A Yuba River gold mining accident that knocked a man to the ground and sent him to the hospital for five days has led to his $500,000 lawsuit — and a company's concerns that it may have to declare bankruptcy.

Lewis Stamm, a commercial fisherman in Alaska, was struck along the river north of Brownsville with shrapnel-like pieces of a pulley when mining equipment failed as a second man sought to move a boulder estimated to weigh 20,000 pounds and expose a vein to pan for gold, according to court documents.

A settlement conference in the case is expected to be held today in Yuba County Superior Court. Horace "Hoss" Bundy of Action Mining Supply in Smartsville, who sold the winch to Parker, was deposed in the case but neither Bundy or his mining supply business are named as defendants in Stamm's lawsuit.

Brownsville resident Dennis Parker, whom Stamm said asked him to hold down a lever on a mechanical winch while Parker checked the rigging Oct. 7, 2005, along the Yuba River, is among defendants in the lawsuit.

Stamm was visiting Parker and incurred more than $75,000 in medical bills after the accident. Constant pain — from even a shirt sleeve — continues in his forearm, according to Stamm's lawsuit. He had to undergo a skin graft and his injuries included a torn rotator cuff, according to court documents.

Parker, who could not be reached for comment on the case, said in a deposition undertaken last year in connection with the lawsuit that Stamm sustained "a pretty horrendous injury."

“It was an immediate emergency to get him out to try to save his life," Parker had said. "He, I believe, was injured that serious and bleeding that badly."

Parker said a very loud explosion occurred when the equipment failed.

“I would put it akin to about a .38 special handgun," he said.

Redding attorney James Pincin, representing Parker, declined to comment Wednesday.

Separately, defendants Terry and Dee Stapp said they run their mom-and-pop business Stapp Mining — named as a defendant in Stamm's lawsuit — with no insurance and sell winches after they're built in a garage in the San Bernardino area.

The two contend Parker is solely responsible for the accident because he did not follow instructions and warnings about operating the winch.

Stapp Mining has offered $1,500 to settle Stamm's lawsuit — and say if that amount doesn't resolve the issue they'll have to file for bankruptcy before the trial, which is scheduled for June 2 in Yuba County Superior Court.

Attorney Michelle Jenni of Sacramento, who is representing Stamm, said Thursday no specific demand was made of Stapp Mining to resolve the case.

Keene Engineering in Los Angeles County, which distributed the winch, is also named as a defendant. Keene contends no evidence shows the equipment was defective in design or manufacturing.



The winch did not cause the accident, according to a court filing by the attorney for Keene. The chain Parker used likely failed and damaged the pulley, Keene contends.

Moreover, the winch was rated for a direct line pull of 9,500 pounds, Keene said, and Parker testified during his deposition that he estimated the rock he was trying to move weighs 20,000 pounds.

Tam Tool Company, which manufactured the pulley, settled with Stamm for $50,000, according to court documents. Attorney Steve Owens, representing the separate company that distributed the pulley, said Thursday the $50,000 payment by Tam Tool is about what it would have cost to go to trial in the case.

Contact Appeal-Democrat reporter Ryan McCarthy at 749-4707 or at rmccarthy@appealdemocrat.com.