Lawyers will seek to shift blame for warehouse fire at trial

Notable Attorneys

Lawyers for the two men charged in the Northern California warehouse fire that killed 36 people said Friday they are now preparing for a trial where they will try to shift blame for the blaze from their clients to others, including the building's owner and government officials.

Derick Almena, 48, and Max Harris, 28, on Friday appeared briefly in an Oakland courtroom for the first time since a judge scuttled a plea deal agreed to by prosecutors. They were ordered back to court in three weeks to schedule a trial.

Outside court, the men's lawyers say there's plenty of blame to share for the Dec. 2, 2016, fire in an Oakland warehouse illegally converted into an underground entertainment venue and live-work space for artists. The cause of the fire has never been determined, which the lawyers said is key part of the men's defense.

Serra also said numerous government officials visited the illegally converted warehouse before the fire, and they had a duty to report the building's condition to authorities. Almena lived in the warehouse with his wife and three children and were visited by Alameda County's Child Protective Services officials several times. Oakland police officers were also called to the warehouse on several occasions to investigate noise complaints and tenant disputes, among other issues.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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