour manager for the rock band Great White ignited soundproofing foam on the club’s interior walls. The blaze spread quickly and trapped many inside.

“We’re still some time off in actual resolution of this case, but certainly this is another step,” Steven Minicucci, an attorney who represents more than a dozen of the approximately 300 plaintiffs in the case, told Reuters news service.

The tour manager pleaded guilty in February 2007 to 100 counts of involuntary manslaughter and was sentenced to four years in prison and three years’ probation.

According to the Providence Business Journal, the club’s owners, brothers Jeffrey and Michael Derderian, said they bought and installed the foam not knowing it was flammable.

The brothers reached a plea agreement with prosecutors last year that resulted in a four-year sentence for Michael Derderian – the same as for the tour manager – and a suspended sentence for Jeffrey Derderian.

Settlements in cases related to the fire total more than $100 million and more than two dozen defendants remain, including the state of Rhode Island and Anheuser Busch Inc.

Leggett and the other manufacturers sold or distributed foam to American Foam Corp., which sold the soundproofing material to the club’s owners. According to the Associated Press, it is unclear which company manufactured the foam that was in the club.

In its 2007 annual report filed Feb. 26 with the Securities & Exchange Commission, Leggett & Platt said its insurance coverage was sufficient to satisfy an unspecified settlement demand.

“Management does not believe the outcome will have a material effect on the company’s financial condition or results of operation,” the report said.