Maryland Casualty Co. v. Advance Transformer Co.

635 So. 2d 565, 93 La.App. 3 Cir. 998, 1994 La. App. LEXIS 928, 1994 WL 113277
CourtLouisiana Court of Appeal
DecidedApril 6, 1994
DocketNo. 93-998
StatusPublished

This text of 635 So. 2d 565 (Maryland Casualty Co. v. Advance Transformer Co.) 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
Maryland Casualty Co. v. Advance Transformer Co., 635 So. 2d 565, 93 La.App. 3 Cir. 998, 1994 La. App. LEXIS 928, 1994 WL 113277 (La. Ct. App. 1994).

Opinion

DOUCET, Judge.

The defendant, Advance Transformer Company (Advance), appeals a judgment rendered against it under the Louisiana Products Liability Act (LPLA).

On February 7, 1989, a building located in Leesville, Louisiana and leased to Liberty Military’Sales (LMS) caught fire. As a result of the damages sustained in the fire, Maryland Casualty Company (Maryland), the insurer of LMS, paid LMS $131,822.71, representing fire loss.

Maryland then brought suit against Advance, among others, under theories of redhi-bition and products liability. Maryland alleged that the fire at LMS was caused by the overheating of a defective converter which was incorporated by another defendant, Juno Lighting Co., Inc. (Juno), into a light fixture sold to -LMS.

All defendants other than Advance were dismissed prior to trial. Advance and Maryland stipulated that the amount of damage recoverable was $131,822.71.

After a trial on the merits, judgment was rendered in favor of Maryland and against LMS. The trial judge gave written reasons for his decision. Advance appeals, arguing that Maryland failed to carry its burden of proof under the Louisiana Products Liability Act (LPLA), La.R.S. 9:2800.51 et seq.

La.R.S. 9:2800.54 states that:

A. The manufacturer of a product shall be liable to a claimant for damage proximately caused by a characteristic of the product that renders the product unreasonably dangerous when such damage arose from a reasonably anticipated use of the product by the claimant or another person or entity.
B. A product is unreasonably dangerous if and only if:
(1) The product is unreasonably dangerous in construction or composition as provided in R.S. 9:2800.55;
(2) The product is unreasonably dangerous in design as provided in R.S. 9:2800.-56;
(3) The product is unreasonably dangerous because an adequate warning about the product has not been provided as provided in R.S. 9:2800.57; or
(4)The product is unreasonably dangerous because it does not conform to an express warranty of the manufacturer about the product as provided in R.S. 9:2800.58.
C. The characteristic of the product that renders it unreasonably dangerous under R.S. 9:2800.55 must exist at the time the product left the control of its manufacturer. The characteristic of the product that renders it unreasonably dangerous under R.S. 9:2800.56 or 9:2800.57 must exist at the time the product left the control of its manufacturer or result from a reasonably anticipated alteration or modification of the product.
D. The claimant has the burden of proving the elements of Subsections A, B and C of this Section.

MANUFACTURER

Advance first argues that the evidence at trial shows that it is not a manufacturer of the product.

La.R.S. 9:2853(1) defines manufacturer for purposes of the LPLA:

(1) “Manufacturer” means a person or entity who is in the business of manufacturing a product for placement into trade or commerce. “Manufacturing a product” means producing, making, fabricating, constructing, designing, remanufacturing, reconditioning or refurbishing a product. “Manufacturer” also means:
(a) A person or entity who labels a product as his own or who otherwise holds himself out to be the manufacturer of the product.
(b) A seller of a product who exercises control over or influences a characteristic of the design, construction or quality of the product that causes damage.
(e) A manufacturer of a product who incorporates into the product a component or part manufactured by another manufacturer.
(d) A seller of a product of an alien manufacturer if the seller is in the business of importing or distributing the prod[567]*567uct for resale and the seller is the alter ego of the alien manufacturer. The court shall take into consideration the following in determining whether the seller is the alien manufacturer’s alter ego: whether the seller is affiliated with the alien manufacturer by way of common ownership or control; whether the seller assumes or administers product warranty obligations of the alien manufacturer; whether the seller prepares or modifies the product for distribution; or any other relevant evidence. A “product of an alien manufacturer” is a product that is manufactured outside the United States by a manufacturer who is a citizen of another country or who is organized under the laws of another country.

Mr. Norman C. Grimshaw, the director of technical relations for Advance, testified as follows with regard to construction of the converter alleged by the plaintiff to be the source of the fire: Juno delivers the aluminum housing to Advance. Advance buys two end pieces made to the joint design of Advance and Juno of Zitell, a nylon-like material. Advance assembles the housing and end pieces into a box, into which they place the various components of the converter, which are designed and built by Advance from components purchased on the open market. Finally, they fill the box with polyester sand which is cured to harden it. The converter is then delivered to Juno, which uses it in track lighting systems. The converter is sold only to Juno for use as a component in its fighting systems. Advance is, however, aware that the component enters the stream of commerce as part of Juno’s lighting systems. This testimony indicates that Advance does indeed produce, make, fabricate, construct, or design the converter. Further, since everything but the housing is designed and built by Advance from components available on the open market, Advance exercises control over a characteristic of the design, construction, and quality of the product alleged to have caused the damage. Accordingly, the trial court correctly found Advance to be a manufacturer for purposes of the LPLA.

CAUSATION

Defendant next argues that, plaintiff failed to show that the fire was caused by a defect in the converter.

Causation is a question of fact. In the absence of manifest error, the trial court’s findings should not be disturbed. Dubois v. State Through Dept. of Pub. Safety; 466 So.2d 1381 (La.App. 3 Cir.1985).

The trial judge, in his written reasons for judgment, correctly summarized the trial testimony on causation:

Daniel W. Snow, Jr., a private investigator who had been with the Louisiana Fire Marshall’s Arson Enforcement Division was qualified as an expert in determining the cause and origin of fires. He arrived at the scene of the LMS fire on February 10, 1989, three days after the fire. He interviewed witnesses, including the store manager, made an inspection of the premises and took photographs, exterior and interior.
Snow reached the conclusion that the fire had originated at ceiling level above the jewelry sales counter, the area where the track fighting system was situated (see his diagram P-08, circled in blue). He found several converters, one of which was more damaged than the others, and photographed it (Exhibit PXLB; see also P-09U) (Snow, 115).

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Related

Dubois v. State Through Dept. of Pub. Safety
466 So. 2d 1381 (Louisiana Court of Appeal, 1985)

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Bluebook (online)
635 So. 2d 565, 93 La.App. 3 Cir. 998, 1994 La. App. LEXIS 928, 1994 WL 113277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-advance-transformer-co-lactapp-1994.