Mercer v. North Central Serv.

308 Neb. 224, 953 N.W.2d 551
CourtNebraska Supreme Court
DecidedJanuary 22, 2021
DocketS-20-193, S-20-196, S-20-198, S-20-205
StatusPublished
Cited by5 cases

This text of 308 Neb. 224 (Mercer v. North Central Serv.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mercer v. North Central Serv., 308 Neb. 224, 953 N.W.2d 551 (Neb. 2021).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 04/16/2021 09:09 AM CDT

- 224 - Nebraska Supreme Court Advance Sheets 308 Nebraska Reports MERCER v. NORTH CENTRAL SERV. Cite as 308 Neb. 224

Mark Mercer, individually, et al., appellees, and Columbia National Insurance Company, a Nebraska corporation, and Farmers Mutual Insurance Company of Nebraska, a Nebraska mutual insurance company, intervenors-appellees, v. North Central Service, Inc., a Minnesota corporation, et al., appellees, and Metropolitan Utilities District, a political subdivision, appellant. M’s, Inc., a Nebraska corporation, doing business as M’s Pub, appellee, and United Fire & Casualty Company, as subrogee for M’s, Inc., a Nebraska corporation, intervenor-appellee, v. Metropolitan Utilities District, a political subdivision, appellant. Columbia National Insurance Company, as subrogee for Old Omaha Association, appellee, v. Metropolitan Utilities District, a political subdivision, appellant. Nouvelle Eve, Inc., a Nebraska corporation, and Susanne Keuck, an individual, appellees, and Truck Insurance Exchange, as subrogee for Nouvelle Eve, Inc., a Nebraska corporation, intervenor-appellee, v. Metropolitan Utilities District, a political subdivision, appellant. ___ N.W.2d ___

Filed January 22, 2021. Nos. S-20-193, S-20-196, S-20-198, S-20-205. - 225 - Nebraska Supreme Court Advance Sheets 308 Nebraska Reports MERCER v. NORTH CENTRAL SERV. Cite as 308 Neb. 224

1. Political Subdivisions Tort Claims Act: Appeal and Error. Whether a plaintiff’s negligence claims are precluded by an exception to the Political Subdivisions Tort Claims Act is a question of law for which an appellate court has a duty to reach its conclusions independent of the conclusions reached by the district court. 2. Summary Judgment: Appeal and Error. An appellate court reviews the district court’s grant of summary judgment de novo, viewing the record in the light most favorable to the nonmoving party and drawing all reasonable inferences in that party’s favor. 3. Political Subdivisions Tort Claims Act. The purpose of the discretion- ary function exception to the Political Subdivisions Tort Claims Act is to prevent judicial second-guessing of legislative and administrative decisions grounded in social, economic, and political policy through the medium of an action in tort. 4. ____. The discretionary function exception to the Political Subdivisions Tort Claims Act extends only to basic policy decisions made in gov- ernmental activity, and not to ministerial activities implementing such policy decisions. The exception does not extend to the exercise of dis- cretionary acts at an operational level. Examples of discretionary func- tions include the initiation of programs and activities, establishment of plans and schedules, and judgmental decisions within a broad regulatory framework lacking specific standards. 5. ____. A court engages in a two-step analysis to determine whether the discretionary function exception to the Political Subdivisions Tort Claims Act applies. First, the court must consider whether the action is a matter of choice for the acting employee. If the court concludes that the challenged conduct involves an element of judgment, it must then determine whether that judgment is of the kind that the discretionary function exception was designed to shield. 6. Political Subdivisions Tort Claims Act: Governmental Subdivisions: Notice: Negligence. When (1) a governmental entity has actual or con- structive notice of a dangerous condition or hazard caused by or under the control of the governmental entity and (2) the dangerous condition or hazard is not readily apparent to persons who are likely to be injured by the dangerous condition or hazard, the governmental entity has a nondiscretionary duty to warn of the danger or take other protective measures that may prevent injury as the result of the dangerous condi- tion or hazard. In such a situation, a governmental entity’s failure to warn or take other protective measures is not a planning-level decision involving a social, economic, or political policy judgment and, there- fore, does not come within the discretionary function exception of the Political Subdivisions Tort Claims Act. - 226 - Nebraska Supreme Court Advance Sheets 308 Nebraska Reports MERCER v. NORTH CENTRAL SERV. Cite as 308 Neb. 224

