Air Products & Chemicals, Inc. v. Odfjell Seachem A/S

305 S.W.3d 87, 2009 Tex. App. LEXIS 6853, 2009 WL 2634630
CourtCourt of Appeals of Texas
DecidedAugust 27, 2009
Docket01-08-00591-CV
StatusPublished
Cited by12 cases

This text of 305 S.W.3d 87 (Air Products & Chemicals, Inc. v. Odfjell Seachem A/S) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Products & Chemicals, Inc. v. Odfjell Seachem A/S, 305 S.W.3d 87, 2009 Tex. App. LEXIS 6853, 2009 WL 2634630 (Tex. Ct. App. 2009).

Opinion

OPINION

TERRY JENNINGS, Justice.

Appellant, Air Products & Chemicals, Inc. (“AP”), challenges the trial court’s judgment entered in favor of appellees, Odfjell Seachem A/S, Odfjell Asia II Pte. Ltd., and Odfjell Singapore Pte. Ltd. (collectively “Seachem”), after a jury trial, in AP’s suit against Seachem for Seachem’s alleged negligence in discharging hazardous chemicals from its vessel, the Bow Favour, into a storage tank in which AP stored other product. In four issues, AP contends that the trial court erred in denying its motion to amend its pleadings “with respect to the issue of negligence per se,” not instructing the jury on negligence per se, not rendering a judgment notwithstanding the verdict in favor of AP on negligence per se, admitting the hearsay testimony of the first officer of the Bow Favour “concerning what he was told by another crewman,” and instructing the jury to apportion liability between Sea-chem and a defendant with which AP had settled prior to trial.

We affirm.

Factual and Procedural Background

In its fourth amended petition, AP alleged that the Odfjell Terminals (Houston), L.P. and Odfjell Terminals USA, G.P., Inc. (collectively “OTH”) operated a terminal and tank farm business in Sea-brook, Texas at which AP stored hazardous chemicals referred to as “MIPA-70.” AP further alleged that on March 11, 2005, Seachem, the owner and operator of the Bow Favour discharged other chemicals, referred to as “DCPD,” from the Bow Favour into a line and shore tank containing AP’s MIPA-70, causing contamination of AP’s product. AP sued both OTH and Seachem, asserting that they were negligent in loading, segregating, handling, and storing the products and that their negligence caused the contamination. AP also sued OTH for breaching the parties’ con *91 tract relating to the storage of AP’s product.

AP and OTH subsequently entered into a settlement. AP and Seachem then proceeded to a jury trial on AP’s negligence claim against Seachem. On April 21, 2008, five days after the start of the jury trial, AP filed a motion for leave to file a fifth amended petition, seeking to add allegations of negligence per se against Sea-chem. The trial court denied AP’s motion for leave to add the negligence per se allegations.

At the conclusion of trial, the trial court asked the jury,

Did the negligence, if any, of those named below proximately cause the contamination in question?
a. Terminal [OTH]
b. Bow Favour [Seachem]

The jury answered “Yes” as to OTH and “No” as to Seachem. Pursuant to the instructions in the jury charge, the jury did not answer any additional questions. In accord with the jury’s verdict, the trial court then entered a take-nothing judgment in favor of Seachem and against AP.

Amendment of Pleadings

In its first issue, AP argues that the trial court erred in denying its motion to amend its pleadings “with respect to the issue of negligence per se” because it elicited testimony at trial showing that Sea-chem had violated two United States Coast Guard Regulations and Seachem did not demonstrate any surprise or prejudice arising from these proposed amendments. AP, citing Zavala v. Trujillo, argues that the trial court should have granted the amendments because the negligence per se allegations did not state a new cause of action. 883 S.W.2d 242, 245 (Tex.App.-El Paso 1994, writ denied).

When AP filed its motion for leave to file a fifth amended petition, 1 AP argued that the amendments were mandatory and the addition of the negligence per se allegations did “not constitute the addition of a new cause of action” because negligence per se is “merely one method of proving the breach of duty required in any negligence case.” AP further argued that the addition of negligence per se allegations did not cause Seachem to be surprised or prejudiced because allegations that Sea-chem had violated the regulations had already been made in AP’s expert reports, which were provided to Seachem one year prior to trial, as well as in AP’s supplemental interrogatory answers, which AP had provided to Seachem a few weeks before trial. AP attached to its motion the proposed fifth amended petition, in which AP included an additional section entitled “negligence per se.” Within this proposed, amended section of its petition, AP cited the following regulation:

The person in charge of cargo transfer may not approve or continue cargo transfer unless the following conditions are met:
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(o) He is in effective communication with the transfer terminal.
(p) The person in charge of the transfer terminal has acknowledged that he is ready to transfer.

46 C.F.R. § 153.975.

AP also cited the following regulation:
(a) No person may connect or disconnect a hose, top off a tank, or engage in any other critical procedures during the transfer operation unless the person in charge, required by *92 § 156.120(s), supervises that procedure.
(b) No person may start the flow of oil or hazardous material to or from a vessel unless instructed to do so by either person in charge.
(c) No person may transfer oil or hazardous material to or from a vessel unless each person in charge is in the immediate vicinity and immediately available to the transfer personnel.

S3 C.F.R. § 156.160.

In response to AP’s motion, Seachem asserted that the parties’ deadline to amend their pleadings had expired in November 2007. Seachem contended that allowing AP to amend its pleadings in the requested manner would surprise and prejudice it. Seachem noted that if AP had timely pleaded negligence per se upon the specific federal regulations, Seachem would have engaged experts to testify regarding these specific regulations from the perspective of the Coast Guard to explain in detail how Seachem had not violated the regulations. In regard to surprise, Sea-chem noted that the motion to amend was filed six months after the discovery deadline, and Seachem asserted that it needed an expert to counter the allegations of negligence per se based upon the specific regulations. Seachem invited AP to argue anything that the pleadings supported, and it suggested that AP could even properly argue the regulations to the jury and that the jury could decide whether the regulations, and any violations thereof, supported a general negligence finding. But, Sea-chem contended that to allow AP to add a specific cause of action, as well as a specific jury instruction, on the issue of negligence per and the specific regulations would cause surprise and prejudice.

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Bluebook (online)
305 S.W.3d 87, 2009 Tex. App. LEXIS 6853, 2009 WL 2634630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-products-chemicals-inc-v-odfjell-seachem-as-texapp-2009.