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Anthony Puts Heat on Insurance Company After Sawmill Fire

1 min read

Anthony Forest Products Co. is hauling its insurance carrier into court for allegedly failing to pay off a claim for a 2013 fire that caused $5.6 million in damage.

The El Dorado company that makes lumber and engineered wood products said that Pennsylvania Lumbermen’s Mutual Insurance Co. of Philadelphia did pay $3 million for business interruption and business loss tied to the fire. But Anthony said Pennsylvania Lumbermen’s “failed and refuses to pay the total damages it is obligated to pay in accordance with the terms and conditions of its policy or policies,” according to the lawsuit filed in U.S. District Court in El Dorado.

Anthony is seeking $2.6 million plus other unspecified amounts.

A spokesman for Pennsylvania Lumbermen’s declined to comment on the pending case.

The kiln fire occurred in June in 2013 at Anthony’s sawmill at Urbana in Union County.

The kiln had been in use since 2012. “Although the damage was not as extensive as it first appeared, lumber production has been impaired,” according to a 2013 Anthony newsletter.

Anthony Forest Products ranked No. 13 on our list of largest forest products companies ranked by employees in Arkansas with 201 workers.

The company had $104.9 million in revenue for the fiscal year that ended in April 2013. That’s the most recent period reported to Arkansas Business.

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