This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.

Real Property
Product Liability
Fire

Muoi Ly and Nam Lia, et al. v. Mark Thomas, et al.

Published: Oct. 15, 1994 | Result Date: Sep. 15, 1994 | Filing Date: Jan. 1, 1900 |

Case number: 531315 –  $0

Judge

Lloyd G. Connelly

Court

Sacramento Superior


Attorneys

Plaintiff

Whitney A. Davis
(K.W. Davis, Attorneys at Law)


Defendant

Steven H. Gurnee
(Gurnee, Mason & Forestiere LLP)


Experts

Plaintiff

Cyrillis Holmes
(technical)

Robert L. Baker
(technical)

Tom Hanton
(technical)

Defendant

John R. Miller
(technical)

Cameron M. Halling
(technical)

Facts

In the early morning hours of January 1, 1992, a fire allegedly began in a hair salon at a commercial strip center in southern Sacramento; the fire quickly spread to adjoining jewelry and grocery stores. The fire department's investigation team pinpointed the area of origin as along the south wall of the hair salon but could not find the source of ignition. Two days later an investigator on behalf of the beauty store owner inspected the scene and concluded that the fire started along the south wall and was likely incendiary in nature. Thirteen days after the fire and after the scene had been substantially changed, an investigator on behalf of the strip mall owner's insurer inspected the scene and concluded that the fire started along the north wall of the hair salon in the area of one of the work stations; this investigator also felt the fire was likely caused by arson. Sixteen days after the fire, an investigator on behalf of the insurers for the adjoining jewelry and grocery stores inspected the scene and concluded that the fire started along the north wall of the beauty salon in the area of the first work station and was likely caused by a malfunctioning electrical appliance; no one found any electrical appliances after the fire which could be directly related to its cause. The original suit was filed by the owners of the jewelry store. Subsequently in August 1993, the insurance carriers for the jewelry and grocery stores (Scottsdale Insurance and Western International respectively) intervened. The sole Defendant at that time was the owner of the beauty salon; a judicial arbitration in October 1993 resulted in a Defense award. During the hearing, one of the former employees of the beauty salon testified that she believed she had a rechargeable hair trimmer manufactured by Wahl Clipper Corporation plugged in at station number one at the area of origin determined by investigators on behalf of both the strip mall owner's insurer and the insurers for the adjoining jewelry and grocery stores. By this time Plaintiff-in-Intervention Western International had become insolvent and the State of California, Department of Insurance took over pursuit of the case. Scottsdale and the Department of Insurance then amended their complaint to name Defendant Wahl Clipper. By the time of the mandatory settlement conference in April 1994, the original individual Plaintiffs had dismissed their case. The beauty salon owner then settled out for $3,000; Plaintiffs-in-Intervention Scottsdale Insurance and the Department of Insurance proceeded to trial against Defendant Wahl Clipper.

Settlement Discussions

Plaintiffs-in-Intervention contend that in March 1994, they made a 998 demand in the amount of $38,000; they then demanded $90,000 in April 1994 and Defendant offered $30,000. Plaintiffs-in-Intervention further contend that Defendant then made a 998 offer in the amount of $10,000; Plaintiffs-in-Intervention lowered their demand to $45,000 at the MSC, just before trial, and immediately served statutory offers in that amount. Plaintiffs-in-Intervention also contend that during trial there were indications that they would accept $25,000, but Defendant's offer was withdrawn.

Damages

$106,000 in property damage.

Other Information

A prior arbitration resulted in a Defense award for the beauty salon owner; trial de novo by Plaintiffs.

Deliberation

1 hour

Poll

11-1 (manufacturing defect), 9-3 (design defect)

Length

14 days


#78208

For reprint rights or to order a copy of your photo:

Email jeremy@reprintpros.com for prices.
Direct dial: 949-702-5390