Great Am. Surplus Lines Ins. Co. v. Bass

486 So. 2d 789
CourtLouisiana Court of Appeal
DecidedApril 29, 1986
DocketCA 84 0955
StatusPublished
Cited by12 cases

This text of 486 So. 2d 789 (Great Am. Surplus Lines Ins. Co. v. Bass) 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
Great Am. Surplus Lines Ins. Co. v. Bass, 486 So. 2d 789 (La. Ct. App. 1986).

Opinion

486 So.2d 789 (1986)

GREAT AMERICAN SURPLUS LINES INSURANCE CO. and Caribbean Pools, Inc.
v.
George BASS and Bass Industries, Inc.

No. CA 84 0955.

Court of Appeal of Louisiana, First Circuit.

March 25, 1986.
Dissenting Opinion April 29, 1986.
Writ Denied June 6, 1986.

*790 Maurice P. Mathieu, Houma, for plaintiff, Great American Surplus Lines Ins. Co.

William F. Dodd, Houma, for defendant, George Bass.

Donna Cobb and Leopold Babin, Houma, for Bass Industries, Bass Refrigeration, Marine Supply & Home Ins. Co.

Joseph A. Reilly, Jr., Houma, for Carribean Pools.

John W. Waters, Jr., New Orleans, for Great Southwest Fire Ins. Co.

Russell O. Ayo, Thibodaux, for intervenor, Point Coupee Lumber Co.

Before COLE, CARTER, SAVOIE, LANIER and ALFORD, JJ.

ALFORD, Judge.

This is an appeal from a judgment dismissing both the principal and incidental demands for damages sustained in a fire which occurred on July 23, 1980, in a building owned by George Bass and occupied by Bass Tire Service and Carribean Pools, Inc.

In the original action, the plaintiffs, Carribean Pools, the lessee of the damaged building and their property insurer, Great American Surplus Lines Co., sought recovery from the defendants, George Bass and his corporations, Bass Industries, Inc. and Bass Refrigeration and Marine Supply, Inc., under the theory of lessor-owner strict liability. In the reconventional demand, Home Insurance Company, the principal defendants' insurer, sought recovery from Carribean and its liability insurer, Great Southwest Fire Insurance Company, alleging that the lessee's negligence caused the fire and that lessee had contractually assumed responsibility for its portion of the building's electrical system. After hearing testimony and reviewing the evidence, the trial judge determined that neither the original plaintiffs nor the plaintiffs in reconvention proved their cases by a preponderance of the evidence. Therefore, the court dismissed all demands. We disagree in part and reverse as to the principal demand.

FACTS

On February 18, 1980, George Bass leased a portion of a building owned by him individually to Carribean Pools, Inc., a company that was wholly owned by William Lerwick. Carribean was to use the leased portion of the building for the manufacture and sale of above ground swimming pools.

The area leased to Carribean was an empty shell. Mr. Bass agreed to have employees of one of his corporations, Bass Refrigeration and Marine Supply, Inc., renovate the premises to meet the physical layout, electrical and plumbing requirements of Carribean. The written lease executed by both parties contained the following provisions in regard to the premises, once the renovation was completed.

Lessor agrees to maintain the structural soundness of the building, including the roof, exterior walls, and the slab, except for conditions or damage caused by the negligence or acts of lessee, their agents or persons acting pursuant to their direction and control. Lessee agrees to maintain the interior of the building, in good repair, including the walls, floors, plumbing, electrical wiring, fixtures, heating and airconditioning units, and plate glass.
Lessee may install or cause to be installed such equipment and trade and other fixtures as are reasonably necessary for the operation of his business.

Shortly after occupying the premises in February, Carribean experienced trouble with the air conditioning system tripping the circuit breakers. Employees from Bass Refrigeration repaired the system, a process which took more than a month. Carribean also started experiencing trouble with *791 circuit breakers tripping while its employees were using electric power tools such as saws and drills. Testimony showed that whenever the blade of a saw would bind, it would trip the corresponding circuit breaker.

Carribean started business with two employees in addition to Mr. Lerwick. As summer approached, business increased and Carribean hired additional personnel, up to a total of 14. In June of 1980, Carribean rented additional space in the same building in an effort to expand its production facilities. In order to reach the additional space, employees of Carribean tore down part of a partition to which electrical receptacles were attached. The operation required Carribean personnel, including Mr. Lerwick, to relocate the receptacles to a position on a post near a workbench.

Because of the increase in Carribean's business, the electric power tools and several extension cords were in continual use during working hours. The constant use of this equipment caused the circuit breakers to trip more often, to the point of seven to eight times during a work day. Mr. Lerwick complained to Mr. Bass several times about Carribean's electrical problems. As a result of these complaints, one of Bass Refrigeration's non-licensed electricians, Kim Burton, inspected Carribean's facility several times and determined that the existing circuits were overloaded due to the machinery in use. Two days before the fire, Mr. Burton installed two additional 110 volt circuits and two 20-amp circuit breakers in Carribean's work area. Mr. Burton placed the receptacles for the two additional circuits on the same post as the relocated receptacles. Mr. Burton's supervisor at Bass Refrigeration, Lee Bergeron, testified that he inspected Mr. Burton's work and that it was done properly.

After working hours on July 23, 1980, a fire caused extensive damage to the building. Approximately one month after the fire, Mr. Lerwick left the state and moved to New York where he had previously resided. He failed to pay two of his suppliers, Pointe Coupee Lumber Company, Inc. and Weaver Lumber and Supply Company, Inc., for construction materials received by him. Both companies secured default judgments against Carribean for the monies owed. Mr. Lerwick has never attempted to reestablish his business in Louisiana.

As a result of the fire, Great American, as Carribean's property insurer under a contents policy, determined that Carribean had suffered a contents loss of $80,674.18. They paid Carribean their policy limits of $70,000 and secured the salvage and subrogation rights. Home Insurance Company, as the building and contents insurer of Mr. Bass's corporations, determined that the property had suffered a loss in the amount of $87,889.15. They paid $72,768.75 to Mr. Bass after applying their co-insurance penalty and the $100 deductible, and secured subrogation rights. The suit before us now is an attempt by both insurance companies to recover under their subrogation agreements and by Carribean and Mr. Bass to recover for their uncompensated damages.

ORIGIN OF FIRE

In his reasons for judgment, the trial judge made the following determination:

The totality of the evidence indicates that the fire was caused by improper matching of breakers and wiring. Amperage ratings in the breakers exceeded what it should have been, given the gauge of the wire. This proximately caused the fire and resulting damage.

The trial court's findings of fact should not be disturbed on appeal, absent a finding of manifest error. Arceneaux v. Domingue, 365 So.2d 1330 (La.1978). Expert testimony adduced at trial indicated that the fire originated in Carribean's work area, with the point of origin being the post next to the workbench. This is the area where receptacles had been placed by employees of both the lessor and lessee. Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
486 So. 2d 789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-am-surplus-lines-ins-co-v-bass-lactapp-1986.