$100-Million Settlement OKd in Puerto Rico Hotel Blaze
A federal judge on Friday accepted the proposed payment of up to $100 million to settle hundreds of lawsuits stemming from the 1986 Dupont Plaza Hotel fire that killed 97 people.
U.S. District Court Judge Raymond L. Acosta said the agreement was binding on all parties but contingent on unspecified conditions being met within 60 days.
Agreement in the case, involving about 2,300 plaintiffs seeking damages from 230 defendants, was approved Thursday night in Philadelphia by District Judge Louis C. Bechtle, who was appointed by U.S. Supreme Court Justice William H. Rehnquist to head the negotiations.
Under the agreement signed in Philadelphia, $50 million will be paid by the insurer, American International Underwriters Corp., and $35 million by the Dupont-family group of partnerships and individuals who owned many hotel enterprises, including the Dupont Plaza. Other insurance carriers will pay the remaining $15 million.
The fire on Dec. 31, 1986, killed 97 people and injured more than 140. It occurred during bitter labor negotiations between the Teamsters Union and hotel management. Three former employees who were union members were accused of setting the fire and were convicted in 1987 of murder.
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