The cost of tragedy

The last of about 75 civil lawsuits in The Station nightclub fire is tentatively settled. But the Derderians and other key figures in the case are paying less than those on the periphery.

The Station nightclub fire in West Warwick, R.I., killed 100 people and injured about 200 others. It was the nation's fourth-deadliest nightclub fire. (David L. Ryan/Globe Staff/File 2003)

Two years ago this month, one of two brothers who owned The Station nightclub in Rhode Island tearfully apologized in a packed courtroom for the February 2003 fire that killed 100 people and scarred many more, physically and emotionally. "This tragedy," Jeffrey Derderian said in a quavering voice, "has our name on it."

But when the last of about 75 civil defendants tentatively settled lawsuits stemming from the inferno for about $175 million recently, the Derderian brothers and other central figures in the disaster promised to pay less - often far less - than defendants on the periphery of the nation's fourth-deadliest nightclub fire.

Jeffrey and Michael Derderian, who received bankruptcy protection in 2006, reached a tentative settlement this month of $813,218 with relatives of those killed in the West Warwick fire and most of the roughly 200 people injured. The sum represented the balance of their liability insurance policy.

That paled compared with the tentative settlements with the owners of the local television news outlet whose cameraman was accused of hindering patrons fleeing the burning club ($30 million) and with Anheuser-Busch Inc. and a beer distributor that promoted a concert by the rock band Great White ($21 million combined). It is even less than the sum promised by JBL Inc., which made amplifiers used at the club that allegedly contained a flammable foam ($815,000).

Other peripheral defendants that settled include the bus company that brought the band to the nightclub before the Feb. 20, 2003 blaze. Plaintiffs alleged that the bus, whose owners have pledged $500,000, violated laws by carrying, without a permit, pyrotechnics that the band's tour manager set off inside The Station. The fireworks ignited plastic soundproofing foam on the walls and ceiling and started a fire that engulfed the club.

An analysis of the tentative settlements in US District Court in Rhode Island reveals a stark fact: Several defendants whom plaintiffs blamed most for the disaster will likely pay relatively little because of negligible assets; other defendants with more tenuous links to the tragedy - but deeper pockets - will pay more.

"I don't think there's any logic to it at all," said SuS Longiaru, whose disabled 23-year-old son, John, was killed in the fire, which erupted moments after the band took the stage.

Still the 51-year-old Johnston, R.I., woman said she is eager for the settlements to be accepted so she and her family can begin to heal. Corporations and local governments linked to the disaster, even loosely, she said, must take responsibility.

"Of course, no amount of money is going to take away the pain or bring John back," said Longiaru, whose son had a genetic bone disease. "But I feel that like it or not, people have to be held accountable so this does not happen again. And the only way to hold people accountable - the way they're going to feel it - is in the pocketbook."

Anthony DeMarco, a Providence lawyer for the Derderians, said that even though his clients are contributing a modest amount compared with sums pledged by corporations, it represents all of their assets.

"Whatever JBL's paying, it's not everything JBL has, is it?" he said.

The $176 million in settlements averages about $587,000 for each of the victims, but the more than 300 plaintiffs are expected to receive widely varying amounts. And much work remains before anyone receives money. A federal judge must approve the settlements.

In addition, Francis E. McGovern, a Duke University Law School professor and nationally recognized specialist in resolving mass-claim litigation, has been appointed by the court to devise a formula for dividing the money. He declined to return phone calls and e-mails, but court papers indicate he has held about 20 group meetings with a total of 236 plaintiffs.

At a group meeting that Longiaru attended, McGovern explained a point system for calculating what plaintiffs might receive, she said.

As is typical in disaster-related claims, McGovern said that victims with families or greater incomes are likely to be valued higher than those who were single like John Longiaru or had modest incomes, she said. "That's hard to take," she recalled, her voice cracking with emotion. "Who is to say who and what John would have become had he been given a chance?"

Regardless, several defendants who were at the center of the criminal cases stemming from the fire are likely to pay relatively little.

Jeffrey and Michael Derderian pleaded no contest in September 2006 to 100 counts of involuntary manslaughter. Michael Derderian was sentenced to four years in prison. Jeffrey Derderian, a reporter for WPRI-TV at the time of the fire, was spared prison and received probation.

But because the brothers received bankruptcy protection that year, they had nothing besides their insurance.

Daniel Biechele, tour manager for Great White, pleaded guilty to 100 counts of involuntary manslaughter, admitting that he did not have the required permit to light the pyrotechnics. He was sentenced to four years in prison and was released in March on parole after serving about half his term.

But the members of Great White, their management company, and Biechele have settled claims for a total of $1 million - the maximum of their liability insurance.

Lawyers from the firms representing most of the plaintiffs have agreed not to comment publicly. Plaintiffs' lawyers typically keep about one-third or more of the money they win for clients.

Carl T. Bogus, a law professor at Roger Williams University School of Law in Bristol, R.I., who reviewed a breakdown of the settlements for the Globe, said plaintiffs faced a formidable obstacle.

"Regrettably, some of the most culpable defendants had the shortest pockets," he said. "So plaintiffs' lawyers . . . do what good plaintiffs' lawyers do, and that is they try to creatively find other defendants with some culpability and more money."

Lawyers negotiated settlements of $5 million with Anheuser-Busch and $16 million with McLaughlin & Moran Inc., a local beer distributor that promoted and sponsored the Great White show. Plaintiffs alleged that both defendants should have known that the band had used unlicensed pyrotechnics at other concerts.

Similarly, plaintiffs' attorneys negotiated a $30 million settlement with the companies that own WPRI-TV, whose cameraman, Brian Butler, was shooting inside the nightclub when the fire started. Butler was filming a segment on nightclub safety, but plaintiffs alleged that he blocked an exit, a charge the television station has vehemently denied.

Another wealthy peripheral defendant that settled was Clear Channel Broadcasting Inc., the owner of WHYJ-FM, a Providence radio station that promoted the concert and provided a deejay, Michael "Dr. Metal" Gonsalves, to introduce the band. (He died in the fire.) Clear Channel has agreed to pay $22 million.

None of the defendants admitted wrongdoing in the agreements.

Peter H. Schuck, who specializes in tort law at Yale Law School, said some well-heeled companies likely settled to avoid bad publicity and the possibility of huge jury awards.

"The prospect of a jury verdict with punitive damages is one that casts a shadow over these negotiations, even if the defendants feel they have a strong case and aren't liable," he said.

A 2006 change in the state's civil court procedures concerning large tort claims also made it more attractive for both sides to settle, said legal specialists.

Several defendants blamed by many have agreed to large settlements. About a third of the $176 million comes from companies that allegedly made or supplied the highly flammable foam. The foam made the fire race through the club, authorities said.

Also, the state of Rhode Island and town of West Warwick each agreed to pay $10 million. The settlements cover former West Warwick fire marshal Denis P. Larocque, who was roundly assailed by plaintiffs for failing to cite the club during routine inspections for using the flammable foam instead of materials that met the fire code.

The settlements also cover a town police officer accused of ignoring overcrowding at the club and a town building official who allegedly failed to enforce building codes.

But Charles A. Sweet, of Pembroke, whose 28-year-old son, Shawn, an assistant manager at a Stop & Shop in Quincy, died in the disaster, said the town got off easy.

"I say to myself every day, 'You open the door and see this cheap foam falling off the ceiling,' " he said. "Common sense would say, 'It's not a safe place. Let's close it.' That never happened."

Jonathan Saltzman can be reached at jsaltzman@globe.com