LIHUE — Two insurance companies are seeking to offset claims by suing a roofing company that was working on a North Shore restaurant when the roof caught fire.
The two civil suits were filed in 5th Circuit last week by insurers that want to collect from a roofer they say is responsible for damages in a July 1, 2011 fire on the Bali Hai Restaurant roof at Hanalei Bay Resort in Princeville.
According to Kauai Fire Department officials, the Bali Hai Restaurant fire on July 1, 2011 was determined to be accidental. KFD does not determine the party at fault in an accidental fire.
At the time, KFD estimated damages to the restaurant at $3 million. Resort management said they can’t say the actual figure but that it is probably higher than that amount.
Scott Pacer, Hanalei Bay Resort manager of the Association of Apartment Owners, said the fire damage extended beyond the restaurant to Happy Talk Bar and the front desk, and a lower level shopette and fitness center.
The burned areas have not been used since the fire and are undergoing renovations, he said.
“We are pushing hard to have the front desk open by the end of the year,” he said. “The restaurant may be opening a little later in the spring.”
The resort must install a new roof, electrical and conduct exterior work on the restaurant before the interior renovations can begin, Pacer said.
Things change, and he hasn’t seen the final plans, but Pacer said he believes the restaurant will be restored much as it was before the fire.
Bali Hai is owned by Kalypso Restaurant owner Jimit Mehta, but was closed for over a year prior to the fire and is considered Unit 16A of the Hanalei Resort property. Mehta had contracted with William Greg McKeown and Greg’s Roofing, Inc. to work on the restaurant in 2011.
According to the complaint, the roofers used a “torch down” sealing application method that involves a high-heat and roll application. It is reportedly a common application for a flat roof.
The fire started in the area where work was conducted soon after workers descended from the roof at the end of the work day, according to the complaint. The insurers claim it was a direct and proximate result of negligence.
Eighteen firefighters from four stations responded at 5:21 p.m. and brought the blaze under control by 7:15 p.m. No one was injured in the blaze.
In separate civil complaints, Scottsdale Insurance Company and Endurance Insurance Company said the roofing company should instruct a fire watch as standard procedure following the torch down application process.
The insurers allege that the roofer conducted a pre-inspection and should have known the wooden roof was deteriorated from termites and dry rot, and easily ignitable.
The failure to prevent the fire is in violation of federal, state and local ordinances, statutes and codes, the complaint states.
Endurance, represented by Ogawa, Lau, Nakamura & Jew, was a party to an insurance policy and reimbursed the resort for covered property and damages in excess of the jurisdictional requirements of this court.
As a result Endurance has become subrogated to the rights of the resort against the defendant.
Scottsdale Insurance Company is represented by Ayabe, Chong, Nishimoto, Sia & Nakamura.
No hearings have been scheduled.
Greg’s Roofing did not respond to calls.
