Hynes v. Energy West, Inc.

211 F.3d 1193, 2000 Colo. J. C.A.R. 2480, 54 Fed. R. Serv. 501, 2000 U.S. App. LEXIS 8632, 2000 WL 525961
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 2, 2000
Docket98-8023
StatusPublished
Cited by40 cases

This text of 211 F.3d 1193 (Hynes v. Energy West, 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
Hynes v. Energy West, Inc., 211 F.3d 1193, 2000 Colo. J. C.A.R. 2480, 54 Fed. R. Serv. 501, 2000 U.S. App. LEXIS 8632, 2000 WL 525961 (10th Cir. 2000).

Opinion

EBEL, Circuit Judge.

Plaintiffs-Appellees Randy and Melissa Hynes (the “Hynes”) brought an action against Defendant-Appellant Energy West, Inc. (“Energy West”) after the Hynes were injured when natural gas that had accumulated in their apartment building exploded. The Hynes alleged negligence and willful and wanton conduct on the part of Energy West. At trial, the jury found in favor of the Hynes and awarded them compensatory damages. Energy West appeals the judgment of the district court on the grounds of improper jury instructions, improper comments by the *1196 district court to the jury, improper admission of expert testimony, improper application of Wyoming Statutes § 37-12-302, and excessive damages. We AFFIRM on all issues.

BACKGROUND

On February 3, 1996, a natural gas explosion occurred at the Cedar Ridge Apartments in Cody, Wyoming. Melissa and Randy Hynes, residents of the building, were injured by the explosion. Cody Gas Company, the supplier of the natural gas, is a division of Energy West.

This explosion appears to have resulted from the following course of events. On the night of February 3, a small explosion occurred in the apartment of other tenants in the apartment building, Troy Wiant and Mark Ekberg. Specifically, flames burst out of the electric baseboard heater when Ekberg switched off the light in the bathroom. Following this explosion, Ekberg notified the Cody Fire Department and the dispatcher, Jason Herbert, paged Fire Chief Jerry Parker, directing him to the scene. Parker asked Wiant and Ekberg if the Cedar Ridge Apartments had natural gas service and they correctly informed Parker that the apartments do not utilize natural gas. Parker did not test for gas with the gas detector he had brought with him, however. In an attempt to shut off the power to the baseboard heater, Parker began switching off circuit breakers and, as a result, sparked a second explosion. The Hynes were injured in the second explosion, which destroyed the apartment building. Both were treated at the Salt Lake City Burn Unit for their burns.

The parties agree that natural gas most likely leaked into the apartment building through the following means. In 1954, a gas pipeline was installed on private property adjacent to the Hynes’ apartment building. 1 An excavation of the line following the explosion revealed that the gas line was cracked at a point approximately eighteen feet from the apartment building, where the pipe was buried at a depth of approximately twelve inches. 2 It was estimated that the pipe had been leaking for some time between a few hours and two days before the explosion occurred. Because the ground was frozen in February, natural gas flowed along the path of least resistance, which appears to have been U.S. West telephone lines that intersected the gas line near the cracking and serviced the Cedar Ridge Apartments.

The Hynes brought claims of negligence, breach of warranty, strict liability, and willful and wanton conduct against Energy West, seeking both compensatory and punitive damages. The Hynes withdrew their breach of warranty and strict liability claims before trial. With respect to the negligence claim, the Hynes alleged that Energy West had breached its duty of care by allowing the pipeline to remain in service even though it was in an unsafe condition. The Hynes claimed that the following factors contributed to the unsafe condition: (1) the piping was made of steel that became highly brittle and susceptible to fracture in cold weather; (2) it had been damaged by vehicles and other external forces; and (3) the underground portion of the pipe had been buried at a dangerously shallow depth. The Hynes also argued that Energy West was negligent because it had failed to odorize its gas properly. 3

*1197 There was a three-week trial on the Hynes’ claims of negligence and willful and wanton conduct. The Hynes prevailed on the negligence claim and the jury awarded Randy Hynes $3,259,685.89 and Melissa Hynes $2,056,400.73 in compensatory damages. The jury found that Energy West had not acted willfully and wantonly and therefore no punitive damages were awarded. The jury apportioned fault among various actors in the following manner: Energy West, 55%; U.S. West, 25%; Jerry Parker (fire chief), 10%; Jason Herbert (dispatcher), 5%; Troy Wiant (apartment building tenant), 5%. Other than Energy West, none of these actors was a party to the action.

DISCUSSION

The district court exercised jurisdiction pursuant to 28 U.S.C. § 1332(a) (diversity jurisdiction). We have appellate jurisdiction pursuant to 28 U.S.C. § 1291. Both parties agree, and we concur, that Wyoming substantive law applies.

I. Jury Instructions

Energy West challenges the district court’s instructions to the jury on several bases. In a diversity case, the substance of a jury instruction is a matter of state law; however, federal law controls the determination of whether an error in the instructions requires reversal. See Wolfgang v. Mid-America Motorsports, Inc., 111 F.3d 1515, 1525 (10th Cir.1997); Dillard & Sons Constr., Inc. v. Burnup & Sims Comtec, Inc., 51 F.3d 910, 915 (10th Cir.1995).

With respect to a district court’s jury instruction decisions, i.e., whether or not to give a particular instruction, we ... review for abuse of discretion. As for the instructions themselves, we conduct a de novo review to determine whether, as a whole, the instructions correctly stated the governing law and provided the jury "with an ample understanding of the issues and applicable standards.

Allen v. Minnstar, Inc., 97 F.3d 1365, 1368 (10th Cir.1996) (citations omitted).

A. Standard of Care

The parties agree that the appropriate standard of care in this case is ordinary care under all of the circumstances. However, Energy West contends that the trial court improperly instructed the jury that in order to meet the ordinary care standard, Energy West was required to exercise a high degree of care because natural gas is an ultrahazardous instrumentality. 4

In Wyrulec Co. v. Schutt, the Wyoming Supreme Court stated that although the standard of care in a case involving an ultrahazardous instrumentality is “ordinary care under all of the circumstanees[,] .... what constitutes ordinary care increases as the danger increases.” Wyrulec, 866 P.2d at 762. The court continued: “The concept of ordinary care accommodates all circumstances so that the degree of care varies with the circumstances.

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Bluebook (online)
211 F.3d 1193, 2000 Colo. J. C.A.R. 2480, 54 Fed. R. Serv. 501, 2000 U.S. App. LEXIS 8632, 2000 WL 525961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hynes-v-energy-west-inc-ca10-2000.