Hertz Corporation v. Gaddis-Walker Electric Inc.

125 F.3d 862, 1997 U.S. App. LEXIS 33837
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 2, 1997
Docket96-6022
StatusPublished
Cited by1 cases

This text of 125 F.3d 862 (Hertz Corporation v. Gaddis-Walker Electric Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hertz Corporation v. Gaddis-Walker Electric Inc., 125 F.3d 862, 1997 U.S. App. LEXIS 33837 (10th Cir. 1997).

Opinion

125 F.3d 862

97 CJ C.A.R. 2185

NOTICE: Although citation of unpublished opinions remains unfavored, unpublished opinions may now be cited if the opinion has persuasive value on a material issue, and a copy is attached to the citing document or, if cited in oral argument, copies are furnished to the Court and all parties. See General Order of November 29, 1993, suspending 10th Cir. Rule 36.3 until December 31, 1995, or further order.

HERTZ CORPORATION, Plaintiff-Appellee,
v.
GADDIS-WALKER ELECTRIC INC., Defendant-Appellant.

Nos. 96-6022, 96-6136.

United States Court of Appeals, Tenth Circuit.

Oct. 2, 1997.

Before BALDOCK, BRORBY, and MURPHY, Circuit Judges.

ORDER AND JUDGMENT*

This appeal arises from a jury verdict entered in favor of the Hertz Corporation ("Hertz") against Gaddis-Walker Electric, Inc. ("Gaddis-Walker") for negligent damage to property and foreseeable monetary damages. Gaddis-Walker has instituted two separate appeals: No. 96-6022 on liability and damages; and No. 96-6136 on the award of attorneys' fees to Hertz.

In the former, Gaddis-Walker makes the following claims: 1) the judgment requires reversal because (a) Hertz failed to offer sufficient evidence of the fact that it sustained damages, (b) Hertz failed to offer sufficient evidence that Gaddis-Walker's negligence caused Hertz's damages, (c) Hertz failed to offer sufficient evidence of the measure of its damages, and (d) the district court improperly instructed the jury on damages; 2) the district court erred in instructing the jury on negligence per se; and 3) the district court erred in refusing to instruct the jury on spoliation of evidence. In its appeal of the attorneys' fees, Gaddis-Walker claims that Hertz's attorneys' fees for its lost profits claims are not recoverable as "property damages" under Okla. Stat. Ann. tit. 12, § 940 and that Hertz is not entitled to any attorneys' fees for its property damage claim after the date of Gaddis-Walker's offer of judgment.

This court exercises jurisdiction pursuant to 28 U.S.C. § 1291 and AFFIRMS the judgment and award of attorneys' fees entered in the United States District Court for the Western District of Oklahoma.

FACTUAL BACKGROUND

Hertz processes all of its car rental reservations from the Hertz Worldwide Reservation Center ("the Center") in Oklahoma City. As part of an expansion of the Center, Hertz prepared to shut down its computer system for approximately eight hours on December 6, 1992. During this scheduled outage, Hertz planned to move two "power islands" which supplied power to Hertz's computer equipment. Hertz contracted with Gaddis-Walker to perform this relocation.

At trial, Hertz presented evidence that after relocating the power islands, Gaddis-Walker improperly rewired them. As a result, Hertz's computer equipment was damaged and Hertz claimed substantial profit losses. Specifically, Hertz presented evidence that Jack Boggs, a Gaddis-Walker employee, mistakenly hooked a ground wire to a phase terminal and a phase wire to a ground terminal. After this miswiring, the Gaddis-Walker electricians turned on the circuit breaker and several cycles of high voltage electricity were sent through the power island into Hertz's center computer cabinet. The Gaddis-Walker employees determined they had made an error in wiring and rewired the power island; everything subsequently appeared to function normally. Later that morning, however, when Hertz employees attempted to power up the computer system, the computers did not function properly.

The Unisys Corporation, supplier of Hertz's computer hardware, determined that six computer circuit boards were damaged and needed to be replaced. As a result, Hertz's computer system was off-line until 9:00 a.m. on December 7, 1992, instead of for only the planned eight hours on the morning of December 6, 1992. Hertz brought this action against Gaddis-Walker for negligence and a verdict was returned in Hertz's favor. Gaddis-Walker now appeals.

ANALYSIS

I. APPEAL NO. 96-6022

A. Damages

Gaddis-Walker claims the district court erred in denying its motions for judgment as a matter of law on damages and Hertz's purported failure to prove causation. Specifically, Gaddis-Walker asserts there was insufficient evidence of the fact of damages, of the causation of damages, and of the measure of damages. Gaddis-Walker further claims the district court abused its discretion in refusing Gaddis-Walker's proposed jury instructions regarding damages. We review the district court's denial of Gaddis-Walker's motions de novo and its refusal to give proposed instructions for an abuse of discretion. See Sheets v. Salt Lake County, 45 F.3d 1383, 1387 (10th Cir.1995) (denial of judgment as a matter of law reviewed de novo ); United States v. Lee, 54 F.3d 1534, 1536 (10th Cir.1995) (applying abuse of discretion standard to district court's rejection of proposed jury instructions).

1. Fact of Damages

To recover damages, a plaintiff must prove that it is reasonably certain a loss occurred. Keener Oil & Gas Co. v. Stewart, 45 P.2d 121, 122 (Okla.1935).

Although Gaddis-Walker contends otherwise, it is clear there was competent proof for a jury to determine with reasonable certainty that Hertz sustained damages. There was ample evidence to show that due to the miswiring, Hertz's computer boards were damaged. A witness from Unisys testified that the six computer boards were damaged and required replacement. Gaddis-Walker's own experts confirmed that the miswiring would have caused unwanted electricity to flow through the communications cables to the computer boards. The district court did not err in determining the evidence was sufficient to show that Hertz sustained damages.

2. Causation of damages

Gaddis-Walker claims Hertz failed to present sufficient evidence that its negligent wiring caused Hertz's injuries. Whether the plaintiff has presented sufficient evidence of causation for submission to the jury is a matter of law for the court. See Houston v. Reich, 932 F.2d 883, 888 (10th Cir.1991). The court must be satisfied a jury could determine plaintiff's injury was caused by the defendant's negligence rather than by any other cause. See Wego Perforators v. Hilligoss, 397 P.2d 113, 115 (Okla.1964).

Gaddis-Walker's causation challenge is threefold: (1) Hertz's only evidence of causation was that the computers worked before the negligent rewiring and did not work after; (2) because the computer boards were not available for review at trial, Hertz was unable to demonstrate either causation or damages; and (3) there was insufficient foundation for the testimony of Hertz's expert. Gaddis-Walker relies on Downs v. Longfellow Corp., an Oklahoma case which held that expert testimony and circumstantial evidence were insufficient to prove a fire was caused by a circuit overload.

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