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New Haven ordered to repay $3.55M after delayed fire lawsuit notification

A fatal 2019 fire left two dead—and now, a $3.55M insurance dispute exposes New Haven's costly delay. Why did it take five years to notify the insurer?

, and Administrator

2026 March 18 . 5:08 PM

1 min read

The image shows a red brick building with a white door and windows, a metal fence, some plants, a... — The image shows a red brick building with a white door and windows, a metal fence, some plants, a group of trees, some wires, and a cloudy sky. On the top of the building is a sign that reads "Campbell Fire Insurance".

New Haven ordered to repay $3.55M after delayed fire lawsuit notification

The city of New Haven is facing a demand to repay $3.55 million to its insurance provider. The claim follows a long-delayed notification about wrongful death lawsuits linked to a fatal 2019 rooming house fire. Pennsylvania Manufacturers Association Insurance Co. (PMAIC) argues that the city failed to report the cases for nearly five years.

The dispute centres on a fire in a New Haven rooming house that killed two people in 2019. Two lawsuits were later filed, alleging the building lacked proper permits and violated fire safety codes. Both suits settled for a combined total of $14.5 million.

PMAIC contributed $3.55 million to resolve the claims but now insists the city must reimburse the full amount. The insurer claims it was notified too late—five years after the incident—and only after the settlement had been reached. According to policy terms, the city was required to report potential claims 'as soon as practicable,' yet the notice was sent to the wrong address and not emailed as required.

The insurer argues that the delay prevented it from investigating or reducing the claim's value. PMAIC had initially paid the settlements but reserved its right to recover the funds. The city, however, was the main target in the lawsuits because the building owner's insurance covered only $100,000.

The complaint was filed in federal district court, though no further legal action to enforce the repayment has been documented so far.

The case highlights the importance of timely reporting under insurance policies. PMAIC maintains that the city's failure to notify it promptly led to financial losses. For now, the demand for $3.55 million remains unresolved, with no additional court steps confirmed.