$3M settlement deal reached in dump fire

Suit was over Bella Vista stump blaze

Crew members work at the site of the stump dump, Friday, April 5, 2019 in Bella Vista. (NWA Democrat-Gazette File Photo/CHARLIE KAIJO)
Crew members work at the site of the stump dump, Friday, April 5, 2019 in Bella Vista. (NWA Democrat-Gazette File Photo/CHARLIE KAIJO)

BENTONVILLE -- A judge accepted a $3 million settlement that ended a lawsuit over the stump dump fire in Bella Vista.

Benton County Circuit Judge Brad Karren presided over a short hearing Friday morning involving the lawsuit Michael and Amie Armstrong filed against former board members of the Bella Vista Property Owners Association.

The Armstrongs are association members and filed the lawsuit in December 2019.

The lawsuit argued the former board members were aware the association was using the site as an unmonitored dump and didn't take any action to stop the dumping of prohibited items for a fee from January 2004 to December 2016.

The lawsuit wasn't seeking any money from the association but was filed to make the insurance company provide the coverage according to its policy.

Jason Wales, one of the attorneys for the Armstrongs, told the judge the company -- Philadelphia Indemnity Insurance -- reached a settlement and agreed to pay $2 million to the association and $1 million in attorney fees. The association isn't paying any money in the settlement.

The judge accepted the settlement agreement and dismissed the lawsuit.

Wales and Michael Armstrong declined to comment on the settlement.

Tom Judson, the association's general manager, said the association wasn't a party to the negotiation of the settlement agreement and the association didn't oppose the proposed settlement at Friday's hearing.

An underground fire burned at the Trafalgar Road site for almost a year before the association hired firms to put it out. City firefighters discovered the fire July 29, 2018.

Kim Carlson with the association previously estimated the cost to put out the fire and remediate the site at $4 million.

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