Facts

Plaintiff Alan Rader filed suit against Trane U.S. Inc. and White-Rodgers, a Division of Emerson Electric Co., in relation to a malfunctioning replacement circuit board in plaintiff's furnace.

Trane was the manufacturer of plaintiff's furnace, and White Rodgers manufactured the replacement circuit board.

PLAINTIFFS' CONTENTIONS:
Plaintiff contended that in December 2010, a replacement circuit board failed and began to smoke inside the Trane furnace located in the breezeway area of his home. Plaintiff claimed that large amounts of smoke were pumped into the house, which contaminated the house and its contents requiring the house to be taken down to studs and then "modernized" to bring it up to the standards of the community. Plaintiff claimed his personal property was also contaminated and needed to all be replaced. Plaintiff Amy Ephron claimed she suffered injuries due to smoke inhalation.

Plaintiffs claimed that Trane and Emerson were aware of other incidents involving this same model of circuit board and failed to recall the product, which constituted malice and a conscious disregard for the safety of others.

DEFENDANTS' CONTENTIONS:
Defendants admitted that the circuit board malfunctioned, but disputed that the small amount of board that burned could have resulted in anything other than a small amount of smoke getting into the house. Defendants disputed that the chemicals in the smoke created an unsafe condition.

Defendants also disputed that anything more than cleaning and painting of the house was needed. Defendants further disputed the reasonableness of the need for the upgrading of the house, the amount of the personal property, and the need for plaintiffs to be renting furnished houses in Bel Air and Beverly Hills for 32 months.

Defendants claimed that California Fair Plan paid $1.5 million policy limits to plaintiffs because they were pressured by plaintiffs and their consultants and without a legitimate basis. Defendants contended that the payments were made without any testing or verification as to the extent of contamination and contrary the results of the insurance company's hired industrial hygienist.

Specials in Evidence

Ephron incurred $5,000 in medical expenses.

Damages

Plaintiffs Rader and Ephron sought in excess of $2.6 million for property damage, including $1.5 million claimed by California Fair Plan, who was a co-plaintiff. Plaintiffs counsel also asked the jury to award Ephron $605,000 for environmental allergies suffered. Plaintiffs also sought punitive damages of $45 million from Trane and Emerson for malice. Plaintiffs submitted a claim to their homeowner's insurer and were paid $1.5 million in damages.

Injuries

Ephron claimed she suffered breathing problems and environmental allergies from the smoke. Defendants disputed that Ephron was injured since she did not seek treatment immediately and disputed that she has asthma.

Result

The jury awarded $213,700 for damages to the house, personal property and rental expenses, which is being claimed by both plaintiffs and their insurer. Ephron was also awarded $5,000 in medical expenses. The jury found in favor of defendants on the breach of warranty of merchantability under the Song Beverly Act seeking double damages and attorney fees. The jury also found in favor of the defendants on the claim for punitive damages.

Other Information

Trane is entitled to indemnity from the circuit board manufacturer Emerson for compensatory damages and has agreed to pay the judgment. FILING DATE: Nov. 21, 2012.

Deliberation

four hours

Poll

12-0 (no punitive damages for Trane), 9-3 undecided (no punitive damages for Emerson), 12-0 (no breach of warranty for both Trane and Emerson), 9-3 (property damage to residence), 11-1 (personal property damage), 12-0 (rental loss while house was repaired), 9-3 (injury to Ephron), 10-2 ($5,000 award for the injury)

Length

15 days