Trawler accident big-ticket legal case; Arctic Rose insurance carrier moving quickly
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As mourning families gathered at a recent memorial for 15 men who died aboard the Arctic Rose fishing trawler, they were offered condolences by insurance adjusters there on behalf of the boat's owner.
The effort to reach out to grieving relatives, which rankled some, reflects the high stakes in what has become the biggest maritime case to shake Seattle's legal community in years.
Lawyers representing the families say the insurance adjusters have stretched professional ethics in attempting to limit their financial exposure, which could run into the millions.
Two lawsuits have been filed against the trawler's owner, Arctic Sole Seafoods, and eight of the 15 families have lawyers.
"I haven't seen anything like this for a long time," said lawyer Tom Evans, who was hired by Sue Olney, wife of ship's engineer Mike Olney. Mike Olney's brother Dave Olney owned the Arctic Rose and Arctic Sole. "It's obvious the stakes are very high."
The Coast Guard is investigating the accident, with hearings to begin June 12 in Seattle. The mysterious April 2 sinking of the 93-foot trawler in the Bering Sea was the worst U.S. fishing-vessel accident in a half-century.
Arctic Sole Seafood's insurance carrier, The Polaris Group, flew some of the families in for the memorial at Fishermen's Terminal in Seattle, and the company's officers greeted grieving relatives near the shiny new bronze plaque bearing the names of the dead.
The intent, said Polaris Vice President Kurt Gremmert, was innocent.
"To put a face to a name, that's all," he said.
But lawyers hired by the families of some of the crew members said it was an obvious attempt to grease settlements while relatives were still stunned by the losses of their husbands and sons.
The Polaris Group has given each family several thousand dollars to help with bills and expenses. Meanwhile, Arctic Sole owner Dave Olney flew to Virginia to attend a wake for Arctic Rose first mate Kerry Eagan.
The company also gave money to other families in Mexico to hold memorials in that country.
"There can be no question that (Dave Olney) has been shattered by this," said David Bratz, the attorney for Arctic Sole. "This isn't just some pre-stamped protocol. These are people doing their best in difficult circumstances."
Still, some of those efforts have been handled badly, family members say. Kari Rundall, the wife of Arctic Rose skipper Dave Rundall, said a Polaris representative showed up with a check for her husband's personal belongings at his memorial service.
"I'm sure they meant well," she said. "But that was kind of odd. Tacky, I guess."
The maritime case also has lawyers circling, looking for potential clients. One asked a reporter for a list of telephone numbers of the victims' families. Another asked a reporter to mention his name to any grieving family that hadn't yet hired an attorney.
Evans, meanwhile, has threatened to file a complaint with the Washington State Bar Association over The Polaris Group's attempt to steer several families to its hand-picked probate attorney, Milt Smith. Arctic Sole would pay Smith's fees if family members sought his help, according to a letter sent by Polaris to one family.
Evans said he has been troubled by pressure he thinks has been put on his client, who is torn between grief and family ties.
Evans said that after Sue Olney hired him, she was told by her father-in-law, Gene Olney - a man with one son dead and the other being sued - that she was "going about this the wrong way" by hiring a maritime litigator, even though she has not filed a lawsuit herself and isn't sure she will.
Gene Olney, contacted at home, declined to comment.
John Strait, a Seattle University law professor and legal-ethics expert, questioned the propriety of a lawyer being paid by a company to represent clients who might have a claim against the firm. Even if the lawyer's job was limited to helping the family set up an estate for the dead seaman and appointing a family member to represent it, the relationship could prove problematic.
"It smells," Strait said. "It potentially raises concerns that they are trying to gain undue influence through this attorney to settle these claims."
Gremmert, the Polaris executive, insisted the company's intentions were good.
Smith, the lawyer, said he had not seen the letter but thought it was "careless" and "a little embarrassing."
"But I don't think the intent is to interfere with the rights of someone to choose their own counsel or get advice on whether to proceed with a claim," he said. "The intent was merely to set up probate. That's all. I would not otherwise represent them."
But both Evans and Strait pointed out that a probate attorney could influence who is appointed the estate's representative, a decision that could affect whether the family sues or settles any wrongful-death claim.
"It could be that there is a legitimate reason for doing this - that they really feel badly for the families and want to do all they can to help," said Strait. "But it also could certainly be argued that they are doing this to finagle a settlement."
Mike Carter can be reached at 206-464-3706 or mcarter@seattletimes.com.