NEW ULM - A telephone scheduling hearing is set to take place Tuesday afternoon for a property damage civil case involving Minnesota Mining and Manufacturing (3M Company) and the City of New Ulm.
A complaint filed Jan. 14, 2010 by 3M claims the city of New Ulm was responsible for reasonable maintenance of a capacitor bank intended to protect 3M's transformer and other electrical equipment.
In the complaint, 3M seeks an award in excess of $50,000 in alleged damages from a relay failure that caused a high voltage electrical surge in New Ulm public utility electrical service lines.
The complaint alleged the city of New Ulm was negligent in capacitor bank maintenance, failing to perform periodical infrared thermal imaging of the equipment.
The complaint alleged that due to the city's failure to exercise reasonable care in capacitor bank maintenance, when one of the city's employees turned the capacitor bank on and off on July 21, 2008, the capacitor bank contacts cycled rapidly, resulting in a power surge that destroyed 3M's transformer that fed electrical power to its New Ulm plant.
According to the complaint, the cost to buy a transformer, switch gear, materials, equipment rental, contract labor and other construction costs totaled $50,238.
The complaint further alleged that since 3M was unable to receive power from the public utility, it was required to rent a generator that required contractor labor and diesel fuel to power while the 3M transformer was replaced.
The cost of generator rental, contract labor, equipment rent, labor and diesel fuel totaled $130,892.92, according to the complaint.
Eagan attorney James F. Dunn is representing 3M in the case.
In an informational statement filed Jan. 15, 2010, the city of New Ulm stated it's position was that it is immune from the suit due to New Ulm City Code 2.50, Subdivision 9: Limitation of City liability.
According to the ordinance, the City will endeavor to provide continuous service, but does not guarantee an uninterrupted or undisturbed supply of utility services. The City will not be responsible for any loss or damage resulting from the interruption or disturbance of service for any cause other than gross negligence of the City. The City will not be liable for any loss of profits or other consequential damages resulting from the use of service or any interruption or disturbance of service.
According to the informational statement, discovery of 4-5 factual depositions and 2-3 subject experts could be completed within five months.
The city of New Ulm requested a jury trial.
A trial date was set for Jan. 17, 2011. A filing deadline was set for Jan. 5, 2011.
Mediation was chosen as the Alternative Dispute Resolution (ADR) Process to be completed by Dec. 10, 2010.
The city of New Ulm is represented in the case by League of Minnesota Cities (LMC) attorney Rylee J. Retzer of St. Paul.
(Fritz Busch can be e-mailed at fbusch@nujournal.com).