Georgia Warehouse Operator Sued for $4.5M Hearth Loss

BRUNSWICK, Ga. (AP) — An insurer is suing the operator of a coastal Georgia warehouse the place 50,000 tons of biofuel wooden pellets went up in smoke this 12 months, claiming “grossly negligent acts” brought about $4.5 million in losses.

The Brunswick Information experiences Tokio Marine American Insurance coverage Co. filed the swimsuit final month in opposition to Logistec, a Canadian stevedoring agency that leases the Georgia Ports Authority warehouse. Investigators imagine a number of the pellets decomposed and spontaneously combusted, beginning a multi-day hearth that devoured the warehouse and threatened close by properties in Brunswick.

Tokio Marine was insuring the wooden pellets, which have been owned by Fram Renewable Fuels of Hazlehurst and awaiting cargo. Tokio stated it would not have needed to pay losses to Fram however for Logistec’s “gross negligence.”

“Logistec made nearly each mistake it may make in storing wooden pellet biofuel, a clear and secure biofuel manufactured by Fram,” the lawsuit states.

The lawsuit claims Logistec improperly saved pellets in tall cones and loaded moist pellets into the warehouse; scooped pellets from the highest of the pile, leaving a backside layer to degrade and overheat; and let flammable wooden mud accumulate, all contributing to spontaneous combustion. It additionally alleges that Logistec had flawed sprinklers.

State investigators stated Logistec responded with a personal “hearth brigade” and waited a full day earlier than calling the fireplace division. Nobody was injured, however firefighters shut off gasoline traces to close by properties and remained on the scene for weeks.

The corporate declined touch upon the swimsuit.

The warehouse that burned had changed two buildings destroyed by a 2015 hearth that additionally was blamed on spontaneous combustion.

Logistec says it stays dedicated to its 45-worker Brunswick operation. It started storing much less flammable peanut hulls on the web site in August after assembly stricter hearth prevention guidelines set by the state. Logistec has stated it doesn’t presently plan to renew dealing with wooden pellets there.