LDL Cattle Co., Inc. v. Guetter

• Decision Date: 03 March 1996
• Docket Number: 19081,Nos. 19072,s. 19072
• Citation: LDL Cattle Co., Inc. v. Guetter, 1996 SD 22, 544 NW2d 523 (S.D. 1996)
• Parties: LDL CATTLE COMPANY, INC., Plaintiff and Appellee, v. Bill GUETTER and Roger Guetter, d/b/a Northern States Elevator Construction, Defendants and Appellants.
• Court: South Dakota Supreme Court

Page 523

544 N.W.2d 523

1996 SD 22

LDL CATTLE COMPANY, INC., Plaintiff and Appellee, v. Bill GUETTER and Roger Guetter, d/b/a Northern States Elevator Construction, Defendants and Appellants.

Nos. 19072, 19081.

Supreme Court of South Dakota.

Argued Sept. 13, 1995.

Decided March 3, 1996.

James E. McMahon, Michael S. McKnight of Boyce, Murphy, McDowell & Greenfield, Sioux Falls, for plaintiff and appellee.

Gary P. Thimsen, Kristine L. Kreiter of Woods, Fuller, Shultz & Smith, Sioux Falls, for defendants and appellants.

LEE D. ANDERSON, Circuit Judge.

¶1 LDL Cattle Company Inc. (LDL) brought suit against Northern States Elevator Construction (NSE) claiming that NSE was negligent in causing a fire which destroyed LDL's property. Following a two day trial, an Edmunds County jury returned a verdict in favor of NSE. The trial court ordered a new trial on the basis that the evidence did not support the jury's verdict. NSE appealed the order granting a new trial and LDL filed a notice of review concerning other issues. We reverse the granting of a new trial and affirm the trial court on the other issues.

FACTS

¶2 LDL is a large custom cattle-feeding operation located near the town of Ipswich in rural Edmunds County, South Dakota. NSE is in the business of constructing and selling grain and feed-handling structures and equipment. Its principal place of business is Lucan, Minnesota, but it commonly undertakes construction projects in South Dakota, North Dakota, Montana and Nebraska. William Guetter and Roger Guetter are partners and the owners of NSE.

¶3 In 1991, LDL hired NSE to build a 22 foot I-beam steel "superstructure" which would hold two 1600 bushel overhead tanks or bins. The superstructure was being constructed directly west of and adjacent to four large silos and directly within and above the existing feed mill building on LDL's property.

¶4 By October 8, 1991, the I-beam superstructure had been installed and bolted into the cement pad on the floor of the feed mill building. On October 8, 1991, NSE employees were welding with electrical arc welders to secure beams that had been previously tacked together. Conflicting testimony was presented at the trial as to whether NSE employees had also been welding with an acetylene cutting torch on that day. Immediately below where the welding and construction was occurring was a roller mill and a three foot deep pit. In the pit was an accumulation of corn, chaff, grain dust, and other debris, all of which are combustible.

¶5 The welding of the superstructure was discontinued between 4:30 and 5:00 p.m. on the 8th because it was too windy to risk placing the bins onto the I-beam superstructure. NSE employees then swept up the area under the superstructure and proceeded to continue painting the bins which were located in LDL's machine shed directly northeast of the feed mill. Prior to completing their workday at approximately 7:30 p.m., NSE employees walked through the feed mill and inspected the area under and around the I-beam superstructure. Nothing out of the ordinary was detected during the inspection.

¶6 At some time during the night of October 8, 1991, or the early morning hours of October 9, 1991, a fire broke out in LDL's feed mill. The fire was discovered between 5:30 and 6:00 a.m. on October 9th, 1991, by LDL employees, who called the Ipswich fire department to the scene. In subsequent investigations, it was discovered that the clock in the feed mill building had stopped at 4:56 a.m. Very little of the feed mill was left standing after the ensuing fire. LDL suffered damages of $647,099.

¶7 The State Fire Marshal's Office was called in to investigate whether or not the fire was intentionally set. The fire marshals were unable to determine with certainty where the fire had originated, what the actual ignition source of the fire was, or whether the welding had in any way contributed to the fire. The fire marshals were able to conclude the fire was not intentionally set. At trial the fire marshals testified it was not likely that any remnants of welding, which had ceased at 5:00 p.m. on October 8th, could smolder undetected for nine to twelve hours before it would erupt into a blaze.

¶8 Three private fire investigators were subsequently called in by LDL to investigate the cause of the fire. One of these investigators determined the fire was not caused by lightning nor was it electrical in nature. LDL's other two investigators testified to their opinion that NSE's welding was the cause of the fire.

¶9 In its suit against NSE, LDL alleged that it sustained damages as result of a fire which was the proximate result of the negligence of NSE. The negligence was alleged to be due to: 1) the use of a cutting torch and welder by NSE employees in an area of combustible materials and the failure to take proper precautions to prevent the fire; and 2) the failure of NSE employees to take proper precautions in the detection and extinguishment of the fire.

