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

By Andrew G. Simpson

The owner of the Massachusetts assisted living facility Gabriel House, where a tragic fire resulted in the deaths of 10 individuals and injuries to 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 recently rejected a request from Dennis Etzkorn, a member of the real estate trust and owner of the assisted living services firm Gabriel Care, to access funds from a $6 million property 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 lawsuits for wrongful death and other claims stemming from the devastating fire. The hold on the insurance proceeds was specifically requested by a man whose mother tragically perished in the incident.

The Appeals Court upheld the insurance attachment and also sanctioned an attachment on the real estate itself, effectively preventing the owners from selling or transferring the property. This legal maneuver is significant, as Massachusetts law allows for such attachments when there is a “reasonable likelihood” that plaintiffs will recover a judgment that meets or exceeds the attachment amount, surpassing any available liability insurance.

In this case, the Appeals Court judge concurred with the Superior Court’s assessment that the plaintiff is likely to recover more than the insurance proceeds in question. Furthermore, the court noted the absence of applicable liability insurance, a point that the defendants did not contest.

Since the fire, the owners have received approximately $550,000 in insurance payments, which they claim were utilized to cover taxes, mortgage payments, and employee salaries. They argued that without access to the remaining funds from the $6 million policy, the business faces a high risk of failure, leading to deterioration of the building and a subsequent loss of value.

One particularly unusual aspect of this case is the revelation that Gabriel House operates without liability insurance. In Massachusetts, as in many states, assisted living facilities are not mandated to carry liability coverage, which raises questions about the adequacy of protections for residents and their families.

Another defendant in the lawsuits filed by the victims’ families, Fire Systems Inc. (FSI), has denied any liability. They have countered that the owners breached their contract by failing to maintain liability insurance, further complicating the legal landscape surrounding this tragic incident.

By Andrew G. Simpson

The owner of the Massachusetts assisted living facility Gabriel House, where a tragic fire resulted in the deaths of 10 individuals and injuries to 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 recently rejected a request from Dennis Etzkorn, a member of the real estate trust and owner of the assisted living services firm Gabriel Care, to access funds from a $6 million property 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 lawsuits for wrongful death and other claims stemming from the devastating fire. The hold on the insurance proceeds was specifically requested by a man whose mother tragically perished in the incident.

The Appeals Court upheld the insurance attachment and also sanctioned an attachment on the real estate itself, effectively preventing the owners from selling or transferring the property. This legal maneuver is significant, as Massachusetts law allows for such attachments when there is a “reasonable likelihood” that plaintiffs will recover a judgment that meets or exceeds the attachment amount, surpassing any available liability insurance.

In this case, the Appeals Court judge concurred with the Superior Court’s assessment that the plaintiff is likely to recover more than the insurance proceeds in question. Furthermore, the court noted the absence of applicable liability insurance, a point that the defendants did not contest.

Since the fire, the owners have received approximately $550,000 in insurance payments, which they claim were utilized to cover taxes, mortgage payments, and employee salaries. They argued that without access to the remaining funds from the $6 million policy, the business faces a high risk of failure, leading to deterioration of the building and a subsequent loss of value.

One particularly unusual aspect of this case is the revelation that Gabriel House operates without liability insurance. In Massachusetts, as in many states, assisted living facilities are not mandated to carry liability coverage, which raises questions about the adequacy of protections for residents and their families.

Another defendant in the lawsuits filed by the victims’ families, Fire Systems Inc. (FSI), has denied any liability. They have countered that the owners breached their contract by failing to maintain liability insurance, further complicating the legal landscape surrounding this tragic incident.