Bryant v. Tri-County Electric Membership Corp.

844 F. Supp. 347, 1994 U.S. Dist. LEXIS 1146, 1994 WL 30082
CourtDistrict Court, W.D. Kentucky
DecidedFebruary 2, 1994
DocketCiv. A. C90-0149-BG(H)
StatusPublished
Cited by17 cases

This text of 844 F. Supp. 347 (Bryant v. Tri-County Electric Membership Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryant v. Tri-County Electric Membership Corp., 844 F. Supp. 347, 1994 U.S. Dist. LEXIS 1146, 1994 WL 30082 (W.D. Ky. 1994).

Opinion

MEMORANDUM OPINION

HEYBURN, District Judge.

Plaintiffs, C.G. Bryant and Hal Bryant, brought this diversity action in negligence, warranty and strict liability against their local utility company, Tri-County Electric Membership Corporation, and the manufacturer of electrical transformers, Kuhlman Corporation, for property damage sustained in connection with a fire that consumed Plaintiffs’ sawmill. Defendant Tri-County Electric moves for summary judgment on the implied warranty and strict liability claims on the ground that Kentucky law imposes only negligence liability on a utility company for careless transmissions of an electric current. Defendant Kuhlman moves for summary judgment for its part contending that Plaintiffs’ evidence fails to create an issue of material fact that it manufactured the electrical transformer that allegedly caused the sawmill blaze. For reasons set forth herein, the Court will allow Plaintiffs to maintain all their claims against Tri-County Electric but will dismiss Plaintiffs’ claims against Defendant Kuhlman.

I.

A fire destroyed Plaintiffs’ sawmill in April 1988, causing over $300,000 in damages. The fire began when a switch attached to a lumber-surfacing machine exploded. Plaintiffs suspect that the switch’s failure resulted from a series of voltage surges that plagued the sawmill in the years preceding the fire. These voltage spikes, Plaintiffs contend, passed through their electric meter and gradually destroyed the switch’s insulation.

Plaintiffs had experienced significant irregularities in their electrical supply by late 1986. Motors in heavy equipment and computers burned out with alarming frequency. The transformers regulating the current entering Plaintiffs’ facility emitted an unusually loud hum. An oscilloscope registered voltage surges when attached to Plaintiffs’ machinery. In October 1986, Tri-County sought to eliminate these problems by removing the transformers then in service and installing transformers manufactured by Kuhlman. 1

This replacement improved Plaintiffs’ power supply, but did not successfully eliminate all symptoms of erratic voltage. Plaintiffs continued to suffer occasional voltage-related motor failures throughout the period between October 1986 and the April 1988 fire. Plaintiffs contend that the fire resulted from “the failure of Tri-County ... to properly and adequately supply electric power to *349 [Plaintiffs]; and [from] the failure of or a defect in the transformers installed at [Plaintiffs’ facility] and ... manufactured by Kuhl-man.” (Pis.’ Resp. to Kuhlman’s Mot. for Summ.J. at 2.)

II.

Tri-County contends that Kentucky law does not impose liability on a producer of defective electrical current absent proof of negligence. 2 Since Kentucky has not yet declared whether principles of strict liability might apply to injuries caused by electricity, the resolution of Tri-County’s Motion will require this Court to “analyze the indications and determine the path that [the] state would follow” were Kentucky to decide the issue itself. Overstreet v. Norden Lab., 669 F.2d 1286, 1290 (6th Cir.1982); Ene R.R. v. Tompkins, 304 U.S. 64, 78, 58 S.Ct. 817, 822, 82 L.Ed. 1188 (1938). This Court has examined numerous decisions of other state courts that articulate the fundamental themes of strict liability and two Kentucky decisions in related contexts. On the basis of these announced legal principles as well as policy considerations, the Court concludes that Kentucky would apply strict liability concepts in the circumstances of this case.

A.

Strict liability principles permit recovery when an injury results from either the manufacture of an unreasonably dangerous product or a business’s “abnormally dangerous” activity. Under Kentucky law, the latter form of liability, which one might call “strict service liability,” does not apply to the distribution of electricity. Kentucky Util. Co. v. Auto Crane Co., 674 S.W.2d 15, 18 (Ky.App.1983). Kentucky has not, however, addressed the first type of liability, generally referred to as “strict product liability,” which other jurisdictions have held may regulate some parts of an electric company’s transmissions.

This “strict product liability” applies generally to an entity that “sells any product in a defective condition [which renders the product] unreasonably dangerous ” causing injuries. Restatement (Second) of Torts § 402A (emphasis added), adopted by Dealers Transp. Co. v. Battery Distrib. Co., 402 S.W.2d 441, 446-47 (Ky.1965). Opinions applying this product liability formula specifically to distributors of electricity focus on three dispositive legal questions: (1) Is electricity a “product”? If so, (2) When is electricity “sold”, such that the principles of product liability might first apply? And finally, (3) When does electricity contain a “defect” that renders it “unreasonably dangerous”? 3

The majority of the state courts considering this issue have encountered little difficulty deciding that electricity is a product. 4 These courts declare, for example, that electricity is “a form of energy that can be made or produced by men, confined, controlled, transmitted and distributed.... ” Ransome v. Wisconsin Elec. Power Co., 87 Wis.2d 605, 275 N.W.2d 641, 643 (1979). 5

*350 Even so, electricity is subject to product liability rules only after it is “sold” to the consumer. Although identifying the moment of sale is a more challenging task, a reasonable consensus prevails: electricity is typically held to be “sold” when it passes through the customer’s meter. See, e.g., Ransome, 275 N.W.2d at 643, 649. It is at this moment that the customer’s charges are computed, the seller relinquishes control over its product, and the electricity has been reduced to a voltage suitable for ordinary use. Id.; Aversa v. Public Serv. Elec. & Gas Co., 186 N.J.Super. 130, 451 A.2d 976, 980 (Law Div.1982); Smith v. Home Light & Poiver Co., 734 P.2d 1051, 1055 (Col.1987). Put another way, strict liability typically applies, if at all, only to injuries suffered inside the home or business, not to those experienced outside. See, e.g., Pierce v. Pacific Gas & Elec. Co., 166 Cal.App.3d 68, 212 Cal.Rptr.

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844 F. Supp. 347, 1994 U.S. Dist. LEXIS 1146, 1994 WL 30082, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryant-v-tri-county-electric-membership-corp-kywd-1994.