American Hoist & Derrick Company v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company, Third-Party

414 F.2d 68, 1969 U.S. App. LEXIS 11308
CourtCourt of Appeals for the Third Circuit
DecidedJuly 29, 1969
Docket18668
StatusPublished
Cited by2 cases

This text of 414 F.2d 68 (American Hoist & Derrick Company v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company, Third-Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Hoist & Derrick Company v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company, Third-Party, 414 F.2d 68, 1969 U.S. App. LEXIS 11308 (3d Cir. 1969).

Opinion

PHILLIPS, Circuit Judge.

This action arose out of the derailment of a train in which a locomotive crane was destroyed. The parties are American Hoist and Derrick Company (American Hoist), manufacturer and seller of the crane; Price Brothers Company (Price), buyer of the crane; and Chicago, Milwaukee, St. Paul and. Pacific Railroad Company (the railroad), transporter of the crane.

The litigation began with American Hoist suing Price on the contract of *70 sale. Price answered and brought in the railroad on a third-party complaint as the responsible party. The railroad counterclaimed against American Hoist for the entire damage sustained by the railroad in the derailment.

The jury returned a verdict in favor of American Hoist against the railroad in the sum of $111,463, with interest, and District Judge Carl A. Weinman rendered a judgment for this amount. The jury verdict was against the railroad on its counterclaim. The railroad appeals.

To summarize the action in further detail, American Hoist manufactured the crane and sold it to Price f.o.b. St. Paul, Minnesota. The crane was built as an integral unit, including its own railroad trucks composed of wheels, axles and motors, so that it could operate on railroad tracks. The purpose of this construction was to permit the crane to perform the functions for which it was built in its normal use and operation. It was designed so that the motors, which powered it while working, could be disengaged when the crane was transported as part of a train. Its boom and certain other parts were shipped on a separate railroad car along with the crane car.

American Hoist turned the crane over to the Chicago Great Western Railroad Company at St. Paul, Minnesota, for transportation to Dayton, Ohio. The Great Western, which was not made a party to this action, turned the crane and its accompanying car over to the defendant railroad at Dubuque, Iowa, on July 3, 1962. Approximately 43 miles from Dubuque, near Samoa, Iowa, the train in which the railroad was transporting the crane suffered a serious derailment.

The railroad refused to pay Price, holder of the bill of lading, for the destroyed crane, and Price refused to pay American Hoist. American Hoist thereupon sued Price on its contract. An answer was filed by Price, together with a third party complaint against the railroad based upon the contract of the common carrier. The counterclaim of the railroad against American Hoist alleged that the latter was liable for damages suffered by the railroad in the derailment on the theory of breach of warranty or of negligence in the manufacture of the crane. In its answer to the counterclaim American Hoist denied breach of warranty and negligence on its part.

The parties stipulated that the case would be tried on the issues joined between the railroad and American Hoist on the counterclaim. Pursuant to this stipulation, which was read to the jury, the case was tried with the railroad in the posture of plaintiff.

Two forms of verdict approved by counsel for the railroad and American Hoist, were submitted to the jury.

The District Judge instructed the jury as to the order in which it was to deal with the questions presented. First he instructed:

“Now, if you find as I have just indicated that there was a breach and that that breach of warranty was the proximate cause then you need not proceed any further with the consideration of the other question presented which is the question of negligence. However, if you find that there was no breach of warranty, then you shall proceed further to discuss the questions involved in the issue of negligence.”

Subsequently he stated all the questions in order:

“On the breach of warranty you have two questions:
Was there an implied breach?
Was it the proximate cause?
“On the question of negligence you have three questions:
Was there negligence?
Was it the proximate cause?
Was the Railroad guilty of contributory negligence?
“Those are your questions.”

I.

The railroad contends that the District Judge committed reversible error *71 in instructing the jury on contributory negligence. It is asserted that there was no evidence of contributory negligence to support the instruction, that in light of the instruction an addendum to the instructions was erroneous, and that the contributory negligence instruction required that the Court submit more than two verdict forms.

Contrary to the railroad’s contention we find evidence in the record supporting the instruction on contributory negligence.

The crane car was marked with arrows indicating that it was to be pulled only in one direction. Testimony indicated that the reason for this was that pulling the crane car in the opposite direction, with the light end of the car forward, could result in derailment of the car and that the railroad was aware of this possibility. The crane was part of a two-ear shipment with the other car carrying the crane boom. These cars customarily were shipped with the boom car attached to the light end or rear of the crane car so that in a train the crane ear would be ahead of the boom car. After the wreck the position of the wrecked cars demonstrated that the boom car had been ahead of the crane car in the train. Photographs of the derailment scene show the crane car with its heavy end further from the tracks than the light end but with the light end further along in the direction of movement of the train when it had been on the tracks.

Neither the train crew nor any other person who had inspected the crane while in the railroad’s possession prior to the derailment testified at the trial of this case. The jury could have concluded from the evidence that the railroad had been towing the crane car negligently in the opposite direction from that indicated by the markings on the car and that this contributed to causing or was the sole cause of the derailment.

Furthermore, the testimony of the railroad’s experts was that a loose and crooked wheel on the crane car, which the railroad contended was the cause of the derailment, would have caused the car to wobble, to nose down, and to oscillate severely while moving down the track. There was testimony from railroad witnesses that loose wheels were a known cause of derailments for which railroads maintain a look-out. From this evidence the jury could have concluded that, if the wheel was as loose and crooked on the axle as the railroad attempted to show, the railroad was negligent in not detecting the wobbling, oscillating crane car as it pulled it in the daytime for a distance of approximately 43 miles, allegedly only eight cars behind the train engines, and that the failure to detect the defect contributed to the causation of the derailment.

Therefore we find that the Court was justified on the evidence in instructing the jury on contributory negligence.

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Cite This Page — Counsel Stack

Bluebook (online)
414 F.2d 68, 1969 U.S. App. LEXIS 11308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-hoist-derrick-company-v-chicago-milwaukee-st-paul-pacific-ca3-1969.