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Saturday, September 10, 2011
Stage Collapse - The 1963 Coliseum Explosion, the end of sovereign immunity, and the enactment of the tort claims statute -- Part I
Nearly 50 years ago, on Halloween night, October 31, 1963, a massive explosion rocked the State Fair Fair Coliseum in the midst of a widely-attended Holiday on Ice show. There was much injury and death. It took years for the Indianapolis community to recover. Still today it is not uncommon to meet people who were directly touched by this tragedy. It happened to me this week at Central Library; the woman who retrieved the library clipping file on the incident told me, "I was there that night, with my mother. We left early."
But it was much more difficult than I had expected to put together any sort of outline of the legal process that was used to deal with the claims. With the exception of an engineering investigation, I found little on the internet, other than a few online newspaper clippings from the Anderson, Kokomo and Logansport papers. The Indianapolis Star and Indianapolis Times for these years is not available online.
What proved more useful was the thin, yellowed clipping file from Central Library, from which I photographed some stories.
Part II, which deals with the end of sovereign immunity in Indiana, and the enactment of the tort claims statute, was much easier to research, and was completed and posted on Sept. 6.
Here, in chronological order, are the news reports I have been able to assemble to tell the step-by-step story of the way the legal claims from the Indiana State Fair Coliseum explosion were handled, and the legal ramifications. (I welcome additional information, as this record is sketchy, but I could locate nothing comparable to what is assembled here.)
The ultimate consequence, seen when reading Parts I and II together, is that the tragedy at a state venue led to a mass settlement, but not before starting a sequence that led to the recognition by our Supreme Court in an unrelated case, two years later, that the State of Indiana is not immune from suit, that the Constitution presents no barrier, and that the State would have to bear the consequences, as do the units of local government. In response, in 1974 the General Assembly acted to cap the State's liability for any one occurrence at $5 million, via a tort claims law.
- Slightly more than one month after the disaster, in the Dec. 10, 1963 Indianapolis Star, a lengthy story headlined "Grand Jury's Report Details Alleged Neglect." "Explosions do not just happen, they are caused," opened the Marion County grand jury's 21-page report on the Halloween disaster at the State Fairgrounds Coliseum.
- Two months after the disaster, from The New York Times, Jan. 2, 1964, a brief story headed "Court to Divide $1 Million."
Indianapolis, Jan. 1 (UPI) -- A Federal District Court has been asked to divide $1 million among the estates of 73 persons killed and the 190 injured in the explosion at the Indiana Fairgrounds Coliseum on Oct. 31. Two insurance companies representing a concern that provided propane gas to the Coliseum asked the court to decide how the money should be distributed. Stanley Lawton, lawyer who filed the suit, said the $1 million was the total insurance coverage held by the Discount Gas Corporation.
- From the July 3, 1964 Indianapolis Star, this story headed "Blast Ruling Handed Down." The long story begins:
Federal Judge S. Hugh Dillin yesterday ordered that three insurance companies be freed of further liability for damages for victims of the Coliseum explosion once the companies have paid $1,020,000 into a court fund.
This means the money, representing the full amount of insurance coverage for the firm that supplied propane gas tanks blames for the explosion, will be placed in the court fund for payment of legal claims to persons injured or to administrators of those killed in the Oct. 31 blast.
Only the propane supply firm, Discount Gas Corporation, is affected by the ruling. Many law suits still are pending against the Coliseum Corporation and the Indiana State Fair Board.
- Disbursement of this money was finalized Nov. 1, 1965, as reported in this story published the following day in, presumably, the Indianapolis Star. Here are some quotes from the lengthy story (see p.2 here), which also records, in agate type, the disbursements:
Funds totaling $1,122,480.79 were ordered disbursed to 379 victims of the 1963 Coliseum blast, or their estates, yesterday by Federal Judge S. Hugh Dillin.
Notably, the story concluded with info about related pending actions:The sum represented the full amount of insurance coverage held by Discount Gas Corporation, plus interest.
The order came just two years and one day from the date of the Halloween disaster which left 74 persons dead and more than 300 injured.
Yesterday was the first day the claims could have been legally settled, since potential claimants had two years in which to file.
