St. Paul Fire & Marine Insurance Co. v. Honeywell, Inc.

611 N.W.2d 51, 2000 Minn. App. LEXIS 530, 2000 WL 685007
CourtCourt of Appeals of Minnesota
DecidedMay 30, 2000
DocketC0-99-1324
StatusPublished

This text of 611 N.W.2d 51 (St. Paul Fire & Marine Insurance Co. v. Honeywell, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Paul Fire & Marine Insurance Co. v. Honeywell, Inc., 611 N.W.2d 51, 2000 Minn. App. LEXIS 530, 2000 WL 685007 (Mich. Ct. App. 2000).

Opinion

OPINION

DANIEL F. FOLEY, * Judge

On April 3, 1997, appellant St. Paul Fire and Marine Insurance Company, as subro-gee of the Minnesota Indian Primary Residential Treatment Center (treatment center), filed a complaint alleging respondent Honeywell (1) breached its contract for preventive service, maintenance, and repair of the treatment center’s equipment and furnaces, and (2) negligently failed to properly service, maintain, and repair a furnace in the treatment center administration building. Appellant alleged respondent’s breach and negligence caused a furnace fire that resulted in $290,000 in damage to the treatment center. Respondent’s motion for summary judgment was denied and the case went to trial.

By special verdict form, the jury found the fire at the treatment center was directly caused by respondent’s (1) breach of its contract to service, maintain, and inspect the furnace, and (2) negligent failure to service, maintain, inspect, or repair the furnace. While the jury found the treatment center 20 percent contributorily negligent for the damages caused by the fire, the court initially ordered judgment for appellant and struck the jury’s 20 percent contributory negligence finding against the treatment center after considering appellant’s posttrial motions. Thereafter, respondent moved for JNOV or, alternatively, for a new trial.

Despite the jury’s special verdict in favor of appellant, the district court rejected appellant’s theory that respondent caused the October 14, 1995 fire by failing to properly tighten a pump flare fitting in November 1994 and perform preventive maintenance service in the fall of 1995. *53 With regard to the loose flare fitting, the district court found there was no competent evidence to support appellant’s assertions and that any evidence that respondent altered or loosened the flare fitting before the fire was “speculative and based improperly on the occurrence of the accident.” In addition, the district court concluded that appellant’s theory was .contrary to the uncontroverted evidence that the furnace did not leak or malfunction between November 1994 and 1995. The district court also rejected appellant’s claim that respondent failed to provide preventive maintenance service because the contract had no specified date for such service, and the claim is speculative and improperly based on the occurrence of the fire itself. Concluding there was no competent evidence to sustain the verdict, the district court granted JNOV.

Appellant challenges the district court order granting respondent’s motion for JNOV or alternative motion for a new trial. Because there is sufficient evidence to sustain the jury verdict, we reverse and reinstate the jury verdict.

FACTS

In 1980, the treatment center contracted with respondent to provide “preventive maintenance,” replace components that are “worn, failed, or doubtful,” and provide emergency service. The contract also required respondent to make a minimum of “eight visits per year,” perform periodic maintenance, and “do seasonal start-ups in the spring and fall.” Following the addition of the administration office building in 1988, respondent agreed to service the administration building furnace in addition to the treatment center’s other four furnaces.

Jeff Johnson, the treatment center’s business manager, testified that only respondent serviced the furnaces. Jerry Lundberg is the service representative assigned to service and maintain the treatment center’s furnaces. As reflected by Lundberg’s service reports, he typically performed preventive maintenance on the furnaces in September and October, but the contract did not specify a particular date for such service. The service reports indicate that annual fall preventative maintenance was performed each year except 1995.

On November 3, 1994, Lundberg was called to service the administration building furnace because it had a “funny odor” and “didn’t seem to be burning properly.” Lundberg’s service report indicates “blow back on Adminstration furnace” due to lottery tickets blocking the chimney elbow. Linda Bubacz, a housekeeper for the treatment center, called Lundberg on November 11, 1994, after detecting no heat in thfe administration building, smelling oil in the furnace room, and observing a puddle of oil on the floor. Lundberg’s November 11, 1994,' service report indicates there was “no heat in office area,” the “pump couplings [were] stripped,” and he “replaced [the] couplings.” While the parties dispute whether “office' area” meant the administration building or offices in the treatment center, Johnson testified that Lundberg meant the “office area in the administration building,” and Bubacz testified that she took Lundberg to the administration building furnace room.

In order to fix a stripped pump coupling, Lundberg testified that he had to remove the pump. Lundberg explained removing the pump required him to loosen the upper flare fitting on the pump, loosen the fitting on the supply line (the inlet supply of pressure to the pump), and loosen set screws fastening the pump to the burner housing. After loosening those items, Lundberg testified that the pump slides right out and that nothing has to be done to the fitting on the output tube attached to the pump. He explained that after replacing the stripped coupling he restarted the furnace and observed it in operation to determine if it was working properly.

While Lundberg returned to the treatment center on at least three occasions during the 1994-95 heating season for rou *54 tine inspection of the furnaces, he noted nothing out of the ordinary. Johnson, who entered the furnace room twice daily to turn lights on and off, did not report any malfunctioning or problems prior to the fire. Similarly, Bubacz did not detect the smell of fuel oil after Lundberg’s November 11, 1994 service call, despite entering the furnace room weekly for cleaning supplies.

On October 14, 1995, Karen Lindholm noticed black smoke in the administration building while retrieving a vacuum cleaner. Lindholm reported the fire to fellow employees Keith Lind and Curt Rainey who sounded the fire alarm. Rainey and Lind went to the administration building with fire extinguishers and discovered the fire after opening the furnace room door. Rai-ney testified that he simply saw a big flame until he unloaded the fire extinguisher on the flame and saw the furnace was burning. Other than the furnace, Rainey saw nothing else burning in the furnace room. While the record does not indicate whether Rainey closed the furnace room door before leaving, his trial testimony shows he hurried to leave the furnace room.

Fire departments from Perch Lake and Cloquet responded to the fire. Cloquet fireman, Brad Juntunen, testified at a May 22, 1998 deposition that he remembered the furnace room door being open, but also that he recalled having to pry open the interior and exterior doors to the furnace room. While Juntunen did not recall using foam to fight the fire, he explained the inside crew was using a line from the Perch Lake fire engine and only knew that Cloquet’s engine did not use foam. Instead, Juntunen explained that the firemen used traditional water and ventilation methods to extinguish the fire and testified that the fire was difficult to extinguish because it rekindled itself several times.

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Bluebook (online)
611 N.W.2d 51, 2000 Minn. App. LEXIS 530, 2000 WL 685007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-paul-fire-marine-insurance-co-v-honeywell-inc-minnctapp-2000.