CSAA Affinity Insurance Company v. The Scott Fetzer Company

CourtDistrict Court, D. Maryland
DecidedMarch 30, 2023
Docket1:21-cv-01543
StatusUnknown

This text of CSAA Affinity Insurance Company v. The Scott Fetzer Company (CSAA Affinity Insurance Company v. The Scott Fetzer Company) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSAA Affinity Insurance Company v. The Scott Fetzer Company, (D. Md. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND f . CSAA AFFINITY INSURANCE * COMPANY, * Plaintiff v. . CIVIL NO. JKB-21-1543 THE SCOTT FETZER COMPANY, . Defendant. . * * * x x x * x * x x MEMORANDUM Plaintiff CSAA Affinity Insurance Company (“CSAA”) filed this subrogation action against Defendant Wayne/ Scott Fetzer Company, d/b/a Wayne Water Systems (Wayne Water”) in the Circuit Court for Harford County, Maryland, seeking to recover damages incurred after a fire damaged the home of its insured, Walter and Mary Mitchell. (See Notice Removal, ECF □□□□ 1.) CSAA claims that the fire damage was caused by a defective sump pump, manufactured by Wayne Water, in the basement of the Mitchells’ home. (See generally Am. Compl., ECF No. 10.) Wayne Water removed the case to this Court on the basis of diversity jurisdiction pursuant to 28 U.S.C. §§ 1441 and 1332(a). (See Notice Removal.) Pending before the Court is Wayne Water’s Motion for Sanctions for Spoliation of Evidence and for Summary Judgment. (ECF No. 32.) This Motion has been fully briefed and no hearing is necessary. See Local Rule 105.6 (D. Md, 2021). For the reasons stated below, the Court will grant Wayne Water’s Motion to the extent that it seeks summary judgment, and will deny as moot its request for sanctions for spoliation.

Background On April 25, 2018, a fire occurred in the basement of the home of CSAA’s insured, Walter and Mary Mitchell, in Bel Air, Maryland. (Fire Marshal R., PI.’s Ex. B, ECF No. 35-3.) CSAA paid $520,653.98 for the damages sustained, (PL.’s Br. Supp. Opp’n Mot. Sanctions and Summ. J. (P1.’s Br.”) at 2, ECF No. 35-1.) A. Examination of the Fire Scene Maryland State Fire Marshal Oliver Alkire investigated the incident while on duty in Hartford County on April 25, 2018. (Fire Marshal R. at 27.) Upon examining the burn patterns in the basement, he concluded that the fire originated at a sump pump that was located in a corner of the basement and enclosed in a wooden box. (id. at 26-27.) He noted “extensive damage to the mechanical parts” of the sump pump as well as “to the wall studs behind the area where the

pump and associated housing [of the pump] was in place.” (Jd. at 26.) He also noticed burn patterns in a bathroom adjoining the room that contained the sump pump that “were consistent with a fire entering [the bathroom] from the left.” Ud.) CSAA retained Andrew F. Schlegel of Donan Engineering Co., Inc. to determine the origin and cause of the fire. (Schlegel R. at 1, Def.’s Ex. 5, ECF No. 32-6.) Schlegel conducted a fire study of the Mitchells’ house on April 27, 2018. (/d.) He had not spoken with the Fire Marshal prior to conducting his investigation and did not have knowledge of his opinions on the origins of the fire. (Schlegel Dep. at 132:12-22, Pl.’s Ex. C, ECF No. 35-4.) Schlegel determined that the “fire patterns [were] consistent with the location of the sump pump as the point of origin.” (Schlegel R. at 5; see also Schlegel Dep. at 129:8-11 (testifying that the burn patterns showed that the fire originated at the box containing the sump pump and extended outward from there).) He

