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WEST WARWICKâ Workersâ Compensation Court Chief Judge George Healy Jr. met with lawyers representing the former owners of the Station nightclub and the Department of Labor and Training yesterday to discuss the ownersâ appeal of a $1.06 million penalty for failing to provide workers at the nightclub with workersâ compensation.
Less than a week ago, Judge Healy questioned why the owners of the nightclub, Jeffrey and Michael Derderian, had not paid the penalty for failing to provide workersâ compensation insurance to its employees.
The penalty was brought against the Derderians and their company, DERCO, LLC by the Department of Labor and Training after 100 people perished, including four employees, in the nightclub fire on Feb. 20, 2003.
The fine was the maximum amount and the largest workersâ compensation penalty ever imposed by the state, according to a March 2004 Daily Times article.
According to that article, if the Derderians had workersâ compensation insurance, each of the families of the four employees that perished would have received $15,000 for burial and other expenses âplus a portion of the deceasedâs lost wages.â
Although the Workersâ Compensation Court upheld the penalty in 2004, Craig Burke, court spokesman, explained that the Derderians appealed the penalty, sending the case before a panel of three judges in 2005.
Judges Debra Olsson, Janette Bertness and Edward Sowa Jr. heard the appeal on March 2, 2005, but Burke stated this was the last time the case was ever discussed.
The decision was put on hold pending results of DERCO âs bankruptcy case.
Burke explained that because the bankruptcy case was considered a federal proceeding, the state proceeding â the appeal â was postponed.
Unfortunately, once the federal proceedings were finished in 2010, nobody from the state was notified to reinstate the state case.
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