Appeal from the District Court for Douglas County: Timothy P. Burns, Judge. Affirmed. Michael F. Coyle, Robert W. Futhey, and Daniel J. Gutman, of Fraser Stryker, P.C., L.L.O., and Mark A. Mendenhall, of Metropolitan Utilities District, for appellant. Anne Marie O’Brien and Michael L. Storey, of Lamson, Dugan & Murray, L.L.P., for appellees Mark Mercer et al. Matthew B. Reilly and Thomas J. Culhane, of Erickson & Sederstrom, P.C., L.L.O., for intervenors-appellees Columbia National Insurance Company and Farmers Mutual Insurance Company. Thomas M. White and Amy S. Jorgensen, of White & Jorgensen, and Richard A. DeWitt and Robert M. Gonderinger, of Coker, Huck, Kasher, DeWitt, Anderson & Gonderinger, L.L.C., for appellee M’s, Inc. Brian T. Bailey, of Nielsen, Zehe & Antas, P.C., for appellee United Fire & Casualty Company. Edward F. Pohren and Jerry M. Slusky, of Smith, Slusky, Pohren & Rogers, L.L.P., for appellees Nouvelle Eve, Inc., and Susanne Keuck. Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke, Papik, and Freudenberg, JJ. Heavican, C.J. INTRODUCTION An explosion and fire destroyed part of the Old Market area in Omaha, Nebraska. Various affected landowners and their insurers brought suit against a fiber optic contractor, a wire- less company, and the Metropolitan Utilities District (MUD). The plaintiffs settled with all defendants except MUD. MUD sought summary judgment, arguing that it was immune from suit. The district court found that MUD was not immune - 227 - Nebraska Supreme Court Advance Sheets 308 Nebraska Reports MERCER v. NORTH CENTRAL SERV. Cite as 308 Neb. 224

from suit and denied MUD’s motion for summary judgment. MUD appeals. We affirm.

BACKGROUND Gas Explosion and Fire. On January 9, 2016, at 2:50 p.m., an explosion and fire occurred in the Old Market area of Omaha. The natural gas explosion occurred in the basement of the Mercer Building, located at the corner of 11th and Howard Streets and owned by plaintiffs, Mark Mercer and Vera Mercer, who also resided in the building. The building’s ground floor housed two busi- nesses, Nouvelle Eve, Inc., a clothing boutique, and M’s Pub, a restaurant. MUD was, at all relevant times, a member of a statewide one-call notification center (Nebraska One-Call), also known as Nebraska811. 1 MUD contributed to the costs of Nebraska One-Call and provided MUD facility location information when requested. In addition to definitions and requirements as set out in statute, the Nebraska One-Call board of directors maintains an excavator manual, which is distributed to exca- vators intending to excavate in Nebraska. That manual was entered into evidence. Also offered into evidence was MUD’s locating manual. On December 10, 2015, according to evidence offered at the summary judgment hearing, Chris Sacco, an MUD loca- tor, responded to a locate request “refresh” ticket made under Nebraska One-Call by North Central Service, Inc. (NCS), for the area in front of the Mercer Building. NCS planned to use horizontal directional drilling (HDD) to bore an underground path for fiber optic cable. HDD is often referred to as “blind drilling.” It creates a risk of striking an object below the sur- face of the ground that is not seen by the drill operator. There is evidence in the record that natural gas pipe strikes as a result of HDD are common. 1 See Neb. Rev. Stat. § 76-2301 et seq. (Reissue 2009 & Cum. Supp. 2016).

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Cite This Page — Counsel Stack

Bluebook (online)
308 Neb. 224, 953 N.W.2d 551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercer-v-north-central-serv-neb-2021.