Insurer fights payout in explosion: Pontoon Beach home blast remains under investigation [Belleville News-Democrat, Ill.]

Dec. 27--An insurance company alleges in a lawsuit that a woman intentionally disconnected a gas line at her Pontoon Beach home, causing an explosion in February that leveled the house and rocked the neighborhood.

But the woman, Laura J. Williams, has not been charged with any crimes, and an attorney who represented her has said Williams had no reason to blow up her own home. Williams, who now lives in O'Fallon, could not be reached for comment on the lawsuit.

The cause of the explosion remains the subject of an investigation -- by the FBI.

Long Lake Fire Department Chief Dan Kreher on Wednesday said fire investigators held meetings with FBI agents as recently as a month ago.

"I know the FBI is still conducting an active investigation," Kreher said.

Edwardsville-based Madison Mutual Insurance Co. filed its suit against Williams recently in Madison County Circuit Court. The suit asks a judge to declare that Madison Mutual doesn't have to pay Williams' insurance claim of $509,000. The company also wants a judge to declare that it has no obligation to indemnify or defend Williams against any claims made by neighbors for any damage to their homes or any injuries they suffered from the explosion.

The suit claims the explosion resulted from "the intentional act of disconnecting the natural gas pipe which was supposed to be connected to the water heater." It also alleges that Williams "either intentionally disconnected the natural gas pipe, or conspired to have it disconnected from the water heater and left the house before it exploded."

No court hearings have been held yet in the case.

Anthony Martin, attorney for Madison Mutual, declined to comment beyond the lawsuit.

According to the suit, Williams and her live-in boyfriend left the house, located at 131 Emerald Way East, between 5 and 6 p.m. Feb. 12. Williams was the last of the two to leave the house and locked the doors. She and her boyfriend had the only keys to the home, the suit states.

The couple were together until they returned to the house the next morning, after the explosion, according to the suit. The house exploded about 6:25 a.m. Feb. 13. An attorney for the couple has said they are business owners and were staying at a hotel in Missouri for a convention at the time of the blast.

In the days following the explosion, attorney Mark Levy of Collinsville said he had been hired by Williams to "see whether or not they have a cause of action." Levy said then that he knew of nothing to suggest Williams was in any way responsible for the explosion.

"I am unaware of any motive they might have had to do such a thing," Levy said at the time.

Levy could not be reached for comment for this article.

The Madison Mutual suit alleges that around the time Williams filed for bankruptcy protection in 2004, she opened several new financial accounts and deposited about $485,000 into them. But financial records show the accounts held less then $1,500 at the time of the explosion, the suit states.

"Defendant Williams had a financial motive to cause the explosion and fire because she had dissipated her substantial liquid assets during the weeks, months and years prior, she had substantial equity in the dwelling, and she needed funds to maintain the lifestyle to which she had grown accustomed after her late husband's death," the suit states.

Before the explosion, Williams and her husband, Thomas E. Williams Jr., were involved in litigation involving a failed real estate deal. The litigation resulted in a $150,000 verdict against the Williamses. While the lawsuit was pending, the Williamses put their house into a trust. Thomas Williams died in March 2004.

The suit also alleges that Laura Williams told insurance company investigators her annual income was usually a little more than $100,000 per year, but the Internal Revenue Service said she filed no income tax returns for 2005, 2006 or 2007.

The explosion flattened the house, essentially leaving a pile of rubble. Neighbors said they at first thought an earthquake hit. One neighbor suffered minor injuries when part of her ceiling fell.

Contact reporter Brian Brueggemann at [email protected] or 692-9481.

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