Bykers, Inc. v. Municipality of Anchorage
Alaska Superior Court-Anchorage
Bykers, Inc. v. Alaska Insurance Guaranty Association
Alaska Superior Court-Anchorage
A small fire broke out in a clothing store owned and operated by Bykers, Inc in downtown Anchorage. The Anchorage Fire Department responded promptly to extinguish it. However, during the salvage and overhaul, arson inspectors moved smoldering material away from the firefighters and into another area of the building. Inexplicably, the inspectors abruptly departed without first overhauling the embers.
After smoldering for several hours, the fire rekindled. Although a report of the second fire was received by the Anchorage Fire Department, there was a long delay in responding to the rekindled fire. By the time the firefighters arrived, the building was engulfed in flames which could be seen from blocks away. After the building and its contents were destroyed, there was an effort to cover up the misconduct which included a misplaced dispatch log and an attempt to implicate the owners of Bykers, Inc.
The plaintiff filed suit for negligent inspection and negligent firefighting. The Municipality of Anchorage claimed immunity. The court granted summary judgment as to the negligent inspection but permitted the negligent firefighting claim to proceed to jury trial.
Shortly before trial, the cases were settled for $1.6 million of which $400,000 was paid by the Alaska Insurance Guaranty Association due to the insolvency of Integrity Insurance Company, defendant's excess carrier. In an interview with the Anchorage Daily News, Chief Larry Langston reported the settlement as the largest in the history of the department.
Resolution: $1.6 Million
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