Insurer sues Georgia warehouse operators for $ 4.5 million hearth harm

BRUNSWICK, Georgia (AP) – An insurer is suing a warehouse operator on the Georgia coast that smoked 50,000 tons of biofuel wood pellets this year, alleging that “gross negligence” caused 4.5 losses Million dollars.

The Brunswick News reported that Tokyo Marine American Insurance Co. last month filed a lawsuit against Logistec, a Canadian stevedoring company that leases the Georgia Ports Authority warehouse. The investigators assume that some of the pellets decomposed and spontaneously burned, which started a fire that lasted several days that devoured the warehouse and threatened nearby houses in Braunschweig.

Tokio Marine insured the wood pellets that were owned by Fram Renewable Fuels of Hazlehurst and awaiting shipment. Tokyo said it would not have had to pay any losses to Fram had it not been for Logistec’s “gross negligence”.

“Logistec made almost every mistake it could make in storing wood pellet biofuel, a clean and safe biofuel made by Fram,” the lawsuit reads.

The lawsuit alleges that Logistec improperly stored pellets in tall cones and loaded wet pellets into the warehouse; scooped pellets from the top of the stack, leaving a bottom layer that decomposes and overheats; and allow combustible wood dust to accumulate, all of which contribute to spontaneous combustion. It is also alleged that Logistec had faulty sprinklers.

State investigators said Logistec responded with a private “fire brigade” and waited a full day before calling the fire brigade. Nobody was injured, but the firefighters closed the gas pipes to the surrounding houses and stayed on site for weeks.

The company declined to comment on the lawsuit.

The burning warehouse had replaced two buildings that were destroyed by a fire in 2015, which was also caused by spontaneous combustion.

Logistec says that it will remain loyal to its 45-employee Braunschweig operation. It began storing less flammable peanut shells on the site in August after complying with stricter fire regulations set by the state. Logistec has announced that it will not resume handling of wood pellets there at the moment.