R.I. Club Owners Get Delay in $1M Fine
The stay by the state's highest court will continue while it reviews the fine. There was no indication when the court might reach a decision.
The Station nightclub in West Warwick was destroyed in February after a band's pyrotechnics ignited flammable foam used around the stage as soundproofing. Four employees were among the dead.
The state fined Jeffrey and Michael Derderian for not having the insurance during the more than three years they operated the club. The $1.07 million fine was the maximum _ $1,000 for each day the club operated without the insurance. In July, a Workers' Compensation Court judge upheld the fine.
The Derderians appealed, arguing the fine was excessive, unconstitutional and out of line with previous penalties. A three-judge panel disagreed with all of their arguments last month.
If there had been workers' compensation insurance at the club, the families of the dead employees would have been eligible for $15,000 for burial and other expenses plus a portion of the deceased's lost wages.
A grand jury is weighing whether criminal charges are warranted in connection with the fire, and several lawsuits have been filed against the Derderians and the band, Great White.