News
8/17/2006 - Arbitrator Awards State Agency $2.7 Million
MONTGOMERY--An arbitrator appointed by Gov. Bob Riley to arbitrate a dispute between the Alabama Department of Conservation and Natural Resources (DCNR) and the Alabama Department of Finance, Division of Risk Management (DORM) concerning proceeds due DCNR under an All-Risk Policy as a result of damage to Gulf State Park buildings and contents caused by Hurricane IVAN issued an arbitration award today to DCNR for an additional $2.7 million in payments for damage to structures and contents. DORM had issued a policy to DCNR prior to the hurricane providing All-Risk Blanket Replacement Cost coverage for the structures located at Gulf State Park.
Jim L. Ridling was appointed by Gov. Riley pursuant to Ala. Code § 41-15-8 to hear the first arbitration proceeding ever conducted under that statute. The hearing was conducted over several days in April 2006. If the additonal amounts awarded are paid, DCNR will receive a total of approximately $10 Million due to the IVAN loss from flood and property insurers. Such payments still will not compensate DCNR for the total losses caused by IVAN to Gulf State Park. Claims under FEMA regulations and flood insurance coverages are still being pursued.
DCNR was represented in the proceedings by Dennis R. Bailey of Rushton, Stakely, Johnston & Garrett, P.A. DORM was represented by Robert F. Northcutt of Capell & Howard and Jerry Carpenter appeared as assistant attorney general for the Division of Risk Managment. The arbitrator was represented by Richard A. Ball, Jr. of Ball, Ball, Matthews & Novak, P.A.