New Trial Ordered in $150M Verdict Over Fatal Explosion

A tragic explosion at the Sentinel Energy Center in North Palm Springs, California, claimed the life of Daniel Collins in 2017. Collins, an employee of Operations and Maintenance Services (OPS), was performing maintenance on a fuel filter skid when the tank's lid exploded. The tank, still pressurized due to procedural lapses, led to the fatal incident.

OPS, a subsidiary of Diamond Generating Corp. (DGC), managed plant operations, and Collins’ family argued that DGC failed to ensure proper safety protocols, ultimately suing the company for negligence.

The Charges and Initial Verdict

A jury awarded $150 million in damages to Collins' family, holding DGC liable for failing to oversee and enforce safety measures at the plant. DGC argued it could not be held responsible for OPS’s actions as a subcontractor. The company requested a jury instruction to evaluate its level of operational control over the plant, which was denied during the trial.

This denial became a focal point in DGC's appeal, as the company maintained that it was not directly involved in the safety failings that led to the explosion.

The Appeal and New Trial Order

In December 2024, the California Court of Appeal vacated the $150 million judgment, ordering a new trial. The appellate court noted that conflicting evidence regarding DGC's oversight and involvement in plant safety necessitated a jury's determination with proper instructions.

The opinion highlighted instances of DGC’s involvement, including hiring and reviewing the plant manager’s performance, hosting quarterly safety meetings, and reviewing changes to safety manuals. However, evidence also suggested that OPS employees independently proposed procedural changes and managed day-to-day operations.

Crucially, the court emphasized the lack of direct evidence tying DGC to the specific procedural failures that caused the explosion. As the appellate panel stated, “such a question must go to a fact finder instead.”

The Law Firms Involved

• For DGC: Horvitz & Levy and Schumann Arevalo
• For Collins’ Family: Sullivan Rivera Osuna & Sullivan, The Basile Law Firm, and The Ehrlich Law Firm

What’s Next?

The retrial will revisit DGC’s liability for the explosion and whether the company had sufficient control over the plant’s operations to be held responsible. Key considerations will include:

• The extent of DGC's oversight of OPS’s safety protocols
• Whether new evidence or arguments could shift liability

With a $150 million verdict at stake, the upcoming trial could significantly impact how liability is determined for indirect owners in workplace accidents.