Peabody foam company seeks to stop demolition after fire

Aug. 04--PEABODY -- Lawyers for a foam manufacturing plant that went up in flames last month, along with their insurance company, are seeking an injunction to stop the city of Peabody and the landlord from going ahead with demolition of the gutted building.

City officials have ordered that the building be demolished starting Thursday, but investigators for the insurance company, National Fire Insurance Company of Hartford, say they're still investigating the cause of the July 12 inferno at the Lifoam Industries plant that caused an estimated $20 million in damage.

But that hearing cannot happen until Friday morning, and not without additional filings by the lawyers, including an affidavit, a judge ruled -- raising questions as to whether the request came too late.

Those insurance investigators were allowed into the building for the first time on Aug. 1, according to the complaint filed late Wedenesday afternoon. In addition to the city, the landlord of the 2 Fifth St. property, Peabody W.R. Properties, is named in the complaint.

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Local fire officials told Lifoam that the fire is believed to have started near a styrofoam cooler storage area that is approximately 80 feet wide by 100 feet long. Investigators have divided that area into segments to attempt to complete their work as quickly as possible, but were unable to complete their work by Wednesday. They are seeking a "short amount" of additional time to finish the investigation, the complaint says.

"For reasons unexplained, the city will not allow the investigators to enter the property on Thursday ... to complete the investigation, despite the fact that the city and other parties allowed the investigators on the property from the afternoon of Aug. 1 through the afternoon of Aug. 3.

The complaint says investigators have been given "no rational explanation or reason" why they cannot continue to work for one or two more days.

"The loss of the ability to investigate a cause and origin of this fire greatly outweighs any potential injury to the city or the property owner," the insurer argues.

This story will be updated.

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