Royal Street Grocery, Inc. v. Entergy New Orleans, Inc.

778 So. 2d 679, 2001 WL 111935
CourtLouisiana Court of Appeal
DecidedJanuary 10, 2001
Docket99-CA-3089 and 99-CA-3090
StatusPublished
Cited by10 cases

This text of 778 So. 2d 679 (Royal Street Grocery, Inc. v. Entergy New Orleans, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Royal Street Grocery, Inc. v. Entergy New Orleans, Inc., 778 So. 2d 679, 2001 WL 111935 (La. Ct. App. 2001).

Opinion

778 So.2d 679 (2001)

ROYAL STREET GROCERY, INC. et al.
v.
ENTERGY NEW ORLEANS, INC.
Joe Fein Caterer's, Inc., et al.
v.
Entergy New Orleans, Inc.

Nos. 99-CA-3089 and 99-CA-3090.

Court of Appeal of Louisiana, Fourth Circuit.

January 10, 2001.
Writ Denied April 12, 2001.

*681 Wendell H. Gauthier, Scott Labarre, Gauthier, Downing, Labarre, Beiser & Dean, Michael H. Ellis, George B. Recile, Chehardy, Sherman, Ellis, Breslin & Murray, Metairie, LA, Michael Tifft, Raul R. Bencomo, Bencomo & Associates, Robert V.J. Buras, New Orleans, LA, Thomas G. Wilkinson, Gretna, LA, Glen A. Woods, *682 New Orleans, LA, Counsel for Plaintiffs/Appellants.

Kenneth P. Carter, Marcus V. Brown, Entergy Services, Inc., Eugene G. Taggart, John J. Zvonek, Taggart, Morton, Ogden, Staub, Rougelot & O'Brien, L.L.C., Richard C. Stanley, Bryan C. Reuter, Stacy S. Head, Stanley & Flanagan, L.L.C., New Orleans, LA, Counsel for Defendant/Appellee.

Court composed of Judges JONES, BAGNERIS and LOVE.

DENNIS R. BAGNERIS, Sr., Judge.

This is an appeal from a trial court interlocutory decision denying plaintiffs motion for class certification. Defendant, Entergy New Orleans, Inc. ("Entergy"), moved to dismiss this appeal on the ground that the trial court's denial of certification, if it were in fact reviewable at this stage of the proceeding, could be challenged only by a writ order to this Court. This Court denied Entergy's motion and determined that it had jurisdiction to consider this appeal. After careful review of the record in this matter, we find that the trial court was correct in determining that this action is inappropriate for class certification. The trial court's denial of class certification in the instant case is therefore affirmed.

FACTS AND PROCEDURAL HISTORY

This action arose as the result of two power outages that occurred in the New Orleans French Quarter on August 12, 1998. Entergy supplies electricity to its customers within the French Quarter through a continuously energized system of electrical cables, commonly known as the Claiborne Grid. The Claiborne Grid is supplied with electricity by primary feeders that connect to the grid at different locations. The electricity from the primary feeders passes through transformers that reduce the voltage and deliver the electricity to the grid. This type of system is known to be a reliable one, and it is used in many metropolitan areas throughout the country.

On August 12, 1998, a problem arose in the secondary cable located at the corner of St. Peter and Bourbon Streets in the French Quarter. This problem led to a fire in the underground electrical vault at the location. The fire then spread to the primary cable and bus-work, causing extensive damage. The fire department ordered Entergy to de-energize the entire Claiborne Grid in order to allow the department to extinguish the fire. Entergy complied with this order, and the first power outage resulting from the de-energization of the Claiborne Grid began at 2:41 p.m. on August 12, 1998. It took approximately six hours to restore power to the grid due to the extensive damage caused by the fire. Entergy restored the power at 9:02 p.m. that night.

At 9:31 p.m., Entergy was again forced to de-energize the Claiborne Grid. A splice failure had occurred on a primary feeder at the corner of Toulouse and Bourbon Streets. There was no fire involved in this incident; however, the power to the grid had to be shut off, given that there was a primary feeder involved. Once Entergy repaired the splice, it restored power to the Claiborne Grid at 12:32 a.m. on August 13, 1998.

These outages affected approximately 4,200 Entergy customers, both residential and commercial. These customers are served through service agreements and service regulations. Entergy's service agreement provides that Entergy may interrupt electrical service when necessary "in order to comply with an order ... or formal request from a governmental agency." The fire department's order to de-energize the Claiborne Grid was just such an order. Entergy's service regulations further provide that Entergy will not be responsible for interruption of service due to unforeseen difficulties or causes beyond its control. The regulations also provide that the company may interrupt service without notice whenever necessary "on the *683 discovery of conditions dangerous to life or property."

Within hours of the power outages, Royal Street Grocery, Inc. filed suit naming Entergy as a defendant and seeking class certification for a variety of individuals and businesses affected by the outages. Several days later, a second suit was filed naming 21 other businesses and individuals seeking class certification for their losses from the outages. The two actions were consolidated before Judge Carolyn Gill-Jefferson of the Civil District Court of the Parish of Orleans. Judge Gill Jefferson set July 15, 1999 as the hearing date for the certification. Prior to the hearing, the plaintiffs requested a voluntary dismissal of 17 of their 24 proposed class representatives. In their memorandum of law filed prior to the class certification hearing, the plaintiffs stated that their seven remaining representative plaintiffs would represent the following sub-classes of plaintiffs:

A) "Business corporations who lost business, profits, business opportunities and/or inventory as a consequence of the August 12, 1998 power outage;
B) Business partnerships and unincorporated business associations who lost business, profits, business opportunities and/or inventory as a consequence of the August 12, 1998 power outage;
C) Businesses owned and operated by individuals who lost business, profits, business opportunities and/or inventory and sustained mental anguish as a consequence of the August 12, 1998 power outage;
D) Individual business employees who lost wages or other income and sustained mental anguish as a consequence of the August 12, 1998 power outage;
E) Business corporations, partnerships, unincorporated businesses, employees, residents and other entities who sustained property damage as a consequence of the subject power outage of August 12, 1998; and
F) All residents of the French Quarter (and other adjoining areas) who lost power during the power outage of August 12, 1998, and as a result, experienced inconvenience and mental anguish."

At the hearing, the plaintiffs testified that the classes should include both customers and non-customers of Entergy, residents and non-residents of the French Quarter, and businesses that lost electrical power during the outage, as well as those businesses that did not lose power at that time. At the hearing, Judge Gill Jefferson concluded that the plaintiffs had failed to carry their burden of defining the class. In addition, Judge Gill Jefferson found that the plaintiffs had failed to carry their burden on numerosity, typicality and representativeness, commonality, predominance and superiority. It is from this decision that the plaintiffs now appeal. After a careful review of the record, we find that the trial court judge committed no manifest error; therefore, we affirm the trial court's decision to deny class certification.

LAW AND DISCUSSION

The sole issue for review is whether the trial court committed manifest error in determining that the plaintiffs did not meet their burden of proving that they satisfied the prerequisites for certification of a class.

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Cite This Page — Counsel Stack

Bluebook (online)
778 So. 2d 679, 2001 WL 111935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-street-grocery-inc-v-entergy-new-orleans-inc-lactapp-2001.