American States Ins. v. Hannan Constr. Co.

283 F. Supp. 988, 23 Ohio Misc. 9
CourtDistrict Court, N.D. Ohio
DecidedSeptember 6, 1966
DocketCiv. A Nos. C63-561 and C63-562
StatusPublished
Cited by7 cases

This text of 283 F. Supp. 988 (American States Ins. v. Hannan Constr. Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American States Ins. v. Hannan Constr. Co., 283 F. Supp. 988, 23 Ohio Misc. 9 (N.D. Ohio 1966).

Opinion

Thomas, District Judge.

The three defendants have individually filed motions for judgment notwithstanding the verdict and motions for new trial. On April 29, 1966, a jury rendered a verdict against defendants Hannan Construction Co., The Whitehill Company, and Giant Tiger Mansfield Drugs, Inc., in favor of plaintiff American States [11]*11Insurance Company in the sum of $25,894.16. In a second ease, consolidated for trial, the jury rendered a verdict against the same defendants in favor of Granite State Insurance Company in the sum of $50,152.68.

American States brought its action as the subrogee of its insured Tiger Furniture of Mansfield, Inc., to whom it paid $25,894.16 as one half the actual cash value of the merchandise and other personal property of Tiger Furniture destroyed in the fire which consumed the Giant Tiger store and its contents in Mansfield, Ohio, on December 1, 1962. Similarly, Granite State brought its action as the subrogee of its insured Tiger Appliances of Mansfield, Inc., to whom it paid $50,152.68 as the actual cash value of the appliance merchandise and other personal property of Tiger Appliances that was destroyed in the fire. The Giant Tiger store, located at 1150 Park Avenue, West, Mansfield, Ohio, opened in October 1961, and continued to operate until the fire on the evening of December 1, 1962.

To evaluate the verdicts and the claims of error presented by the motions certain facts should be recounted. These facts are either admitted or are facts which the evidence permitted the jury to find. Defendant Hannan Construction Co. built the Giant Tiger store in Mansfield for defendant The Whitehill Company. On November 21, 1960 before the construction of the building The Whitehill Company leased the entire premises for 15 years to Giant Tiger Mansfield Drugs, Inc. In the lease The Whitehill Company agreed to construct on the leased premises a stockroom “per plans and specifications drawn” by a named Cleveland architect. Giant Tiger Mansfield Drugs, Inc., agreed to use the premises as a retail store for the sale of a general line of merchandise.

The Whitehill and Giant Tiger corporations were regarded and operated by their identical management as one organization. Mr. Louis Weisberg, as president of each corporation, executed a 15-year lease from Whitehill to Giant Tiger on behalf of each corporation. The unitary nature of the enterprise is revealed in Mr. Weisberg’s us§ of the word “we,” Thus, he testified:

[12]*12“Well, when we wanted to have that store constructed we saw a building on Pearl Road that belonged to Shoppers Fair, and at the time we wanted the building, we wanted to have a building constructed that looked like that building.”

Similarly, without differentiating between Whitehall and Giant Tiger, he used the word “we” in describing construction undertaken before the actual completion of the building. He testified:

“Q. All right. Now, who in your organization was charged with the responsibility of seeing to the construction of that store?
“A. Well, no one was in charge of seeing to the construction of the store because it was, a contract was turned over to the builder.
“Q. I understand that, but didn’t you have some person or persons in your organization who were keeping in touch with the progress of the building of that store?
“A. The only reason we would be concerned about the progress of the building is so that we could arrange to have our fixtures — in those days we built our own fixtures. We, of course, purchased some and built some, and the man in charge of that was named Richard Kruser. He would be concerned when the building would be almost completed so we could start moving, start trying to get our fixtures in before the building is completely finished, so we have a little chance to open up the store a little faster. That would be the only reason.”

The Giant Tiger store was a one-story retail store building constructed of face-brick, concrete block and steel, and was approximately 360 ft. across the front (east to west) and approximately 197 ft. in depth (north to south). Walls of pegboard masonite and one-quarter inch plywood (upper 16 inches) nailed on 2” x 4” studs partitioned the total floor space of 71,000 sq. ft. These partition walls divided the sales floor of 60,000 sq. ft. from storage and utility areas of 11,000 sq. ft. (6,000 sq. ft. at the east end and 5,000 sq. ft. at the west end of the store).

The partition forming the easterly storage area com[13]*13menced at a point, here called A, 72 ft. west of the northeast corner of the building. This easterly partition then extended 19 ft. south to a point, here called B. Right angling again at point C the partition extended south 132 ft. to a point, here called D. Throughout its length, the wall CD ran 30 ft. west from and parallel to the east building wall. A store complex of offices, restrooms, and lounges occupied the southeast corner of the store adjoining the sales floor, partition CD and the south end of the easterly storage areas.

A false ceiling was suspended 13’ 8” above the sales floor. The ceiling terminated at its juncture with the top edges of the partitions. Squares of acoustical tile, composing the false ceiling, rested on aluminum grids. These grids hung horizontally 18” below the store roof joists to which the grids were wired. The roof joists, two feet in vertical measurement, and of open truss design, ran east to west with the top horizontal member of each roof joist resting on the upper surface of steel “I” beams. The beams, running north to south, were supported by vertical steel columns which extended from foundation to roof at 30 ft. intervals (north to south and east to west). Segment CD of the easterly partition wall followed a north-south line of column.

The building drawings and plans were approved on March 21, 1961, by the Division of Factory and Building Inspection, Department of Industrial Relations, State of Ohio. Plan approval was contingent upon the condition that the plans “Provide % hour fire protection for steel columns and roof construction.” It was explained by Mr. Carl R. Daubenmire, acting chief of the Division, that % hour fire protection “could be in the form of an acoustic system with a 45-minute fire rating determined by test.” These plans did not designate any partitions. Yet a building drawing, subsequently dated but bearing no approval stamp, provided for partition walls and specified dry wall construction above the top of the partitions and the false ceiling.

The evidence permitted the jury to find that no dry [14]*14wall was erected above the top of the partitions; that no acoustical false ceiling continued over the storage areas; and that the space above the false ceiling, referred to as the plenum space in the testimony, was not enclosed or sealed off above the partition walls. Lacking a fire resistant false ceiling the storage areas opened directly into the plenum space. The jury was entitled to find that the open plenum space provided the oxygen and up-draft which spread the “lively” fire after it commenced in the Giant Tiger paper bag storage bin behind partitions AB and BC.

The bulk of the sales floor was occupied by Giant Tiger retail departments with the remainder of the sales area leased to other retail operators. One of these, Tiger Furniture of Mansfield, Inc., leased 12,870 sq. ft.

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Bluebook (online)
283 F. Supp. 988, 23 Ohio Misc. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-states-ins-v-hannan-constr-co-ohnd-1966.