In Re Beverly Hills Fire Litigation

672 S.W.2d 922, 1984 Ky. LEXIS 239
CourtKentucky Supreme Court
DecidedMay 31, 1984
StatusPublished
Cited by18 cases

This text of 672 S.W.2d 922 (In Re Beverly Hills Fire Litigation) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Beverly Hills Fire Litigation, 672 S.W.2d 922, 1984 Ky. LEXIS 239 (Ky. 1984).

Opinions

CERTIFICATION OF THE LAW

LEIBSON, Justice.

The Hon. Henry R. Wilhoit, Jr., Judge, United States District Court, Eastern District of Kentucky, has certified to us for decision a question of Kentucky law as it applies to the above-styled litigation. The question as stated by the United States District Court is:

“Is KRS 413.135 unconstitutional as applied to facts of this case by virtue of Kentucky Constitution §§ 14, 54 and/or 241?” Memorandum Opinion and Order, Wilhoit, J., p. 5.

KRS- 413.135 is the “no action” statute enacted in 1966 for the protection of archi-[923]*923teets and builders.1 Its title is “Actions for damages arising out of injury resulting from construction of improvements to real estate." It provides, in pertinent part:

“No action to recover damages, whether based upon contract or sounding in tort, resulting from or arising out of any deficiency in the design, planning, supervision, inspection of construction of any improvement to real property ... arising out of such deficiency ... shall be brought against any person performing or furnishing the design, planning, supervision, inspection or construction of any such improvement after the expiration of five (5) years following the substantial completion of such improvement.”

For reasons that will be stated following a recitation of the facts, we have concluded that:

(1) Properly construed this statute has no application here to what is essentially a products liability case.

(2) Otherwise construed, this statute would be “special” legislation in violation of the Kentucky Constitution, § 59.

The certification from United States District Court states the “relevant facts and the nature of the controversy” as follows:

“This is a class action tort suit involving a fire that destroyed the Beverly Hills Supper Club in Southgate, Kentucky on the evening of May 28, 1977. One hundred and sixty-five (165) people were killed in the fire, and numerous others were injured.
The Supper Club was substantially rebuilt in 1970 and 1971 following a previous fire in 1970. No significant improvements were made to the Supper Club since that time....” Memorandum Opinion and Order, Wilhoit, J., p. 6. The certification further states:
“For a more detailed discussion of the facts of this case, the Court incorporates the Sixth Circuit opinion located at In Re Beverly Hills Fire Litigation, 695 F.2d 207 (CA 6-1982), by reference.” Id.

The Sixth Circuit opinion contains the following additional pertinent background information:

“Plaintiffs named as defendants several manufacturers of ‘old technology’ aluminum branch circuit wiring, claiming those materials had been installed in the' supper club and had caused the fire.
Shortly before the trial was scheduled to begin, the trial judge ordered that it be bifurcated. The jury first would consider the question of ‘causation in fact.’ If aluminum wiring were found to be a cause of the fire, the jury would then determine questions of liability and damages.
... Plaintiffs asserted that the fire originated at an aluminum duplex receptacle. The receptacle, a standard electrical outlet into which electrical appliances are plugged, was allegedly located in the cubbyhole and connected to aluminum branch circuit wiring.
Plaintiffs claimed that, due to a number of physical characteristics of old technology wiring, heat developed at the connection of the aluminum branch circuit wiring to the receptacle, and that this heat eventually ignited the wooden studs and other building materials in the wall....” 695 F.2d at 210-211.

After twenty-two (22) days of trial over a period of eleven (11) weeks, the jury found for the defendants on the “causation” question, the only issue submitted in the bifurcated proceedings. The United States Court of Appeals for the Sixth Circuit reversed, set aside the jury’s verdict and ordered a new trial because “one of the jurors performed an improper experiment when he investigated the condition of the aluminum wiring in connections in his home.” 695 F.2d at 211. The Sixth Circuit [924]*924held that this “one error ... is of such importance that it alone mandates vacating the judgment.” Id.

On remand, before the new trial could take place, the defendants “renewed their original motion for summary judgment based upon Kentucky’s no-action statute, KRS § 413.135.” Memorandum Opinion and Order, Wilhoit, J., p. 2. To understand the question referred to us regarding KRS § 413.135 some additional background information, gleaned from the Sixth Circuit opinion, is necessary.

Before the first trial took place the defendants had moved for a summary judgment based on KRS 413.135, claiming the aluminum wire which they manufactured was subject to the protection of Kentucky’s “no-action” statute when installed as a component of the supper club since it was an improvement to real property. The Sixth Circuit recites:

“The trial judge denied defendants’ motions, finding the statute did not apply to those providing materials for construction projects. He determined that the statute should be narrowly construed because application of the statute would work a harsh result on those whose claim was barred without notice, and because the class of persons to whom the statute applies is uncertain. Since the judge did not view defendants as among the class of persons either named or intended to be protected by the statute, he found it unnecessary to decide whether the statute was offensive to Ky. Const. §§ 14, 54 and 241. At least at this juncture of the proceedings, we agree with the result reached by the trial judge, but not necessarily with his reasoning.” 695 F.2d at 223-224.

The Sixth Circuit affirmed the decision of the trial judge on this point, but did so on the basis that our Court, in Saylor v. Hall, Ky, 497 S.W.2d 218 (1973), “... considered the constitutional defects of section 413.-135” and “concluded that, because section 413.130 (now KRS 413.135) could cut off a common law right to recovery before a cause of action even accrues, it violated Ky. Const. §§ 14, 54 and 241.” The court quoted from Saylor v. Hall, supra, 497 S.W.2d at 224:

“The statutory expressions as they relate to actions based on negligence perform an abortion on the right of action, not in the first trimester, but before conception.” 695 F.2d at 226.

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672 S.W.2d 922, 1984 Ky. LEXIS 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-beverly-hills-fire-litigation-ky-1984.