Bechtel Corp. v. CITGO PRODUCTS PIPELINE CO.

271 S.W.3d 898, 2008 Tex. App. LEXIS 9507, 2008 WL 5264895
CourtCourt of Appeals of Texas
DecidedDecember 19, 2008
Docket03-05-00430-CV
StatusPublished
Cited by39 cases

This text of 271 S.W.3d 898 (Bechtel Corp. v. CITGO PRODUCTS PIPELINE CO.) 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
Bechtel Corp. v. CITGO PRODUCTS PIPELINE CO., 271 S.W.3d 898, 2008 Tex. App. LEXIS 9507, 2008 WL 5264895 (Tex. Ct. App. 2008).

Opinion

OPINION

BOB PEMBERTON, Justice.

We withdraw our opinion dated October 3, 2008; our supplemental opinion dated November 7, 2008; and our judgment dated November 7, 2008; and substitute the following in their place. We overrule CIT-GO Products Pipeline Company’s motion for rehearing.

A work crew employed by MasTee North America, Inc. d/b/a Wilde Construction (MasTec/Wilde) ruptured an underground gasoline pipeline owned and operated by CITGO Products Pipeline Company (CITGO) while excavating for *904 an underground telecommunications line. Approximately 390 barrels of gasoline escaped into the surrounding area before the spill could be contained. CITGO incurred substantial expenses in responding to the spill and remediating contamination to soil and groundwater. CITGO sued MasTee/Wilde; C & S Network Construction, a MasTec/Wilde affiliate also involved in the project; and Bechtel Corporation and Bechtel Telecommunications (collectively, Bechtel), the construction manager on the project. CITGO’s claims were tried to a jury. Based on the verdict and evidence it subsequently heard on attorney’s fees, the district court awarded CITGO a total of $1,461,955.80 in actual damages from MasTec/Wilde (which had assumed C & S’s liabilities in addition to its own), $115,919.48 from Bechtel, prejudgment interest on these amounts, and $295,357.25 in attorney’s fees from MasTec/Wilde. MasTec/Wilde, C & S, and Bechtel have jointly appealed the judgment, bringing fifteen common issues. For the reasons explained herein, we will reverse and render judgment in part, reform the judgment and, as reformed, affirm the judgment in part.

BACKGROUND

The pipeline rupture occurred in May 1999, while appellants were laying an underground fiber-optic cable for Enron Broadband Services, Inc., as part of Enron Broadband’s “Texas Loop Project.” Enron Broadband hired MasTec/Wilde to lay the cable. MasTec/Wilde, in turn, subcontracted with C & S to work on the project. At all relevant times, MasTee/Wilde and C & S were each wholly-owned subsidiaries of MasTee, Inc. As their working arrangement was described at trial, MasTec/Wilde operated “rip crews” who would plow or “rip” trenches in the ground in which the cable would be placed, while C & S operated “bore crews” that would drill or bore holes underground as necessary to lay cable beneath obstacles. Enron Broadband also hired Bechtel as its construction manager for the Texas Loop Project. Bechtel’s job included supervising the progress of the cable-laying operations.

The nature of the work to be performed on the Texas Loop Project implicated the Underground Facility Damage Prevention and Safety Act, commonly known as the Texas “one-call” statute. The current iteration of the one-call statute is codified in chapter 251 of the utilities code. See generally Tex. Util.Code Ann. §§ 251.001-.203 (West 2007). At the time this case arose, however, the one-call statute was contained in article 9033 of the revised civil statutes, Act of Apr. 23, 1999, 76th Leg., R.S., ch. 62, § 18.17(a), 1999 Tex. Gen. Laws 392, 392-402 (“Former art. 9033”), and the case was tried, submitted, and briefed on appeal with extensive reference to that version of the statute. Although the two versions are largely identical in substantive respects material to this proceeding, we will refer to the former article 9033 version for clarity.

The one-call statute generally requires that any person intending to “excavate” (as MasTee/Wilde and C & S undisputedly were 1 ) to give notice to a “notification center” not earlier than the 14th day be *905 fore the date excavation is to begin or later than the 48th hour before the time excavation is to begin. Former art. 9083, § 9(a). Such notice shall include (1) the name of the person serving the notice; (2) the “location of the proposed area of excavation,” including a street address, if available, or “an accurate description of the excavation area using any available designations such as the closest street, road, or intersection”; (3) the name, address, and telephone number of the excavator or excavator’s company; (4) the excavator’s “field telephone number,” if available; (5) “the starting date and time and the anticipated completion date of the excavation”; and (6) a statement as to whether explosives will be used. Id. § 9(b). 2

A “notification center” under the one-call statute refers to an entity in which “operators” of “Class A underground facilities” — which include underground gasoline pipelines 3 — must “participate,” as a condition of doing business in Texas, by providing the notification center maps, grid locations, or other identifiers indicating the locations of the operator’s underground facilities; updates regarding any changes in such information; and the name and telephone number of a contact person or persons. Id. § 7(a), (b). The notification center, in turn, is required, within two hours after receiving a notice of intent to excavate, to transmit the information received from the excavator to “each member operator that may have an underground facility in the vicinity of the proposed excavation operation.” Id. § 8(b), (c).

A C & S employee, Clint Ferguson, had the responsibility as “construction locator” to make the required “one-calls” for both the MasTec/Wilde rip crews and the C & S bore crews working on the Texas Loop Project. A portion of the project, approximately 8.5 miles in length, was to run through southern Caldwell County — the Luling area — along the north side of State Highway 90. Work on this portion of the project commenced in April 1999. Beginning as early as April 12, 1999, Ferguson made a series of one-calls to a notification center in advance of and during the crews’ work in Caldwell County. The notification center, in turn, generated notifications to operators of underground facilities in the area.

East of Luling, the route of the planned Texas Loop Project excavation crossed a gasoline pipeline, known as the CASA Pipeline, that was owned and operated by CITGO. As one of the operators who had underground facilities in the area, CITGO received the notices transmitted by the notification center in response to Ferguson’s one-calls. The information transmitted by the notification center reflected that the work was to be performed by “C & S Construction” for “Enron,” and provided Clint Ferguson’s name and a phone number as the designated contact. The location of the proposed excavation was described in these notices as the entire right-of-way along the north side of Highway 90 running from the Caldwell-Guadalupe County line easterly to the Caldwell-Gonzalez County line.

The one-call statute requires an operator who receives a one-call notice must— generally within 48 hours after the time the excavator gave notice to the notification center of its intent to excavate, or “at *906

Free access — add to your briefcase to read the full text and ask questions with AI

Related

SwiftAir v. Southwest Airlines
California Court of Appeal, 2022
SwiftAir v. Southwest Airlines CA2/7
California Court of Appeal, 2022
Barton Food Mart, Inc. v. Nejla Botrie
Court of Appeals of Texas, 2018
Range v. Calvary Christian Fellowship
530 S.W.3d 818 (Court of Appeals of Texas, 2017)
Elness Swenson Graham Architects, Inc. v. RLJ II-C Austin Air, LP
520 S.W.3d 145 (Court of Appeals of Texas, 2017)
Linda Fitzerman v. Classic Americana, LLC
Court of Appeals of Texas, 2016

Cite This Page — Counsel Stack

Bluebook (online)
271 S.W.3d 898, 2008 Tex. App. LEXIS 9507, 2008 WL 5264895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bechtel-corp-v-citgo-products-pipeline-co-texapp-2008.