Lawyers for Jeffrey and Michael Derderian were denied requests to stay the penalty while the case is on appeal. The Feb. 20 blaze killed 100 people, including four club employees, and injured nearly 200 others.
Workers' Compensation Court Judge Bruce Morin said his court didn't have the authority to stay the penalty, and only the state Supreme Court could take such action. Jeff Pine, who represents Jeffrey Derderian, said the club owners planned to ask the Supreme Court to step in.
The fine levied on the brothers and their company, Derco LLC, is the maximum allowed under state law - $1.07 million, or $1,000 for each day the Derderians failed to carry workers' compensation insurance from March 2000, when they bought the club, until it was destroyed.
The Derderians' lawyers say the fine is out of line with previous penalties imposed by the Department of Labor and Training. Pine said collecting the fine would cause ``irreparable harm'' to the Derderians and would not help the victims. The money goes into a general fund to uphold compensation laws for all workers, officials have said.
Last week, the club's owners and the band Great White, whose pyrotechnic display set off the blaze, were fined a total of nearly $100,000 by the Occupational Safety and Health Administration, the agency that regulates workplace safety.
