Salt Lake City, Utah June, 2003 - A settlement was reached with several defendants in a property damage/fire case that partially destroyed a building in North Salt Lake. The fire occurred when a painting contractor placed wood scraps and paint residue into a plastic container which then spontaneously combusted and started a fire partially destroying a commercial strip mall. The client, whose name is not revealed for confidential settlement reasons, continued to operate its business but incurred significant overtime and other costs in working in the now-confined, partially fire-damaged building.
The defendants in the case included the paint manufacturer and the co-tenant that had placed the materials in the plastic container, causing the fire. In the middle of the case, the insurer for the party that had started the fire filed for bankruptcy and was liquidated. As a result, the focus of the case turned toward the paint manufacturer. The theory against the paint manufacturer was that it had failed to adequately warn of the dangers of spontaneous combustion. After extensive discovery and consultation with experts, a settlement in excess of $200,000 was reached with the paint manufacturer. This money, although not equal to the amount of damages claimed by the occupant of the building, will allow it to expand its business and grow past the point it was at the time of the fire.
A separate, continuing cause of action has been filed against the Utah Guaranty Association, with a claim that it should be responsible for the balance of the damages caused by the negligent paint company. Robert Gilchrist was Eisenberg Gilchrist & Morton's lead attorney on this case.
