Maryland Casualty Company, et al. v. NSTAR Electric Company, et al. (Lawyers Weekly No. 10-079-15)
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us SJC-11741 MARYLAND CASUALTY COMPANY[1] & another[2] vs. NSTAR ELECTRIC COMPANY & another.[3] Middlesex. January 5, 2015. – May 14, 2015. Present: Gants, C.J., Spina, Cordy, Botsford, Duffly, Lenk, & Hines, JJ. Department of Public Utilities. Public Utilities, Electric company, Rate structure, Negligence. Negligence, Public utilities, Limitation of liability. Civil action commenced in the Superior Court Department on March 27, 2008. The case was heard by Dennis J. Curran, J., on motions for summary judgment, and entry of a stipulated final judgment was ordered by him. The Supreme Judicial Court on its own initiative transferred the case from the Appeals Court. Matthew M. O’Leary (Andrew J. Fay with him) for the plaintiffs. Andrea Peraner-Sweet (Barbara L. Drury with her) for the defendants. LENK, J. This case raises the question whether a tariff filed with and approved by the Department of Public Utilities (DPU) may limit a public utility from liability to nonresidential customers for special, indirect, or consequential damages resulting from the utility’s gross negligence. We hold that a properly approved tariff may so limit a public utility’s liability. 1. Background. On December 8, 2006, two employees of NSTAR Electric and Gas were performing a switching procedure to restore electrical equipment that had been taken out of service. During the procedure, an explosion occurred, igniting a fire in the basement of a building at One Broadway in Cambridge. Smoke filled the basement and flowed into the stairwells leading up to the other floors of the building. The fire and smoke resulted in extensive damage to the building, requiring its closure for approximately six weeks. Construction and repairs continued for a lengthy period of time thereafter. At the time of the fire, the building was owned by the Massachusetts Institute of Technology (MIT). MIT leased space in the building to Cambridge Incubator, Inc. (Cambridge Incubator),[4] Sedo.com, LLC (Sedo), and Allodia Corporation (Allodia). Cambridge Incubator and Sedo purchased insurance coverage from Maryland Casualty Corporation (Maryland Casualty); Allodia purchased insurance coverage from Assurance Company of America (Assurance). In the wake of the fire, Maryland Casualty paid claims by Cambridge Incubator and Sedo, and Assurance paid claims by Allodia. Maryland Casualty and Assurance then brought this complaint against NSTAR Electric Company and NSTAR Electric & Gas Company (collectively, NSTAR), seeking to recover for […]
NSTAR Offers Tips to on How to Prepare for Snowstorm
With a major nor’easter expected to impact the Boston area beginning Friday, NSTAR announced on Thursday it will will activate its emergency response plan for a significant impact on the electric grid. “We’re well into our preparations for responding to potentially widespread power outages resulting fromthe nor’easter’s high winds and heavy snow,” said Craig Hallstrom, President of NSTAR Electric. “Weprepare year-round for storms like this and stand ready to address damage to our system as soon as itbecomes safe to do so.” NSTAR said 3,000 employees are currently preparing to assist in the storm reponse effort, and the company has also secured additional contractor line and tree crews. The company is advising customers to make advanced preparations as well. You can can prepare for storm damage and power outages by assembling a storm kit in advance Some suggestions for items to include in a storm kit are: Flashlights with spare batteries A battery-operated radio or TV First-aid kit and medications Canned, freeze-dried or dehydrated foods A manual can opener Bottled water Baby or pet supplies Important phone numbers To report power outages, use NSTAR’s online “Report an Outage” tool or call NSTAR at 800-592-2000 to report your outage. Tips if the power goes out: Stay clear of all fallen tree limbs and electrical wires as well as anything they are touching – such as puddles and metal fences. Assume all downed wires are “live” and stay away. Call NSTAR and local emergency personnel. Persons dependent on electrically powered life support systems should have a pre-arranged plan concerning power outage situations. Prepare a list of emergency phone numbers and have it readily available. Disconnect appliances that will go on automatically when the power is restored. These include refrigerators, stoves, furnaces and water heaters. Turn off appliances such as washers, dryers, computers and TV’s. Once power is restored, turn appliances back on one at a time to avoid a power surge. If using candles or matches, be extremely careful and never leave open flames unattended. Food in your refrigerator will keep for 6 to 9 hours, and food in your freezer will keep between 36 and 48 hours. It will help to minimize the number of times the door is opened. In the winter, dress in layers and wear a hat. What is essential to your snowstorm kit? Tell us in the comments. SOUTH END PATCH: Facebook | Twitter | E-mail Updates South End Patch