A jury awarded $17.5 million in compensatory damages to Joette Williams and her deceased husbands family. The couple suffered from carbon monoxide poisoning in August of 2001 at a Jackson Hole, Wyoming resort owned by Vail Resorts. Joette Williams survived, but suffers from brain damage. Her husband was killed by the gas, which was produced by a faulty heater.
Vail was found to be 47.5% responsible for the verdict, while two separate contractors were found to be 47.5% and 5% responsible respectively. The entire $8.5 million for which Vail is responsible will be covered by insurance and will not impact any future financial statements.
Adam Aron, chairman and CEO of Vail Resorts said, “All of us at Vail Resorts and our various subsidiaries have the deepest sympathy for Mrs. Williams and the family of Dr. Williams and are profoundly sorry for the tragic accident that took place.”
Testimony revealed that one of the contactors who worked on the faulty boiler disconnected a safety switch that would cut the machine off if too much carbon monoxide were released. Rehm, senior vice president and general counsel of Vail Resorts said, “”We were confident that the nine-person jury would reach a fair decision in these cases after hearing all of the evidence.”
“None of this brings back Dr. Williams. None of this brings back Mrs. Williams' health,” Williams' attorney, Bob Schuster told a local paper. “But the family is appreciative the jury awarded the largest verdict that has ever been rendered in Wyoming.”
In other news, Vail has been issued a second subpoena by the SEC relating to financial restatements in the annual report for the fiscal year that ended in June. The investigation is centered on Vails accounting for initiation fees for memberships in its private clubs. In October 2002 Vail Resorts restated its annual results for fiscal years 1999 through 2001 after consulting with the SEC. Vail is cooperating fully with all investigations.
