Lawsuit: Columbia gas was aware $27M in repairs were needed before explosions - Insurance News | InsuranceNewsNet

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September 19, 2018 Newswires
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Lawsuit: Columbia gas was aware $27M in repairs were needed before explosions

Eagle-Tribune (North Andover, MA)

Sept. 19--Columbia Gas, the utility provider, was aware that $27 million in repairs and upgrades needed to be made to the gas lines in this area prior to Thursday's massive explosion and fires, according to a class action lawsuit filed Tuesday.

The law firm, Morgan & Morgan, is accusing Columbia Gas of negligence in the suit filed in Essex County Superior Court.

Almost a year earlier, on Oct. 31, 2017, "Columbia Gas identified 150 leaks in its distribution system that required maintenance and $26,839,832 in leak prone infrastructure and gas distribution lines that required replacement," according to the lawsuit.

"The high risk and leak prone infrastructure was not replaced" by Columbia Gas prior to dozens of explosions and fires across Lawrence, Andover and North Andover on Thursday, Sept. 13, the suit alleges.

The lawsuit also argues that Columbia Gas of Massachusetts uses more than 471 miles of cast or wrought iron distributions. Federal investigators probing the gas leak acknowledged some of the gas lines involved were cast iron and 100 years old.

"This is among the highest amounts of cast or wrought iron distribution lines utilized by an American utility company. There are 178 utility companies that utilize a lower number of cast or wrought iron distribution lines," according to the suit.

The class action suit was filed on behalf of Francely Acosta, of 108 Salem St., Lawrence, and "all others similarly stated."

Acosta was at work when the explosions occurred and could not return to her home. She was unable to rescue her dog and slept on a stranger's floor that night, according to the lawsuit.

She then paid $200 for a hotel room for several nights and when she returned home she still did not have any gas or hot water, according to the suit.

Lawrence residents Homayoun and Juana Maali also filed a civil lawsuit against Columbia Gas on Tuesday through their attorney, Daniel Faneuf of Boston.

That suit alleges Columbia Gas "negligently, carelessly, and recklessly delivered natural gas" into their home "causing an explosion."

Morgan & Morgan attorneys Robert Kennedy Jr. and Frank Petosa said the law firm will be conducting its own investigation of the gas issue, using experts they hire, in parallel with local, state and federal officials.

"Columbia committed an act of extreme negligence," said Kennedy, noting that the gas pressure in area pipes was 12 times higher than normal.

"Defendants overpressurized the gas distribution system, an outcome with known catastrophic consequences, and which should be prevented at all times by multiple, overlapping, and redundant safety systems," according to the suit.

Petosa said residents have returned to their homes and businesses with "the uncertainty this horrible act could happen again."

Pointing to the $27 million in necessary repairs, Petosa said the utility made no effort to fix already identified problems.

"Our goal here is to insure residents in the three towns have access to justice," he said.

Lawrence Mayor Daniel Rivera was not happy with the timing of the lawsuit, however.

"I think that law firms are putting the cart before the horse. ... Class action lawsuits are a very important tool we have in society. People should definitely avail themselves of that, when the time is right," he said.

But, he noted, at this time, "This is a disaster relief effort. We're ensuring everybody goes through the process and at the end of which they maintain all of their rights, their fiduciary rights, all insurance rights. All those things."

He said participating in the legal process now ties a person to the law firm involved.

"I'm not sure you'll have 100 percent of your financial rights preserved," Rivera said.

A Columbia Gas spokesperson did not return a message seeking comment for this story.

The suit also said Columbia Gas was fined $100,000 by the state Department of Public Utilities for improper gas pressure standards, leaks, punctures and corrosion controls.

A reference to a 2012 punctured gas line in Springfield is referenced in the suit. An explosion there injured 21 people, destroyed a business, damaged a dozen adjacent buildings and caused $650,000 in city property damage.

Gas issues in Attleboro, Ohio and an explosion in Sissonville, Virginia, are also indicated in the lawsuit.

Gas explosions and issues are described in the suit as a "characteristic of a reckless and wanton corporate culture that puts profits above the safety and well-being of its customers."

"While repairs to aging infrastructure are costly, necessary funds have not been allocated by (Columbia Gas) to system improvements and have instead been spent on lavish corporate expenditures," according to the lawsuit.

Investigators said pressure in the local natural gas pipelines was 12 times higher than normal last week, allegedly leading to the gas explosions in the Lawrence, Andover and North Andover areas.

The pressure spike registered in a Columbia Gas control room in Ohio, investigators said.

The dozens of explosions and fires last Thursday killed one person and injured more than two dozen others. About 8,600 gas meters were affected, and many people had to evacuate their homes for days and may have to go without gas service for weeks.

Some people will never be able to return home because the properties are ruined.

South Lawrence was evacuated until early Sunday morning. Power was also cut to the area Thursday night and restored Sunday morning.

The explosions are under investigation by the National Transportation Safety Board. Board Chairman Robert Sumwalt has said the investigation is partially focused on pressure sensors that were connected to a gas line that was being taken out of service shortly before the blasts.

Follow staff reporter Jill Harmacinski on Twitter @EagleTribJill.

___

(c)2018 The Eagle-Tribune (North Andover, Mass.)

Visit The Eagle-Tribune (North Andover, Mass.) at www.eagletribune.com

Distributed by Tribune Content Agency, LLC.

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