Acme Steel Co. v. A. J. Warehouse, Inc.

212 So. 2d 271, 1968 La. App. LEXIS 4770
CourtLouisiana Court of Appeal
DecidedJune 10, 1968
DocketNo. 2750
StatusPublished
Cited by6 cases

This text of 212 So. 2d 271 (Acme Steel Co. v. A. J. Warehouse, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acme Steel Co. v. A. J. Warehouse, Inc., 212 So. 2d 271, 1968 La. App. LEXIS 4770 (La. Ct. App. 1968).

Opinion

SAMUEL, Judge.

Plaintiff filed this suit to recover $5,943.40 for damages incurred when a quantity of its steel strapping corroded while stored in a public warehouse operated by the defendant. The petition alleges defendant, a paid depositary, negligently stored the steel in an area exposed to the elements, thus causing the corrosion. Plaintiff further pleaded the doctrine of res ipsa loquitur. Defendant answered denying negligence. Essentially its position is that the humid climate in New Orleans caused the rust and there was no negligence or breach of duty on its part as a public warehouseman to which the damage was attributable. After trial judgment was rendered in favor of defendant, dismissing the suit. Plaintiff has appealed.

In July, 1960 plaintiff, a manufacturer of steel strapping used in binding packages and other metal products, began storing material in defendant’s warehouse. It was incumbent upon defendant to inspect the incoming merchandise for possible damage or shortage when shipments of plaintiff’s product first reached its warehouse. If defendant discovered the material was either damaged or short on receipt, it was obligated to report the condition to the common carrier which had transported the goods from plaintiff’s factory to the warehouse. The carrier would then file a report.

Plaintiff stored an average of 300,000 pounds of steel products in defendant’s warehouse from which it delivered merchandise ordered by customers in the New Orleans area. Plaintiff’s sales in the area averaged 150,000 pounds per month. It was also the duty of the warehouse to rotate plaintiff’s stock in filling orders so that the steel stored longest would be shipped out first. As a result most of the steel shipped to this area was in storage on a maximum average of between two and three months before it reached the customer.

The defendant’s warehouse facility is U-shaped. It is composed of two completely enclosed buildings lying parallel to each other. These are connected by a partially enclosed building or dock area that forms the bottom of the “U”. The connecting structure is covered by a pitched roof and has three walls. The fourth side is open. Defendant’s president explained the exposed side of the building was covered by dropping a tarpaulin over the open area when it rained; but he conceded a strong east wind could whip rain under the tarpaulin into the storage area.

After approximately 2l/£ years of satisfactory service, plaintiff began receiving numerous complaints from customers to the effect that the steel strapping delivered was corroded. Several plaintiff officials then visited the warehouse and found a quantity of its steel stored in the three-walled structure. Plaintiff then made these complaints to the defendant: (1) some of the wrappings on rolls of the steel strapping were wet; (2) other wrappings were torn; (3) there were shallow puddles of water on the floor of the partially exposed structure ; and (4) large quantities of plaintiff’s steel was heavily corroded.

Plaintiff’s representative testified its products stored in one of the fully enclosed buildings were not damaged; only the steel stored in the partially exposed area had rusted and when they complained to A. J. Petitfils, Sr., defendant’s president, they were told some of their materials had been moved to the partially open building because there was not enough space in the [274]*274enclosed structure. Defendant offered no testimony to rebut the fact that the corrosion complained of was limited to plaintiff’s products stored in the three-walled facility.

The litigants’ testimony is in conflict as to the original agreement concerning assignment of storage space. According to plaintiff’s witnesses, defendant’s president promised the steel would be stored in one of the fully enclosed buildings, construction of which was then being completed. Defendant’s witnesses, conversely, assert no such promise was made. According to the defense witnesses, plaintiff’s products had been stored in both the partially exposed area and in the enclosed building for the duration of the agreement. Plaintiff’s representatives, each of whom visited the warehouse four times annually, stated they had never seen their products stored in the exposed dock area until investigating customer complaints in February, 1963 and at that time defendant’s president told them the steel had only been in the three-walled building for some three months. Several weeks after plaintiff registered its complaints, defendant’s president asked them to move their material to another warehouse.

Both litigants concede the following law applies to this case:

“The depositary is bound to use the same diligence in preserving the deposit that he uses in preserving his own property.” LSA-C.C. Art. 2937.
“A warehouseman shall be liable for any loss or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably careful owner of similar goods would exercise, but he shall not be liable, in the absence of an agreement to the contrary, for any loss or injury to the goods which could not have been avoided by the exercise of such care.” LSA-R.S. 54:21.

To determine whether defendant stored the steel as it must be presumed a reasonably careful owner would, we turn to the testimony of plaintiff’s expert and two New Orleans warehousemen called by defendant.

Dr. Robert C. Weaver, the expert referred to, an engineering consultant and professor of chemical engineering at Tulane University, expressed the view that storage of steel strapping in the partially exposed structure would greatly increase the possibility of its rusting.

While the two warehousemen who appeared for defendant said that corrosion of steel is a problem common to warehouse-men in this area because of the humidity, even if stored in a fully enclosed building, both positively stated they would not store steel products in a structure where they would be exposed to the elements through one unenclosed side.

Daniel A. Camp, owner of the Orleans Storage Company, testified his warehouse was fully enclosed by a roof and four walls. In addition he has an unenclosed dock for loading and unloading. We think this excerpt of his testimony on cross examination is significant:

“Q. Do you store any of these metal supplies on that dock area?
“A. Oh no.
“Q. You wouldn’t store them there, would you?
“A. Well, it wouldn’t be protected, see.
“Q. You wouldn’t store any of these metal products in an area where one of the walls would be open and they would be exposed to wind and the rain, would you?
“A. No.”

In our view the conclusion is inescapable that defendant breached the duty imposed on a compensated depositary to preserve plaintiff’s products as would a reasonably careful owner. In reaching this result we are particularly impressed by the testimony of the two warehousemen, both [275]*275defense witnesses, that they would never store metal products in an area exposed to the elements. This finding obviates the necessity of our discussing the applicability of the doctrine of res.ipsa loquitur. From the record we are satisfied plaintiff established the damage resulted from improper storage.

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Bluebook (online)
212 So. 2d 271, 1968 La. App. LEXIS 4770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-steel-co-v-a-j-warehouse-inc-lactapp-1968.