Insurance coverage on the Toyota Pavilion at Montage Mountain was canceled when Montage Ski Resort was sold to Sno Mountain LLC, according to the amphitheater’s insurer.
Charles Volpe Jr., president of Foxco Insurance Management Services Inc. and attorney for Housing & Redevelopment Insurance Exchange, said the policy in question — dated July 15, 2006 — was canceled effective Dec. 1, 2006 .
The roof of the Toyota Pavilion at Montage Mountain collapsed under the weight of snow Feb. 15. Former majority Lackawanna County Commissioners Robert C. Cordaro and A.J. Munchak never filed a claim.
A claim filed Jan. 17 by the new administration was denied this week, but Commissioners Corey O’Brien and Mike Washo said they expect to collect.
“We’re confident in our position, and we will take all required action necessary to recover the funds,” Mr. O’Brien said.
The cancellation was disclosed in a letter Tuesday to Rick Jones, the county’s new deputy director of insurance and risk management.
Mr. Jones submitted a claim Jan. 17 to Housing & Redevelopment Insurance Exchange for $1.6 million spent on the amphitheater roof.
On behalf of the county, Joe Durkin, of J. Durkin Insurance Consultants, managed the policy that covered both the ski resort and the amphitheater.
Dominic Verrastro, an insurance agent with Foxco, was on retainer as an independent insurance coordinator with Lackawanna County. Mr. Volpe explained that HARIE and Foxco can be considered the same entity, because HARIE is a nonprofit managed by Foxco.
In a letter Wednesday to Lackawanna County, Mr. Volpe said Mr. Durkin called Foxco to inform Mr. Verrastro the county had sold the mountain property. Mr. Durkin asked Mr. Verrastro to cancel the policy effective the date of the sale, Mr. Volpe said.
Efforts to reach Mr. Durkin were unsuccessful Thursday.
There is no question about whether the policy was canceled, Mr. Volpe said.
“Mr. Verrastro knew it was canceled. Mr. Durkin knew on behalf of the county that it was canceled,” Mr. Volpe said.
Mr. Volpe said he met with Mr. Cordaro “around Feb. 23, 2006.” At the meeting, Mr. Cordaro was told the coverage had been canceled, Mr. Volpe said. Mr. Cordaro acknowledged the cancellation and said the county should have requested a new policy at the time of sale, Mr. Volpe said.
Mr. Cordaro said Thursday the coverage should not have been allowed to lapse, but that in February 2007, he “was operating under the assumption it was canceled appropriately.”
Mr. Cordaro acknowledged he was told by Mr. Volpe, Mr. Durkin and Mr. Verrastro that the insurance was canceled.
“I told them, ‘I don’t know who, but someone will pay,’?” he said, referring to each of the three insurance entities having its own liability insurance.
Mr. Volpe said written notice of the cancellation was delivered to Mr. Verrastro on Jan. 15, 2007, about a month before the roof collapse.
Contact the writer: gwintermantel@timesshamrock.com
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