Gainesville to sue insurance companies for $9.7 million - reports

Insurers on the hook for accident

Gainesville to sue insurance companies for $9.7 million - reports

Insurance News

By Paul Lucas

A group of insurance companies are reportedly on the hook for the sum of $9.7 million relating to an accident that occurred two years ago.

A lawsuit has been filed by the city of Gainesville, with commissioners said to have been empowered by Gainesville Regional Utilities to make the move after an accident involving a large machine intended to reduce harmful emissions, known as a dry scrubber and built by Babcock power. It reportedly buckled and detached from a wall. A report by WCJB ABC noted that two workers were hurt in the accident – albeit neither was seriously injured.

Now GRU has filed a suit in federal court against a number of insurance companies that represent Babcock Power. They believe the costs of demolition and replacement of the scrubber, coupled with fuel costs, add up to $9.7 million.

The group of insurers were not named in the report but they have until October 08 to offer a reply.

 

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