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CONFIDENTIAL

Nov. 8, 1997

Negligence
Water Heater Fire

Confidential

Settlement –  $125,000

Judge

Don Kelley

Court

Pierce Superior


Attorneys

Plaintiff

Craig Evezich


Defendant

Tamara Clower

Jack Kennedy


Experts

Plaintiff

Gerard Schaefer
(technical)

Defendant

David Pargas
(technical)

Craig Beyler
(technical)

L.W. Ferdinand
(technical)

Facts

On Nov. 16, 1994, the plaintiffs purchased a propane furnace and hot water heater from defendant seller. Defendant seller then contracted with defendant installer for installation of the appliances. Defendant installer moved the new water heater from its original position next to a concrete wall in the basement directly next to a set of wooden shelving. The installation of propane appliances in the basement was illegal. The plaintiff contended that the manner in which the appliances were vented resulted in a "back draft" which caused exhaust out of the water heater draft hood to ignite available combustibles. The fire destroyed the plaintiffs' home. The defendants contended that the fire started as a result of a light bulb touching a box which was located on the shelves. The plaintiffs homeowners and their subrogated insurance company brought this action against the defendants seeking recovery of insured and uninsured damages based on negligence and breach of implied and express warranties theories of recovery.

Settlement Discussions

The plaintiffs made a settlement demand for $389,000. The defendants made a settlement offer of $125,000.

Damages

Approximately $389,000 in replacement value for property and contents. Actual cash value was approximately $190,000.

Other Information

The settlement was reached approximately one year and six months after the case was filed. A mediation was held on Sept. 17, 1997 before Don Kelley of WAMS resulting in the reported settlement.

Length

one day


#79887

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