Pacific Indemnity Co. v. Therm-O-Disc, Inc.

476 F. Supp. 2d 1216, 2006 WL 4005298
CourtDistrict Court, D. New Mexico
DecidedJuly 27, 2006
Docket04-0973 JHWDS
StatusPublished
Cited by5 cases

This text of 476 F. Supp. 2d 1216 (Pacific Indemnity Co. v. Therm-O-Disc, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Indemnity Co. v. Therm-O-Disc, Inc., 476 F. Supp. 2d 1216, 2006 WL 4005298 (D.N.M. 2006).

Opinion

MEMORANDUM OPINION AND ORDER

HANSEN, District Judge.

This matter is before the Court on Defendant Square D Company’s Motion for Summary Judgment (Doc. No. 29, filed September 9, 2005), on Defendant Therm-O-Disc, Inc.’s Motion for Summary Judgment (Doc. No. 31, filed September 15, 2005), and on Defendant Therm-O-Disc, Inc.’s Omnibus Motion in Limine (Doc. No. 47, filed November 15, 2005). The Court, having considered the pleadings submitted by the parties, the applicable law, and otherwise being fully advised, finds that genuine issues of material fact exist concerning whether Defendant Square D Company’s heater contained a design defect, requiring the Court to deny in part Defendant Square D Company’s Motion for Summary Judgment on Plaintiffs claims based on a theory of defective design. The Court nevertheless concludes that Plaintiff cannot succeed as a matter of law on its products liability claims based on a warning defect. Defendant Square D Company is thus entitled to summary judgment on Plaintiffs product liability claims based on a failure to warn theory. In addition, the Court finds that Defendant Therm-O-Disc, Inc.’s Motion for Summary Judgment should be granted in its entirety because Plaintiff, based on the facts construed in the light most favorable to Plaintiff, cannot demonstrate that Defendant Therm-O-Disc, Inc.’s thermal control was defective or that Defendant Therm-O-Disc, Inc.’s conduct fell below the standard of ordinary care. Because the Court finds that Defendant Therm-O-Disc, Inc., is entitled to summary judgment on all Plaintiffs claims, Defendant Therm-O-Disc Inc.’s Omnibus Motion in Limine should be denied as moot.

I. FACTUAL BACKGROUND

The following facts are either undisputed or are facts, established by admissible evidence, that most favor Plaintiff Pacific Indemnity Company (“Plaintiff’).

Plaintiff issued an insurance policy to Carolin Hamilton, insuring her residence located at 102 Rim Road, Ruidoso, New Mexico. On or about November 20, 2000, a structural fire damaged Ms. Hamilton’s residence. As a result of the fire damage, Ms. Hamilton made a claim under her insurance policy, and Plaintiff paid Ms. Hamilton $480,531.00 pursuant to the terms of the policy.

At the time of the fire, Ms. Hamilton’s residence contained an electric heater that had been installed in a sunroom. The heater was installed in 1983, approximately 17 years before the fire. Defendant Square D Company (“Square D”) manufactured the- electric heater. The electric heater contained a thermal control that *1220 Defendant Therm-O-Disc, Inc., (“Therm-O-Disc”) manufactured and supplied.

At the time of the fire, Robby Hall was a Captain with the Ruidoso Fire Department. He investigated- the cause and point of origin of the fire at Ms. Hamilton’s residence.' Based on his investigation of the pattern of low fire burns, Captain Hall concluded that the heater was the cause of the fire because it was located in the area that was consistent with the point of origin of'the fire.'

Don Naylor is Plaintiffs retained fire origin and cause investigation expert. In his deposition, Mr. Naylor stated that he could not say that the electric heater was the cause of the fire without further examination to determine if it were energized. When asked whether he could testify as to the cause of the fire, Mr. Naylor responded, “No.” Mr. Naylor later clarified, however, that he could testify as to the cause of the fire, which, in his opinion, was caused by the heat produced from the electric heater, but that he could not testify as to the reason for the heat being produced. Mr. Naylor based his opinion on his examination of the fire scene, in which he observed that the heater was the heat source in the area of fire origin. Mr. Naylor, however, did not have any opinion concerning whether or not the thermal control was defective.

Gavin Replogle, an electrical engineer, is Plaintiffs electrical expert. He examined the electric heater by disassembling, photographing, and making evaluations and observations of the heater in order to determine the cause of the fire. At the time he examined the heater involved in this case, Mr. Replogle was the group leader of electrical testing at the company where he worked, Dekko Technical Center. Based on his examinations, Mr. Replogle did not believe that the heater was either manufactured defectively or designed defectively. Nor did Mr. Replogle believe that the Therm-O-Disc control was defective. In his opinion, the heater broke due to fatigue, the wearing out of the normal mechanical operation through contamination with dirt, dust, or other things; lack of maintenance; or end of life. Although Mr. Replogle stated that he.was not aware of any and did not identify any defects in the heater, he later clarified that he did observe that the contacts on the Therm-O-Disc thermostat were fused. Mr. Replogle explained that he did not consider that a defect, only an observation of the Therm-O-Disc control.

Robert L. Einhaus, a chemist, is another expert for Plaintiff and works as Vice President of Research and Testing for Dekko Technical Center. Mr. Einhaus worked with Gavin Replogle in inspecting the electric heater. After inspecting the heater, Mr. Einhaus concluded that the heater’s fan failed to initiate rotation when it was energized. Mr. Einhaus did not have an opinion on why the fan failed to initiate rotation, but admitted that it was possible that it could have been due to lack of maintenance. Mr. Einhaus agreed that the heater would need maintenance over the years of its use, and that he did not know what maintenance actually took place on the heater.

Based on his inspection of the heater, Mr. Einhaus determined that the heater caused the fire at Ms. Hamilton’s residence. Mr. Einhaus based his conclusion on the exterior blistering of the heater, a lack of soot or char on the heater, the fused controller contacts, the lack of fusing in many other metallic devices in the heater cavity,- the melted fan blade, and the fact that the fan rotor would not rotate, all of which were consistent with the heater being the cause of the fire. Mr. Einhaus believed that the following events led to the fire: (1) failure of the fan to rotate; (2) *1221 cycling of the Therm-O-Disc control over an extended period of time; (3) fusing of the contacts in the Therm-O-Disc control caused by the cycling, which meant that the Therm-O-Disc control could not open the circuit and de-energize and cool the heating device; (4) thermal runaway; and (5) fire.

Although Mr. Einhaus concluded from the evidence that the Therm-O-Disc control failed, he could not say at what number of cycles it failed. Underwriters Laboratories (“UL”) 1 uses a measure of 100,000 cycles that the Therm-O-Disc control must be able to withstand in order for UL to approve the device. In Mr. Einhaus’ opinion, the device should be able to withstand more than 100,000 cycles or there should be some other redundancy device that has a backup for that in the controller. Mr. Einhaus opined that the UL standard of 100,000 cycles (“UL 873”) was reasonable in the sense of being in the best interest of safety and of manufacturing interests, but that in a particular case, it may not be adequate. Mr.

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Bluebook (online)
476 F. Supp. 2d 1216, 2006 WL 4005298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-indemnity-co-v-therm-o-disc-inc-nmd-2006.