also observed that fire patterns were “consistent with the fire extension into the bathroom.” (Schlegel R. at 5.) CSAA also retained Christopher Graham, an electrical engineer with expertise in electrical failure and fire causation. (See generally Graham R., Def.’s Ex. 6, ECF No. 32-7.) Graham, with Schlegel present, investigated the fire scene on May 15, 2018. (/d, at 3.) Graham testified that he “originally thought the fire could be .. . from an area in the bathroom” but that he “looked at all the electrical ignition sources in the bathroom and was able to eliminate them.” (Graham Dep. at 103:9-10, 104:10-12, Pl.’s Ex. D, ECF 35-5.) He examined and eliminated as the source of ignition “a power tap that was attached to a wall right outside the bathroom” and “a space heater that was in the bathroom,” but did not include those items in his report. (Graham Dep. at 58:10— 17, Def.’s Ex. 1, ECF No. 32-2.) William L. Peck, Wayne Water’s proffered expert witness in the investigation of fire cause and origin, (see Designation Expert Witnesses at 2, Def.’s Ex. D, ECF No. 36-4), reviewed photos of the fire scene. He stated that “[w]ithout an opportunity to inspect the fire scene and the failure of the Plaintiff]’]s experts to document, test and preserve critical evidence from the area of the fire □

that sustained the longest burn time and most significant fire damage, it is nearly impossible . . . to establish the cause of this fire to any degree of scientific certainty.” (Peck R. at 17, Def.’s Ex. C, ECF No. 36-3.) However, with the information he had, he opined that “the fire originated at the common wall between” the room where the sump pump was located and the bathroom, eleven feet from the sump pump. (id. at 4.) He reached this conclusion based on the fact that the fire damage on this wall was “massive, with deep and heavy charring to the wall studs, the ceiling joist above and underside of the subfloor” which was comparatively more severe than the damage to the respective areas around the sump pump, indicating a longer burn time by the bathroom wall.

(id. at 4-5.) He pointed to the electrical power strip that was attached to the wall outside of the bathroom that “sustained heavy fire damage,” as well as “damage to the plugs and electrical cords that were plugged into it” and “[a]n extensively damage[d] electric heater [ ] to the left of the power strip” as possible causes of the fire. (/d. at 9-10.)! B. Examination of the Sump Pump The sump pump itself was removed from the basement before either Schlegel or Graham investigated the scene. (See Fire Marshal R. at 26; Schlegel R. at 5; Graham Dep. at 92:8—-16, ECF No. 35-5.) Evidence Management Center—a company owned by Graham—teceived the sump pump on May 15, 2018. (Graham Dep. at 55:19-21, ECF No. 32-2; Chain of Custody R., Pl.’s Ex. G, ECF No. 35-8.) By letter dated August 9, 2018, CSAA notified Wayne Water that it was “investigating a fire loss that occurred in [its] insured’s home involving a Wayne sump pump” and was “placing [Wayne Water] on notice of [CSAA’s] subrogation interest in the [ ] loss and request to coordinate a joint inspection of the failed unit.” (Pl.’s Ex. A, ECF No. 35-2.) On October 23, 2018, representatives of both parties jointly investigated the sump pump at Evidence Management Center’s facility. (Sign in Sheet, Pl.’s Ex. H, ECF No. 35-9; Graham Dep. at 134:20-22, ECF No. 32-2; Graham R. at 8.) Graham participated in the examination on behalf of CSAA, along with Peck and other representatives of Wayne Water, including its Vice President of Engineering, a compliance engineer, and an attorney, (Sign in Sheet.)? Wayne Water identified the sump pump’s

1 The parties dispute whether these devices should have been preserved. Peck stated that the failure to preserve and test these items—specifically, the power strip, the electric heater, and the three electrical devices plugged into the power strip—did not comply with the “basic methodology of fire investigation outlined in NFPA 921[.]” (Peck R. at 11.) Graham disagreed with Peck’s opinion that the “basic methodology of 921” was not followed because potential . “ignition sources outside of the area of origin [ ] can be evaluated on-site” and “if they don’t exhibit [ ] that they’re a source of the fire, then they’re not collected.” (Graham Dep. at 157:11-12, 157:20-158:1, ECF No, 35-5.) Graham’s associate Oscar Zalamia also took photos of the sump pump on October 25, 2023, which Graham used in his report. (Zalamia Dep. at 49;20-50;1, Def.’s Ex. 7, ECF No. 32-8; Graham Dep. at 68:15-69:3, ECF No. 32-2.)

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CSAA Affinity Insurance Company v. The Scott Fetzer Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csaa-affinity-insurance-company-v-the-scott-fetzer-company-mdd-2023.