Wallace v. Ohio Department of Commerce, Unpublished Decision (12-18-2003)

CourtOhio Court of Appeals
DecidedDecember 18, 2003
DocketNo. 99AP-1303.
StatusUnpublished

This text of Wallace v. Ohio Department of Commerce, Unpublished Decision (12-18-2003) (Wallace v. Ohio Department of Commerce, Unpublished Decision (12-18-2003)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wallace v. Ohio Department of Commerce, Unpublished Decision (12-18-2003), (Ohio Ct. App. 2003).

Opinion

OPINION
{¶ 1} This case is before this court on remand from the Ohio Supreme Court's decision in Wallace v. Ohio Dept. of Commerce, Div. ofState Fire Marshal, 96 Ohio St.3d 266, 2002-Ohio-4210, which reversedWallace v. Dept. of Commerce (Oct. 19, 2000), Franklin App. No. 99AP-1303.

{¶ 2} The factual background, procedural history, and testimony underlying this case previously have been reported in both this court's earlier opinion and the Ohio Supreme Court's opinion of Wallace. SeeWallace, Franklin App. No. 99AP-1303, and Wallace, 96 Ohio St.3d 266, at ¶ 2-11. Accordingly, only a condensed summary is provided here.

{¶ 3} On July 3, 1996, Todd Hall entered the Ohio River Fireworks store in Scottown, Lawrence County, Ohio, with a lit cigarette. Before store employees could intervene, Hall used the lit cigarette to set fire to a stack of "crackling wheel" fireworks, which, in turn, ignited other fireworks within the store. A fire resulted that killed nine people and injured several others.1 At the time of the fire, Flying Dragon, Inc., possessed a valid fireworks wholesaler license, which had been issued by the fire marshal, to operate the Ohio River Fireworks store. In October 1995, the Ohio River Fireworks store had been inspected by the fire marshal as required by statute. See, generally, R.C. 3743.16. Additionally, prior to 1996, as a matter of internal policy, fire marshal inspectors were encouraged to make seasonal inspections of fireworks businesses during the July 4th fireworks season to ensure compliance with applicable statutes and regulations. During the spring of 1995, two seasonal inspections were conducted, and the store's sprinkler system was determined to be functional.

{¶ 4} In June 1996, after a commercial competitor informed the fire marshal that Ohio River Fireworks was advertising and selling Class B fireworks2 to parties that were unauthorized to purchase them, Michael Kraft, then an acting field supervisor, organized a "bust buy" operation, during which fire marshal agents would try to purchase Class B fireworks without a proper license. A seasonal inspection of the Ohio River Fireworks store was postponed until after the "bust buy" was completed and was not performed prior to the fire on July 3, 1996.

{¶ 5} On June 28, 1996, five days before the fatal fire, Donald Eifler, an arson investigator, and Thomas Baker and Michael Kraft, two fire safety inspectors, conducted a "bust buy," during which Eifler purchased Class B fireworks without a proper license. None of the three fire marshal agents who were present at the "bust buy" conducted a fire inspection at any time that day.

{¶ 6} Following the fatal fire, plaintiffs, persons injured in the fire and administrators of the decedents' estates, filed a lawsuit in the Ohio Court of Claims, alleging negligence against the state fire marshal.

{¶ 7} At trial, plaintiffs presented testimony that suggested the store's sprinkler system was shut off at the time of the fire and this shutdown was not an isolated occurrence. Additionally, plaintiffs presented expert opinion testimony that decedents would have had an improved chance of survival if the sprinkler system had functioned properly. Moreover, plaintiffs presented evidence that, at the time of the "bust buy," state fire marshal agents could have easily determined whether the store's sprinkler system was operational.

{¶ 8} After a four-day trial that was limited to the issue of liability, the Court of Claims found in favor of the state fire marshal. On appeal, this court in Wallace, supra, affirmed based on an application of the public-duty rule.

{¶ 9} However, in Wallace, 96 Ohio St.3d 266, the Ohio Supreme Court reversed this court's decision and remanded the cause. Id. at ¶ 41. See, also, id. at syllabus.

{¶ 10} In Wallace, the Ohio Supreme Court declined to address two issues raised by the parties in that appeal, namely, "(1) the appellants' proposition concerning the proper foreseeability standard in assessing issues regarding proximate causation and (2) the state's alternate argument for affirmance based on the fire marshal's discretionary-function immunity." Wallace, 96 Ohio St.3d, at ¶ 40. The Wallace court also noted that "[b]ecause the court of appeals held that the public-duty rule barred the appellants' claims, it had no occasion to reach these issues; accordingly, we leave those issues for the court of appeals to resolve, if necessary, on remand" Id.

{¶ 11} On remand, plaintiffs assert three assignments of error:

Assignment of Error No. 1:

The court of claims erred in not holding that the state's Discretionary Function Immunity does not apply to the negligence claim asserted by plaintiffs in this case.

Assignment of Error No. 2:

The trial court erred to the prejudice of plaintiffs by relying on the testimony of defendant's expert, Dr. George Nichols, who based his opinion of the physiological effects of the fire solely upon the inadmissible prior opinion of defendant's expert, Dr. John Hoffman [sic].

Assignment of Error No. 3:

The court of claims erred to the prejudice of plaintiffs in finding that the conduct of a third party was an intervening act that was the sole cause of the fire in question and that this act was not foreseeable.

{¶ 12} Plaintiffs' first assignment of error asserts the trial court erred by not holding the state's discretionary function immunity did not apply to plaintiffs' negligence claim.

{¶ 13} Under discretionary function immunity, "the state cannot be sued for its legislative or judicial functions or the exercise of an executive or planning function involving the making of a basic policy decision which is characterized by the exercise of a high degree of official judgment or discretion. However, once the decision has been made to engage in a certain activity or function, the state may be held liable, in the same manner as private parties, for the negligence of the actions of its employees and agents in the performance of that activity or function." Wallace, 96 Ohio St.3d 266, paragraph two of the syllabus, approving Reynolds v. State (1984), 14 Ohio St.3d 68, paragraph one of the syllabus.

{¶ 14} Applying Reynolds, the Wallace court noted:

* * * In this case, for example, Reynolds arguably bars liability for the fire marshal's actions if the appellants' harm resulted from adiscretionary executive decision to forgo a seasonal inspection; if, on the other hand, the fire marshal's negligent performance of an inspection was the proximate cause of the appellant's harm, R.C. 2743.02(A)(1) allows for liability against the state.

Id. at ¶ 36. (Footnote omitted; emphasis sic.)

{¶ 15} Here, the fire marshal decided to postpone a seasonal inspection until after the "bust buy" was conducted. (Tr.

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Bluebook (online)
Wallace v. Ohio Department of Commerce, Unpublished Decision (12-18-2003), Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-ohio-department-of-commerce-unpublished-decision-12-18-2003-ohioctapp-2003.