Colony Insurance v. Coca-Cola Co.

239 F.R.D. 666, 61 U.C.C. Rep. Serv. 2d (West) 842, 72 Fed. R. Serv. 281, 2007 U.S. Dist. LEXIS 5113, 2007 WL 174406
CourtDistrict Court, N.D. Georgia
DecidedJanuary 16, 2007
DocketCiv.A. No. 1:05-CV-0707-JOF
StatusPublished
Cited by1 cases

This text of 239 F.R.D. 666 (Colony Insurance v. Coca-Cola Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colony Insurance v. Coca-Cola Co., 239 F.R.D. 666, 61 U.C.C. Rep. Serv. 2d (West) 842, 72 Fed. R. Serv. 281, 2007 U.S. Dist. LEXIS 5113, 2007 WL 174406 (N.D. Ga. 2007).

Opinion

OPINION AND ORDER

FORRESTER, Senior District Judge.

This matter is before the court on Defendant’s motion to exclude expert testimony of George Yeremian [73-1]; Defendant’s motion for summary judgment [74-1]; Plaintiffs motion to preclude filing of reply brief [85-1]; and Plaintiffs motion to withdraw Elizabeth J. Campbell as attorney [117-1].

I. Background

A. Procedural History and Facts Plaintiff, Colony Insurance Company, filed suit against Defendant, The Coca-Cola Company, in a subrogation action to recover money paid by Colony to the Jade Palace III Chinese restaurant in Norcross, Georgia, after a fire destroyed the restaurant on October 27, 2003. Colony asserts claims of negligence, breach of warranty, and breach of bailment against Coca-Cola, alleging that the fire was caused by an electrical failure in the power supply of a soda fountain dispenser owned by the Coca-Cola Company. After discovery, Defendant filed the instant motion to exclude expert testimony and motion for summary judgment.

Defendant purchased the soda fountain at issue in this litigation from IMI Cornelius in March 1997. The soda fountain was manufactured by IMI Cornelius.1 The soda fountain was originally leased to a restaurant in downtown Atlanta from 1997 through 2002. When that restaurant went out of business, the soda dispenser was returned to Defendant. The power supply at issue in this litigation was manufactured by Lancer Corporation sometime between 1994 and 2001.2 Lancer designs and manufactures power supplies as well as soda dispensers. Defendant and Lancer have jointly designed a number of components for soda dispensing equipment, but there is no plan or agreement between Defendant and Lancer for the development of power supplies. A Marketing Equipment Specifications document produced by Defendant discusses various pieces of equipment germane to Defendant’s business. Part I of that document governs “General Requirements.” Section 8 discusses electrical and states:

8.1 Electric (including electronic) equipment must be capable of operating properly at 90 to 110 percent of its stated voltage without being damaged.
8.2 Electronic equipment must be suitable for the environment in the equipment in which it is expected to operate.

See Dooley Depo., Exh. 3, at 4. Part III, Data Sheet A, discusses the Dispenser. It has blanks under the electrical category for volts, frequency, amperes, power cord length, plug type, and valves (voltage, power transformer). See id., at 5.

A division of IMI Cornelius, IMI Equipco, is the exclusive re-manufacturer of all Defendant-owned soda fountains. The soda dispenser in question was sent to IMI Equipco in April 2002 to be re-manufactured in preparation for installation at another location. Defendant prepared the re-manufacturing [669]*669procedures used by IMI Equipco, including those for the power supply. Equipco uses only power supplies provided by Defendant in the re-manufacturing process. During the re-manufacturing procedure, the soda dispenser was “paired” with a power supply produced by Lancer. The power supply is a “standard part” that is interchangeable between soda dispensers manufactured by Cornelius and those manufactured by Lancer. Lancer soda dispensers typically are shipped out with power supplies.

During the re-manufacture process, IMI Equipco takes a number of steps, including disassembly, cleaning, and re-graining of the equipment. The re-manufacturing process is governed by a checklist for each specification in the process. Defendant provides the procedures and specifications. Specific steps are taken with respect to the power supply, including cleaning the transformer junction box and wires. The power supply and transformer are also checked for frayed wires and stripped insulation. The power supply is tested with a volt meter. After the process is completed, the equipment undergoes an electrical test. At the end of the re-manufacturing process, the soda dispensing machine and power supply that ultimately were placed in the Jade Palace restaurant were operating properly.

In May 2002, Defendant leased the soda dispensing equipment to Jade Palace for no charge. Jade Palace also did not pay Defendant a percentage of its soda sales. Neither Jade Palace nor Defendant could locate a signed copy of the lease agreement, but both agree that the relationship was governed by a written lease. NorthStar Beverage, a contractor of Defendant, installed the soda dispensing equipment, including the power supply, on May 29, 2002. At times between installation and the date of the fire, North-Star Beverages and the Austell Division of Coca-Cola Enterprises responded to service calls from the restaurant. One of those service calls involved a complaint that nothing was dispensing from the machine, and a technical representative assisted someone at the restaurant in plugging the power supply back in.

After the fire, Plaintiff hired A.W. Durham of Cunningham Investigative Services to investigate the origin and cause of the fire. Mr. Durham determined that the fire originated in one of the service areas off the main dining room where the soda dispensing machine was kept and that there were likely combustible materials in the vicinity of the soda machine. Because he observed evidence of electrical activity, Mr. Durham decided to have George Yeremian, an electrical engineer, review the fire scene.

Mr. Yeremian works for EFI Global, Inc., a consulting firm in Norcross, Georgia. He has a degree in electrical engineering from Clemson University and has worked in a variety of capacities in the manufacturing and consulting fields. He is a professional licensed engineer. Mr. Yeremian has taken seminars which touch on the issue of power supplies and has used and maintained power supplies in his previous manufacturing jobs. He designed a power supply for a senior project in college. He has never worked in an expert capacity on a matter concerning power supplies. He has never worked with a Lancer power supply such as the one involved in this case. He has reviewed the Lancer documents and materials at Lancer’s website but has not reviewed separate documentation on the performance or operation of power supplies. Mr. Yeremian began getting involved in fire investigation matters in 2002.

The fire at Jade Palace took place on October 27, 2003, and Mr. Yeremian made his first visit to the site on October 29, 2003. Mr. Yeremian next visited the site on November 4, 2003, when he began clearing debris and looking at portable appliances. On November 24, 2003, Mr. Yeremian made a preliminary report in which he accepted Mr. Durham’s determination that the origin of the fire was in the service area off of one of the main dining rooms. In this preliminary report, Mr. Yeremian concluded that arcing occurred in certain appliances through a process of “series arcing” which occurs “when a conductor is connected and unconnected, connected and unconnected many times with a current going through that conductor. Every time you disconnect a conductor or a portion of it while a current is flowing through it, they call it a parting arc. A parting arc is formed which can lead to the [670]*670physical manifestation of what we saw in Figure ... 28.” See Yeremian Depo., at 105. In his preliminary report, it was this “series arcing,” Mr. Yeremian asserted, that was the source of the electrical failure.

After he filed the preliminary report, Mr.

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239 F.R.D. 666, 61 U.C.C. Rep. Serv. 2d (West) 842, 72 Fed. R. Serv. 281, 2007 U.S. Dist. LEXIS 5113, 2007 WL 174406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colony-insurance-v-coca-cola-co-gand-2007.