MGM Grand sues contractor over 2010 chlorine leak that hospitalized 26

Metro Police block off an area near the intersection of Audrie Street and Harmon Avenue after a chlorine leak occurred in the MGM Grand’s pool area on Aug. 27, 2010.

Map of MGM Grand Hotel and Casino

MGM Grand Hotel and Casino

3799 Las Vegas Boulevard S., Las Vegas

The MGM Grand hotel-casino on the Las Vegas Strip has sued a pool maintenance contractor, charging it's responsible for a chlorine leak last summer that sent 26 pool patrons to the hospital.

MGM Grand, part of MGM Resorts International, filed suit in Clark County District Court on Monday against MB Company LLC and two insurance companies.

The lawsuit says MB was performing maintenance work on the resort's 6.5-acre pool complex, particularly its pool equipment room, on Aug. 26 and 27 when its personnel failed to isolate or disable a chemical controller, allegedly causing the problem.

The suit notes the gas release forced the evacuation of the entire pool complex and that patrons and employees later asserted claims for damages and compensation.

Some claims, including workers' compensation claims, have been resolved at an amount that has not been revealed, while others are pending, the suit says.

MGM Grand spent another $44,000 for an expert investigation on the cause and liability of the gas release, along with undisclosed attorney's fees, the suit says.

In addition, OSHA has fined MGM Grand more than $10,000 "due to MB's misconduct," the suit alleged.

The lawsuit says MGM Grand has made repeated demands to MB and MB's insurance companies -- Employers Mutual Casualty Co. and Sequoia Indemnity Co. -- to defend and indemnify MGM Grand against claims related to the incident, but the insurers refused these demands.

The suit asserts a count of negligence against MB and asks the court to declare MB's insurers must indemnify and reimburse MGM Grand.

The insurers are also accused of unfair claim settlement practices under Nevada law.

A request for comment was left with the law firm handling the issue for MB Company.

As related in the lawsuit, the work at the pool involved replacement of backwash controllers for individual pools in the complex and required temporarily turning off the pool circulation pumps.

Before turning off those pumps, the chemical controller was supposed to be isolated by closing valves, but MB failed to isolate or disable the chemical controller before turning the pumps off, the suit alleges.

"As a result of MB's conduct, a mix of chlorine and muriatic (hydrochloric) acid was negligently released into the underground inlet pipes," the lawsuit charged. "After recharging the system, the excess acid and chlorine poured from the inlet pipe into the Backlot River (pool), creating a 'cloud' of fumes which overwhelmed MGM Grand patrons and employees."

The gas release was caused by the inadvertent mixing of sodium hypochlorite solution (bleach) and hydrochloric acid solution, the suit charged.

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