Regalado v. Callaghan

CourtCalifornia Court of Appeal
DecidedSeptember 22, 2016
DocketD069647
StatusPublished

This text of Regalado v. Callaghan (Regalado v. Callaghan) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regalado v. Callaghan, (Cal. Ct. App. 2016).

Opinion

Filed 9/16/16 Certified for Publication 9/22/16 (order attached)

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

VICTOR M. REGALADO, D069647

Plaintiff and Respondent,

v. (Super. Ct. No. INC1203669)

JEFFREY M. CALLAGHAN,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Riverside County, David M.

Chapman, Judge. Affirmed.

Wood, Smith, Henning & Berman, R. Gregory Amundson and Christopher Perez;

Greines, Martin, Stein & Richland, Robert A. Olson and Alana H. Rotter, for Defendant

and Appellant.

Thon Beck Vanni Callahan & Powell and Daniel P. Powell; Esner, Chang &

Boyer and Stuart B. Esner for Plaintiff and Respondent.

Jeffrey M. Callaghan hired Dunn's Designer Pools (Dunn's), a landscape and pool

contractor, to build a pool and spa at his home. Victor M. Regalado, a Dunn's employee, suffered injuries when he installed a propane fueled pool heater on Callaghan's property.

Regalado sued Callaghan for negligence and premises liability. The jury found

Callaghan was negligent and assigned 40 percent of fault to him. After applying the

jury's fault allocation and setoffs, the trial court entered judgment against Callaghan in

the amount of approximately $3 million.

Callaghan appeals, contending: (1) the court erred by failing to instruct the jury

that a person who hires an independent contractor is not liable for injuries to the

contractor's employee unless the hirer's negligent exercise of retained control

"affirmatively contributed" to the employee's injury, (2) insufficient evidence supported

the jury's verdicts on both premises liability and negligence, (3) Regalado's counsel

committed misconduct by urging the jury to base its verdict on protecting the community,

(4) the trial court erred by permitting Regalado to recover past wages because Dunn's had

continued to pay his salary after the accident, and (5) the jury's award of future medical

costs must be reduced because it was not supported by substantial evidence. We reject

Callaghan's arguments and affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Callaghan, a licensed concrete subcontractor, wanted to build a dream house for

his wife in the Coachella Valley. He decided to act as an owner-builder for his home

project. An owner-builder is a property owner that obtains permits for the construction

job at his or her own home and serves as the person responsible for the construction,

similar to a general contractor. After obtaining a building permit for the house,

Callaghan did the concrete work himself and hired licensed subcontractors to complete

2 other work. Callaghan was at the site daily, kept track of progress, and asked his

subcontractors whether things were ready so that he could call for inspections.

Callaghan planned to have Richard Clark of Canyon Pools build his pool and spa.

In order to minimize noise, Callaghan wanted to have the pool equipment installed in an

underground vault, which he had seen at other homes. Clark purchased a pre-engineered

vault for Callahan. Clark and Callaghan installed the vault. The vault had a hole on top

for entry and exit. Callaghan put a collar on the hole to extend it upward so that the vault

could be buried further underground and put a mesh grate over the top of it.

Callaghan's property did not have natural gas service so he hired a plumbing

subcontractor, SSW, to run propane lines to the house and backyard. Under SSW's

contract, it was not required to obtain permits for its work. Instead, Callaghan obtained

the permits for the plumbing.

Callaghan requested that SSW run a propane line in the backyard for a pool heater.

SSW's common practice at the time was to warn homeowners about the dangers of

propane, including that if propane was to be used in a vault, certain safety precautions

had to be taken because propane is heavier than air. However, SSW could not recall

whether it specifically warned Callaghan about the dangers of propane. SSW ultimately

ran a pipe into the backyard to a location Callaghan had specified, capped it, and left a

marker on it so the pool contractor could later extend it to the heater.

Approximately one year after the vault was installed, Callaghan hired Dunn's to

build the pool and spa instead of Clark because Clark was busy at that time. Callaghan

was friends with Nathan Dunn, the president of Dunn's, and had worked with him for a

3 long time. Callaghan informed Dunn's that he wanted to have the pool equipment

installed in the underground vault. Callaghan did not know that a propane fueled heater

should not be placed underground because it is dangerous to do so.

Dunn's built the shell for the pool and spa, completed the plumbing, and selected

and purchased a natural gas heater for the pool and a kit to convert it to propane. Dunn's

designed the layout of the equipment in the vault, including where the propane line would

enter the vault and where to place the joint for purging air out of the propane line before

starting the heater. Callaghan's role was to call the County of Riverside (the County) for

inspections.

Callaghan had obtained permits for the pool and spa. The site plan he submitted to

the County in connection with his pool and spa application depicted a pool vault.

However, Callaghan did not obtain separate permits for the vault and propane line or

have the County inspect the vault. The County and Regalado's expert testified the vault

required a permit. Clark, on the other hand, testified that based on his experience, a

precast, pre-engineered vault like the one he installed on Callaghan's property did not

require a permit.

Employees of Dunn's, including Regalado, installed the pool equipment in the

vault. Regalado had not previously installed a propane heater in a vault. Further, neither

Regalado nor his supervisor, David Fleming, had read the instruction manuals for the spa

heater or the propane conversion kit that Dunn's had purchased for Callaghan's project.

Those instruction manuals warned of a risk of explosion if a propane heater is installed in

a pit or low spot where propane gas can collect.

4 After the pool and spa were completed, Fleming asked Regalado to turn on the

pool equipment and get everything ready for the County's final inspection. Fleming

believed that the County had inspected the pressure in the propane line before he asked

Regalado to start up the equipment. Fleming thought Callaghan had told him the line was

pressure tested, but could not recall the specific conversation.

Regalado entered the vault and bled the propane line until he smelled gas. He then

exited the vault and told Fleming he was ready to turn the heater on. Fleming told

Regalado to go ahead. Regalado re-entered the vault and turned on the filter pump and

heater.

As Regalado was climbing out of the vault, there was an explosion. The explosion

was caused by the propane that Regalado had bled into the vault igniting when Regalado

turned on the heater. Regalado was propelled into the air, landing on the ground outside

the vault. He was severely burned, injured his back, and suffered other substantial

injuries.

Regalado sued Callaghan for negligence and premises liability.

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