Rockford sued over Mercyhealth flood damage

Jun. 12--ROCKFORD -- Federal Insurance Co. is suing the city of Rockford to the tune of $24.2 million after it had to foot the bill for flood damages that occurred in June 2018 at Mercyhealth's Javon Bea Hospital-Rockton.

The two-page complaint, filed June 5 in the 17th Judicial Circuit Court, alleges Federal Insurance paid Mercy Health System Corporation that amount as a result of damages from a June 18 flash flood in northwest Rockford.

The lawsuit claims the city failed to either properly install, clean, maintain and inspect the storm sewer system that connects to the hospital campus.

"As a direct and proximate result of one or more of the defendant's acts or omissions of negligence, water backed up on the Medical Campus causing several feet of water to accumulate in a courtyard, which caused a glass window to shatter and flood the hospital resulting in significant and catastrophic damage," the complaint said.

Bea hosted a community meeting at the hospital in May to inform the public that the hospital was in danger of being shut down after the June 18 storm dumped 5 inches of rain in four hours on the city's northwest side. Bea said in May that the flooding caused more than $30 million in insured losses. He also said it was one of four heavy rain events to affect the hospital's operations in the past 12 years.

An engineering study completed by Fehr Graham Engineering & Environmental on behalf of Mercyhealth revealed the hospital sits at the bottom of a 250-acre bowl and as the surrounding area was developed, the city failed to increase its drainage infrastructure, contributing to frequent flooding.

Bea said Mercyhealth was willing to invest $6 million to $8 million to address what it calls "water intrusion issues," but he also wanted the city to follow Fehr Graham's suggestion of spending $6.5 million to install a box culvert under Arcadia Terrace, which would empty into Kent Creek. Fehr Graham also recommended state and federal funds be sought to install another $6 million box culvert under Garfield Avenue, which also would empty into Kent Creek.

Bea also said it is the city's responsibility to address the water drainage issues or the west side hospital may be forced to close because insurance providers will no longer take on the liability.

Mayor Tom McNamara said the city has yet to be served and could not comment. Hospital spokesman Sean Muserallo could not be reached Tuesday for comment.

Federal Insurance Company provides property and casualty insurance products and services for businesses and individuals. The company is based in Warren, New Jersey and is a subsidiary of Chubb INA Holdings Inc.

Federal Insurance Company has requested a jury trial. The next scheduled court hearing is August 29.

Chris Green: 815-987-1241; cgreen@rrstar.com; @chrisfgreen

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