Payment day arrives in RI Station nightclub fire settlement
01:00 AM EDT on Wednesday, May 19, 2010
By Tracy Breton
Journal Staff Writer
PROVIDENCE — It’s finally over. It’s been 87 months since a deadly fire at the Station nightclub in West Warwick killed 100 people and injured more than 200 others, and now, the civil lawsuits filed by the victims have ended and much of the settlement money that’s been offered will be paid out in about a month.
On Tuesday afternoon, having heard no last-minute objections from any of the 65 defendants who are paying the $176 million in settlement money, Senior U.S. District Court Judge Ronald R. Lagueux signed a historic order ending the mass personal-injury litigation, starting the 30-day period during which 70 percent of the money must be paid. The remaining 30 percent must be paid within 90 days.
All of the money will be deposited by the defendants in a noninterest-bearing trust account at Citizens Bank that will be protected by FDIC insurance. The bank will forward the money to the lawyers for the fire victims and survivors, who will then send settlement checks to their clients.
Those who have struggled financially and are in bankruptcy with creditors that must be paid will have to wait a bit longer as their settlements must be funneled through bankruptcy trustees. But there aren’t many people in that category any more, lawyers say.
About 550 people will be getting settlement checks — 305 plaintiffs and more than 200 of their relatives who are entitled to smaller amounts for loss of consortium