Owner of Assisted Living Facility Where 10 Perished in Fire Denied Insurance Payouts

The owner of the Massachusetts assisted living facility Gabriel House, where a tragic fire claimed the lives of 10 individuals and injured 30 others last July, has been denied access to crucial insurance proceeds. These funds, he claims, are necessary for repairing the facility and covering employee salaries and taxes.

Judge Joseph Ditkoff of the Massachusetts Appeals Court rejected a request from Dennis Etzkorn, a member of the real estate ownership trust and owner of Gabriel Care, the firm that operated the facility. The request was aimed at accessing funds from a $6 million property insurance policy issued by Liberty Mutual Insurance Co. Notably, the New Bedford assisted living business lacks liability insurance.

Etzkorn, along with other involved parties, is facing multiple wrongful death lawsuits stemming from the devastating fire. The hold on the insurance proceeds was initiated by a plaintiff whose mother perished in the incident.

The appeals court upheld a ruling from Bristol Superior Court Judge Raffi N. Yessayan, which imposed the insurance attachment. Additionally, the court has approved an attachment on the real estate itself, preventing the owners from selling or transferring the property.

According to Massachusetts law, an attachment can be imposed when there is a “reasonable likelihood” that plaintiffs will recover a judgment equal to or greater than the attachment, surpassing any available liability insurance to satisfy the judgment.

Etzkorn argued that while a significant judgment against Gabriel Care might be likely, such a judgment against the real estate trust that holds the insurance policy was less probable, thus claiming the attachment was erroneous. However, the judge dismissed this argument, emphasizing that the trust and Gabriel Care, Inc. are essentially interchangeable. Etzkorn also conceded that the insurance proceeds would be available to Gabriel Care for employee payments.

Judge Ditkoff noted that the Superior Court judge found the plaintiff likely to recover more than the insurance proceeds in question, and that there is no applicable liability insurance. The defendants did not challenge either of these findings. “I can discern no error,” Ditkoff stated in a two-page opinion.

Etzkorn further contended that delaying access to the insurance funds would put Liberty Mutual in violation of state consumer protection and insurance claims laws. However, Liberty Mutual clarified to the court that Etzkorn was misrepresenting the laws and assured that it would comply with any court order.

Since the fire, the owners have received approximately $550,000 in insurance claims payments, which they stated were used to cover taxes, mortgage payments, and employee salaries.

The owners argued that without access to the remaining insurance funds from the $6 million policy, the business would likely fail, leading to the deterioration of the building and a loss in value.

In a surprising twist, it was discovered that Gabriel House lacks liability insurance for the business. The owners have attributed the fire to one of the defendants in the victims’ lawsuits, Fire Systems Inc. (FSI), claiming it was responsible for faulty fire protection systems in the facility. FSI has denied any liability and has counter-sued, alleging that the owners breached their contract by failing to maintain liability insurance. FSI has also requested the court to extend the attachments to the owners’ personal assets.

Photo: Boards cover the windows of the Gabriel House assisted living facility, where a fire on Sunday killed several people, Tuesday, July 15, 2025 in Fall River, Mass. (AP Photo/Kimberlee Kruesi)

The owner of the Massachusetts assisted living facility Gabriel House, where a tragic fire claimed the lives of 10 individuals and injured 30 others last July, has been denied access to crucial insurance proceeds. These funds, he claims, are necessary for repairing the facility and covering employee salaries and taxes.

Judge Joseph Ditkoff of the Massachusetts Appeals Court rejected a request from Dennis Etzkorn, a member of the real estate ownership trust and owner of Gabriel Care, the firm that operated the facility. The request was aimed at accessing funds from a $6 million property insurance policy issued by Liberty Mutual Insurance Co. Notably, the New Bedford assisted living business lacks liability insurance.

Etzkorn, along with other involved parties, is facing multiple wrongful death lawsuits stemming from the devastating fire. The hold on the insurance proceeds was initiated by a plaintiff whose mother perished in the incident.

The appeals court upheld a ruling from Bristol Superior Court Judge Raffi N. Yessayan, which imposed the insurance attachment. Additionally, the court has approved an attachment on the real estate itself, preventing the owners from selling or transferring the property.

According to Massachusetts law, an attachment can be imposed when there is a “reasonable likelihood” that plaintiffs will recover a judgment equal to or greater than the attachment, surpassing any available liability insurance to satisfy the judgment.

Etzkorn argued that while a significant judgment against Gabriel Care might be likely, such a judgment against the real estate trust that holds the insurance policy was less probable, thus claiming the attachment was erroneous. However, the judge dismissed this argument, emphasizing that the trust and Gabriel Care, Inc. are essentially interchangeable. Etzkorn also conceded that the insurance proceeds would be available to Gabriel Care for employee payments.

Judge Ditkoff noted that the Superior Court judge found the plaintiff likely to recover more than the insurance proceeds in question, and that there is no applicable liability insurance. The defendants did not challenge either of these findings. “I can discern no error,” Ditkoff stated in a two-page opinion.

Etzkorn further contended that delaying access to the insurance funds would put Liberty Mutual in violation of state consumer protection and insurance claims laws. However, Liberty Mutual clarified to the court that Etzkorn was misrepresenting the laws and assured that it would comply with any court order.

Since the fire, the owners have received approximately $550,000 in insurance claims payments, which they stated were used to cover taxes, mortgage payments, and employee salaries.

The owners argued that without access to the remaining insurance funds from the $6 million policy, the business would likely fail, leading to the deterioration of the building and a loss in value.

In a surprising twist, it was discovered that Gabriel House lacks liability insurance for the business. The owners have attributed the fire to one of the defendants in the victims’ lawsuits, Fire Systems Inc. (FSI), claiming it was responsible for faulty fire protection systems in the facility. FSI has denied any liability and has counter-sued, alleging that the owners breached their contract by failing to maintain liability insurance. FSI has also requested the court to extend the attachments to the owners’ personal assets.

Photo: Boards cover the windows of the Gabriel House assisted living facility, where a fire on Sunday killed several people, Tuesday, July 15, 2025 in Fall River, Mass. (AP Photo/Kimberlee Kruesi)