Bell v. Kaiser Aluminum & Chemical Corp.

927 So. 2d 492, 2006 La. App. LEXIS 659
CourtLouisiana Court of Appeal
DecidedMarch 28, 2006
DocketNos. 04-CA-1151 to 04-CA-1191
StatusPublished
Cited by2 cases

This text of 927 So. 2d 492 (Bell v. Kaiser Aluminum & Chemical Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell v. Kaiser Aluminum & Chemical Corp., 927 So. 2d 492, 2006 La. App. LEXIS 659 (La. Ct. App. 2006).

Opinion

SUSAN M. CHEHARDY, Judge.

|sThis is an appeal in an action comprising numerous consolidated cases from the Twenty-Third Judicial District Court, St. James Parish, arising out of a massive industrial explosion at the Kaiser Aluminum plant in Gramercy on July 5, 1999. At issue on the appeal is the liability of one defendant, Thomas & Betts Corporation. We reverse the trial court’s grant of judgment notwithstanding the verdict and reinstate the jury’s verdict. We also reverse the trial court’s grant of a conditional new trial.

PROCEDURAL HISTORY

Originally there were 71 lawsuits arising from the Kaiser explosion, most of which were consolidated.1 The plaintiffs included not only persons directly injured in the plant, but also inhabitants of the surrounding area, as well as commercial entities and insurers seeking compensation for property damage and business losses, and/or indemnification for any liability to other claimants.2

|4By the time of trial, all of the cases had been settled and/or dismissed except three: a suit by Kaiser Aluminum & Chemical Corporation (“Kaiser”) for its uninsured losses caused by the explosion;3 a personal injury suit by Kaiser employee Terrence Hayes (“Hayes”);4 and a suit by Kaiser’s subrogated reinsurers — AXA Global Risks (U.K.), et al. (collectively “AXA”) — for Kaiser’s insured losses.5

[495]*495The defendants in these suits included Power & Control Systems, Inc. and Power & Control Systems International, Inc. (collectively “PCS”), which designed the electrical system at the Kaiser plant; MEI Corporation, MEI Electrical, Inc., Merit Electrical & Instrumentation, Inc., and Merit Electrical, Inc. (collectively “MEI”), and Excel Group, Inc., formerly known as Excel Electrical & Instrumentation, Inc. (collectively “Excel”), electrical contractors that performed work at the plant; Thomas & Betts Corporation (“T & B”), manufacturer of adhesive mounts used to hold wiring in the plant; Adhesives Research, Inc. (“ARI”), manufacturer of the adhesive used in the adhesive mounts; Walter Hansley, a worker alleged to have been instrumentally negligent in events leading to the explosion; Manpower, Inc., Manpower International, Inc. (collectively “Manpower”), the employers of Hansley; and Schweitzer Engineering Laboratories, Inc., manufacturer of an electrical relay used at the plant.

| ¡¡Kaiser and AXA (hereafter “Kaiser/AXA”) 6 alleged that the explosion was caused by a power failure that began about a half-hour before the explosion and that the power failure was caused by concurrent fault of PCS, Schweitzer, MEI, Excel, T & B, and ARI. Kaiser/AXA contended the root cause of the power failure was improper installation of a handful of one-inch-square adhesive-backed cable-tie mounting bases (commonly referred to as “sticky-backs”) inside high-voltage switchgear in an electrical building (Switch House 2) at the Kaiser plant.

Kaiser/AXA alleged the wiring (“CT leads”) that was routed through the sticky-backs came into contact with a high-voltage bus bar when several sticky-backs came loose from the cabinet wall to which they were attached. Kaiser/AXA claimed the contact degraded the insulation on both the CT leads and the bus bar, eventually leading to a short-circuit (technically, a phase-to-ground fault). The fault caused a chain reaction, in which circuit breakers tripped on all three loop feeders supplying power to the plant, resulting in a power outage.

Kaiser/AXA alleged that PCS was negligent in failing to design the electrical system so that a fault in Switch House 2 would not take the entire electrical loop off-line and, further, that PCS was negligent in failing to program the computerized Schweitzer electrical relays properly. They alleged Excel was negligent for using sticky-backs inside high-voltage switchgear, where their coming loose could cause an electrical fault, and that T & B was liable for failure to warn Excel about the limitations inherent in the sticky-backs.

In response, T & B filed incidental actions against Kaiser and AXA, alleging that Kaiser destroyed, altered, concealed or denied T & B access to evidence bearing on the cause of the power failure.

[496]*496|fiThe trial commenced on October 8, 2001 before a twelve-member jury, and continued over the course of 27 days.

Briefly, the evidence established that the explosion evolved following a power failure in Switch House 2, caused when electrical wiring that had been run along the side of a switchgear cabinet fell onto a piece of high-voltage bus bar, resulting in a phase-to-ground fault that interrupted power. Although Kaiser had a system that was supposed to isolate such power failures so that the whole plant would not be shut down, the system failed. Employees took actions intended to prevent overheating of the large towers (known as flash tanks) that process bauxite into alumina (a production phase in producing aluminum). However, the actions failed because some of the equipment was not operating properly. Within a short time the tanks overheated and exploded.

On November 19, 2001, the jury returned a verdict that absolved Schweitzer, T & B, and Hansley/Manpower of fault, but found that Kaiser, MEI, and PCS were at fault, their fault was a legal cause of the explosion, and apportioned their fault as follows: Kaiser, 75%; MEI, 5%; PCS, 20%. The jury awarded damages to Terrence Hayes in the amount of $20,307,000.00, but denied damages to his daughter for loss of consortium, and denied damages to Kaiser, and to its insurers (AXA, et al.).

After the jury returned its verdict, Kaiser, AXA and Hayes filed motions for judgment notwithstanding the verdict (JNOV) and, alternatively, for new trial. The trial court granted JNOV in favor of Kaiser/AXA and against T & B, and also granted the motion for new trial conditionally, in the event the JNOV is reversed on appeal.

In the JNOV, the court found T & B to be 25% at fault, reduced Kaiser’s allocation of fault to 60%, reduced the fault of PCS to 10%, and maintained the Injury’s fault allocation of 5% to MEI. The court also granted JNOV as to damages, awarding Kaiser/AXA combined damages of $335 million, $122 million less than the $457 million requested by Kaiser/AXA. Finally, the court provisionally granted Kaiser/AXA’s motion for new trial, in the event the JNOV is be reversed on appeal, and ordered that the new trial be held in a different venue.

The JNOV maintained the jury’s finding in favor of Hayes and also upheld the amount of the damage award to him.

ISSUES ON APPEAL

Originally both T & B and Hayes appealed; Hayes, however, dismissed his appeal and only the issues raised by T & B are before us.

On appeal T & B makes the following-assignments of error:

1. The trial court usurped the jury’s fact-finding function when it ignored substantial record evidence supporting the jury’s verdict, and granted Kaiser’s and AXA’s motion for judgment notwithstanding the verdict.
2. The trial court erroneously ordered a (conditional) new trial despite the absence of any prejudicial irregularity in the course of the trial.
3.

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Related

Paul Tyler v. Automotive Finance Company, Inc.
Mississippi Supreme Court, 2012
In Re Gramercy Plant Explosion at Kaiser
927 So. 2d 492 (Louisiana Court of Appeal, 2006)

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Bluebook (online)
927 So. 2d 492, 2006 La. App. LEXIS 659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-kaiser-aluminum-chemical-corp-lactapp-2006.