The federal court settlement, accomplished in record time in view of the numbers of persons injured or killed, resulted from day-long conferences for almost three months by a group of eight attorneys named by Judge Dillin to evaluate the losses -- in dollars and cents -- suffered by the victims.
Appointment of the lawyers came after the filing, on Dec. 31, 1963, of an interpleader action in the court where two insurance companies, Continental Casualty Company and the Commercial Union Insurance Company of New York, asked that their insurance coverage for Discount, supplier of the propane gas which exploded, be lumped together for distribution.
The attorneys, John F. Townsend, Paul Rochford, Howard S. Young Jr., Arthur L. Payne, H. Harold Sochnick, Robert Hollowell, James R. Martin and Darrell Bratton, after studying each case individually, ruled the total money necessary for fair reimbursement to each claimant is $7,502,303. * * *
With slightly more than $1,122,000 available, each person, under a formula worked out by the attorneys, will receive 7% of the total fixed in the schedule published at the conclusion of this story.
Judge Dillin said the sums to be paid out will pay off approximately 14 3/4% of the total $7,500,000 figure.
Judge Dillin pointed out that resolving of the claims in this case is not binding on any defendants in any other pending litigation growing out of the blast.
However, he said he is "hopeful the formula used in this case may well be accepted" in other suits pending to govern the relative value of awards to be made in the event any defendants are found to be liable.
Judge Dillin praised the almost 70 attorneys who had a part in settling the claims, noting:
"This demonstrates that it is possible for sensible claimants, with advice of sensible attorneys, to achieve reasonably prompt solutions to their legal controversies, no matter how complex they may appear to be at first glance."
Numerous damage suits growing out of the explosion are pending in Marion County Superior Court.
More than 350 persons have sued the State of Indiana for $20 million in the court's Room 5, charging that the state had an implied contract to provide safe seating for ice show spectators.
Also on file in Federal Court is a $50 million suit against the Holiday on Ice show.
- "Bill To Compensate Blast Victims Backed" is the headline to a brief Jan. 13, 1967 story in the Anderson Herald.
INDIANAPOLIS (UPI) Rep. Ron W. Robison, R-Shelbyville, introduced a bill Thursday to provide funds for compensation victims of the 1963 Indiana State Fairgrounds Coliseum explosion.
The bill did not become law.The bill would appropriate [ILB: unfortunately unreadable] million for the State Fair Board to use in compromising or settling claims arising from the Halloween explosion which killed 78 persons and injured several hundred others.
- "Transcript Filed On Explosion" is the headline to this April 11, 1967 UPI story published in the Logansport Pharos Tribune & Press.
INDIANAPOLIS (UPI) - A 740-page transcript of a major case to determine whether the State of Indiana can be sued for damages in connection with the 1963 Coliseum explosion was filed Monday in the Indiana Supreme Court.
The explosion killed 78 persons and injured about 400. The question of how far the sovereignty of the state extends was answered by former Johnson Circuit Court Judge Robert B. Lybrook last Oct. 12 with a precedent-setting decision that said under the circumstances,
the state could be sued.Deputy Attorneys General Lloyd C. Mutchinson and James B. Droege filed the massive volume just before deadline. Now they are working on a brief to be filed later.
Lybrook held that in operation of the fairgrounds, the "State of Indiana is not acting in its sovereign capacity." Instead, it is operating in a commercial or proprietary role. One point made by Lybrook was that the State Fair Board may issue bonds but that the state constitution prohibits the sovereign state from going into debt.
The explosions occurred during an opening night performance of an ice show sponsored by the Indiana Coliseum Corp., which had leased the Coliseum from the fair board. Lengthy investigations fixed the blame on liquid gas being used to warm popcorn.
About 400 law suits were filed in the case, and the decision on the state's liability hinges on the future of the suits. What insurance
money was available was turned over to federal court here and more than a million dollars of this has been distributed to the plaintiffs.The group of attorneys representing most of the plaintiffs have indicated they would accept a $7.5 million settlement although the
suits total about $70 million. - "Coliseum Blast Claims Settled For $3.5 Million," is the headline to this Oct. 28, 1967 Indianapolis Star story. Some quotes:
Federal Judge S. Hugh Dillin yesterday announced an out-of-court settlement for $3,555,000 for all claims resulting from the Oct. 31, 1963 explosion * * *.
