Becker v. Poling Transportation Corporation

356 F.3d 381
Court of Appeals for the Second Circuit·Decided February 27, 2004·No. 02-7707·Published

Opinion

356 F.3d 381

Philip BECKER, Patricia Becker, John F. Jurgens, Gail Jurgens, Bridget Jurgens and Kate Jurgens, Plaintiffs-Appellees,
v.
POLING TRANSPORTATION CORPORATION, Chester A. Poling, Inc., Motor Vessel Poling Bros. No. 9 Inc., Anthony J, Clara P, Jeanne C, their tackle, engines and appurtenances, etc. In Rem, Ultimate Transport Inc., Janet Mahland and Mabel L. Poling Corp., Defendants,
Metro Fuel Oil Corporation and Metro Terminals Corp., Defendants-Appellants.

Docket No. 02-7707(L).

Docket No. 02-7713(CON).

Docket No. 02-7773(CON).

United States Court of Appeals, Second Circuit.

Argued: May 14, 2003.

Decided: February 2, 2004.

Modified: February 27, 2004.

Appeal from the United States District Court for the Eastern District of New York, Robert M. Levy, United States Magistrate Judge.

Andrew Zajac, Fiedelman & McGaw, Jericho, New York, and Jacobowitz, Garfinkel & Lesman, New York, New York, for Defendants-Appellants.

Paul T. Hofmann, Cappiello Hoffman & Katz, P.C., New York, New York, for the Becker Plaintiffs-Appellees.

Lee F. Bantle, Bantle & Levy, LLP, New York, New York, for the Jurgens Plaintiffs-Appellees.

Before: WINTER, KATZMANN, Circuit Judges, and GOLDBERG, Judge.*

WINTER, Circuit Judge.

Metro Fuel Oil Corp. and Metro Terminals Corp. (collectively, "Metro") appeal from a judgment entered after a jury trial before Magistrate Judge Levy holding Metro liable to Philip Becker ("Becker") and John Jurgens ("Jurgens") for injuries sustained when a petroleum transfer operation resulted in a fire. The magistrate judge held Metro vicariously liable for the negligence of its independent contractor, Ultimate Fuel Transportation, Inc. ("Ultimate"). Ultimate had settled with appellees before trial, and the district court set off from the total damages found by the jury the amount of the settlement.

On appeal, Metro argues that: (i) it is not vicariously liable for Ultimate's negligence; (ii) Becker's and Jurgens' settlement with Ultimate bars any recovery from Metro; and (iii) Becker's and Jurgens' actions in conducting the transfer operation constituted a superseding, intervening cause of their injuries. Appellees argue that the setoff based on the settlement was error.

We hold that Metro was directly and jointly and severally liable to Becker and Jurgens because of Metro's negligence in selecting Ultimate to perform the work in question. We also hold that Becker's and Jurgens' actions were not as a matter of law a superseding, intervening cause of their injuries. Because there was no cross-appeal, we cannot enlarge the judgment by eliminating the setoff and do not address appellees' argument in that regard. Accordingly, we affirm.

BACKGROUND

a) Facts

We view the facts in the light most favorable to appellees, who prevailed before the jury. Norton v. Sam's Club, 145 F.3d 114, 118 (2d Cir.1998).

Becker and Jurgens were employed by Poling Transportation Corporation ("Poling"). On August 18, 1995, they were severely burned in a fire that occurred while they were transferring petroleum from the CLARA P, a decrepit barge, to a truck that was parked dockside. The CLARA P was owned by Poling but was about to be sold. The terms of the sale required that the barge be delivered empty to the buyer. Poling's dispatcher, Rick Carment, called Joseph Squadritto, the Director of Marketing at Metro, to see if Metro was interested in the petroleum that was to be removed from the CLARA P. Carment offered the petroleum free of charge if Metro arranged for a pickup. Squadritto went to the Poling yard for a sample of the petroleum and agreed that Metro would take it.

Carment advised Squadritto that a vacuum truck was needed to transfer the product because the pumping mechanism on the CLARA P was defunct. Squadritto then asked Ultimate to pick up the petroleum, even though Squadritto knew that Ultimate did not have a vacuum truck.

On the day of the fire, Becker and Jurgens were assigned, first, to pump water and, second, the petroleum from the CLARA P. Jurgens had been told that there was some urgency to emptying the barge and emptied the water with a portable pump in the morning. Carment told Jurgens that a vacuum truck would be coming to remove the product later that afternoon and directed Jurgens to oversee the transfer. At about 5:30 p.m., an Ultimate truck arrived at the Poling yard. Neither Jurgens, Becker, nor the Ultimate driver appear ever to have transferred petroleum from ship to truck, or to have received training on how to do so. The Ultimate truck was not a vacuum truck, and the driver informed Jurgens and Becker that Ultimate did not, in fact, have vacuum trucks. At this point Jurgens, Becker, and the Ultimate driver conferred and decided to use the portable pump that had been used earlier that day to transfer the water. The pump was used to fill the first holding compartment of the truck uneventfully. The pump was then shut down, and the hose was switched to the next compartment. When the pump was restarted, a fire broke out on the CLARA P burning both Becker and Jurgens. There is no serious dispute that the fire was caused by the use of the portable pump instead of a vacuum truck.

b) Proceedings in the District Court

Becker and Jurgens brought the present action against Poling, Ultimate, and Metro, asserting claims under the Jones Act, 46 U.S.C.App. § 688, and general maritime law. Ultimate defaulted and eventually paid Becker and Jurgens $250,000 each in exchange for the settlement of their claims against Ultimate and their agreement to "indemnify, defend, and hold harmless [Ultimate] against any and all claims and cross claims asserted by the other defendants..., including any and all claims for contractual and/or common law indemnification." Becker v. Poling Transp. Corp., No. 96 CV 1768, slip op. at 2 (E.D.N.Y. May 23, 2002) (magistrate judge's Memorandum and Order). Poling filed for bankruptcy, and Metro was the only defendant to appear at trial.

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