Cutrer v. Illinois Cent. Gulf R. Co.

581 So. 2d 1013, 1991 WL 91030
CourtLouisiana Court of Appeal
DecidedMay 16, 1991
Docket90 CA 0088
StatusPublished
Cited by7 cases

This text of 581 So. 2d 1013 (Cutrer v. Illinois Cent. Gulf R. Co.) 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
Cutrer v. Illinois Cent. Gulf R. Co., 581 So. 2d 1013, 1991 WL 91030 (La. Ct. App. 1991).

Opinion

581 So.2d 1013 (1991)

Jerry CUTRER and Jerry Cutrer, d/b/a G & J Drive-In, Sharon Cutrer, Donise Cutrer, Jeffrey Cutrer and Jerry Cutrer, Individually and as Administrator of the Estate of his Minor Child, Dennis Cutrer
v.
ILLINOIS CENTRAL GULF RAILROAD COMPANY, Elgin, Joliet and Eastern Railway Company, Edward Peyton Robertson, Jr., Janet Brumfield Byrd and James Russell Reeves.

No. 90 CA 0088.

Court of Appeal of Louisiana, First Circuit.

May 16, 1991.
Rehearing Denied July 31, 1991.

*1015 John C. Reynolds, New Orleans, for defendant Illinois Cent. Gulf R. Co.

Mary Barrios, Lewis Unglesby, Baton Rouge, for plaintiffs, Jerry Cutrer, et al.

Before SAVOIE, CRAIN and FOIL, JJ.

SAVOIE, Judge.

This appeal presents another claim arising from the devastating Livingston train derailment on September 28, 1982. This case presents two issues: whether settlement agreements entered into between the plaintiffs and the defendant Illinois Central Gulf Company (the Railroad) extinguished the plaintiffs' causes of action; and whether the damages awarded by the trial judge were proper. We find that the settlement agreements do not bar the plaintiffs' causes of action. We further find that the trial judge's award of damages was proper as to some items and improper as to others.

FACTS

On September 28, 1982, at about 5:15 a.m., an Illinois Central Gulf (ICG) train derailed on the tracks adjacent to Highway 190 in Livingston. When the train derailed, there was an explosion and fire involving the hazardous chemicals the train was transporting.

The explosion awoke the Cutrers—Jerry and his wife, Sharon, and their three children, Donise, Jeffrey, and Dennis. The Cutrers lived on Texas Street, about a half to five-eighths of a mile from the derailment site. After hearing the explosion the Cutrers saw a red glow in the sky near the derailment site. They immediately fled Livingston. The entire town was later evacuated, and the inhabitants could not return until October 12, 1982.

When the plaintiffs returned to Livingston, they had to thoroughly clean their home and their business, the G & J Drive-In. The G & J is a fast food sandwich shop with a separate room offering video games and two pool tables; the G & J is on Highway 1500, about 600 feet from the derailment site. The G & J was closed throughout the evacuation period and then for two more weeks afterwards while the Cutrers cleaned and repaired it and replaced the spoiled inventory.

*1016 Although the inhabitants were allowed to return to Livingston, Highway 190 remained closed due to protracted clean-up work and decontamination of the area near the derailment. The road remained closed until November 16, 1983. When Jerry Cutrer reopened the G & J on October 19, 1982, patrons could only reach the drive-in from roads to the side and rear of the business. When the business re-opened, Jerry, Sharon and Jeffrey Cutrer worked many more hours than they did before the derailment.

Because the Cutrers sustained damage to their home and business, they entered into a series of settlements with the Railroad. On October 13, 1982, the Railroad advanced Jerry Cutrer $2,000.00 as an advancement of wages and expenses incurred due to the derailment. (It is not contended that this is a final settlement). On October 22, 1982, the Railroad executed a check payable to Jerry Cutrer, d/b/a G & J Drive-In for $37,090.12. On December 8, 1982, a check for $18,175.00 payable to Jerry and Sharon Cutrer was executed. On January 26, 1983, a check payable to Jerry Cutrer d/b/a J.E.T. Amusement Co. for $37,784.00 was executed. On June 27, 1983 a check for $30,000.00 payable to Jerry Cutrer was executed. These last four checks all contained language that indicated they were final settlements. The Railroad also executed a check for $784.00 on October 20, 1982 payable to Jeffrey Cutrer and one for $784.00 payable to Donise Cutrer on November 13, 1982; these two checks bore final settlement language.

The Cutrers also received payment from their homeowner's insurance of $6,464.19 less their $250.00 deductible for damages to their home. The Railroad paid the homeowner's insurer this amount at a later date.

TRIAL

The plaintiffs filed suit seeking additional recoveries. The case went to trial before a judge against the Railroad; Elgin, Joliet and Eastern Railway Co.; and Edward Robertson.[1] Liability was stipulated.

Following trial on the merits, the judge awarded the Cutrers damages as follows:

To Jerry and Sharon Cutrer
(a)  Damage to their family home                     $30,859.00
(b)  Replacement cost less depreciation
      of G & J Drive-In
      ($115,238.00 less 1/3 depreciation)
      for a net award of                             $76,825.33
(c)  Loss of business income                         $20,000.00
(d)  Additional labor expended in
      mitigation of damages for
      repair work to G & J                           $32,850.00
(e)  Mitigation labor expended in
      running the business                           $12,104.00 each
(f)  Mental anguish, evacuation,
      and emotional distress                         $50,000.00 each
(g)  Immediate repairs to G & J
      after the derailment                           $ 1,651.65
(h)  Loss of inventory and supplies                  $ 2,854.97
(i)  Equipment damage (Fresh-O-Matic)                $   564.00
(j)  Motor repair                                    $    99.50
(k)  Loss of business income for a
      75-day period during building
      demolition and construction                    $ 8,018.42
     (computed from plaintiffs' exhibit # 16, 1987
     income tax return utilizing schedule C gross
     income figure of $41,157.75)

The foregoing awards will be reduced by amounts previously paid by the railroad in the amount of $131,578.19.

To Jeffrey Cutrer:
(b)  Expenses in mitigating damages        $ 6,968.00
The foregoing awards will be reduced by
the amount of $840.00 previously paid.
To Donise Cutrer:
(a)  Evacuation, mental anguish, and
      distress                             $10,000.00
The foregoing award will be reduced by
the amount of $784.00 previously paid.
To Dennis Cutrer:
(a)  Evacuation, mental anguish, and
      distress                             $ 7,500.00

ASSIGNMENTS OF ERROR

From this judgment, the Railroad appeals, urging nineteen specifications of error. We summarize the Railroad's assignments of error as follows:

*1017 1. The trial court erred in finding that the settlements that Jerry, Sharon, Donise, and Jeffrey Cutrer entered into with the Railroad did not bar their claims for property damages to their business and home, business losses, and mental anguish.

2. The trial court erred in finding that the Cutrers' business losses exceeded the amount the Railroad previously paid them.

3. The trial court erred in awarding the Cutrers $20,000.00 for past loss of business income and in basing this award on net profits rather than gross profits.

4. The trial court erred in finding that the damages to the G & J Restaurant were due to the derailment.

5. The trial court erred in concluding that the G & J Drive-In was damaged so badly that it could not be adequately repaired.

6. The trial court erred in basing its award for damages to the G & J Drive-In on replacement value of the building less depreciation.

7.

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Bluebook (online)
581 So. 2d 1013, 1991 WL 91030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cutrer-v-illinois-cent-gulf-r-co-lactapp-1991.