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Mercury Paper: Insurer seeks $1 million in lawsuit

Suit accuses company of negligence in 2011 fire at Strasburg plant

By Sally Voth

An insurance company is suing a truck supplier for more than $1 million following a 2011 fire at Mercury Paper in Strasburg.

Hartford, Conn.-based Phoenix Insurance Co. filed the suit Tuesday in U.S. District Court against NACCO Materials Handling Group Inc., doing business as Yale Materials Handling Corp., based in Mayfield Heights, Ohio.

According to online court records, Mercury Paper is the subrogor -- defined as an entity that transfers its legal right to collect debts in return for debts/expenses, according to legal-dictionary.thefreedictionary.com -- of Phoenix.

Mercury Paper in Strasburg leased from Yale a lift truck, which then caught fire on Sept. 27, 2011, causing fire, smoke and water damage at the plant, the suit states.

"...A hydraulic hose on the Lift Truck failed and separated during normal use causing a severe hydraulic leak which ignited the fire," the suit states.

It accuses Yale of being negligent by either not properly manufacturing the truck, or supplying a defective truck, which it knew could be harmful, or failing to properly supervise or inspect the manufacture of it, or by not warning Mercury Paper of the danger.

Phoenix is seeking damages of at least $1 million, and asking for a jury trial.

Yale hadn't filed a response as of Wednesday evening.

Contact staff writer Sally Voth at 540-465-5137 ext. 164, or svoth@nvdaily.com


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