Nevada County Picayune and Gurdon Times Newspaper Archive

District Hires Law Firms In Fire Claim Case

Prescott School Board members voted to hire McMillian, Turner and McCorkle as well as Wilson Engstrom, Corum & Coulter law firms Wednesday, May 28.

The firms will represent Prescott School District in a lawsuit against USF&G insurance company in hopes to get full payment for a 1996 fire which destroyed a portion of Prescott High School.

District officials have turned in over $1.5 million in claims but only 55% or $783,000 has been paid to the district.

The district has received two loans and authorized Superintendent Don Johnston to negotiate for a third loan with the Bank of Prescott. The loan will be a five-year note at 5.9% with yearly payments.

Johnston estimated the district will run $189,000 short in paying the reconstruction work without the new loan.

Officials say USF&G is taking the position the district did not have enough (90%) insurance to cover losses.

The district has alleged it had enough insurance and it was up to the company's representative to verify that fact.

The hiring of the two law firms comes after a meeting with the board during its regular session May 19.

Ed McCorkle and Nate Coulter met with the board then and discussed possible actions by the board.

Coulter's firm has represented the city of Prescott in a suit over problems with the Water Treatment Plant on Highway 19 north as well as the Bank of Prescott in other cases.

Coulter told the board during the first meeting his firm handles the courtroom side of lawsuits as its specialty.

Both agreed at the first meeting USF&G has decided it has paid all it is required and a lawsuit or the threat of a lawsuit is the next step.