Terrorism and Intentional Acts: Austin Plane Crash Raises Coverage Questions

IRS Worker’s Widow Files Suit to Determine Insurance Coverage

Austin, Texas, Police Chief Art Acevedo stopped short of calling the crashing of a small plane into a commercial office building in northwest Austin on Feb. 18 a terrorist act, but U.S. Representative Mike McCaul said he wasn’t so sure it couldn’t be considered one.

The Piper Cherokee PA-28 piloted by Joseph Andrew Stack, 53, crashed into a multi-story office building that housed a U.S. Internal Revenue Service office with 190 employees shortly before 10 a.m. on Feb. 18.

Witnesses said the crash created a huge fireball and blast that shook neighboring buildings. The blast caused extensive damage to the structure and Austin firefighters fought to put out blazes for most of the day.

At a media briefing Acevedo said he considered the incident a criminal act committed by a lone individual. McCaul said, however, that he believed it was an act of domestic terrorism akin to the shooting at Fort Hood in Central Texas late last year. “This was obviously a deliberate, intentional attack on a federal building,” McCaul said.

Firefighters had responded to a fire at Stack’s Austin home fire earlier that morning, before he flew the plane into the Echelon office building at 9430 Research Blvd. The fire at Stack’s home was later deemed to be arson.

Stack, a software engineer with an apparent grudge against the federal government over tax issues, had posted a “manifesto” on his Web site ranting against the Internal Revenue Service, the Catholic Church, the federal bureaucracy and big business. Toward the end of the lengthy blog, Stack wrote: “Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well.” He signed it: “Joe Stack (1956-2010).”

While Stack apparently acted alone, terrorism exclusion issues might arise in the course of determining insurance liability for both the plane and the damaged building, said an attorney with expertise in insurance coverage issues. Exclusions might apply if the act is considered to be domestic terror or an “attack based on some form of civil disobedience/political oriented mischief,” said Brian Martin, an attorney with the Texas-based law firm, Thompson, Coe, Cousins and Irons. He said an attack on the IRS might be construed as being politically oriented.

As to the house, even though it was determined that the fire was arson — presumably started by Stack — his spouse may not be without recourse when it comes to insurance coverage. Texas has an “innocent spouse” rule, said Beth D. Bradley, an attorney with Tollefson Bradley Ball & Mitchell L.L.P., who also has a specialty in insurance coverage. As long as the spouse is not found to be complicit in the intentional act or try to cover it up, she should be eligible for half of the coverage amount under Texas’ community property law, Bradley said.

Two Bodies Recovered

Two bodies were recovered from the wreckage of the Echelon building, Stack and an IRS worker, 68-year-old Vernon Hunter. Hunter’s wife, Valerie, has filed lawsuit against Sheryl Stack, Joseph Stack’s widow, seeking to determine if the pilot left behind insurance policies or other assets. The lawsuit maintains that Sheryl Stack should have warned others about her husband, according to the Associated Press.

Exceptional Emergency Response

Other injuries stemming from the plane crash and subsequent fire at the Echelon building were relatively minimal, considering the extent of damage to the building. Two people were transported to the hospital and 13 others were treated for burns and heat inhalation injuries.

Austin Police Chief Acevedo attributed the low rate of injuries to an exceptional response by Austin police, firefighters and emergency response personnel. The Texas fire marshal’s office also said that preplanned exit strategies were vital in limiting the number of casualties. The building had been properly designed with two ways to exit from each floor, and previous evacuation drills had prepared occupants ahead of time for finding the quickest and safest way out.

“The low casualty rate in this instance is a perfect example of the value of having an exit strategy when entering public spaces,” said Texas State Fire Marshal Paul Maldonado.” Many people don’t realize how quickly a building can become a death trap in the event of a fire. Every second counts, and there’s just no substitute for being prepared in advance.”

Topics Catastrophe Natural Disasters Texas