As the man's girlfriend was the tenant, she is liable for the damages even though he had caused the blaze.

A man in the US who tried to cook a squirrel in an apartment has caused his girlfriend to rack up a debt of possibly US$2 million (NZ$3m) in damages.

Khek Chanthalavong had set a blowtorch on the squirrel to remove its fur, in the deck of his girlfriend's Michigan flat, reported WCNC.

The balcony caught fire and spread quickly, despite his attempts at putting it out.

Dozens of residents lost everything in the 2012 blaze, which consumed 32 units at the ClearView Apartments in Holland Township.

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An insurance company paid out more than US$2m in damages, which it sought to claim, reported WCNC.

Residents were not allowed to cook outdoors on the deck.

As Barbara Pellow, the man's girlfriend, was the tenant of the apartment, she is liable for the damages even though Chanthalavong had caused the accident.

"Because defendant signed the lease agreement, she is presumed to have read and understood its contents," according to a May 26 ruling by a three-judge panel from the Court of Appeals.

The decision reverses a lower court ruling that held Pellow responsible for only US$15,400 in damages.

The county judge has been directed to "determine the appropriate amount of damages" owed to the insurance company, reported WCNC.

ClearView Apartments helped displaced residents to find alternative accommodation.

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