Shed Insurance Dispute Ongoing

The Lackawanna County Commission filed a complaint April 2nd against the companies that insured the 17,500-capacity Toyota Pavilion at Montage Mountain when its roof collapsed, claiming the companies misrepresented the shed’s policy status.

County attorney Larry Moran filed the lawsuit, which names Housing and Redevelopment Insurance Exchange, Foxco Insurance Management Services Inc. and independent agent Dominic Verrastro.

The suit claims breach of contract, insurance bad faith, breach of fiduciary duty and negligence and seeks reimbursement of $1.6 million spent to replace the pavilion’s canvas roof as well as related repair work, according to the Times-Tribune.

The roof of the Moosic, Pa., shed collapsed under the weight of heavy snow in February 2007 and city officials were sure they had insurance to help pay for the repairs. Not so, according to the insurers, who said the policy was canceled about a year before.

Charles Volpe, Foxco president, and Verrastro reportedly told the Tribune they informed Commission Chairman Robert Cordaro the policy was canceled when the Montage Ski Resort was sold in November 2006. Both venues were under the same insurance policy.

The commission’s complaint alleges that no authorized party was involved in the cancellation of the insurance, so the policy was still in effect. The county submitted its insurance claim January 17th but it was denied two weeks later, the paper said.