Temes v. Manitowoc Corp.

181 So. 3d 733, 14 La.App. 5 Cir. 93, 2014 La. App. LEXIS 3038, 2014 WL 7338765
CourtLouisiana Court of Appeal
DecidedDecember 23, 2014
DocketNos. 14-CA-93, 14-CA-96
StatusPublished
Cited by5 cases

This text of 181 So. 3d 733 (Temes v. Manitowoc 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
Temes v. Manitowoc Corp., 181 So. 3d 733, 14 La.App. 5 Cir. 93, 2014 La. App. LEXIS 3038, 2014 WL 7338765 (La. Ct. App. 2014).

Opinion

STEPHEN J. WINDHORST, Judge.

| ^Defendants, Manitowoc Corporation and its liability insurer Sentry Insurance Company (“Manitowoc”), appeal from a judgment in favor of T.L. Starke, Inc. (“Starke”) and Roy K. Saia o/b/o Algiers Roy & Sons Music Company Inc. (“ARS”).1 The trial court found that plaintiffs bore their burden of proving liability and it awarded damages totaling $109,477.23 to Starke and $54,076.02 to ARS. In a separate judgment, the trial court denied Manitowoc’s motion for sanctions. For the reasons that follow, we amend the judgment, and as amended, affirm. We further affirm the trial court’s denial of Manitowoc’s motion for sanctions.

This suit arises from a fire that occurred in Mulligan’s Tavern (“Mulligan’s”). Mulligan’s was located in a shopping center owned by Esplanade Plaza, L.L.C. (“Esplanade”) on Severn Avenue in Metairie, Louisiana. At, .the time of thé fire, Mulligan’s was owned by Flappery, Inc. (“Flap-pery”) and operated by Starke.2 Located inside Mulligan’s were video poker and amusement' devices that were owned and operated by ARS.

hPrio’r to the fire, Flappery entered into negotiations with Starke for the sale of Mulligan’s. According to their agreement, Starke took over management of the business while it waited for its video poker and alcohol licenses. Starke began managing the business on April 1, 2006., Also on April 1, 2006, Starke purchased a Manito-woc Series 600 ice machine, which was installed by Olivier’s Air Conditioning and Heating.

In the early morning hours of April 29, 2006, a fire started in the Manitowoc ice maker, causing damages and necessitating closing of the business while repairs were made. After the fire, and during the repairs process, Flappery and Starke renegotiated the sale of Mulligan’s. Starke ultimately assumed ownership and Mulligan’s reopened in January of 2007. The business closed one year later.

Starke and ARS filed this suit for lost revenue and damages incurred from the date of the fire until Mulligan’s reopening in January of 2007. After trial, on the merits, the court found that the ice maker was defective and that Manitowoc was liable for the damages caused by the fire. Manitowoc appeals.

In its appeal, Manitowoc assigns the following as error:

1. The trial court erred in applying res ipsa loquitur to find a manufacturing defect in the Manitowoc ice machine because under Louisiana law:

a) Plaintiffs cannot take advantage of a presumption of defect because direct evidence was spoliated by Plaintiffs’ expert before it was examined.
b) The evidence did not sufficiently eliminate other causes of the fire.

2. The trial court erred in finding a manufacturing defect in the Manitowoc ice [737]*737machine because Plaintiffs did not.present evidence to establish that the product deviated from Manitowoc’s specifications or performance standards as required by La. Rev.Stat. 9:2800.55.

3. The trial court-erred in'-awarding video poker revenue (as opposed to lost profits) to Plaintiffs without taking the expenses necessary to generate the revenue into account.

| f¡4. The trial court erred, in awarding rental payments which Plaintiffs had, no legal obligation to pay.

5. The trial court erred in awarding undocumented building repair expenses which were voluntarily made.

6. The trial court erred in awarding Starke damages for property (a) Starke did not own at the time of the fire, and (b) for which Starke had previously received reimbursement.

7. The trial court erred in denying the motion for sanctions because of Plaintiffs’ repeated violation of the Court’s discovery Orders and testimony at trial established that prior representations regarding the non-existence of responsive documents were patently false.

CAUSATION

A bifurcated trial was held with both the issues of liability and damages presented to the judge. After the conclusion of the hearing on liability,, the trial court found that plaintiffs had borne their burden of proof.3

To prove causation, plaintiff Starke presented the testimony of George Hero, who was qualified as an expert in electrical engineering and fire origin and causes. Mr. Hero was originally hired by Caitlin Insurance, Mulligan’s insurance carrier. Defendant Manitowoc presented the testimony of Robert Russell, who qualified as an expert in origins and causes of fire.

As stated previously, Starke took over management of Mulligan’s on April 1, 2006. On that day, Starke had a brand-new Manitowoc ice machine installed. The fire occurred in the early morning hours of April 29, 2006, when the bar was closed. At the end of a long bar, there was. an alcove, or a little storage room, that |ficontained the ice machine and some miscellaneous, storage. With the exception of the alcove, the majority of the damage to the premises, was caused by heat and smoke, not fire. On first inspection, it was obvious that the source of the heat was around the ice machine. There was no evidence that the floor of the premises had caught fire.

Mr. Hero testified that he started his investigation by photographing the unit in place. . He then called Mr. Olivier, of Olivier’s Air Conditioning, Heating and Refrigeration, and they removed the unit from the alcove. They discovered that, based on the pattern of the fire, the origin had to be within the machine. At that point, they ceased examining the machine and called for .a. Manitowoc, representative. Further examination of. the premises showed that [738]*738the building wire was not damaged, and the junction box coming out of the wall was not damaged. The aluminum coil attached to the ice machine was damaged only on the inside of the unit, and not on the backside toward the wall, showing that the heat was within the unit. The pattern of the fire indicated ignition within the ice maker and no defects or source of ignition was found anywhere else in the building.

Later, Mr. Hero was joined by Robert Russell from Manitowoc, and Mr. Hero conducted a second inspection of the unit. During that inspection, he removed the ice maker from the ice bin, and wrapped the ice maker in plastic so that it could be stored for a second, more detailed inspection. Mr. Hero again concluded that the source of the ignition was within the ice maker.

Mr. Hero conducted a third inspection in which the unit was completely dismantled and every piece was inspected. By agreement of all present, including Mr. Russell, the pieces were not separately bagged; instead they were dumped in the ice bin. Mr. Hero testified that after this last inspection was concluded, there |7was nothing left of the ice maker except torn apart scraps, which could not be reassembled. He stored these scraps for a while, and then threw them away.

This third inspection revealed that the condenser and evaporator fan motors were badly burned. The compressor motor had an internal short, but was not grounded. The case of the ice maker was in good shape and there was no evidence of overheating. The external connectors were proper. The end of the control wire had “a melt,” which indicated that the fire reached 2,000 degrees.

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Bluebook (online)
181 So. 3d 733, 14 La.App. 5 Cir. 93, 2014 La. App. LEXIS 3038, 2014 WL 7338765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/temes-v-manitowoc-corp-lactapp-2014.