Gas Utility Urges Supreme Court to Drop Liability Lawsuits in 2015 Old Market Fire

Five years after a fire gutted a historic building in Omaha's Old Market, the Metropolitan Utilities District (MUD) continues to fight lawsuits claiming it was to blame. After hearing arguments on Thursday, the Nebraska Supreme Court must decide if the damage claims against the gas utility can be heard at a trial.

The spectacular fire in January 2015 broke the hearts of those who love Omaha's historic Old Market. The historic M's Pub building became a four-story, ice-shrouded shell. Little remained of the well-regarded restaurant, street-level shops, and three floors of condominiums. It was, according to MUD's attorney, Michael Coyle, "not any routine emergency."

"This is an explosion and a fire. One of the biggest that's ever been in the Omaha metropolitan area."

Coyle appeared Thursday, via video-phone conference, before the Nebraska Supreme Court. He asked the justices to throw out lawsuits filed by businesses and insurance companies attempting to recover millions of dollars in losses. Earlier in the year, a Douglas County District Court judge rejected MUD's arguments and allowed them to proceed to trial.

The lawsuits turn on the adequacy of MUD's painted markings on the street and sidewalk used to warn construction crews of hazards below street level. A drilling crew damaged the line, igniting the gas.

An investigation by Nebraska's Fire Marshall concluded MUD was at fault.

State law requires those working around underground utilities call to identify gas, electrical, and water lines.

Coyle told the Supreme Court, "it is undisputed in this case we (MUD) marked our underground gas line in the Old Market with paint. The issue has always been in this case, were we negligent in using yellow painted dots to mark those line."

The utility argued they met the requirements of state law, which lacks detail on the size or placement of any warning markings.

Attorney Thomas White, representing the businesses destroyed, told the court whatever was done did not adequately flag the pipeline's location.

"Not only is there testimony that the horizontal drilling team never saw the yellow dots, but also the firefighters couldn't find them," White said. "Then for an hour and 12 minutes from the time of arrival, up to eight MUD employees looked in vain for what has a statutory obligation to be clearly identifiable."

Also at issue is how long it took the utility to shut off natural gas feeding the fire. Public records indicate MUD crews had difficulty identifying and locating shut off valves that served the building.

The Supreme Court will review the case and determine whether MUD can be sued. That decision is likely weeks away.

The shell of the building survived and has since been refurbished.