City authorizes insurance carrier to take action in 2011 airport fire

April 03--The Newton City Council has authorized the city's insurance carrier, Iowa Communities Insurance Pool (ICAP), to take action against Johnson Aviation, pursuing $157,037.34 in damages accrued during a fire at the Newton Municipal Airport on Feb. 12, 2011.

In a 6-0 vote, the council voted at Monday night's meeting to sign a subjugation receipt allowing ICAP to purse the money. If the receipt was not signed, the insurance company would not cover the repair costs, and the city would be liable for the entirety of the reconstruction.

According to the city report, ICAP investigated the fire and found reason to believe Johnson Aviation, the city's contracted fixed-based operator, was at fault for the blaze. The action taken Monday is a continuation of events that include a lawsuit filed by ICAP against the aviation company in Jasper County District Court in September. The suit seeks $100,000 for repairs that have been made to the airport's hangar and an additional $50,000 for additional repairs.

The council report indicates that those repairs now have been completed, and the city already has paid the $1,000 deductible to ICAP for the repairs.

During ICAP's investigation, the insurance company found that faulty machinery owned by Johnson Aviation was responsible for the fire, which broke an exterior window and caused damage to a portion of the exterior of the building, including smoke and soot damage throughout the inside of the hangar. Soot also was found to be in direct contact with the steel roof and outside wall of the complex.

The lawsuit alleges that a Johnson Aviation employee failed to unplug a deicer before leaving the hangar on the evening of Feb. 11, 2011. The district court initially gave ICAP until March 26 to purse the funds, but Judge Paul Huscher recently granted an extension until April 26.

City officials said in the council report Monday that if Johnson Aviation is held responsible for the fire, "it is unknown how any settlement may affect Johnson Aviation's continuing operation at the Newton Municipal Airport. The city has been very pleased with the operation and services that Johnson Aviation provides, and finding another quality FBO, if Johnson Aviation cannot continue operation, may be challenging."

Mike Mendenhall can be contacted at (641) 792-3121 ext. 422 or via email at [email protected].

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