Ruling on insurance money for LA Fitness victims awaited [The Pittsburgh Tribune-Review] - Insurance News | InsuranceNewsNet

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March 15, 2010 Newswires
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Ruling on insurance money for LA Fitness victims awaited [The Pittsburgh Tribune-Review]

Mar. 15--Seven months after George Sodini shot a dozen women at LA Fitness in Collier, the legal battle for his assets is heating up.

An Allegheny County judge will decide whether State Farm insurance company will have to pay out $100,000 to victims and survivors who have sued Sodini's estate. The company sued last week, seeking to have a judge shield Sodini's policy from legal claims because the shootings were not an accident.

"Insurance policies cover accidents, not intentional acts of conduct," State Farm spokesman Doug Griffith said.

Sodini, 48, of Scott killed three women and wounded nine before killing himself Aug. 4. Nearly all of the victims or their families have sued in Common Pleas Court. Sodini had personal liability coverage as part of his homeowner's insurance policy with State Farm, according to court filings.

State Farm contends that putting the liability question to a judge instead of simply denying coverage "was in the best interest of all parties" because it saves on litigation costs, Griffith said.

Attorney Henry Sneath, who represents three of Sodini's victims, said the company could have simply opted to pay out on the policy, "but instead they chose to sue the victims."

Legal haggling over insurance money related to mass killings is not new. A confidential settlement for victims of Richard Baumhammers was finalized last year -- nine years after the Mt. Lebanon attorney killed five people in two counties. A sixth person later died from his wounds.

In the Baumhammers case, the state Supreme Court ruled that a $300,000 homeowners insurance policy held by his parents covered actions by their son, said attorney Lou Tarasi Jr., who represented victims.

"We established liability against the parents," Tarasi said. "The policy covered everyone in the home."

The exact value of Sodini's estate is unclear because a final accounting has not yet been filed with county courts. The money from the estate will be paid into a court-ordered fund to be distributed to victims based on the outcome of court cases, Sneath said.

Sodini's home sold in November for $100,000, according to county real estate records. Rebecca Bowman, an attorney for the estate, said Sodini's assets were liquidated. She estimated their worth to be $100,000 to $300,000.

"We did everything we could to optimize the funds for the victims," Bowman said.

Sodini's will dictated that his money be left to the University of Pittsburgh, but school officials said last year they weren't interested in the gunman's money.

To see more of The Pittsburgh Tribune-Review or to subscribe to the newspaper, go to http://www.pittsburghlive.com/x/pittsburghtrib/.

Copyright (c) 2010, The Pittsburgh Tribune-Review

Distributed by McClatchy-Tribune Information Services.

For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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