Owners Michael and Jeffrey Derderian had appealed the fine issued by the state Department of Labor and Training after the Feb. 20 fire at the nightclub. The fire, sparked by a band's pyrotechnic display, also injured nearly 200.
The state imposed the maximum possible fine on the Derderians' company, Derco LLC _ $1,000 for each day that the Derderians didn't carry workers' compensation insurance after they bought the nightspot in March 2000.
Workers' Compensation Judge Bruce Morin also ruled that the Derderians can be held personally liable for the violation if the state chooses to hold them responsible. A state hearing officer had previously found the fine could only be levied against Derco.
The Derderians' lawyers said the fine is out of line with the department's previous actions, and is a knee-jerk reaction to the publicity surrounding the tragedy rather than a reflection of the actual infraction.
``Had they been any other employer this would not have happened,'' said Kathleen Hagerty, who represents Michael Derderian.
The Derderians likely will appeal to the state Supreme Court, their attorneys said.
