Illinois Casualty Company Sues Indiana City Over Rekindled Restaurant Fire

An insurance company has filed a subrogation suit against the City of Evansville arising out of a December 2024 fire at Madeleine’s Fusion Restaurant in Evansville. The Illinois Casualty Company (ICC), seeks to recover more than $1.2 million in property and business-income losses stemming from what the insurer alleges was a rekindled fire following the fire department’s departure from the scene. 

The suit was filed in the U.S. District Court for the Southern District of Indiana. Quoting from Exhibit A of the complaint (which is a copy of the tort claim notice):

• The City of Evansville Fire Department was called to a fire at Madeleine’s Fusion Restaurant, 423 SE 2nd Street, Evansville, Indiana, on December 26, 2024.
• The fire department responded to the call, arrived at the scene at 10:40 p.m., and suppressed the fire.
• Believing that the fire was extinguished, the department cleared the scene at 12:49 a.m. and returned to the station.
• The fire was not extinguished. It rekindled.
• As a result, the fire department was again called to the restaurant the morning of December 26, 2024. It arrived at 5:28 a.m., and this time it extinguished the fire.

ICC asserts that at the time the fire department cleared the scene, damage was limited to the second story of the building. After the department departed, the fire allegedly continued to burn, resulting in what ICC describes as the “functional total destruction” of the structure. The restaurant was insured by ICC. The insurer states it has paid $1,267,189.41 for covered property damage and business-income loss and is subrogated to the rights of its insured. The complaint explains that while the total actual cash value of the rekindle-related loss was higher, policy limits restricted ICC’s payout. 

Before filing suit, ICC served a tort claim notice on the Evansville Common Council pursuant to Indiana Code § 34-13-3-8. Since the City did not act on the claim within 90 days, it was deemed denied. 

ICC’s complaint also references the Indiana Court of Appeals’ decision in Willis v. Warren Township Fire Department, 650 N.E.2d 321 (Ind. Ct. App. 1995), quoting the court’s conclusion that a fire department’s decision to leave a scene based on the belief that a fire was extinguished is not considered a discretionary, policy-making act. The complaint states: “The City is not immune from liability for the damages caused after it departed the fire scene.” 

The insurer brings a single count of negligence, alleging the City had a duty to use reasonable care in determining whether to end fire suppression operations and that it breached that duty when it “erroneously determined that the fire had been extinguished.” ICC claims the City’s actions caused the subsequent property and income losses.  ICC seeks damages in an amount to be determined, plus prejudgment interest, costs, and other appropriate relief.

Here is a copy of the complaint.