City Settles Insurance Claim Over Sewage Spill In Creek
July 28, 2016 at 4:25 p.m.
An insurance settlement from Specialty National Insurance Co. was accepted by the Warsaw City Council Tuesday during a special meeting following an executive session.
Specialty National held the city's general liability policy for the city. Following the spill into Walnut Creek at the Center Street wastewater treatment plant in July and August 2001, the city filed a claim under the environmental clause of the policy.
According to attorney Tom Lemon, part of the reason for the settlement is because the company is having serious financial difficulty.
"It is in 'runoff,'" he said, "no longer selling new insurance policies and paying off claims. Usually, when a company is in runoff, they go into liquidation at some point. Occasionally, a company can turn around, but it's rare."
The city remains in mediation with the Indiana Department of Environmental Management regarding the cleanup, said Warsaw Mayor Ernie Wiggins. IDEM's Office of Water Quality has handed the case over to the Office of Land Management.
The city has hired Triad Engineers as consultants regarding the incident. Triad representatives and IDEM have not been able to agree on the scope of damage or manner of cleanup. [[In-content Ad]]
An insurance settlement from Specialty National Insurance Co. was accepted by the Warsaw City Council Tuesday during a special meeting following an executive session.
Specialty National held the city's general liability policy for the city. Following the spill into Walnut Creek at the Center Street wastewater treatment plant in July and August 2001, the city filed a claim under the environmental clause of the policy.
According to attorney Tom Lemon, part of the reason for the settlement is because the company is having serious financial difficulty.
"It is in 'runoff,'" he said, "no longer selling new insurance policies and paying off claims. Usually, when a company is in runoff, they go into liquidation at some point. Occasionally, a company can turn around, but it's rare."
The city remains in mediation with the Indiana Department of Environmental Management regarding the cleanup, said Warsaw Mayor Ernie Wiggins. IDEM's Office of Water Quality has handed the case over to the Office of Land Management.
The city has hired Triad Engineers as consultants regarding the incident. Triad representatives and IDEM have not been able to agree on the scope of damage or manner of cleanup. [[In-content Ad]]