Sprinkler system not hooked to water during fire at Myrtle Beach restaurant, suit says
A sprinkler system was not hooked up to water when a fire destroyed a Myrtle Beach restaurant, according to a new lawsuit.
That sprinkler system is now the focus of a $3 million lawsuit between the property owners and the insurance provider.
In February 2019, La Casona Mexican Restaurant, 1901 N. Kings Hwy, caught fire. The morning blaze caught the attention of Myrtle Beach as the smoke could be seen miles away. Several fire trucks were needed to fight the blaze as crews closed down the road for hours.
Today, a construction fence still surrounds the restaurant.
A. Treble & Sons owns the property and leased the space to the restaurant, according to the suit filed in Horry County court on Monday.
The property owner stated it hired a company to install a sprinkler system — done at the discretion of the Myrtle Beach Fire Marshall. A. Treble & Sons even reminded the sprinkler installer that the system had to be connected to water, the suit states.
A. Treble & Sons then contacted Crescent Coast Insurance to provide coverage for the building. Crescent Coast — along with underwriters at Lloyd’s, HDI Global Specialty SE and General Security Indemnity Company of Arizona — are named as defendants in the suit.
A third-party inspector looked at the restaurant property at the insurance providers’ request and noted that the facility had a sprinkler system and made no further recommendations, the suit states.
The owners then applied for insurance and noted that there was a sprinkler system in place without active water, the filing states.
A month before the fire, the insurance providers agreed to provide coverage at 1901 N. Kings Hwy despite knowing the sprinkler system was installed but not hooked to the water, the suit states. After the fire, an insurance inspector documented the sprinkler system was being installed, but was not active.
A. Treble & Sons then filed a $2.85 million insurance claim for the property, but it was denied. In a letter, the insurance companies stated that the property was required to have an automatic sprinkler system.
The property owners say they paid for the policy and the insurance companies never told them they violated the policy. The insurance providers have not paid any claims following the fire despite having a policy in place, A. Treble & Sons alleges.
Managing Partner of Crescent Coast Insurance David Egan declined to comment on the advice of their attorney.
This story was originally published February 4, 2020 at 1:50 PM.
