Judge Upholds $1 Million Workers Comp Fine in The Station Case

December 4, 2006

A judge last week upheld a $1.07 million fine imposed against the owners of The Station nightclub for failing to carry workers’ compensation insurance at the club, the site of a 2003 fire that killed 100 people, including four employees.

Jeffrey and Michael Derderian asked to have the state fine wiped out after filing for bankruptcy protection last year.

But federal bankruptcy Judge Arthur Votolato said Thursday the fine amounted to a penalty and could not be discharged under bankruptcy law.

The fine is the largest in state history for failing to carry workers’ compensation insurance.

The Derderians’ lawyer, Christopher Lefebvre, said the brothers have nowhere near the amount of money they would need to pay the fine and said he was considering an appeal.

The Derderians have made voluntary payments to the families of their employees since the fire.

Michael Derderian is serving a four-year prison sentence after pleading no contest to 100 counts of involuntary manslaughter. Jeffrey Derderian was sentenced to probation and community service for his no contest plea on the same charges. Eight of those killed lived or worked in Connecticut.

Topics Legislation Workers' Compensation

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