A federal jury has found the City of Richmond, Indiana, along with a recycling company and its owner, liable for damages stemming from a massive 2023 plastics warehouse fire that forced the evacuation of roughly 2,000 residents.

The fire occurred on April 11, 2023, at a sprawling industrial complex on Northwest F Street where millions of pounds of plastics and other recyclable materials had accumulated. The properties had been the subject of fire and building-code concerns for several years before the fire.

In May 2019, Richmond Deputy Chief of Fire Prevention Doug Gardner inspected the properties at 308, 310 and 358 Northwest F Street. Following the inspection, the city’s Unsafe Building Commission ordered the properties repaired, demolished or vacated.

The commission ultimately determined that conditions on the properties rendered them unsafe and constituted a fire hazard. A state court later affirmed those findings, concluding that the properties were unsafe, posed a danger to public health, constituted a nuisance, and presented a fire hazard.

The concerns went beyond the possibility of a fire. Evidence in the subsequent litigation showed that officials had considered what would happen if a fire occurred at the site, including the possibility of a large multi-agency response and neighborhood evacuations. An air-plume study had also been conducted to evaluate how smoke and particulates could affect the surrounding area.

The City acquired two of the three properties — 310 and 358 Northwest F Street — in March 2021 following a tax sale. Cornerstone Trading Group and related recycling operations continued to store large quantities of plastics on the properties.

A 2021 environmental inspection was hampered by the amount of material stored at the site. Court records indicate approximately five million pounds of material remained in the buildings. A December 2022 technical report prepared as part of the environmental assessment described conditions at the site as potentially unsafe and said the volume of plastics stored inside and outside the buildings complicated efforts to inspect the property.

On April 11, 2023, fire broke out outside the building at 358 Northwest F Street and spread to the adjoining properties. The fire involved buildings, trailers and large quantities of plastics and other materials. A four-alarm response was required.

The fire produced a massive column of black smoke, prompting Wayne County Emergency Management to order the evacuation of residents within one-half mile of the site. The evacuation remained in effect until April 16.

The fire also deposited debris throughout the surrounding neighborhood. Testing identified asbestos and several hazardous combustion products in the evacuation area.

Residents Tushawn Craig and Marquetta Stokes filed suit against the City, Cornerstone Trading Group and Cornerstone owner Seth Smith. The case was originally filed in Wayne County Superior Court, removed to federal court, and eventually certified as a class action covering residents within the half-mile evacuation zone.

Following a five-day trial in the U.S. District Court for the Southern District of Indiana, the jury found all three defendants negligent.

The jury allocated responsibility 40% to the City of Richmond, 30% to Cornerstone Trading Group and 30% to Smith.

Craig and Stokes were each awarded $5,000 on their negligence claims. The jury also awarded $10,000 in nuisance damages, allocated $4,000 against the City and $3,000 each against Cornerstone and Smith.

The verdict establishes liability for the two class representatives. More than 3,500 people were notified that they may qualify as members of the class, leaving damages for the remaining class members to be addressed.

Attached is the original complaint and removal documentation.