State: Fmr. 'Station' owners still owe RI $1M+

WEST WARWICK, R.I. (WPRI) -- The state's Workers' Compensation Court wants to know why a penalty levied in the wake of the Station nightclub fire still has not been paid.

The court has scheduled a meeting for next Monday to find out why no action has been taken against former Station nightclub owners, Michael and Jeffrey Derderian, and their company, DERCO, LLC, on a penalty assessed more than eight-and-a-half years ago.

One hundred people, including four club employees, were killed Feb. 20, 2003 when the West Warwick club caught fire. Later that year, the Department of Labor fined the club owners and their company for failing to purchase workers' compensation insurance for their employees as required by law. In 2004, the state Workers' Compensation Court upheld the fine.

Our news partners, The Providence Journal , inquired as to why the more-than $1 million penalty against the Derderians' company had not been enforced or vacated.

The paper reported the penalty was appealed and put on hold several years ago.

• Timeline: Station Nightclub Fire
• Photos: 2003 Station Nightclub Fire
• In-Depth Coverage: Station Nightclub Fire

The Department of Labor and Training, which is a party to the case, released a statement Tuesday regarding the inquiry.

"At present, the Department of Labor and Training believes that it followed standard procedures concerning any required notifications to the Workers' Compensation Court in the case of Michael and Jeffrey Derderian. However, the Department of Labor and Training and the Workers' Compensation Court are working together to investigate the matter further."