The settlement is about 45 per cent less than the original $7.5 million sought by the claimants. The settlement figure includes $1,071,480 which was distributed Nov. 2, 1965.
The settlement disposes of 413 cases which were pending in state and Federal courts. Dillin said there were 464 separate claims for personal injuries, wrongful death or loss of services involved in the claims.
The amounts paid by the different defendants in the cases are:
- Indiana State fair Board, $1.5 million;
- Discount Gas Corp., $1 million;
Indiana Coliseum Corp., $530,000;
- Holiday on Ice, $250,000;
- Indiana Rating Bureau, $150,000;
Cities Services Oil Co., $100,000;
- Duray Inc., $20,000; and
- Franger Gas Co., $5,000.
The decision was appealed to the Indiana Supreme Court, where it is now pending.
State Attorney General John J. Dillon said yesterday the state wll now ask for a rehearing of the case in the Johnson Circuit Court.
[AG] Dillon said the request wil be granted and then the plaintiffs wil immediately dismiss the action, so that the precedent-setting decision can be wiped off the record, leaving the entire question to be resolved either by the state legislature or some future lawsuit.
- Indiana State fair Board, $1.5 million;
- From the Kokomo Tribune, Thursday Feb. 29, 1968:
Coliseum Blast Checks Total $2.5 Million
INDIANAPOLIS (AP) — The clerk of U.S. District Court here distributed 337 checks totaling more than $2.5 million today to victims of the 74-death Coliseum explosion in 1963. Clerk Robert G. Newbold said the distribution marked final settlement of suits resulting from the Halloween disaster at the Indiana State Fairgrounds. The explosion injured more than 400 persons.
Checks were sent to attorneys representing claimants. The largest
check, $100,075, was issued for Barbara Ann Stalen, who was injured seriously injured and whose parents and brother were killed. - From the Feb. 29, 1968 Indianapolis Star, this 2-page list (p.1 and p.2) in agate type, preceded by:
Here is the list of claims being paid in checks issued today in connection with the Oct. 31, 1963 Coliseum explosion at the State Fairgrounds.
Victims are listed, followed in parenthesis by their personal representatives in legal action, if any. Victims who are deceased are noted as (d). The amounts being paid amount to 33.6 per cent of the original claims.
- Finally, here is a page-one story from the Logansport Pharos Tribune & Press, dated Tue., Sept. 30, 1969. The story, the only one of this series that was bylined, was written by the widely-respected UPI Statehouse reporter, Hortense Myers.
Court Rules State Has No Sovereign Immunity
By HORTENSE MYERS
INDIANAPOLIS (UPI) - The Indiana Supreme Court today struck down the legal theory of sovereign immunity that has kept Indiana from being sued for damages in the same way a private business can be.
The precedent-setting ruling in the case of Robert and Dorothy Perkins vs. the State of Indiana gave them authority to sue the state for damages because of illness that allegedly resulted from raw sewage in a state park lake.
Judge Norman Arterburn, who wrote the opinion, said that in proprietary functions, such as operation of recreational facilities for which charges are made, the state has no sovereign immunity from suit without its consent.
The decision overruled the Indiana Appellate Court which upheld Marion Superior Court. It cleared the way for the Chicago couple to sue the state for $30,000 because of illness they blamed on sewage contamination at Lincoln State Park where they rented a cottage in 1966.
Only An Inference
The decision answered a question raised by the Indiana State Fairgrounds Coliseum explosion but never answered by those damage suits because of an out-of-court settlement.
"There is no plain, unequivocal statement in the Constitution that the State of Indiana shall be immune against suits imposing a liability for damages, only an inference," Arterburn wrote.
"We are dealing here not with a constitutional prohibition but rather with a principle of common law which has its roots in the ancient common law of England which held 'The King can do no wrong' and hence could not be sued in any court of law."
"The common law changes," the opinion concluded. "There has been within the last two or three decades considerable reevaluation and consideration with reference to the principle of sovereign immunity. The common law of today is not a frozen mold of ancient ideas, but
such law is active and dynamic and thus changes with the times and growth of society to meet its needs."
Posted by Marcia Oddi on September 10, 2011 03:37 PM
Posted to Indiana Courts | Indiana Government | Indiana Law | Stage Collapse