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Bangladesh factory fire kills 48 workers
In December 1980, a fire broke out in the Stouffer's Inn in Westchester County, N.Y. , killing 26 people. Among the fatalities were 13 high-ranking executives of Arrow Electron-ics Inc., then the nation's second largest electronics distributor. Employee stock options, deferred compensation payments, survivor death benefits, additional accounting costs, hiring replacements and personnel relo-cation charges resulting from the deaths cost Arrow Electronics more than $5.5 million pre-tax, or approximately $3 million in net after-tax, expenses. As a result, Arrow Electronics' 1980 earn-ings fell from $5.5 million in the year before the disastrous hotel fire to $5.27 million, despite a substantial one-third increase in company revenues. Debt and losses mounted, and it took Arrow Electronics nearly a decade to reestablish its operating profitability
Arrow sued the owners of the inn, the Stouffer Corporation, and the William L. Crow Construction Company, which had been retained by Stouffers for the planning, design and construction of the inn, and a firm of consulting engineers who performed the mechanical engineering and electrical work on the inn.

 

 

Arrow alleged that in October 1980, Stouffers agreed to rent guest and meeting rooms to Arrow for its senior level management annual budget meetings to be held between November 30, and December 6, 1980. Arrow also alleged that the agreement implied that the rooms were suitable and safe, reasonably free of fire hazards, and reasonably equipped with devices to minimize the danger of fire. Arrow sought $5,000,000 compensatory damages plus $5,000,000 punitive damages for the loss of its management; costs of recruiting new employees; loss of books, records, and papers; death benefits paid to the widows and estates of deceased employees; and lost profits

 
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