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LISBON -- Heritage Thermal and its insurers filed a multi-million dollar lawsuit late Monday afternoon against two companies related to damages from a 2022 fire at the hazardous waste incinerator in East Liverpool.
The lawsuit document filed in Columbiana County Common Pleas Court claimed welding work led to the fire and requested judgment in favor of Heritage Thermal and the other plaintiffs for a final damage amount expected to exceed $31 million.
The two defendants include SBS Constructors, Inc. of Coraopolis, Pa. and Abtrex Industries, Inc. of Inkster, Mich.
Besides Heritage Thermal, the list of plaintiffs includes Liberty Surplus Insurance Corporation of Boston, Mass., Helvetia Swiss Insurance Company of Switzerland, Houston Casualty Company of Houston, Texas, HDI Global Specialty Se, Great Lakes Insurance SE and certain underwriters at Lloyd's of London, all in London, England, and Starr Surplus Lines Insurance Company of New York, N.Y.
According to the lawsuit, the fire occurred on June 27, 2022 at the St. George Street, East Liverpool property, with experts retained by the company revealing the fire originated near the third floor of the four-stage wet scrubber at the facility. Heritage Thermal had contracted with the defendants to perform work on the scrubber.
On the date of loss, which was the date of the fire, workers from Abtrex and SBS were performing work on the scrubber and part of that work included welding.
"During the welding process, the material inside the scrubber ignited. The fire within the scrubber resulted in significant damage to Heritage, including real property damage, business personal property damage and business interruption loss. The investigation to date indicates the defendants failed to take the proper and required precautions in performing the welding and hot work on the scrubber," the lawsuit document said.
The insurance carriers for Heritage Thermal issued payments to the company for the fire, but continue to evaluate the claim. The company also sustained uninsured losses, including its $500,000 real property deductible, business interruption waiting period costs totaling $2 million and other losses not covered by the policy expected to exceed $7.5 million.
Claims in the lawsuit include breach of warranty and negligence against SBS and breach of contract and negligence against Abtrex.
The case has been assigned to Judge Scott Washam.