Tire Shredders, Inc. v. ERM-North Central, Inc.

15 S.W.3d 849, 1999 Tenn. App. LEXIS 588
CourtCourt of Appeals of Tennessee
DecidedAugust 30, 1999
StatusPublished
Cited by42 cases

This text of 15 S.W.3d 849 (Tire Shredders, Inc. v. ERM-North Central, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tire Shredders, Inc. v. ERM-North Central, Inc., 15 S.W.3d 849, 1999 Tenn. App. LEXIS 588 (Tenn. Ct. App. 1999).

Opinion

FARMER, J.

Defendants ERM-North Central and ERM-Enviroclean-North Central (collectively “ERM”) appeal from a jury verdict requiring ERM to pay $1,300,000.00 as damages to Plaintiff Tire Shredders, Inc. (“TSI”) for the negligent destruction of a shredding machine owned by TSI. For the reasons set forth below, we uphold the jury verdict and affirm the challenged evi-dentiary rulings of the trial court.

Factual and Procedural History

ERM entered into a contract with Nissan Industrial Equipment Company (“Nissan”) under which ERM agreed to destroy and dispose of some fiberglass boats at Nissan’s facility in Memphis. ERM then entered into subcontracts with American Maintenance, Inc. (“AMI”), Mid-Town Auto Parts and Crushers, Inc. (“MidTown”), Floied Fire Extinguisher and Steam Cleaning Company, Inc. (“Floied”), Keating Environmental Management, Inc., Daniel T. Keating Company a.k.a. Daniel J. Keating Construction Company, Daniel J. Keating Company, or Daniel T. Keating Construction Company (collectively “Keat-ing”), and TSI. Under these subcontracts, AMI agreed to provide general labor and clean-up, Mid-Town agreed to crush the boats, Floied agreed to provide two heavy-duty 150-pound fire extinguishers, Keating agreed to provide supervisory personnel, and TSI agreed to provide a shredding machine 1 and personnel to operate the machine. TSI shipped its shredding machine to the Nissan facility in Memphis and began performing under its subcontract with ERM. The Nissan project was scheduled to last approximately four weeks. On the thirteenth day of the project, however, a fire occurred at the Nissan facility that completely destroyed TSI’s shredding machine.

As a result of this fire, three separate lawsuits were filed in the Circuit Court of Shelby County. These related actions were subsequently transferred to a single division of that court and consolidated pri- or to trial. We discuss the procedural histories of these actions separately.

In the first lawsuit, TSI filed a products liability action against Mac Saturn. TSI took an unconditional non-suit with respect to its claim against Mac Saturn in October of 1997.

In the second lawsuit, Nissan filed a negligence action against TSI, AMI, ERM, Mid-Town, and Mac Saturn. The parties ultimately reached a settlement with respect to Nissan’s claims against TSI, AMI, ERM, Mid-Town, and Mac Saturn. Consequently, in July of 1997, the trial court entered a consent order dismissing this action with prejudice.

In the third lawsuit, which is the subject of the present appeal, TSI filed a negligence action against ERM, Mid-Town, Floied, and AMI. ERM filed an answer to TSI’s complaint and asserted a cross-claim against Mid-Town and AMI. Additionally, *852 Floied filed an answer to TSI’s complaint, a third party complaint against Nissan, and a cross-claim against ERM, MidTown, and AMI. TSI subsequently amended its complaint to add Keating as an additional defendant. Nissan then filed an answer to Floied’s third party complaint and a counter-claim against Floied. In November of 1995, after receiving notices of voluntary dismissal or non-suit, the trial court dismissed without prejudice TSI’s claim and ERM’s cross-claim against Mid-Town. Thereafter in September of 1997, TSI took a voluntary non-suit with respect to its claims against AMI, Floied, and Mac Saturn, leaving only ERM and Keating as defendants. After a trial on TSI’s claims against ERM and Keating, the jury found that TSI had sustained a total of $1,300,000.00 in damages and that ERM was 100% responsible for these damages. ERM subsequently filed a motion to set aside the jury verdict or, in the alternative, for a new trial. The trial court denied ERM’s post trial motion. This appeal followed.

Issues and Standard of Review

The issues raised on appeal, as stated by ERM, are as follows:

1. Whether the trial court erred in charging the jury that it could award “loss of use” or “lost profits” in addition to diminution in fair market value for the total destruction of a piece of personal property due to the negligence of a defendant.
2. Whether the trial court erred in its jury instruction as to loss of use.
3. Whether the trial court further erred by instructing the jury that it could award lost profits, since these “profits” were uncertain and speculative.
4. Whether the trial court erred by prohibiting the use of Plaintiffs pleadings and deposition testimony to cross-examine Robin Pointer, President of Tire Shredders, Inc.
5. Whether the trial court erred by refusing to admit trade journals as substantive evidence and further erred by refusing to permit their use in the cross-examination of Ms. Pointer to prove that Plaintiff did not mitigate its damages.
6. Whether the trial court erred by admitting Exhibit 24, an assortment of documents from an unnamed source, collectively into evidence.
7. Whether the trial court erred in refusing to admit damaging testimony regarding Niagara’s business practices which showed the speculative nature of Plaintiffs alleged contract with Niagara.
8. Whether the trial court erred in allowing Jack Irwin to testify as an expert witness about Plaintiffs machine even though he was not qualified to do so.
9. Whether the trial court erred by excluding testimony from the Fire Investigator as to the cause and origin of this fire.

Each of these issues involves a question of law. Thus, our review of the trial court’s rulings with respect to these issues is de novo with no presumption of correctness. See, e.g., Bell v. Icard, Merrill, Cullis, Timm, Furen and Ginsburg, P.A., 986 S.W.2d 550, 554 (Tenn.1999); T.R.A.P. 13(d).

Lost Profits and Loss of Use

By motion in limine, counsel for ERM requested that the trial court exclude any evidence regarding profits that TSI might have lost as a result of the destruction of its shredding machine. The trial court denied this request and allowed the jury to hear evidence of lost profits. At the conclusion of the proof, the trial court instructed the jury in pertinent part as follows:

In addition [to diminution in value], if you find for the plaintiff, you may award in your discretion one of the following types of damages: One, the loss of use *853 of the tire shredder; or two, lost profits that the fee shredder would have produced. These terms shall be defined for you shortly. You may not award both loss of use and lost profits.
There are two important legal principles of which you should be aware in considering the plaintiffs claim for lost profits: First, a person whose property has been damaged by the wrongful act of another is bound to use reasonable care to avoid loss and to minimize damages.

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Cite This Page — Counsel Stack

Bluebook (online)
15 S.W.3d 849, 1999 Tenn. App. LEXIS 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tire-shredders-inc-v-erm-north-central-inc-tennctapp-1999.