THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, August 9, 1996 TAG: 9608090470
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY MARC DAVIS, STAFF WRITER
DATELINE: NORFOLK LENGTH: 59 lines
Relatives of four people killed by carbon monoxide poisoning in their rented home in 1994 received a $975,000 out-of-court settlement Thursday from the landlords.
That's just under the maximum $1 million insurance coverage for landlords Suzanne and Dale Marshall of Virginia Beach.
The case remains open, however, against Virginia Natural Gas Co. and the Norfolk Redevelopment and Housing Authority, which also are accused of negligence.
The trial is scheduled for March 10.
Today in Norfolk Circuit Court, both the gas company and the housing authority will ask that the lawsuits against them be dismissed.
Four people were killed in December 1994 in their rented home at 208 W. 30th St. in Park Place. They were Julia Dempsey, 38; her fiance, William E. Staton, 41; their 5-year-old son, William E. Dempsey; and her 15-year-old daughter, Lakisha.
Investigators blamed a faulty gas-fueled furnace. They said a chimney that vented carbon monoxide exhaust fumes was blocked with fallen bricks and soot, which allowed the poisonous, odorless gas to back up into the house.
Two weeks later, relatives of the four victims sued the Marshalls, the gas company and the city. They accused each of negligence in failing to maintain and inspect the house, and sought $20 million in damages.
Later, the city was dropped as a defendant and the housing authority was added.
On Thursday, a judge approved a settlement by the Marshalls' insurance company. The $975,000 insurance settlement will be split among six beneficiaries.
Lawyer Stanley E. Sacks, who represents the relatives, said the largest share, $192,069, will go to Mekeda Dempsey, a surviving daughter of Julia Dempsey and Staton. Five other relatives will get $109,753 each. The remainder of about $260,000 will go to legal fees and costs, Sacks said.
The Marshalls did not admit liability in the settlement. The lawyer who negotiated the settlement for the insurance company, James A. Howard II, declined to comment Thursday.
Last year, the insurance company tried to get the lawsuit dismissed, claiming that the Marshalls' policy did not cover ``pollution hazards.'' The company argued that carbon monoxide is a ``pollutant,'' and exhaust from the home's gas heater is a ``pollution hazard,'' even if the gas never left the house.
A judge rejected that argument and let the lawsuit stand.
The gas company and the housing authority may be liable for the deaths because of their roles in inspecting the heater.
The gas company had inspected the furnace and water heater in 1993 and red-tagged them, meaning they had major problems. The company shut off gas to the appliances and ordered their repair.
Soon after, the housing authority also inspected the appliances and found the red tags. The inspector ordered the Marshalls to fix the heaters, and they passed a new inspection within 30 days.
The authority has said that another inspection in 1994 - nine months before the poisoning - found only minor flaws in the house. by CNB