Brewhouse, Ltd. v. New Orleans Public Service, Inc.

614 So. 2d 118, 1993 La. App. LEXIS 295, 1993 WL 16399
CourtLouisiana Court of Appeal
DecidedJanuary 29, 1993
Docket92-CA-0267
StatusPublished
Cited by11 cases

This text of 614 So. 2d 118 (Brewhouse, Ltd. v. New Orleans Public Service, Inc.) 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
Brewhouse, Ltd. v. New Orleans Public Service, Inc., 614 So. 2d 118, 1993 La. App. LEXIS 295, 1993 WL 16399 (La. Ct. App. 1993).

Opinion

614 So.2d 118 (1993)

BREWHOUSE, LIMITED and Brewhouse Phase II, Limited,
v.
NEW ORLEANS PUBLIC SERVICE INC.

No. 92-CA-0267.

Court of Appeal of Louisiana, Fourth Circuit.

January 29, 1993.

*119 Charlton B. Ogden, III, Ogden, Ogden & Wright, New Orleans, for defendant-appellant.

Henri Wolbrette, III, Arthur H. Leith and Leopold Z. Sher, McGlinchey, Stafford, Cellini & Lang, New Orleans, for plaintiffs-appellees.

Before BARRY, BYRNES and WARD, JJ.

BYRNES, Judge.

On May 31, 1986 a fire occurred in the electrical vault servicing the Jackson Brewery Development. Plaintiffs, Brewhouse, Limited and Brewhouse Phase II, Limited filed a claim against the defendant, New Orleans Public Service, Inc. (NOPSI) for damages caused by that fire. NOPSI's reconventional demand was dismissed with prejudice, but NOPSI does not appeal that judgment. The trial court awarded plaintiffs $443,989.79, plus legal interest and costs. It is from this award that NOPSI now appeals.

I. STATEMENT OF THE CASE

Plaintiffs Brewhouse Limited and Brewhouse Phase II, Limited were at all material times owners of Phase I and Phase II, respectively, of the Jackson Brewery development on the riverfront in the French Quarter. The two buildings adjoin each other and were developed in two phases as a "festival marketplace" shopping center.

On May 31, 1986 a fire occurred in a secured electrical vault which supplied power to both phases of the development.

NOPSI owned all the equipment located in the NOPSI transformer vault where the fire occurred. NOPSI had selected and installed the equipment located in the vault, and all the electrical connections in the vault were made by NOPSI employees. Although the concrete walls of the vault itself were designed and constructed by the owner's architect and contractor, respectively, NOPSI approved the plans for the vault and inspected and accepted the vault after the construction of the vault was completed. NOPSI maintained all the equipment in the vault and periodically inspected that equipment. The doors to the vault were louvered, screened and locked. Only NOPSI had a key to the vault. Plaintiffs had no access to the vault after NOPSI's equipment was installed and energized. The month before the fire, the equipment in the vault failed, due to improper installation by NOPSI's personnel. This failure resulted in a single phasing of the electrical service to both phases of the Jackson Brewery development for a time. NOPSI's workers allegedly repaired that problem. A month later, a fire of tremendous intensity erupted in NOPSI's sealed, locked transformer vault. The fire heavily damaged the concrete vault and spread smoke damage throughout plaintiffs' development.

At the time of the fire Phase II was under construction. Substantial completion *120 of the shell of the building had been achieved. However, the construction process relating to tenant build-out was still ongoing and was at a critical phase when the fire occurred. As a result of the fire, smoke damage was spread through Phase II, which was under construction, and also through Phase I, which was already in operation. In the wake of the fire, the extent of the damage was not immediately clear. Nonetheless, steps were promptly taken to attend to the needs of the development and ensure the continuing operation of Phase I. It proved impossible to attend to the needs of the already-operating Phase I, clean up the fire damage, and complete Phase II by the scheduled August 15, 1986 opening date. The opening of Phase II was rescheduled for the next viable date, September 27, 1986.

The trial court held that the fire was caused by the fault or negligence of NOPSI and awarded judgment in favor of the plaintiffs in the sum of $443,989.79 plus legal interest from date of judicial demand. NOPSI appeals.

II. STANDARD OF REVIEW

Our standard of review is set forth in Rosell v. ESCO, 549 So.2d 840 (La.1989); Virgil v. American Guarantee and Liability Ins. Co., 507 So.2d 825 (La.1987); and Miller v. Miller, 602 So.2d 330 (La. App. 4 Cir.1992) which stand for the following: When findings are based on determinations regarding the credibility of witnesses, the manifest-error clearly wrong standard demands great deference to the trier of fact's findings both express and implicit even though the appellate court may feel that its own evaluations and inferences are as reasonable; for only the fact finder can be aware of the variations in demeanor and tone of voice that bear so heavily on the listener's understanding and belief in what is said.

In reviewing contrasting expert testimony, the trier of fact has the responsibility to determine which evidence is the most credible.

The reason for this well-settled principle of review is based not only upon the trial court's better capacity to evaluate live witnesses (as compared with the appellate court's access only to a cold record) but also upon the proper allocation of trial and appellate functions between the respective courts. Appellate courts must constantly have in mind that their initial review function is not to decide factual issues de novo.

III. LIABILITY

NOPSI installed its equipment and made the electrical connections in the vault in early April 1986. On April 11, 1986, Phase I and Phase II of the Jackson Brewery experienced a single phasing of their electrical service. Upon contacting NOPSI, Mr. Zimmerman, the building maintenance engineer for Phase I, was advised by NOPSI that its employees had inadvertently reversed the sensing potentials on the automatic transfer switch in the vault when it was installed and connected. Joseph Gavin, a NOPSI engineer, admitted that NOPSI's employees had installed the sensing potentials on the automatic transfer switch in a reversed position and that this caused the single phasing condition. He also admitted that NOPSI had committed a second error in the course of installation of the equipment, in that an incorrect cable was used to connect to a bypass switch. Approximately a month later, an electrical arc of great force emanated from NOPSI's equipment in the vault, causing the fire at issue in this case. Testimony was also introduced at trial, without objection, to the effect that after the fire NOPSI decided that the vault was too hot and installed an exhaust fan therein; there was no exhaust fan present in the vault before the fire.

Plaintiffs called George Hero as their expert witness. Mr. Hero is an electrical engineer with extensive experience in investigation and determination of fire cause and origin. Mr. Hero viewed the vault on June 5, 1986, only a few days after the fire occurred. He also viewed NOPSI's equipment at NOPSI's yard on Tulane Avenue a few months after the fire. That equipment had not been altered since the time of the fire and was in the same condition when *121 Mr. Hero saw it as it was shortly after the fire. When examining the vault Mr. Hero found evidence of heat of such intensity that it caused an instantaneous and explosive evaporation of the water in the concrete wall of the vault, resulting in a phenomenon known as "spalling." In his opinion, this damage was caused by an electrical arc from NOPSI's high-voltage equipment. He stated that the probable cause of this arc was "a poor connection of the primary feeders" which was made by NOPSI's employees. The arc then ignited oil and other flammable substances in the transformers in the vault, causing the fire.

Mr. Hero's explanation of the cause of the fire was logical, coherent, and consistent with his personal observation of the physical evidence.

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614 So. 2d 118, 1993 La. App. LEXIS 295, 1993 WL 16399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brewhouse-ltd-v-new-orleans-public-service-inc-lactapp-1993.