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GIBSON APPLIANCE CO. v. NATIONWIDE INS. CO.

6/8/2000

This appeal is taken from a jury verdict in a products liability action. The appellant asserts that it is entitled to a new trial or, in the alternative, judgment notwithstanding the verdict. We disagree and hereby affirm the trial court.


The case involves an action which was originally filed by Raymond and Vivian Ross against appellant Gibson Appliance Company, a division of White Consolidated Industries, Inc. (hereinafter "Gibson"), to recover for damages sustained to their home by fire on March 9, 1993, caused by either the manufacture by Gibson of a defective and unreasonably dangerous refrigerator, or Gibson's negligence. More specifically, the Rosses' action against Gibson encompassed all theories available under the products liability law, including negligence, breach of warranty, and strict liability. Subsequent to the filing of the initial complaint, on or about March 1, 1996, appellee Nationwide Insurance Company (hereinafter "Nationwide") was substituted as the party plaintiff in lieu of Mr. and Mrs. Ross, pursuant to a determination by the trial court that Nationwide was the real party in interest.


Gibson denied all allegations of fault and attributed the fire to a burner that was allegedly left on in the Rosses' home, igniting particles in a skillet which Gibson maintains caused the fire to spread to the rest of the kitchen. Gibson further challenged service of process because it was not served with a copy of the summons and complaint within 120 days after Nationwide had filed its complaint,
although Nationwide had timely moved for and was granted an extension of time to perfect service by the trial court.


The case was tried on January 11 and 12, 1999. Prior to trial, both sides stipulated that the damages totaled $37,739.89. After deliberating, the jury returned a verdict in favor of appellee Nationwide in the amount of $11,336.32. After trial, Gibson filed a motion for new trial or, in the alternative, judgment notwithstanding the verdict. As grounds, Gibson alleged that although the verdict form was a general one, the jury's verdict obviously apportioned over fifty percent of fault to Nationwide's insured, that the jury's verdict was not supported by substantial evidence, and that the jury's verdict was the product of passion and prejudice. In a hearing on the motion, the trial court denied Gibson's motion. It is from the judgment and order denying its motion for new trial or, in the alternative, motion for judgment notwithstanding the verdict that appellant Gibson now appeals.


Appellant asserts the following points:


1) The trial court erred in denying the summary judgment motion of Gibson Appliance Company based on Nationwide Insurance Company's failure to show "good cause" for an order extending time for service of the complaint;


2) The trial court erred in denying Gibson Appliance Company's motion for new trial or, in the alternative, motion for judgment notwithstanding the verdict.


A. The jury's verdict apportions more than fifty percent of fault to Nationwide Insurance Company's insured;


B. The jury's verdict is clearly against the preponderance of the evidence;


C. The jury's verdict is not supported by "substantial evidence";


D. The jury's verdict is the product of passion and prejudice by the jury.


I. Denial of Summary Judgment


The plaintiffs below (Nationwide) filed suit within the time allowed by the statute of limitations, but did not obtain service on the defendant (Gibson) within 120 days, as required by Rule 4(i) of
the Arkansas Rules of Civil Procedure. However, on the 120th day, Nationwide filed a

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