Milligan sues insurance company

By Lesley Jenkins
star staff
ljenkins@starhq.com

  
Milligan College filed a complaint in Carter County Circuit Court on Tuesday against Indiana Insurance Company concerning an insurance denial related to the collapse of the the college's maintenance building on Feb. 22, 2003.
   The compaint alledges, "Indiana Insurance Company has denied coverage for the loss of the maintenance building, although it paid for the loss of the contents. Indiana Insurance Company has breached its contract for insurance with Milligan College by its wrongful refusal to pay for the loss of the maintenance building."
   The college claims it is entitled to recover no more than $700,000 for the replacement cost of the building. They are also seeking an additional 25 percent recovery for bad faith failure pursuant to TCA 56-7-105.
   The college is also asking for a jury trial of all issues, according to the complaint.
   During the excessive rain on Feb. 22, 2003, half of the building collapsed into a sinkhole created by the saturated ground.
   The two story building, located just off Alf Taylor Road adjacent to the college, split in half when the ground gave way. The detached portion sank straight down.
   Security officer Mike Waycaster was inside the building for the evening shift when the creaking metal began to give way. He was able to escape without injuries.
   The building housed physical and grounds equipment. Normally, two other vehicles would be stored in the basement of the building, but they were at local dealerships during the collapse. The majority of the other equipment was destroyed.
   A temporary trailer was set up behind the damaged building for the offices to conduct the physical plant business.