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Archive for Wednesday, January 4, 2012

Boardwalk Apartment owners say insurance company still owes $1M in wake of deadly 2005 fire

An early morning fire in October 2005 at Boardwalk Apartments, 524 Frontier Road, killed three residents and left many homeless. Now, the apartments' former owners say their insurance company should have paid an additional $1 million in claims.

An early morning fire in October 2005 at Boardwalk Apartments, 524 Frontier Road, killed three residents and left many homeless. Now, the apartments' former owners say their insurance company should have paid an additional $1 million in claims.

January 4, 2012

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The owners of the former Boardwalk Apartments say their insurance company should have paid an additional $1 million in claims after a deadly 2005 fire destroyed a building at the west Lawrence complex.

Attorneys with the Kansas City, Mo., firm Husch Blackwell LLP filed a lawsuit last week on behalf of Boardwalk Apartments LC in federal court alleging breach of contract against State Auto Property and Casualty Insurance Co. of Ohio.

“State Auto has breached the policy by its failure to pay Boardwalk’s business income losses in full, and said failure is without just cause or excuse,” the suit alleged.

Three residents, Nicole Bingham, Yolanda Riddle and Jose Gonzalez died in the Oct. 7, 2005, early-morning blaze at one building at the complex, which was north of Sixth Street and Lawrence Avenue. A jury in 2007 convicted another resident, Jason Allen Rose, now 26, of several counts, including aggravated arson and three counts of involuntary manslaughter. He is serving a 10-year prison sentence.

Boardwalk owners in 2009 also settled a $12 million lawsuit with fire victims.

A new complex, now called Tuckaway Apartments at Frontier, in 2010 and 2011 replaced the 1960s-era Boardwalk Apartments complex, and the federal lawsuit filed reveals several disagreements between Boardwalk company owners and State Auto.

Boardwalk’s attorneys in the suit also allege:

• State Auto paid $150,000 under the policy to cover a portion of the time the burned building was unable to generate business income, but under its policy Boardwalk is entitled to payment from the date of the loss up to one month after the building was replaced, which was July 22, 2011.

• Because the two sides agreed to a reimbursement amount of $16,799 per month, Boardwalk incurred nearly $1.2 million in lost business income because of the fire.

• Its policy limit was about $1.1 million, so Boardwalk’s owners claim they are still owed about $950,000.

• They also seek another $90,000 because they say State Auto delayed Boardwalk’s ability to replace the building sooner because of a separate lawsuit State Auto filed in Missouri federal court against the Boardwalk company.

Kyle Anderson, a State Auto spokesman, said Wednesday the company did not comment on ongoing litigation.

The plaintiffs are seeking a jury trial in Kansas City, Kan. U.S. District Judge Julie Robinson has not scheduled any hearings yet in the case.

Comments

Ragingbear 2 years, 3 months ago

Yeah, I know about renter's insurance. I was looking at policies but had not yet gotten one due to my net worth being less than $400 a month prior. It's Murphey's 3rd law- When something bad happens, it will always be at the worst possible time.

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Ragingbear 2 years, 3 months ago

The people that own that place knew what they were doing when they bypassed laws that required certain fire safety equipment to be in place. They obviously had legal help in doing so. The fire extinguishers were lacking, the smoke detectors were ancient, the roof was rotting out, so they hot tar mopped it after shutting off A/C for about a month in the middle of summer. I had warned them several times about the fire dangers, and was ignored. After the fire, they refused to find me a new place because they didn't like that I had complaints about the quality of maintenance to the place.

They are not to be trusted, and should be in jail. They were not negligent, they knew what they did and they did it just to same money. They should be charged with manslaughter.

Oh, and repay me for the less than 30 day old purchases I had just made. They total about $4500.

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Steven Gaudreau 2 years, 3 months ago

How come the owners names of Boardwalk Apts. are not mentioned? If this was a First Management property, Doug Compton's name would have been mentioned a minimum of three times.

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Ron Holzwarth 2 years, 3 months ago

Personal opinion:

The sooner this nightmare is over, the better. There is nothing worse than a nightmare that does not end when you wake up.

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funny_girl 2 years, 3 months ago

i bet the owners want that money. that whole ordeal was sketchy.

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