SIOUX FALLS, S.D. (KELO.com) — The document that spells out the distribution of insurance payments to victims of the Copper Lounge collapse is not a short or easy read.
The U.S. Bankruptcy Court for the District of South Dakota’s “Plan As Confirmed” is 214 pages in length. Click here to read the full document.
Over one hundred pages of the plan is made up of the insurance policies that debtor and defendant Hultgren Construction had with the Acuity insurance company, which is paying $2 million of the proceeds.
The settlement fund is set up as follows:
- Hultgren Construction Company (through resale of its insurance policy with Acuity)–$2 million.
- Cincinnati Policy for additional insureds–$1.115 million.
- United Fire Policy for the developer parties involved in the case–$1 million.
Total: $4.115 million ($4,115,000).
The claimants are put into different categories. Some classes get money from the fund, some don’t.
- Class 1–Personal Injury Claims (Emily Fodness, estate of Ethan Thad McMahon, et al). Eligible for funds. Cases to be settled within 21 days after the document’s effective date.
- Class 2–Business Interruption and Property Damage Claims. Eligible for funds. Cases to be settled within 21 days after the document’s effective date.
- Class 3–Subrogation Claims. Eligible for funds. Cases to be settled within 21 days after the document’s effective date.
- Class 4–Penalty Claims/U.S. Department of Labor/OSHA. The government will not receive a distribution of funds.
- Class 5–Contribution Clams: Contingent contribution and indemnity claims. They are dissallowed.
- Class 6–Interests. Holders of an interest in Hultgrent retain their interests but will receive no distribution.
- Class 7–Promissory Note Claims: Paragon Development’s promissory note against Hultgren. There are no distributions to this class.
This is broken down further:
McMahon and Fodness are eligible for a 50 percent pro rata share of the fund.
Others:
MidAmerican Energy–$2,296.76
IJK, LLC–$60,472.55
PAve, LLC–$2,500
City Sioux Falls–$1,560.65
State Farm–$2,240.26
Cincinnati Insurance–$550,008.79
All of the above amounts are considerably less than what the creditors/plaintiffs demanded. For example, both Fodness and McMahon asked for $6.5 million. There isn’t that much money in the fund. MidAmerican Energy says they’re owed $11,483.82.
KELO.com News has contacted the attorneys involved in the various pieces of the litigation involved in the collapse for their responses.
