Pacific Indemnity Co. v. Thompson-Yaeger, Inc.

260 N.W.2d 548, 1977 Minn. LEXIS 1336
CourtSupreme Court of Minnesota
DecidedSeptember 16, 1977
Docket45761, 45811, 45822, 45929, 46018, 46345, 46427, 46470 and 46494
StatusPublished
Cited by184 cases

This text of 260 N.W.2d 548 (Pacific Indemnity Co. v. Thompson-Yaeger, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota 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. Thompson-Yaeger, Inc., 260 N.W.2d 548, 1977 Minn. LEXIS 1336 (Mich. 1977).

Opinions

SHERAN, Chief Justice.

This litigation arises out of a 1971 fire that destroyed a portion of a shopping center in Rochester, Minnesota. Plaintiffs are either tenants or the insurers of tenants; all seek recovery from four principal defendants for damages suffered by reason of that fire. Defendants are Yale Engineering, Inc., Thompson-Yaeger, Inc., Tjernlund Manufacturing Co., and Frerichs Our Own Hardware, Inc. Thirteen actions were commenced in the district court, and all were consolidated for trial. The issues were bifurcated, and the matters came on for trial before the court and a jury of six on the issue of liability. The case was submitted upon a special verdict. The jury found all three of the appealing defendants negligent. Judgment was entered accordingly.

Yale and Frerichs appeal from the judgment and from the denial by the trial court of their respective motions for amended findings of fact, conclusions of law, and order for judgment, judgment n. o. v., or a new trial. Thompson-Yaeger has filed a notice of review in each of these cases. By order of this court the various appeals were consolidated for hearing and argument. Additionally, we ordered consolidated with these cases an appeal in a separate action for damages initiated by another of the tenants of the shopping center not a party to the original actions. In light of the verdict in the first cases, that tenant moved for summary judgment, arguing that the defendants were collaterally estopped from denying their liability. The trial court granted summary judgment, and defendants Yale and Frerichs appealed from that judgment.

Viewing the evidence, as we must, in a light most favorable to the verdict, the facts appear to be as follows:

On February 21, 1971, a fire destroyed the south end of the Miracle Mile Shopping Center in Rochester, Minnesota. This was a strip-type shopping center, with all of the stores located in a row. The Rochester Fire Department arrived in response to an alarm. The first engine to reach the center reported light smoke coming from the area of the Camera Center, located adjacent to Frerichs’ hardware store. Upon further investigation, a small area of flame was observed in the rear of Frerichs’ sporting goods department, near a duct coming from the furnace room. The fire spread quickly, ultimately destroying all of the stores to the south of Frerichs, and some located to the north. Other establishments suffered smoke and water damage.

The exact point of origin of the fire was determined by Chief Smith of the Rochester Fire Department to have been in the furnace room of Frerichs, on the north wall, in the east corner, behind the furnace. This point was directly opposite the “clean-out door” on the rear of the furnace. Smith’s opinion was concurred in by two other expert witnesses, Dennis Michaelson, a consulting chemist employed regularly as a fire investigator, and Phillip Anderson, a consulting engineer.

Three theories, none exclusive of the others, were advanced as to why the fire be[552]*552gan. The principal theory was that because the furnace was installed within a few inches of the wall where the fire started, the heat generated caused the formation of pyrophoric carbon1 on the studs immediately behind the sheetrock of the wall. Eventually this “charcoal’' ignited, causing the fire, which then spread to the interior of the wall and beyond. Another theory postulated was that this process of carbonization was accelerated by an increased temperature of the rear access door, which was in turn caused by intermittent ignition of the furnace resulting in incomplete combustion of the oil blown into the furnace. This oil landed on the hot access door and ignited, raising the temperature of the door further. The final theory presented was that “combustible materials” (consisting primarily of paper and cardboard boxes) stored near the furnace ignited, with the flames finding their way into the wall studs. The boxes also purportedly blocked the cold air return, further raising the operating temperature of the furnace and contributing to the carbon formation.

Several parties were named as defendants. Yale Engineering installed the furnace which allegedly caused the fire. The installation was completed in 1953. As installed (within inches of the wall) the furnace violated applicable building codes and the manufacturer’s instructions. The trial court ruled that Yale was negligent as a matter of law; the jury found that this negligence accounted for 80 percent of the causation of the fire.

Thompson-Yaeger, Inc., serviced the furnace from approximately 1968 to January 8, 1971. On this last date, an employee of Thompson-Yaeger installed a new oil pump and adjusted the nozzle assembly and the electrical ignition system. Allegedly he made the adjustments improperly, causing the intermittent ignition which resulted in surface combustion on the rear access plate of the furnace, and causing an increase in temperature. The jury found Thompson-Yaeger negligent, and apportioned 10 percent of the causation to this negligence.

Frerichs Our Own Hardware, Inc., was the tenant occupying the premises where the furnace was located. Frerichs had entered into a 10-year lease for the premises with the owner of the center, Corrigan Properties, Inc. As a part of that lease, Frerichs agreed to maintain and repair the furnace, and it employed Thompson-Yaeger to perform the services. Allegedly, employees of Frerichs placed waste paper and cardboard boxes in close proximity to the furnace (particularly on a small ledge behind the furnace near the access door) which ignited and contributed to the fire. Additionally, the boxes and waste allegedly blocked the cold air return to the furnace, causing an increase in the furnace’s operating temperature. The jury found Frerichs negligent, and apportioned 10 percent of the causation to this negligence.

Tjernlund Manufacturing Co. manufactured the furnace installed by Yale in the shopping center. Tjernlund’s original posture was that of a defendant and third-party defendant, but pursuant to a settlement agreement reached between Tjernlund, Frerichs, and the plaintiffs prior to trial (see discussion, infra,) the plaintiffs’ claims against Tjernlund were dismissed, leaving it as a third-party defendant of Yale and Thompson-Yaeger. Allegedly, Tjernlund was negligent in failing to provide adequate warnings regarding installation and breached certain warranties. The jury found that Tjernlund was not negligent. The warranty theories were not submitted to the jury.

Corrigan Properties, Inc., owned the shopping center and had engaged Draper & [553]*553Kramer, Inc., as its managing agent. By third-party complaints, Yale and Thompson-Yaeger sought contribution and indemnity from them. The trial court directed verdicts in favor of Corrigan and Draper & Kramer.

Numerous instances of error are asserted on appeal by the parties. We have considered those instances of error asserted which we do not address explicitly and find them to be without substantial merit. We view these as being the pertinent issues on appeal:

(1) Does the statute of limitations of Minn.St. 541.051 apply to the conduct of Yale Engineering, and if so, is the statute constitutional?

(2) Was the settlement agreement entered into by certain of the parties prior to the trial valid, and did the trial court’s treatment of that agreement deny the no-nagreeing defendants a fair trial?

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Bluebook (online)
260 N.W.2d 548, 1977 Minn. LEXIS 1336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-indemnity-co-v-thompson-yaeger-inc-minn-1977.