Rosenblath's, Inc. v. Evans
1993 La. App. LEXIS 3667, 628 So. 2d 1149, 1993 WL 492539 (1993)
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Rule of Law:
A building owner is strictly liable for damages to an adjacent property when a structural defect in their building, such as an unenclosed hoist shaft that violates a building code, creates an unreasonable risk of harm and is a cause-in-fact of the damage.
Facts:
- William and Jonathon Evans owned a building adjacent to Phillip Rosenblath's clothing store.
- The Evanses leased the first floor of their building to Kevin Jones, who operated a restaurant named Kevin's Place.
- An 'ante room' behind the restaurant was used for storage by both the Evanses and Jones.
- The Evanses had installed a dumbwaiter in the ante room with a shaft that was not enclosed at the top on the second floor, contrary to the Shreveport building code.
- The Evanses stored combustible materials, including paper and printing solvents, within the dumbwaiter shaft.
- Jones had permission from the Evanses to store cardboard trash in the ante room.
- On November 6, 1983, a fire started in the ante room of the Evanses' building.
- The fire entered the unenclosed dumbwaiter shaft, which acted as a chimney, intensifying the fire and forcing highly concentrated smoke and soot through the common wall into Rosenblath's store, damaging the inventory.
Procedural Posture:
- Phillip Rosenblath, liquidator of Rosenblath’s, Inc., sued building owners William and Jonathon Evans, their insurer, and their lessee Kevin Jones and his insurer, in a state trial court.
- Plaintiff Rosenblath reached a settlement with defendants Kevin Jones and his insurer, who were then dismissed from the suit.
- Following a bench trial, the trial court rendered judgment in favor of Rosenblath, finding the Evanses strictly liable and negligent, and awarded damages.
- Defendants William and Jonathon Evans and their insurer appealed the judgment to the Court of Appeal of Louisiana, Second Circuit.
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Issue:
Does a building owner bear strict liability for damages to an adjacent property when a fire, originating on their premises, is exacerbated by a structural defect that violates a building code, such as an unenclosed dumbwaiter shaft?
Opinions:
Majority - Sexton, Judge
Yes, a building owner is strictly liable under these circumstances. The unenclosed dumbwaiter shaft violated the Shreveport building code, which rendered it a defective thing or 'ruin' under Louisiana Civil Code articles 2317 and 2322, creating an unreasonable risk of harm. The court found that this defect was a cause-in-fact of the damage to Rosenblath's inventory by creating a 'chimney effect' that intensified the fire and directed smoke into the adjacent store. The court also determined that the lessee, Kevin Jones, was not negligent because the specific risk—that a third-party patron would toss a cigarette into trash Jones had stored—was not a risk that was within the scope of any duty Jones owed. The court amended the damage award, holding that the proper measure of damages was the diminution in the cost or replacement value of the inventory, not its retail value.
Analysis:
This decision reinforces the principle of strict liability for building defects under the Louisiana Civil Code, establishing that a violation of a safety-oriented building code can be strong evidence that a structure poses an unreasonable risk of harm. The court's duty-risk analysis regarding the lessee's fault clarifies that for liability to attach, the specific harm that occurred must be within the scope of the risk the legal duty was intended to prevent. Furthermore, the case provides important precedent on the calculation of damages for damaged retail inventory, holding that the proper measure is the reduction in cost or replacement value, not the loss of potential retail profit.
