State Farm Fire & Cas. Co. v. Valley Elec. Membership Corp.

558 So. 2d 731, 1990 La. App. LEXIS 573, 1990 WL 27084
CourtLouisiana Court of Appeal
DecidedMarch 14, 1990
Docket88-1192
StatusPublished
Cited by6 cases

This text of 558 So. 2d 731 (State Farm Fire & Cas. Co. v. Valley Elec. Membership Corp.) 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
State Farm Fire & Cas. Co. v. Valley Elec. Membership Corp., 558 So. 2d 731, 1990 La. App. LEXIS 573, 1990 WL 27084 (La. Ct. App. 1990).

Opinion

558 So.2d 731 (1990)

STATE FARM FIRE & CASUALTY COMPANY, Plaintiff-Appellee,
Joyce Croft, Intervenor-Appellee,
v.
VALLEY ELECTRIC MEMBERSHIP CORPORATION, et al., Defendants-Appellants.

No. 88-1192.

Court of Appeal of Louisiana, Third Circuit.

March 14, 1990.

*733 Lunn, Irion, Johnson, Salley & Carlisle, Brian D. Smith, Shreveport, for defendants-appellants.

Thomas & Dunahoe, Robert C. Thomas, Natchitoches, for intervenor-appellee.

Cook, Yancey, King & Galloway, Charles G. Tutt, Shreveport, for plaintiff-appellee.

Before DOUCET, LABORDE and KNOLL, JJ.

KNOLL, Judge.

State Farm Fire & Casualty (hereafter State Farm) sued Valley Electric Membership Corporation (hereafter Valley Electric) and its insurer, Federated Rural Electric Insurance Corporation (hereafter Federated), for recoupment of sums it paid to its insured, Joyce Croft, for the loss of her home and its contents by fire. A jury determined that Valley Electric was 100% at fault in the Croft fire, that Croft was entitled to $6000 damages not compensated by State Farm, but that State Farm was not entitled to recover damages from Valley Electric and Federated. Although all the litigants filed motions for JNOV, the trial court granted only State Farm's, and awarded it judgment against Valley Electric and Federated in the sum of $54,518.80.

Valley Electric and Federated appeal, contending the trial court erred: (1) in denying their motions for directed verdict and for JNOV on the issue of liability; (2) in denying their motion for new trial on the liability issue; (3) in failing to grant their motion for new trial on the issue of the denial of their motion for continuance; (4) in granting a JNOV on the issue of damages; (5) in denying their motion for JNOV on the issue of Croft's damages; (6) in denying their objection to the special verdict form submitted to the jury; and (7) in limiting the opinion of their expert witness, Robert Harbour.

Croft answered the appeal, seeking an increase in the property damages and an award for mental anguish. State Farm also answered the appeal, asking us to consider the opinion of Fred Vanderbrook as an expert in the field of failure analysis and the determination of the cause and origin of fires, and that we set his expenses as an element of court costs.

We affirm in part, and amend in part to award Croft damages for mental anguish and additional sums to cover cash money lost in the fire.

FACTS

Croft purchased a home in Natchitoches Parish in April 1982 from Floyd Cason, and moved in during the latter part of June. In the first two weeks of July, she began experiencing problems with the dimming of lights and the television picture; this happened repeatedly, but a few seconds later everything would return to normal. Croft also noted that the mercury vapor light in her backyard dimmed whenever her household appliances and lights dimmed; this outdoor light was energized directly from Valley Electric's lines and was not connected through her breaker panel. Croft contacted Valley Electric, her supplier of electricity, concerning the problem. The testimony at trial indicated that there was a dispute about the number of times Perry Baker, a Valley Electric lineman, responded and what exactly he said to Croft. Nevertheless, the record shows that Baker was sent by Valley Electric to the Croft home at least once. Croft testified that Baker told her that the electric problems were due to an old service wire from the transformer to her home and he would take care of it. Croft further testified that when the problem persisted, Valley Electric again dispatched Baker. On this second occasion, Croft testified that Baker told her that they fixed the problem by making adjustments further up the line, and that *734 she should watch her appliances to see if it made a difference.

Croft also testified that Buck Miley, a Valley Electric board member, came to her home after he learned of her problems from Cason. Miley told Croft that the wire leading to her house was old and it was not supplying enough voltage. Miley said that he would be certain that Valley Electric would get something done. Valley Electric never told Croft that the dimming problem was not coming from its equipment. On July 26, 1982, within one week of Miley's visit, Croft's home burned.

State Farm paid Croft $54,518.80 for the loss of her home, its contents, and for additional living expenses. By virtue of the payment made to her, Croft subrogated to State Farm whatever rights she may have had against Valley Electric and Federated as a result of the fire. This litigation then ensued.

All parties agree that the cause of the fire was in Croft's breaker panel box, not in Valley Electric's equipment, and that Valley Electric did not replace the service wire prior to the fire. The dispute arises over Valley Electric's duty to Croft. Valley Electric contends that it cannot be held liable for a fire caused by a defect in the customer's electrical equipment in the absence of proof that it, through its employees, had prior knowledge of the existence of the defect. State Farm contends that because Croft was always told the dimming problem was in Valley Electric's lines and she was never told the problem was in her equipment, Valley Electric was the cause in fact of the fire. After analyzing the peculiar set of facts of this case under a duty-risk analysis set forth below, we agree with State Farm.

DIRECTED VERDICT/JNOV

Valley Electric and Federated first contend that the trial court applied an incorrect standard, i.e., the former scintilla of evidence rule, in its assessment of their motions for directed verdict and JNOV. Accordingly, they argue that the trial court erred in denying both of these motions.

The jurisprudence has established that the standard for directed verdict and JNOV are the same. Quoting from Boeing v. Shipman, 411 F.2d 365 (5th Cir.1969), we stated in Silliker v. St. Landry Parish Police Jury, 520 So.2d 880, 884 (La.App. 3rd Cir.1987):

"`On motions for directed verdict and for judgment notwithstanding the verdict, the Court should consider all of the evidence—not just that evidence which supports the nonmover's case—but in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motions is proper. On the other hand, if there is substantial evidence opposed to the motions, that is, evidence of such quality and weight that reasonable and fair-minded men in the exercise of impartial judgment might reach different conclusions, the motions should be denied, and the case submitted to the jury.'"

See also Rougeau v. Commercial Union Insurance Company, 432 So.2d 1162 (La. App. 3rd Cir.1983), writ denied, 437 So.2d 1149 (La.1983).

Even if a trial court misapplies the standard, an appellate court, examining the record in light of the correct standard, may nonetheless find that the trial court properly acted in disposing of the motions for directed verdict and JNOV. Dubois v. El Do Corp., 436 So.2d 1317 (La.App. 3rd Cir. 1983).

In reviewing a trial court's decision relative to the denial of motions for directed verdict and JNOV, it is the duty of the appellate court to determine whether the trial court's findings were manifestly erroneous. Silliker, supra.

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Bluebook (online)
558 So. 2d 731, 1990 La. App. LEXIS 573, 1990 WL 27084, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-cas-co-v-valley-elec-membership-corp-lactapp-1990.