Press Releases
Great White settlement muddies the water on legal liabilities
The news that US radio conglomerate Clear Channel will pay $22 million into the “Great White” victims fund sends out worrying signals to media ‘co-promoters’ and others involved in the promotion of music events in the USA and elsewhere. The settlement comes after the tragic death of 100 people (and double that injured) when the Station nightclub in West Warwick, Rhode Island, burned down during the 2003 gig by the LA rock band Great White. The fire was caused after pyrotechnics set off by the band ignited the highly flammable sound proofing installed by the venue’s owners, brothers Jeffrey and Michael Derderian. After a plea bargain both brothers received criminal convictions on 100 counts of involuntary manslaughter, Michael, who purchased the foam for the venue, received a four year prison term and Jeffrey Derderian was sentenced to 500 hours of community service. Both brothers also received three years’ probation. In addition band tour manager Dan Biechele received a four year prison term with a further eleven years suspended. But attention is now turning to the estimated one billion dollars worth of civil lawsuits slowly winding their way through the US courts. One of the lawsuits launched by lawyers for the victims of the fire was aimed at Clear Channel whose WHJY-FM had pre-promoted the concert by running ads, giving away tickets and providing a DJ to MC the night. The claimants’ argument is that that the radio station knew, or should have known, that the band regularly used pyrotechnics in the show, and that that would be dangerous at the venue hosting the event. The claimants argued that as the station had an employee at the gig (the DJ Mike Gonsalves who sadly died in the fire) they could and should have delayed the start of the gig over safety concerns. By way of defence, WHJY-FM pointed out neither it nor its employee had any control over activities in The Station club that night, nor did they hire, pay or have any control over the band. It should be noted that Clear Channel settled this action and this is not a court judgment. But it is also clear that Clear Channel took the threat of legal action and potential liability seriously. The line between who is and who isn’t responsible (and therefore usually liable in law) when things go wrong is never that easy to define: in the UK primary civil liabilities are established by the common law action of negligence and by the liabilities put on occupiers (and there may well be more than one ‘occupier’ at a concert) to keep visitors safe, secure and free from harm under the Occupiers Liability Act 1957. Criminal (or penal) liabilities can also apply by way of the provisions of the Health and Safety at Work Act 1974 and soon by way of a new action of corporate manslaughter which will soon enter UK law. When disaster strikes at a music concert, both the promoter and the venue owner will usually be the first in line for both civil and criminal claims. But others, including staging, sound and lighting companies, seating providers and security companies have all been held (at least in part) liable by the courts in civil law actions as have Local Authorities and others who have carried out safety inspections. In the Great White case the Clear Channel settlement of $22 million will take the monies so far won for victims of the fire to $70 million following settlements with others accused of liability in the fire including the maker and seller of the sound proofing material that caught fire, the maker of the pyrotechnics, and a TV company whose camera man was accused of blocking a fire exit. Other lawsuits, including one against the band themselves and the venue rumble on. Clear Channel made it clear that they still felt that they had no role in causing or contributing to this fire and that the pay out does not mean that they accepted any liability for the fire. But the settlement could clearly have an impact on other radio stations and perhaps even magazines and sponsors who enter into similar co-promotional relationships with venues, promoters and even bands. These organisations will need to assess if they could potentially face any claims in both civil and criminal law, will need to assess insurance requirements in light of the case and may now look for reassurances that all safety issues have been addressed.
by Ben Challis: First published Summer 2008, IQ Magazine
