Halderson v. N. States Power Co.

2018 WI App 54, 918 N.W.2d 644, 383 Wis. 2d 786
CourtCourt of Appeals of Wisconsin
DecidedJuly 24, 2018
DocketAppeal No. 2017AP2176
StatusPublished

This text of 2018 WI App 54 (Halderson v. N. States Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halderson v. N. States Power Co., 2018 WI App 54, 918 N.W.2d 644, 383 Wis. 2d 786 (Wis. Ct. App. 2018).

Opinion

STARK, P.J.

¶ 1 Paul Halderson, Lyn Halderson, and Arctic View Farms, LLC, (collectively, the Haldersons) filed this lawsuit against Northern States Power Company d/b/a Xcel Energy Services, Inc., (NSP) alleging that "stray voltage" attributable to NSP caused damage to the health and productivity of the Haldersons' dairy herd. A jury ultimately found in favor of the Haldersons on their negligence and private nuisance claims and awarded them just under $4.5 million in damages. The jury also made a finding of willful, wanton, or reckless conduct on the part of NSP, triggering the Haldersons' entitlement to treble damages under WIS. STAT. § 196.64(1) (2015-16).1

¶ 2 On appeal, the Haldersons argue the circuit court erred by granting NSP's motion for a directed verdict on their treble damages claim. NSP cross-appeals, arguing the Haldersons failed to prove negligence. In the alternative, NSP argues it is entitled to a new trial based on: (1) an erroneous jury instruction; and (2) the Haldersons' attorney's failure to reveal his past professional relationship with an uncle of one of the jurors.

¶ 3 We conclude the circuit court properly granted NSP a directed verdict on the Haldersons' treble damages claim because the evidence at trial was insufficient for a reasonable jury to find, by clear and convincing evidence, that NSP's conduct was willful, wanton, or reckless. In contrast, we reject NSP's argument that the Haldersons failed to prove negligence. We further conclude NSP forfeited its objections to the allegedly erroneous jury instruction. Finally, we conclude NSP is not entitled to a new trial based on the Haldersons' attorney's conduct because the juror in question was removed from the jury panel prior to deliberations at NSP's request, and NSP did not move for a mistrial. We therefore affirm the circuit court's judgment in all respects.

BACKGROUND

¶ 4 The Haldersons own and operate a dairy farm in Galesville, Wisconsin. In April 2012, the Haldersons filed suit against their feed supplier, Star Blends, LLC, alleging it had supplied toxic feed that caused illness and death among the Haldersons' dairy cattle. In a second amended complaint filed in October 2012, the Haldersons added NSP as a defendant, asserting claims against it for negligence and nuisance. The Haldersons alleged their farm "was accessed by stray electricity and earth current" from NSP's distribution system, which resulted in "decreased milk production at their farm," as well as "injury and damage to their dairy herd." The Haldersons ultimately filed a third amended complaint, which added an assertion that they were entitled to treble damages under WIS. STAT. § 196.64 because NSP's conduct was willful, wanton, or reckless.

¶ 5 The North Dakota Supreme Court has described the scientific principles underlying "stray voltage" as follows:

All electricity leaving an electrical substation must return to that substation in order to complete a circuit. Unless that circuit is completed, electricity will not flow. The current leaves the substation on a high voltage line which eventually connects to some electrical "appliance." After exiting the "appliance" that current must return to the substation. The neutral-grounded network provides the returning current two choices. Either it can return via the neutral line, which accounts for the second wire on our electrical poles, or it can return through the ground. These two pathways comprise the grounded-neutral network. Electricity flows through the path of lowest resistance. If there exists more resistance in the neutral line than in the ground, the current will flow through the ground to return to the substation.
Neutral-to-earth voltage or stray voltage will occur when current moves from either the neutral line to the ground or from the ground to the neutral line. It uses a cow as a pathway if that animal happens to bridge the gap between the two. A cow's hooves provide an excellent contact to the earth while standing on wet concrete or mud, while at the same time the cow is contacting the grounded-neutral system consisting of items such as metal stanchions, stalls, feeders, milkers, and waterers. The current simply uses the cow as a pathway in its eventual return to the substation.

Larson v. Williams Elec. Co-op. , 534 N.W.2d 1, 1 n.1 (N.D. 1995).

¶ 6 It is undisputed that stray voltage can be harmful to dairy cattle. In 1987, legislation was enacted requiring the Wisconsin Public Service Commission (PSC) to "establish and administer a program to provide to farmers on-site technical assistance related to stray voltage." 1987 Wis. Act 399, § 404. The PSC subsequently commenced proceedings "to gather information about stray voltage." In August 1989, the PSC issued an order (Docket 106) finding that stray voltage "can cause stress and behavioral impacts through stress on animals to the point where the animal is reluctant to eat and drink, thereby causing milk production to decrease as well as creating the circumstances for additional physical and manageability problems." The PSC further found that these problems "can cause serious economic hardship to a farmer or can indirectly result in an animal's death." The PSC established "1 milliampere steady state" as the "level of concern" for stray voltage-that is, "the point at which the average cow's behavior may be adversely affected."2

¶ 7 In 1990, the PSC reopened Docket 106 and held:

If the utility system is causing stray voltage in the cow contact area[3 ] greater than 1.0 milliampere and the utility fails to mitigate the stray voltage problem in a manner required by this Order and the Commission's order of August 10, 1989, the utility is not providing adequate service to that customer.

In a subsequent, July 1996 order (Docket 115), the PSC reaffirmed that a utility is "responsible for keeping its contribution of stray voltage to 1.0 [milliampere] or less."

¶ 8 A twelve-day jury trial on the Haldersons' claims against NSP took place in July and August 2017.4 At trial, the Haldersons presented evidence that, during the early to mid-1990s, their cattle were not producing as much milk as they anticipated. Paul Halderson therefore contacted NSP and asked it to test the Haldersons' farm for stray voltage. In March 1996, Roger O'Neil, a master electrician employed by NSP, visited the Haldersons' farm to test for stray voltage. Paul Halderson reported to O'Neil that his cattle had been exhibiting various symptoms for three years, including nervousness, uneven milkout, longer milking time, reluctance to enter the barn/parlor, and heightened somatic cell counts in their milk.5 After completing his investigation, O'Neil informed the Haldersons there were "no significant issues with stray voltage" on their farm.

¶ 9 O'Neil again tested for stray voltage on the Haldersons' farm in August 2005, April 2006, and February 2009. After each investigation, O'Neil told the Haldersons that he had not detected problematic levels of stray voltage. In the meantime, however, the condition of the Haldersons' cows continued to deteriorate. Paul Halderson testified that, by 2010, the issues with his cattle "became severely worse." He explained:

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Bluebook (online)
2018 WI App 54, 918 N.W.2d 644, 383 Wis. 2d 786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halderson-v-n-states-power-co-wisctapp-2018.