Another Lawsuit Filed From Welspun Fire

by Arkansas Business Staff  on Monday, Oct. 21, 2013 12:00 am  

Remember that earlier this year, Welspun Pipes Inc. sued its insurance company after a devastating fire at its Little Rock facility?

Now the insurer, Liberty Mutual Fire Insurance Co. of Wausau, Wis., is suing several contractors it believes are liable.

The July 2012 fire started in a control room and was big enough that the spiral pipe production plant was closed until September. When the smoke cleared, the damage cost more than $30 million, and Liberty paid most of that.

Welspun later claimed an additional $15.5 million in other expenses. Liberty paid only $1 million of that, which led to Welspun’s suit in federal court.

Liberty’s suit, filed late last month in Pulaski County Circuit Court, claims that electrical contractors and construction companies that worked on the control room should be held responsible.

Defendants include Starrco Co. Inc. of Maryland Heights, Mo.; Schneider Electric USA Inc. of Palatine, Ill.; Entech Consulting Engineers of Conway; and May Construction Co. and LRE Royal Electrical Contractors Inc., both of Little Rock.

Two individuals are also named: James Bonds of Conway and Robert Jones of Rogers.

Liberty is demanding the $28.9 million it paid out, Welspun’s $1.96 million deductible and Welspun’s $14.5 million in additional claims. No defendant had yet responded to Libery’s suit.

 

 

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