Park operator held liable in 2015 dust explosion appeal

Taipei, July 28 (CNA) The Taiwan High Court on Tuesday overturned part of a lower court ruling and held the operator of the now-defunct Formosa Fun Coast water park jointly liable for damages over the 2015 dust explosion that killed 15 people and injured more than 400, in the first class action lawsuit arising from the disaster.

The court found that the venue provided by Formosa Wonderworld Co., the park operator, had a substantial causal link to the explosion and ordered the company and its legal representative, Chen Huei-yin (陳慧穎), to share liability with the event organizers.

It also increased the total damages awarded to NT$896.89 million (US$27.68 million), up from NT$405.88 million in the lower court's ruling. The decision can still be appealed.

The lawsuit was filed by the Consumers' Foundation on behalf of 98 victims and their families, seeking more than NT$2.6 billion in damages from party organizer Lu Chung-chi (呂忠吉), his two companies and Formosa Wonderworld.

The case stemmed from the June 27, 2015 "Color Play Asia" party, organized by two companies registered under Lu, at the park's pool area. Large quantities of colored cornstarch powder sprayed during the event ignited after coming into contact with a heat source, triggering a chain of explosions.

Lu was later convicted of professional negligence causing death and sentenced to five years in prison in late 2018.

He began serving his sentence in January 2019 and was released in July 2023 after completing his full sentence.

In its 2023 ruling, the Shilin District Court found insufficient evidence to conclude that Formosa Wonderworld had co-organized the event and exempted the company from liability.

It ordered only Lu and his two companies to jointly pay NT$310.96 million in compensatory damages, plus punitive damages of NT$47.46 million for each of the two companies, for a total of NT$405.88 million.

On appeal, however, the High Court relied on a subsequent Supreme Court ruling in three related civil cases establishing that Formosa Wonderworld could be held liable under the Consumer Protection Act if it failed to prove it was free from negligence.

The High Court raised the compensatory damages payable by Lu and his two companies to NT$351.28 million, while ordering Formosa Wonderworld and Chen to jointly pay NT$136.49 million.

It also increased punitive damages, ordering each of Lu's two companies to pay NT$165.37 million and Formosa Wonderworld NT$78.38 million. The three companies were held jointly liable for the punitive damages.

The court said in a statement the organizers knew the colored powder posed a risk of dust explosion but failed to adopt adequate safety measures or warn staff and participants.

It also found Formosa Wonderworld negligent for leasing an unapproved structure for the event despite restrictions on how it could be used.

According to Consumers' Foundation attorney Wu Jung-ta (吳榮達), 56 of the 98 plaintiffs in the first class action have already reached settlements with Formosa Wonderworld, while 143 plaintiffs in a second class action involving more than 300 victims have also settled.

Wu said the foundation would still appeal Tuesday's ruling.

A separate class-action lawsuit filed by the foundation on behalf of more than 300 victims, seeking more than NT$7.2 billion in damages, remains pending before the Shilin District Court.