Newell Rubbermaid, Inc. v. Efficient Solutions, Inc.

252 S.W.3d 164, 2007 Mo. App. LEXIS 1773, 2007 WL 4526536
CourtMissouri Court of Appeals
DecidedDecember 26, 2007
DocketED 89253
StatusPublished
Cited by15 cases

This text of 252 S.W.3d 164 (Newell Rubbermaid, Inc. v. Efficient Solutions, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newell Rubbermaid, Inc. v. Efficient Solutions, Inc., 252 S.W.3d 164, 2007 Mo. App. LEXIS 1773, 2007 WL 4526536 (Mo. Ct. App. 2007).

Opinion

*168 PATRICIA L. COHEN, Chief Judge.

Introduction

Efficient Solutions appeals from the judgment of the Circuit Court of St. Francois County finding in Newell Rubbermaid, Inc.’s favor on its claims of negligence and breach of contract and awarding damages of $29,000,000. Efficient Solutions contends the trial court erred in: (1) admitting evidence concerning a witness’s history of sexual harassment; (2) admitting expert testimony interpreting contractual terms; (3) submitting Newell Rubbermaid’s proposed verdict directors; and (4) denying its Motions for Directed Verdict and Judgment Notwithstanding the Verdict. We affirm.

Facts and Proceedings Below

Newell Rubbermaid owns a factory in Farmington, Missouri that manufactures playground equipment sold under the Little Tikes brand. 1 Efficient Solutions is an energy management company that provides clients with “one-stop shopping” for “consultation, design, installation and maintenance of energy-saving lighting system designs.” In 1994, Efficient Solutions sent a lighting-system energy savings and maintenance proposal to Newell Rubbermaid. The proposal required Efficient Solutions to use “demanding installation procedures” including that “each fixture is cleaned” and “every ballast checked.” 2 The proposal further acknowledged that as part of the project, Efficient Solutions would “take the lights down, put in a device, and rehang the lights.” 3

Thereafter, Efficient Solutions and New-ell Rubbermaid signed a supplemental service contract. The contract incorporated the Master Service Agreement, the Supplemental Service Contract and the Payment Contract/Monthly Service Agreement. Pursuant to the contract, Efficient Solutions agreed to: (1) “inspect all lighting fixtures ... for repairs;” (2) advise Newell Rubbermaid about any defect in the lighting; (3) “make necessary repairs” to any defective product “not visible to the naked eye from a ground inspection;” (4) perform such maintenance as necessary “to maintain the System in a safe and proper operating condition;” and use “good workmanship” in rehanging the fixtures.

The high-pressure sodium lights installed by Efficient Solutions reach an internal temperature of 2,000 degree, which is the “upper end of the range of danger.” Initially, Newell Rubbermaid’s maintenance staff hung the fights. However, under the contract it was Efficient Solutions’ responsibility to decide whether the fixtures were properly hung and, if not, rehang the fixtures.

In September 1998, at approximately 3 a.m., a fire broke out in the Newell Rubbermaid factory. The fire engulfed the building and consumed much of the equipment and finished product inside it. Shirley Butler, a Newell Rubbermaid employee, who was assembling playground equipment at the plant the night of the fire, heard, through her hearing protection, a “very loud pop” like “metal hitting *169 concrete”. The fire alarm sounded a few minutes later.

Newell Rubbermaid filed suit against Efficient Solutions for damages sustained by its Farmington facility in the fire. Newell Rubbermaid alleged that Efficient Solutions was negligent and breached provisions of the parties’ contract. The parties tried the case before a jury on July 31-August 3, 2006. At trial, Newell Rubbermaid contended that the fire would not have occurred but for Efficient Solutions’ negligence and breach of contract.

At trial, two investigators from the State Fire Marshal’s office testified regarding their examinations of the Newell Rubbermaid factory following the fire. Both inspectors concluded that the fire originated at the end of the first aisle in the warehouse storage area of the building. They based their conclusion on eyewitness reports of employees and the pattern of burn marks on the floor. Both also opined that the fire started when a light bulb, at a temperature of 2,000 degrees, fell onto some finished equipment and set it on fire. The investigators reached their conclusion after finding a piece of unburnt cardboard underneath a ballast. The investigators testified that the ballast, on top of the cardboard, protected it from burning, although it did have heat damage and the perimeter edges of the cardboard were charred. Moreover, they stated, the plastic on top of the ballast, which had melted into a big “blob” atop it, indicated that the light was on the floor as the fire burned and the plastic melted down on top of it.

Mr. Raymond Arms, Newell Rubbermaid’s expert, testified that an installer has to take special precautions because of the high temperature of the lights. In particular, he stated that the installer must consider the “fire load” below the lights— i.e., whether “you have a lot of stuff that will burn fast,” such as plastics and cardboard. Mr. Arms contended that Efficient Solutions “should have put safety chains on the fixtures” because the conditions in the factory made an accident “highly foreseeable” and safety chains would have prevented a fire in the case of a light fixture falling. Mr. Arms testified that while he would recommend safety chains on all high-sodium light fixtures, the chains were “necessary” in the storage area, where highly-combustible plastic was stored in highly-combustible cardboard boxes.

Mr. Arms further testified that he believed, to a reasonable degree of certainty, the light fixture fell to the floor because the cover plate was not tightened securely. Mr. Arms stated that to install the high-temperature lights, Efficient Solutions had to remove the cover plate, replace the fight and then reinstall the plate. He testified that the “fixture, because of the vibration, was allowed to slide. And it slides real easy. And it just keeps sliding, until the day of the accident, it just fell off.” In so concluding, Mr. Arms relied, in part, on the fact that the front panel was not recovered from the fire.

In addition, Mr. Arms testified that, under the contract, Efficient Solutions was required to install the light fixtures in a safe and workmanlike condition. He based his opinion on the contract as well as the codes, standards and accepted practices in the industry. Moreover, Efficient Solutions’ own expert, Mr. Dale Derks, also testified that Efficient Solution had an obligation to use “good workmanship.” Efficient Solutions crew chief stated that today, it is “pretty much mandatory” to install safety chains on high-intensity fight fixtures. He stated that he personally would use a safety chain in all cases and he thought that safety chains were appropriate in the Newell Rubbermaid factory because of the materials stored there. Finally, Mr. Aims testified that the parties’ contract had some unique conditions, in- *170 eluding that the light fixtures were to be removed, modified and installed as Efficient Solutions’ property.

Newell Rubbermaid’s other expert — Mr. Robert Williamson — concluded that the light fixture caused the fire because the investigators found a light fixture on the ground, beneath debris, in the area of origin and because no one had identified any other possible area of origin. Mr.

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Bluebook (online)
252 S.W.3d 164, 2007 Mo. App. LEXIS 1773, 2007 WL 4526536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newell-rubbermaid-inc-v-efficient-solutions-inc-moctapp-2007.