Facts

Plaintiff tenant Studio Management Services Inc. aka Hollywood Center Studios along with its building owner Benhar Co. brought an inverse condemnation action against the Los Angeles Department of Water and Power after flames engulfed a film and television production building located at Romaine Street and Hudson Avenue in Hollywood in December 2002.

PLAINTIFFS' CONTENTIONS:
Plaintiffs argued some of the oil from a transformer used to reduce or increase voltage of an electrical current landed on a skylight over one of the offices, burning through the thin plastic shield and setting the building on fire.

DEFENDANTS' CONTENTIONS:
The Department contended that hot oil which was alleged to have shot from the transformer was not enough to start a massive fire and a pre-occurring attic fire caused the damage suffered by plaintiff.

Result

After Los Angeles County Superior Judge Richard L. Fruin Jr. held the Department liable for the damages, the Department settled with plaintiff for $7,750,000 on the day the damage phase of the trial was scheduled to commence.

Other Information

Plaintiffs used expert witnesses costing $250,00 to prove liability and to calculate the economic losses incurred from the fire. FILING DATE: Dec. 15, 2004.