B & Y Heavy Movers, Inc. v. Fluor Constructors, Inc.

570 N.E.2d 777, 211 Ill. App. 3d 975, 156 Ill. Dec. 301, 1991 Ill. App. LEXIS 518
CourtAppellate Court of Illinois
DecidedMarch 28, 1991
Docket1-89-3385
StatusPublished
Cited by13 cases

This text of 570 N.E.2d 777 (B & Y Heavy Movers, Inc. v. Fluor Constructors, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B & Y Heavy Movers, Inc. v. Fluor Constructors, Inc., 570 N.E.2d 777, 211 Ill. App. 3d 975, 156 Ill. Dec. 301, 1991 Ill. App. LEXIS 518 (Ill. Ct. App. 1991).

Opinion

JUSTICE EGAN

delivered the opinion of the court:

The plaintiff, B&Y Heavy Movers, Inc. (B&Y), filed a complaint against Fluor Constructors, Inc. (Fluor), and Union Oil Company of California (Union) for breach of a bailment agreement. After a bench trial, the judge entered judgment in favor of B&Y against Fluor but judgment in favor of Union against the plaintiff. Fluor appeals, contending that B&Y failed to establish that it owned the bailed property and that the judge improperly allowed a witness to testify for B&Y in rebuttal. B&Y cross-appeals, contending that the award of damages was inadequate. B&Y asks that this court fix the damages in a specific amount or, alternatively, to remand the case for a new trial on damages only. B&Y does not appeal the judgment in favor of Union.

Fluor was hired by Union as the general contractor on a job at Union’s refinery in Lemont, Illinois. One of Fluor’s responsibilities as general contractor was to move several enormous oil refinery vessels from Louisiana, up the Mississippi River, to the jobsite in Lemont. The vessels were approximately 100 feet long and weighed about 450 tons each.

Fluor entered into a contract with B&Y whereby B&Y agreed to provide a transport system for moving the vessels. B&Y’s transport system consisted of 12 large dollies, each of which was capable of lifting 50 tons. B&Y also provided Fluor with saddle supports which were custom designed to fit the vessels.

On May 9, 1985, B&Y’s transport system was used to move the vessels onto a barge in Lake Charles, Louisiana. The barge arrived in Lemont sometime during the week of June 13 or 14, 1985. The operators of the dollies were primarily employees of Fluor. The contract required B&Y to provide one “field serviceman” who would be present during all operations involving the dollies; however, all field labor for the operational phase was provided by Fluor. B&Y’s field serviceman was Marvin Schmitt. Schmitt advised Kent Goodman, Fluor’s rigging engineer, about the operation of B&Y’s equipment, but Goodman supervised the craftsmen who actually operated the system.

On June 12, 1985, B&Y’s President, Ron Nation, sent mailgrams to the people he had dealt with at Fluor’s home office in Irvine, California, and to John Ervin, Fluor’s on-site project manager in Lemont, Illinois. The mailgrams instructed Fluor that the B&Y equipment in Fluor’s custody was “to be released only to Ronald V. Nation, President of B&Y[.] *** Marvin Schmitt, Technician, is not an authorized agent of B&Y Heavy Movers, Inc.” The mailgrams also requested that Fluor advise B&Y by phone or telegram when the equipment would be available for pick up.

Fluor responded to B&Y on June 21, 1985, acknowledging receipt of the mailgrams and stating Fluor’s understanding that “Marvin Schmitt is on site to act as technical consultant and does not have authority to act in behalf of B&Y Heavy Movers.” The response also stated that the equipment would be available for pick up on June 24,1985.

When B&Y’s mailgram was received by John Ervin, Fluor’s project manager at Lemont, Ervin discussed the mailgram with two administrators at Fluor’s headquarters in Irvine, California. Ervin then made copies of the mailgram and distributed them at the Lemont jobsite to his subordinates, including Kent Goodman. Ervin also discussed the mail-gram with Marvin Schmitt. Fluor’s work site was surrounded by a fence, and equipment could be removed from the site only with a gate pass signed by certain Fluor employees. To prevent removal of the dollies, Ervin instructed Fluor employees not to sign gate passes for removal of B&Y’s equipment from the site.

When Fluor’s employees were finished using the B&Y equipment on June 21, 1985, they moved the equipment from that portion of the Lemont site which was under Fluor’s control and placed the equipment in a “laydown area” under Union’s control. Ervin knew that a gate had been removed from Union’s portion of the site in May 1985, and therefore the laydown area was not completely enclosed by a fence. The lay-down area was patrolled by roving guards employed by Union. However, Ervin did not notify the guards or anyone from Union about the mailgram.

Schmitt arrived at the Lemont site around 7:15 a.m. on June 22, 1985, and entered Union’s portion of the site through the open gate. He removed the steel support structure from the dollies, attached chains to the dollies and used an available pump truck to pull the dollies off the Lemont site, six at a time. Schmitt completed this task at 1 or 1:30 in the afternoon. He then used a truck and truck crane, which he had previously ordered, to load the dollies. He finished loading the dollies around 5 p.m., and then shipped them to Jake’s Crane and Rigging (Jake’s) in Las Vegas. During the removal, Schmitt saw a few Union guards who passed by every V-k to 2 hours.

Kent Goodman testified that he knew that the gate in the laydown area was open on the day that Schmitt took the dollies, and John Ervin testified that he knew that pump trucks were routinely left in the lay-down area with keys in their ignitions.

The next Monday after he took the dollies, Schmitt sent the following telegram to B&Y:

“Please be advised that 12 dollies on a loan to B and Y Heavy Movers by myself for transporting vessels 501 and 502 and 503/ 504 were removed on 6-22-85 from the Union Oil Refinery holding area at Lemont, Illinois, without knowledge or permission of Fluor Constructors, Inc.
Marvin G. Schmitt”

Nation made several attempts to locate Schmitt and the dollies. He worked with the Lemont police and insurance investigators; he asked a friend in Alaska to look for Schmitt there; he chased after a truck hauling dollies on a California expressway; and he inquired about the dollies at Jake’s in Las Vegas. Kent Goodman testified that he knew that Sch-mitt had taken the dollies to Jake’s during the latter half of 1985 and that Jake’s had used the dollies on a job for Fluor in 1986.

On the issue of liability, Fluor depends entirely on its claim that B&Y failed to prove that it had a greater possessory interest in the dollies than Schmitt did. It does not argue that the evidence is insufficient to establish a violation of the bailment agreement.

Nation and Schmitt had first met in 1980, and Nation hired Schmitt to do some design work relating to a system for transporting oil-drilling rigs. At the end of 1982, Nation and some members of his family purchased B&Y Stanton House Movers, and renamed it B&Y Heavy Movers. Shortly after that, Nation and Schmitt met again. Schmitt was having financial troubles, and he asked Nation if he could store his equipment and machinery at B&Y’s facility and use an office and a desk. Nation and Schmitt struck a casual agreement, and Schmitt moved in with 12 dollies, three pallets of dolly parts, and a fairly complete machine shop. Most of the equipment was stored at the B&Y facility on Batavia Avenue in Orange, California.

Schmitt testified in his evidence deposition that he developed, designed and built the 12 dollies for a Canadian company.

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Cite This Page — Counsel Stack

Bluebook (online)
570 N.E.2d 777, 211 Ill. App. 3d 975, 156 Ill. Dec. 301, 1991 Ill. App. LEXIS 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-y-heavy-movers-inc-v-fluor-constructors-inc-illappct-1991.