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Real Property
Fire
Trespass

California Giant Inc., National Cold Storage, Fireman's Fund Insurance Co. v. Casiano Berry Supplies Inc.

Published: Sep. 8, 2004 | Result Date: Mar. 24, 2004 | Filing Date: Jan. 1, 1900 |

Case number: 1087721 Bench Decision –  $16,069,400

Judge

Rodney S. Melville

Donald M. Mitchel

Court

Santa Barbara Superior


Attorneys

Plaintiff

Peter A. Lynch

Daniel G. Galivan

Dean A. Alper
(Alper & McCulloch)


Defendant

Howard L. Churchill

J. Walter Gussner
(Fidelity National Law Group)

Steven J. Joffe

Brian Shannon


Experts

Plaintiff

Roger Harman
(technical)

Warren Reeder
(technical)

Walter M. Jakl
(technical)

Greg Wolff
(technical)

Keith Kinsel
(technical)

Jeffrey Caulkins
(technical)

Victor Roberts
(technical)

Roy Juede
(technical)

Joseph B. Zicherman
(technical)

A. Marc Goupille
(technical)

Defendant

Philippe J. Van Herle
(technical)

Anthony LaPalio
(technical)

Gerald F. Zamiski Ph.D.
(technical)

Facts

Plaintiff National Cold Storage owned property in Santa Maria that was leased by two strawberry processing companies, plaintiffs Sunrise Growers Inc. and California Giant. Defendant Casiano Berry Supplies used the facility to assemble cardboard boxes. In June 2001, one of defendant's employees damaged a lighting fixture in one of the warehouses. The next day, another of defendant's employees stacked cardboard boxes directly beneath the damaged fixture. The boxes ignited, causing a fire that quickly spread to adjacent buildings. Several buildings, produce and equipment were destroyed. The plaintiffs sued the defendant for negligence. The defendant denied that its employee was responsible for operations in the area in which the fire ignited and denied that it caused the fire or permitted the fire to spread to surrounding businesses. The defendant also theorized that the fire was caused by arson. According to the defense, the defendant's experts testified there was no forensic evidence supporting plaintiffs' theories and no causal connection between the damaged light fixture and the fire.

Settlement Discussions

The plaintiffs demanded $861,000 (policy limits). The defendant offered $400,000.

Damages

Damages included structural damage, loss of equipment, loss of produce and business stoppage.

Other Information

The trial was bifurcated and the jury found for the plaintiffs in the liability phase. In the damages phase, Judge Melville awarded them a total of $16,069,403. According to the defendant: After liability phase of trial, it was ascertained that defendant Casiano Berry Supplies was a suspended corporation, which precluded defendant and its attorneys from appearing at the damage phase of trial. It's insurer declined to intervene. Consequently, defendant Casiano Berry Supplies was unable to defend itself in the damage phase. The second phase of trial therefore became a prove-up hearing where only the plaintiff were allowed to present evidence because defendant's insurer refused to intervene.

Deliberation

1.5 days

Poll

12-0 (damages), 11-1 (causation)

Length

18 days


#98049

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