MASTER BLASTER, INC. v. Dammann

781 N.W.2d 19, 72 U.C.C. Rep. Serv. 2d (West) 163, 2010 Minn. App. LEXIS 47, 2010 WL 1440680
CourtCourt of Appeals of Minnesota
DecidedApril 13, 2010
DocketA09-1617
StatusPublished
Cited by1 cases

This text of 781 N.W.2d 19 (MASTER BLASTER, INC. v. Dammann) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MASTER BLASTER, INC. v. Dammann, 781 N.W.2d 19, 72 U.C.C. Rep. Serv. 2d (West) 163, 2010 Minn. App. LEXIS 47, 2010 WL 1440680 (Mich. Ct. App. 2010).

Opinion

OPINION

STONEBURNER, Judge.

In this common-law indemnity action involving the practice of vouching, appellant indemnitor challenges summary judgment granted, to respondent indemnitee, binding indemnitor to the verdict in a South Dakota action from which indemnitor was dismissed for lack of personal jurisdiction. Indemnitor asserts that: (1) an inherent conflict of interest between indemnitor and indemnitee precluded indemnitor’s acceptance of indemnitee’s tender of defense of the South Dakota action and therefore precludes application of vouching; .(2) in-demnitor’s interests were inadequately represented in the South Dakota action, depriving it of a full and fair opportunity to be heard; (3) binding indemnitor to the South Dakota judgment violates its due-process rights because South Dakota lacks personal jurisdiction over indemnitor; and (4) summary judgment was inappropriate on the issue of indemnitor’s breach of implied warranty of fitness because indemnitor provided only services and has no implied-warranty liability.

FACTS

In October 1999, Supreme Pork, Inc., a South Dakota corporation that owns feed and hog operations in eastern South Dakota and western Minnesota, bought two commercial-grade pressure washers from respondent Master Blaster, Inc., a South Dakota corporation owned by Paul Miers-ma, to be installed at Supreme Pork’s hog facility near Lake Benton, Minnesota. The pressure washers were manufactured by All American Pressure Washers. Master Blaster installed the pressure washers in the southeast corner of the pressure-washer room of the hog facility.

A pressure washer generates tremendous heat and requires a flue vent to release hot gases through the attic space above the ceiling and out of the roof of the building in which it is installed. Master Blaster hired appellant Pipestone Plumbing & Heating, Inc. (Pipestone), a Minnesota corporation owned by appellant Doug Dammann, to supply and install flue vents for the pressure washers installed by Master Blaster. On site, Pipestone fabricated some venting components necessary for installation of the flues. The contract between Master Blaster and Pipestone was oral.

Approximately two years after the pressure washers .were installed, one of the pressure washers froze. Master Blaster removed that pressure washer from the site, repaired it in Master Blaster’s shop, and returned it to the hog facility, where it was reconnected by Supreme Pork. A few days later, a fire erupted in the pressure-washer room. The fire originated in the southeast corner of the room, in the attic space directly above the pressure washers.

Supreme Pork notified Master Blaster, Pipestone, All American Pressure Washers, and LB White, the manufacturer of a space heater that was located in the pressure-washer room at the time of the fire, that Supreme Pork had retained an expert fire investigator, Chris' Rallis, to investigate the cause of the fire and to schedule site inspections. Before the site inspections, Pipestone hired fire investigator Terry Parks, All American hired fire investigator Richard Cox, and LB White *24 hired fire investigator Dr. Robert Schroeder.

On April 18, 2002, Dammann, Miersma, and all of the fire investigators except Cox convened at the hog facility to inspect the site. Cox inspected the site the next day. At the time of the April inspections, most of the hog facility’s buildings had been removed from the site and the only room available for inspection was the pressure-washer room. Master Blaster later retained fire investigator Jeffrey Washinger, who inspected the site in August 2002. 1

In January 2004, Supreme Pork sued Master Blaster in South Dakota for its fire loss, alleging negligence .and breach of. implied warranty. Both claims specifically referenced the venting system as the cause of the fire. The recitation of facts in the complaint, reflecting the opinion of Supreme Pork’s fire investigator, stated that investigation of the fire revealed that Master Blaster

failed to properly install the vents in a manner so as to maintain proper separation between heat from the flue gases and the materials that formed in the building. The use of the washers allowed the expulsion of these gases in a manner and duration that lowered the ignition temperature of the building materials to a point where they became heated to a smoldering ignition state. This condition progressed to a free-burning fire during the early morning hours of March 21, 2002.

In May 2004, Master Blaster brought a third-party claim against Pipestone in the South Dakota action, seeking indemnity. In June 2005, Pipestone was dismissed from the South Dakota action for lack of personal jurisdiction. Master Blaster immediately tendered its defense of the action to Pipestone and Pipestone’s insurer, asserting common-law indemnity against Pipestone in the event of a judgment against Master Blaster for Pipestone’s acts. Pipestone refused this tender and two subsequent tenders. Pipestone also refused to allow Master Blaster to depose Pipestone’s fire investigator, Terry Parks, in preparation for the South Dakota action.

At trial, Supreme Pork argued that Master Blaster was vicariously liable for Pipestone’s negligence and breach of implied warranty. Supreme Pork did not assert any claims that Master Blaster was directly responsible for the fire. Supreme Pork’s expert, Chris Rallis, testified that, in his opinion, there was only one source of heat capable of generating the ignition for this fire: the vent stacks for the pressure washers. Rallis blamed the fire solely on improper installation of the flue vents too close to cellulose insulation, due to Pipe-stone’s failure to secure its “flimsy,” “field-constructed” attic shields. Master Blaster extensively cross-examined Rallis in an attempt to undermine his qualifications and his opinions.

Supreme Pork also called Dr. Schroeder, who had initially been retained by LB White. Dr. Schroeder agreed with Rallis that the fire was caused by the heat in the flue igniting the cellulose insulation, which he described as “nothing more than ground-up newspapers.” He opined that the Pipestone-fabricated attic shields were not approved, designed, or manufactured for the intended purpose of preventing the hot flue from coming into contact with the combustible cellulose insulation. Dr. Schroeder testified that Pipestone’s shields were substantially inferior to shields made by the manufacturer of the flues that Pipe- *25 stone installed. Master Blaster extensively cross-examined Dr. Schroeder about his opinion, mistakes in his initial report, and the possible causes of the fire that he had not explored.

Master Blaster called two experts: Terry Kern and Richard Cox, who both testified that based on the available evidence, the cause of the fire could not be determined. Kern disagreed with Dr. Schroeder’s characterization of Pipestone’s shields as “flimsy,” testifying that the 28-gauge steel used should be sufficient to prevent the insulation from coming into contact with the hot pipes. Kern testified that other potential fire causes were not satisfactorily eliminated. Cox also testified that the shields were “perfectly adequate for the job,” and that there was no evidence of improper installation.

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781 N.W.2d 19, 72 U.C.C. Rep. Serv. 2d (West) 163, 2010 Minn. App. LEXIS 47, 2010 WL 1440680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/master-blaster-inc-v-dammann-minnctapp-2010.