Appalachian Power Company v. Morrison

165 S.E.2d 809, 152 W. Va. 638, 1969 W. Va. LEXIS 212
CourtWest Virginia Supreme Court
DecidedFebruary 25, 1969
Docket12752
StatusPublished
Cited by7 cases

This text of 165 S.E.2d 809 (Appalachian Power Company v. Morrison) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appalachian Power Company v. Morrison, 165 S.E.2d 809, 152 W. Va. 638, 1969 W. Va. LEXIS 212 (W. Va. 1969).

Opinion

Calhoun, Judge:

This case is before the Court on appeal from the Circuit Court of Cabell County which, by an order entered on January 25, 1968, rendered judgment in favor of Appalachian Power Company, a corporation, the plaintiff and appellant, against the defendants in each of three separate actions which, by stipulation and agreement of counsel and by consent of the court, were consolidated for trial and tried by the court in lieu of a jury.

*640 The Appalachian Power Company, which hereafter in this opinion may be referred to merely as Appalachian or as the plaintiff, is a public service corporation engaged in the production of electric power and in the distribution thereof to consumers in an area which includes Cabell County. In each of the three actions, Appalachian seeks recovery of damages for the destruction of one of the wooden utility poles owned and used by it to support electric transmission lines. In each instance, the pole was destroyed because of having been struck by an automobile. It was stipulated that none of the three poles had any salvage value after it was struck.

In one instance, the automobile was owned by Don Morrison and was being operated by Dixie Morrison, both of whom were joined as defendants in one of the three actions. One action involved an automobile which was owned and operated by Larry R. Stollings at the time of the accident. He is the sole defendant in that action. In the third action, Asa LeGrand, the sole defendant, was the owner and operator of the automobile at the time it struck the utility pole.

It was stipulated by counsel that in each of the three cases liability was admitted and that the only issue for the trial court to decide in each case was the proper amount of damages to be awarded for the destruction of the utility pole.

Appalachian has appealed to this Court on the ground that the amount of damages awarded in each case is inadequate and on the ground that the trial court applied improper principles of law in determining the amount of damages awarded. It is the contention of the plaintiff that it is entitled to recover in each action the reasonable cost of repairs which were rendered necessary by the negligent act of the defendant in striking the utility pole while operating an automobile. The defendants contend that the amount of damages properly recoverable in each case should involve only damage caused to the utility pole and its immediate attachments or appurtenances; that the new pole installed has greater value to the plaintiff than the *641 used pole which was destroyed; and that the trial court, in rendering judgment in each case, properly reduced the plaintiff’s cost of repairing the damage to its electric power distribution system by an amount determined by the court as a proper measure of depreciation based on the length of time the used pole had been in service and a “life expectancy” of forty years for a new pole.

In the LeGrand case, the amount of damages asserted by the plaintiff aggregated $1,064.03. In its opinion, announced orally from the bench, and in its findings of fact embodied in an order entered on January 25, 1968, the trial court stated: “The court takes and accepts for full value the total cost of restoration of a new pole in the place of the old one that was negligently destroyed, and finds the sum under the evidence, and uncontradicted, to be $1,064.03.” This consisted of the following several items: material, $97.95; supervision and engineering, $138.78; labor, $697.36; and transportation, $129.94. The court found from the uncontradicted evidence that the damage, consisting of several items similar in character to those in the LeGrand case, was $254.17 in the Stollings case and $127.84 in the Morrison case. The court found further from the evidence that the pole involved in the LeGrand case had been in use thirty years prior to the date of its destruction; that the pole involved in the Stollings case had been in use ten years; and that the pole involved in the Morrison case had been in use twenty-two years.

In adopting forty years as the reasonable or average useful fife of a pole such as the three involved in this case, the trial court made the following statement: “So the court, in the absence of anything better, is simply taking, * * * the arbitrary figure of 2% percent depreciation per year.” (Italics supplied.) We find no basis in the record for the action of the trial court in finding that the reasonable or average useful life of such a utility pole is forty years. We conclude, therefore, that the testimony furnishes no basis for depreciating the plaintiff’s uncontradicted items of damages in the three cases, or any portion thereof, at the rate of two and one-half percent a year based on the *642 length of time the three several poles had been installed and in use prior to the dates on which they were destroyed.

In accordance with the method of depreciation adopted by the trial court, the LeGrand claim was reduced from $1,064.03 to $266.01; the Stollings claim was reduced from $254.17 to $190.63; the claim in the Morrison case was reduced from $127.84 to $57.53; and, in each case, the trial court awarded judgment in favor of Appalachian for the lesser or depreciated sum. We are of the opinion that the action of the trial court in thus reducing the amounts of the plaintiff’s several claims was unwarranted by the evidence and also by pertinent principles of law.

It was agreed by counsel, in the oral argument, that their research had failed to disclose a prior decision of this Court directly in point on the question of the correct measure of damages in cases such as the three involved in this appeal.

Basically, counsel for the defendants contends that, in each of the three cases, the new pole installed is more valuable to the plaintiff than was the used pole immediately before it was destroyed; that, to this extent, the plaintiff’s electric power distribution system has been rendered more valuable; and that, therefore, the plaintiff’s claim in each case should be reduced in amount on a basis of depreciation based on the length of time the replaced pole had been in service prior to the date of its destruction. Typical of authorities relied upon by counsel in support of that contention is Hearn v. McDonald, 69 W. Va. 435, 71 S. E. 568, the sole syllabus point of that case being as follows: “In an action for destruction of a roof of a house, the measure of damages is the value of the roof, that is, what it would cost to replace it new, less an allowance for depreciation from use, age or like cause.”

On the other hand, counsel for the plaintiff contend that the plaintiff public service corporation is entitled to recover in each action all reasonable .expenditures necessarily incurred by it as a proximate result of the negligent act of the defendant driver, less the reasonable value of any *643 salvageable materials, if any, in the absence of a showing that the plaintiff has received some demonstrable or measurable benefit to its electric power distribution system as a consequence of the repairs made by it.

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Bluebook (online)
165 S.E.2d 809, 152 W. Va. 638, 1969 W. Va. LEXIS 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appalachian-power-company-v-morrison-wva-1969.