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Published - Thursday, May 15, 2008

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Family gets $21 million settlement in Door County explosion


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MILWAUKEE — The three children who watched their vacation cabin burn, knowing their parents were inside and unable to get out, will receive a settlement worth more than $21 million, according to court documents.

The 16-year-old twin boys and 14-year-old daughter of Patrick and Margaret Higdon and adult relatives filed a suit in U.S. District Court in Green Bay claiming negligence caused propane explosions in a Door County resort community in 2006. The lawsuit names the Cedar Grove Resort, some construction companies, a utility and their insurance companies as defendants.
The adult relatives, including Margaret Higdon’s parents and siblings, who were vacationing with the family, have reached a settlement. But that hasn’t been made public.

The family is relieved to have the case settled, said attorney Ralph J. Tease Jr., with Habush, Habush & Rottier in Green Bay.

The $21 million settlement reached May 6 will be split among the three children — Megan, Patrick and James. It will cover lawyers’ fees and hospital bills and establish trust funds for them. The money is expected to grow to nearly $38.5 million over the children’s lifetimes, according to the settlement.

The couple from Bloomfield Hills, Mich., died early July 10, 2006, while vacationing in a cottage with their children and other family members about 200 miles north of Milwaukee. Twelve other people were injured.

“This family was extremely close, and always looked forward to this family vacation,” court documents said. “On the evening of the explosion, the family had enjoyed their usual routine which consisted of a family meal at a local restaurant followed by family time spent in the rental units talking, playing cards and other activities.”

They were asleep when several explosions rocked the resort about 2:15 a.m., court filings said. Margaret Higdon’s parents James and Margery Brooks and the Higdon’s three children escaped. But Patrick, 49, and his 45-year-old wife were trapped, and Margaret’s voice could be heard calling for help, the documents said.

Megan Higdon, then 12, remained at the scene for 45 minutes after the explosion, in a panic, documents said.

“During that entire time, Megan was forced to watch as the fire consumed the building in which she knew her parents were trapped,” they said.

Two of the children suffered injuries. Megan’s spleen was shattered, and she had burns on the left side of her chest and blistering on her lips. She also suffers from post-traumatic stress disorder, according to court documents.

Her brother Patrick, then 14, suffered multiple facial fractures and first and second degree burns over 2 percent of his body. He may have permanent loss of sensation in his left cheek, a doctor said in court records, and he probably won’t be able to ever fully open his mouth.

His twin, James, suffered no physical injuries, even though he went back into the building to rescue his grandfather. But court documents noted that he was most at risk in the family for developing PTSD or other psychological problems in the near future.

All three children now live with their grandparents in Bloomfield Hills, Tease said.

Authorities never filed criminal charges in the matter. Door County District Attorney Ray Pelrine has said an electrical contractor installing some underground electric lines for an upgrade of the resort’s docks ruptured a buried propane line three days before the explosion, and it wasn’t clear what caused the propane to ignite.

The lawsuit claimed Arby Construction, Inc., severed an underground propane gas line while performing work for the resort. The suit also named the Wisconsin Public Service Corp., Portside Properties LLC, and their insurance companies, and Ferrellgas, Inc.

Four of the five defendants in the lawsuit agreed to the settlement. The four will take the fifth defendant to court to try and make it share payment in the settlement, according to court documents.
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