Hanks v. Entergy Corp.

921 So. 2d 1130, 2006 La. App. LEXIS 230, 2006 WL 231684
CourtLouisiana Court of Appeal
DecidedFebruary 1, 2006
Docket40,486-CA
StatusPublished
Cited by1 cases

This text of 921 So. 2d 1130 (Hanks v. Entergy Corp.) 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
Hanks v. Entergy Corp., 921 So. 2d 1130, 2006 La. App. LEXIS 230, 2006 WL 231684 (La. Ct. App. 2006).

Opinion

921 So.2d 1130 (2006)

H.H. HANKS, et al., Plaintiffs-Appellees,
v.
ENTERGY CORPORATION, et al., Defendants-Appellants.

No. 40,486-CA.

Court of Appeal of Louisiana, Second Circuit.

February 1, 2006.

*1132 The Boles Law Firm by Walter C. Dunn, Monroe, for Appellants.

Crawford & Anzelmo by Brian E. Crawford, Monroe, Kleinpeter & Kleinpeter by R. Loren Kleinpeter, Baton Rouge, for Appellees.

Before BROWN, CARAWAY and LOLLEY, JJ.

CARAWAY, J.

The owners and insurer of a camp located on Lake D'Arbonne instituted suit against Entergy Louisiana Inc. ("Entergy") seeking reimbursement for insurance proceeds paid and damages which exceeded *1133 insurance coverage as the result of lightning that precipitated a fire and destroyed the camp. The plaintiffs alleged that during a storm, a lightning strike hit near an Entergy service pole adjacent to their camp and caused a high-powered electrical current to traverse the line starting a fire. The plaintiffs contend that a lightning arrester on the service pole failed to ground the strike. Entergy contends that the massive lightning strike, recorded in this case as an extraordinarily large strike, constitutes an Act of God. After a three-day trial, the court ruled in favor of the plaintiffs, finding a defective arrester. Entergy has appealed. We reverse.

Facts

On the morning of April 3, 2000, a thunderstorm occurred near Lake D'Arbonne in Union Parish, Louisiana. Lightning from the storm destroyed the electrical transformer serving plaintiffs' lake home and also caused a fire in the home which destroyed it. According to lightning verification data submitted into evidence,[1] during the storm, at approximately 6:17 a.m., an intense lightning strike measuring 87.9 kiloamps ("KA") occurred. A strike of this magnitude is in the upper 2% range of lightning strikes. The evidence from the lightning data network indicated that the lightning hit within 3/10 of a mile of the lakehouse owned by H.H. Hanks, Jacqueline James Hanks, J.B. Hanks, William Hanks, Lewis Hanks, and Traci Hanks ("the Hanks") and insured by Encompass Insurance Company (formerly CNA Insurance Company). The exact location of the strike, however, is disputed. While other lightning strikes of lesser intensity also occurred, the experts all agree that this massive strike was the probable cause of the damage to the camp.

Electrical service to the camp was provided by Entergy Louisiana, Inc. ("Entergy"), which owned and maintained a transformer and lightning arrester located on a pole 90 feet from the camp and attached to the Entergy distribution lines leading to the camp. The transformer reduces the higher voltage from the distribution line to allow standard (120/240) volt service for the dwelling.

The surge arrester, which is at the center of this dispute, is a large vertical cylindrical porcelain device which is bolted to the side of the transformer and protects it from high voltage surges by diverting the excess voltage to the ground away from the transformer. (See long tubular device on the side of the transformer in the diagram, Plaintiff's Exhibit 4, attached as Appendix I). When voltage greater than threshold voltage is impressed across the arrester, the apparatus acts like a switch and directs the high voltage current to a grounding mechanism extending down the pole to a rod driven in the ground. When the surge ends, the device switches back to the line, isolating it from the ground.

All experts agreed that the 27KV distribution class, silicon carbide lightning arrester (surge suppressor) installed at the location was appropriate for the dwelling. There is no assertion by Hanks that Entergy owed the obligation of installing an arrester with a greater capacity. The expert testimony also showed that lightning arresters are installed with all Entergy transformers because lightning hits nearly all transformers on an average of twice a year in Louisiana. The arresters are also required to work for protection against unexpected surges of power along the distribution system. Causes of arrester failure *1134 include design failures, lack of internal parts, disconnected or loose bottom or ground connections, or depletion of the internal metal oxide of the switching device which results from numerous strikes. The subject transformer had been placed at the dwelling in 1996 and Entergy had received no requests for repairs nor complaints about the device since that time. The evidence also showed that Entergy employees commonly replace arresters and transformers, although no standing instructions as to inspection of the devices exist. Rather, Entergy employees are instructed to visually inspect equipment as they perform their regular duties.

Excerpts from an Entergy engineering manual which was relied upon by both sides became central to the dispute over the location of the lightning strike. The data from the manual were revealed in the report of Entergy's expert, Frederick Brooks. His September 18, 2003 report stated:

The Entergy Engineering Design/Practices Manual states, "A lightning stroke to a power line will usually result in the current being distributed over several paths with current flowing through any single arrester about 1/10 the total stroke current." The paragraph also includes the text, "Very high current lightning strokes or a direct stroke to the arrester could cause destructive currents to flow through the arrester." (Emphasis in original document.)

Entergy employees who visited the location for the first time on April 8, 2000, found significant damage to the transformer. The bottom of the steel tank had been blown out. The experts of both sides agreed that such destruction of the tank by lightning was as great as they had ever witnessed. A photograph taken during that initial site visit showed that the arrester, however, sustained no apparent damage. That photograph (Def.Ex.2) is the only remaining evidence of the arrester preserved for trial. Critically, while the damaged transformer was retained, Entergy failed to physically examine or retain the arrester. This action became the subject of a spoliation of evidence claim by plaintiffs which is addressed below.

In March 2001, the Hanks and Encompass, as subrogee, instituted a suit for damages against Entergy and Howard, the manufacturer of the transformer, alleging that Entergy negligently failed to maintain and inspect the electrical equipment servicing the dwelling. The matter proceeded to trial only on the issue of Entergy's negligence in failing to properly maintain and inspect the surge arrester which allegedly caused the destruction of the Hanks' camp.[2] After reviewing the evidence and testimony, the trial court ruled in favor of the Hanks and Encompass, rejecting claims by the Hanks regarding spoliation of evidence and the application of res ipsa loquitur. The trial court concluded that because of lack of damage to the arrester, it failed to operate resulting in a breach of Entergy's duty to the plaintiffs. This appeal by Entergy ensued.

Discussion

I.

On appeal, the Hanks contend that the trial court erred in concluding that the evidence failed to support a finding of spoliation of evidence. Where a litigant fails to produce evidence available to him and he does not provide a reasonable explanation, the presumption is that evidence would have been unfavorable. That presumption does not apply where the litigant explains the failure to produce the evidence. Small v. Baloise Ins. Co. Of America, 96-2484 (La.App.

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Related

Hanks v. Entergy Corp.
944 So. 2d 564 (Supreme Court of Louisiana, 2006)

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Bluebook (online)
921 So. 2d 1130, 2006 La. App. LEXIS 230, 2006 WL 231684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanks-v-entergy-corp-lactapp-2006.