¶10 An Edmunds County jury returned a verdict in favor of NSE on January 11, 1995. On January 12, 1995, the trial court on its own initiative placed the parties on notice that it would grant a motion for a new trial on the grounds the verdict was inconsistent with the evidence presented at trial pursuant to SDCL 15-6-59(a)(6).

¶11 Thereafter, LDL moved the court for a new trial under SDCL 15-6-59(a)(1), (3), (6) and (7). On January 25, 1995, the trial court ordered "the judgment be vacated, the jury verdict for the defendants be set aside and a new trial be granted pursuant to SDCL 15-6-59(a)(6)."

ISSUES

I. Whether the trial court abused its discretion in granting a new trial?

II. Whether the trial court erred by excluding evidence that both parties had insurance?

III. Whether the trial court erred in giving jury instructions number 22 and 23 on circumstantial evidence?

STANDARD OF REVIEW

¶12 A trial court may order a new trial on its own initiative pursuant to SDCL 15-6-59(d), for any reason which it may have granted a new trial based upon a motion by a party. Case v. Murdock, 488 N.W.2d 885, 888 (S.D.1992). However, before a trial court exercises its inherent power to grant a new trial for reasons not advanced by the parties, it must be "satisfied there has been a mistrial, or a clear miscarriage of justice, growing out of a failure of the court itself to discharge the duties of its office...." Junge v. Jerzak, 519 N.W.2d 29, 32 (S.D.1994) (quoting Larsen v. Johnson, 43 S.D. 223, 178 N.W. 876, 877 (1920)).

¶13 It is a well-established rule in South Dakota that a trial court has broad discretion to grant a new trial on the ground of insufficient evidence. Lewis v. Storms, 290 N.W.2d 494, 497 (S.D.1980). Nevertheless, a jury's verdict should not be set aside "except in extreme cases where it is the result of passion or prejudice or the jury has palpably mistaken the rules of law...." Stoltz v. Stonecypher, 336 N.W.2d 654, 657 (S.D.1983)(citing Simons v. Kidd, 73 S.D. 306, 42 N.W.2d 307, 309 (1950)). A verdict should only be set aside if the jury's conclusion was unreasonable and a clear illustration of its failure to impartially apply "the reasoning faculty on the facts before them". Lewis, 290 N.W.2d at 497 (quoting Drew v. Lawrence, 37 S.D. 620, 623, 159 N.W. 274, 277 (1916)).

¶14 If a court determines an injustice has occurred by virtue of the jury's verdict, the proper remedy is to grant a new trial. Simmons v. City of Sioux Falls, 374 N.W.2d 631, 632 (S.D.1985). The decision to order a new trial stands on firmer footing than the decision to deny a new trial. Id. at 632. Nevertheless, this Court may overturn a trial court's decision granting a new trial upon a "clear showing of an abuse of discretion." Junge, 519 N.W.2d at 31 (quoting Kusser v. Feller, 453 N.W.2d 619, 621 (S.D.1990)). An abuse of discretion has transpired only if "no judicial mind, in view of the law and the particular circumstances of the particular case, could reasonably have reached such a conclusion." Junge, 519 N.W.2d at 31 (quoting Jensen v. Weyrens, 474 N.W.2d 261, 263 (S.D.1991)). In addition, in the determination of whether an abuse of discretion has occurred, the evidence must be viewed in a light most favorable to the verdict. Stoltz, 336 N.W.2d at 657.

¶15 I. Whether the trial court abused its discretion in granting a new trial?

¶16 NSE asserts the trial court abused its discretion when it granted LDL a new trial. NSE asserts the conflicting evidence presented at trial created questions of fact for the jury to decide and by granting a new trial, the trial court improperly substituted its judgment for that of the jury.

¶17 The order granting a new trial was not based on an apparent mistrial or other failure of the trial court to discharge its duties properly. Therefore, the existence of a conflict in evidence is a controlling consideration which governs a court's decision to set aside a jury verdict. Lewis, 290 N.W.2d at 497. However, "the mere presence of a conflict in the evidence does not license a trial court to weigh conflicting evidence and substitute its own judgment for that of the jury, simply because it disagrees with the verdict." Id. at 497; Westover v. East River Elect. Power, 488 N.W.2d 892, 896 (S.D.1992). "Questions relating to negligence ... are question[s] of fact for determination by the jury in all except the rarest of instances." Stoltz, 336 N.W.2d at 657.

¶18 Conflicting testimony was presented during the trial on whether the welding performed by NSE employees on October 8th was in fact the cause of the fire. In its January 12th letter to counsel, the trial court contended there was uncontroverted evidence that NSE's welding had taken place over combustible materials and the defendants had admitted to taking no safety precautions. NSE employees testified as to the safety precautions which had been undertaken. This testimony included what different kinds of environments necessitate the taking...