Northern Assur. Co. v. Louisiana Power & Light Co.

580 So. 2d 351, 1991 La. LEXIS 1262, 1991 WL 71495
CourtSupreme Court of Louisiana
DecidedMay 6, 1991
Docket90-C-0941
StatusPublished
Cited by16 cases

This text of 580 So. 2d 351 (Northern Assur. Co. v. Louisiana Power & Light Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Assur. Co. v. Louisiana Power & Light Co., 580 So. 2d 351, 1991 La. LEXIS 1262, 1991 WL 71495 (La. 1991).

Opinion

580 So.2d 351 (1991)

NORTHERN ASSURANCE COMPANY
v.
LOUISIANA POWER & LIGHT COMPANY.

No. 90-C-0941.

Supreme Court of Louisiana.

May 6, 1991.
Rehearing Denied June 13, 1991.

*352 Gordon W. Matheny, Hammond, for Cecil Coates plaintiff-applicant.

Steven H. Beadles, Knox, Beadles & Johnston, Shreveport, for Northern Assur. Co. of America plaintiff-applicant.

J. Wayne Anderson and Gerard A. Bos, Monroe & Lemann, New Orleans, for Louisiana Power & Light Co. defendant-respondent.

LEMMON, Justice.

This is an action by plaintiff homeowner and his subrogated fire insurer against an electric utility company to recover damages for the loss of plaintiff's home. Plaintiff's theory of recovery is that the utility company, having been called to plaintiff's home because of a relatively small fire earlier on the day of the casualty and having inspected the premises, failed to take appropriate measures under the circumstances to safeguard the premises. The critical issue is whether plaintiff proved that the utility company knew or should have known of a potential defect in the electrical wiring after the first fire and therefore had the duty as the provider of electricity to withhold electrical service from the area of the premises containing the potential defect until the wiring was checked and corrected, if necessary.

Facts

Plaintiff and his family were living in a two-story home which he had constructed on a vacant lot. He had completed most of the construction work, including the electrical wiring, except for some interior work on the upstairs walls and ceiling.

When Louisiana Power and Light Co. (LP & L) contracted to provide electrical service to the home, its employees inspected the electrical service entrance installation, which had been furnished and installed by plaintiff, before providing the meter to measure the amount of electricity used by plaintiff. The following annotated diagram from the record shows a typical service entrance installation which is helpful in understanding the equipment and terminology contained in the record and referred to in this opinion:

*353

LP & L provided electrical service by a service drop line from the transformer on the pole to the point of connection with the electrical service installation provided by plaintiff. The point of connection was the point where LP & L's aluminum wires were connected to plaintiff's copper wires that extended about three feet out from the weatherhead.

Although LP & L had no responsibility generally to inspect the wiring on the customer's side of the point of connection before beginning service, LP & L was responsible prior to installing the meter to insure that the service entrance installation was the proper height and was correctly grounded.

When a fire caused electrical damage in a building within LP & L's service district, the fire department notified LP & L so that it could immediately disconnect service in order to protect the firemen fighting the fire. After extinguishment of the fire, LP & L was responsible to determine the steps necessary to safeguard against hazards created by the fire (such as burning of insulation on the wires) and to prevent further fires or other damage to persons or property. If damage was extensive enough so that electrical service could not be continued or restored safely, LP & L disconnected the service, according to the nature of the fire, in one of three ways: (1) by removing the meter, (2) by removing the transformer fuse, or (3) by cutting the wires at the pole or between the pole and the point of connection.

On the day of the casualty a small fire of unknown origin occurred at plaintiff's home and caused damage which was limited to the area of the master bathroom, the den stairs, and the wall between the bathroom and the stairs. The following diagram shows the location of the master bathroom, the den stairs, the electrical service entrance installation (M), and the circuit breaker panel (B):

*354

The fire department quickly brought the blaze under control. Two LP & L servicemen arrived at the scene after the fire was extinguished. They inspected the interior and exterior of the premises in order to insure the safety of persons on the premises and to determine the necessary steps to prevent any further damage. The servicemen determined that removing the electrical meter on the exterior wall of the residence (thereby cutting off service on the house side of the meter) would adequately safeguard the premises and its occupants.

About four hours after the first fire, a second fire occurred which completely destroyed the dwelling and its contents. Subsequent investigation revealed that the second fire was caused by a short circuit in the weatherhead, the cap at the top of the service mast which extended about five feet above the meter on the exterior of the house. Because the weatherhead was located between the meter (which had been removed after the first fire) and LP & L's service drop line from its pole, there was still voltage at the weatherhead after removal of the meter had terminated service on the house side of the meter. The second fire occurred when an energized wire inside the metal weatherhead came in contact with the metal and caused arcing which created heat sufficient to ignite the wood on the side of the building. Witnesses to the eruption of the second fire saw sparking from the weatherhead (indicating short circuiting) just before the flames started. When the weatherhead was inspected after the fire, there was a hole burned through the top of the steel weatherhead.

Plaintiff's subrogated fire insurer, who had paid a portion of the loss, filed this action against LP & L, contending that the second fire resulted from a defect in the weatherhead which was caused by the first fire and which LP & L should have discovered during its investigation after the first fire. The insurer further asserted that LP & L should not have merely disconnected service at the meter and allowed voltage to continue to the weatherhead, but rather should have discontinued service altogether by cutting the line at the pole. Plaintiff intervened to recover his damages which exceeded the payment made by the insurer.

LP & L defended on the basis that it had acted properly after the first fire in terminating service by removing the meter and that the short circuit in the weatherhead (owned by plaintiff) was not caused by the first fire and was not foreseeable.

The evidence at the trial focused on the proper method for terminating electrical service to the residence after the first fire. LP & L's district manager testified that the determination of whether and where to disconnect *355 service during or after a fire depends on the nature of the fire. If a fire is very restricted to a particular area, as when an appliance catches fire, it might be necessary only to turn off the circuit breaker to the appliance. According to the manager, removal of the meter was the usual method of disconnecting service when the fire was inside the building and there was no damage to the area around the service entrance installation or the circuit breaker panel. If there was physical damage to the service area or to the wires inside or coming into the meter pan, then the wires should be cut at the pole. The manager conceded that when energized wires are subjected to substantial heat, there can be damage to the insulation on the wires which may lead to a short circuit.

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Bluebook (online)
580 So. 2d 351, 1991 La. LEXIS 1262, 1991 WL 71495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-assur-co-v-louisiana-power-light-co-la-1991.