Lawsuit over Shearer's Foods fire in Oregon seeks $90M

Attorneys filed the pleading Friday, Feb. 16, in Umatilla County Circuit Court on behalf of several insurers: The Travelers Indemnity Co., Everest Indemnity Insurance Co., Swiss Re Corporate Solutions Capacity Insurance Corp., Lexington Insurance Co., Homeland Insurance Company of New York, Mount Hawley Insurance Co. and certain underwriters at Lloyd's of London.

The collective is suing Apollo Sheet Metal Inc., A-1 Industrial Supply LLC, Atlas Boiler & Equipment Co. and 10 John Does, alleging shoddy construction and improper equipment led to the fire Feb. 22, 2022, that burned down the Shearer's Foods plant.

According to the lawsuit, a fire started in the production area of the plant where five large kettles cooked or fried potato chips. Thermal fluid heated four of the kettles and the fifth was direct-fired with natural gas.

The investigation into the plant fire revealed a section of newly installed process piping between the temporary heater and the kettles ruptured at a weld, according to the lawsuit, spilling a large quantity of flammable thermal fluid, which the natural gas fired kettle ignited.

The lawsuit alleges the investigation revealed plaintiffs did poor work installing the pipe assembly, allowing a rod to pull through the assembly. The lawsuit also alleges plaintiffs did not inspect piping, did not obtain work permits and performed work without proper licenses. The lawsuit asserts these and similar failures amount to negligence and/or gross negligence.

In addition to the $90 million in economic damages, according to the pleading, the insurers are seeking interest, attorney costs and fees and "such other relief that the court deems just and proper."