MI Fireworks Lawsuit

[Forti1bs]

Hi all, wanted to update everyone on the Michigan Fireworks law that was enacted on Jan 1. As you may know the act had a 10 million dollar liability insurance requirement for sellers of consumer fireworks, well this week several Michigan companies have sued over that restriction and there was a story in the news about that lawsuit. I thought I would share it with you all:

http://articles.petoskeynews.com/2012-02-07/fireworks-sellers_31036002

Very Interesting, personally I hope they win. I supported the bill, but Dave pointed out in my previous postings that this restriction makes it very difficult for most people to sell.

Thanks for reading :)

[displayfireworks1]

Thanks for posting this information.
I sent an email to Great Lake Fireworks requesting permission to talk with them on their position with this issue. As predicted the high insurance requirement is designed to push the small person out of the way to this new fireworks market in Michigan. If I get any information on this, I will update it here on the forums. If I do not hear from them, I may call them anyway. Does anyone know the names of the other seven businesses’ involved?

[Forti1bs]

Two of the companies involved are Captain Boom Fireworks and Wolverine Fireworks.
To contact them you can go to their websites: http://www.captainboom.com/ or http://www.wolverinefireworks.com

[Minishow]

I belive the bill is supose to be subject for review in 2014, witch is probaly how long this lawsuit will be tied up in the system anyway. I agree that its not going to work for small business, however if you look at it from the other side maybee it's wise not to open the flood gates all at once. Maybee Michigan just wants to do a trial run and see what problems and benifets derive from it. This way they have a chance to "work out some kinks" if needed. I understand that by the time any changes are made TNT and BIG will already have a huge foothold in Michigan making it very hard for competition to sprout but it's a big state and their may still be countys with no retailers in them. I don't want this post to give the impretion that I'm taking sides but I also don't want the goveronment to decide that this is to much of a headache and repeal the bill.

[Forti1bs]

I understand your concerns. We will just have to hope for the best. Legalization has worked in other states and we are just going to have to hope that it works for Michigan.

[AZ Pyro]

The 10 million dollar liability insurance clause sounds like a Phantom move.

[Forti1bs]

At this time I would like to update everyone that the lawsuit challenging the MI insurance requirement (10 mill) for selling consumer fireworks, was dismissed. :(

[displayfireworks1]

When you say dismissed, I assume you mean the case was never heard. Are you able to post any links to a news article about the situation? This is a typical scenario outcome so to speak when it involves the small person selling fireworks; however, these companies involved are at least medium size companies.

[brownjm74]

Here is a small article on a local Lansing, MI TV station: http://www.wilx.com/home/headlines/Fireworks_Lawsuit_158533955.html?storySection=stor y

[brownjm74]

I am currently working to find out how much a 10 mil policy cost.

[Forti1bs]

Hi guys, I am sorry it took so long to get back to you on this.

When I say dismissed I mean that there was a one hour hearing, and the case was tossed after that. I happen to know one of the individuals who filed the suit. Basically, the judge wasn't convinced that there was enough evidence to bring the suit. Initially, further information was requested by the judge and on June 7 the hearing took place, but the states motion to dismissed was granted without much effort.

The case is Wolverine vs Karen Towne (state fire marshal) if you are interested the order issued following the hearing is here:
http://www.gpo.gov/fdsys/pkg/USCOURTS-mied-1_12-cv-10426/pdf/USCOURTS-mied-1_12-cv-10426-0.pdf

Will keep everyone up to date if/when anything else happens.

Ben

[brownjm74]

I am currently working to find out how much a 10 mil policy cost.

Just for your information...Most insurance companies in Michigan will NOT write a policy for this because the risk is too high. However if they did, it would cost somewhere between $50,000 to $75,000 per year per store front!!!! Now the question is do companies that sell Class B fireworks also fall under this new insurance rule if they DON'T sell class C?

[Forti1bs]

The 10 mills is exactly why they sued, if makes it extremely difficult for people to sell consumer product. Basically, a few companies have a monopoly and your right of the companies that do sell insurance for fireworks sales, its going to be tens of thousands of dollars depending on sales and other factors. It is unfair and unreasonable, but certain companies lobbied for it so they could have a monopoly, not much you can do except fight them. The other issue is if a claim is made, you will obviously have less insurance, so do you have to repurchase? That is being debated.

[brownjm74]

I am willing to guess which companies was the "guilty party" for lobbing for the monopoly, but I would only be speculating (no proof of such) and therefore not giving them my business. That is why I put both my Class C and B order with a company in Kawkawlin, MI (one of the suing parties).

[Forti1bs]

I am willing to guess which companies was the "guilty party" for lobbing for the monopoly, but I would only be speculating (no proof of such) and therefore not giving them my business. That is why I put both my Class C and B order with a company in Kawkawlin, MI (one of the suing parties).

I happen to shoot 1.3 for the "Kawkawlin company" a great group of people. :)

Good for you...

Hope you have a blast!

[nitro25]

The way I understood this, all the small firework stores fall under the big companies insurance. The firework businesses need to file for a license each year. For a store it costs $1000 and for a tent it is $600. There is no way these small guys popping up tents could afford to have a insurance policy that high. They found a loop hole. This is what I was told.