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State Supreme Court Upholds Decision In Ellison Bay Explosion



An insurance company that agreed to a settlement in a fatal 2006 explosion in Ellison Bay cannot try to collect more damages from the contractor whose work may have triggered the blast.

That was the ruling Wednesday from the Wisconsin Supreme Court, which affirmed the decision of both the Brown County Circuit Court and the Court of Appeals.

The July 10, 2006 explosion at the Cedar Grove resort killed a vacationing couple from Michigan and injured several others, including the couple's three children.

A Milwaukee Journal Sentinel story says Arby Construction was doing excavation and boring work at the resort when it struck an unmarked propane line, causing a leak that led to the explosion. 

The survivors and estates of those killed sued several defendants in federal court. In 2008 the parties settled for more than $21 million and the case was dismissed with prejudice.

But Wisconsin Public Service Corp. and AEGIS, a provider of excess insurance to several of the defendants, sought more payment of the settlement from Arby.

The Supreme Court's decision precludes AEGIS from seeking additional payment but because WPSC's claim against Arby was specifically preserved in the federal suit dismissal order, the court ruled it can go forward.

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