Bp Exploration & Oil Company, Plaintiff-Appellee/cross-Appellant v. Maintenance Services, Inc., Defendant-Appellant/cross-Appellee, Dja Inspection Services, Inc., Bp Exploration & Oil Company v. Maintenance Services, Inc.

313 F.3d 936, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20127, 2002 U.S. App. LEXIS 26088
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 18, 2002
Docket01-3137
StatusPublished

This text of 313 F.3d 936 (Bp Exploration & Oil Company, Plaintiff-Appellee/cross-Appellant v. Maintenance Services, Inc., Defendant-Appellant/cross-Appellee, Dja Inspection Services, Inc., Bp Exploration & Oil Company v. Maintenance Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bp Exploration & Oil Company, Plaintiff-Appellee/cross-Appellant v. Maintenance Services, Inc., Defendant-Appellant/cross-Appellee, Dja Inspection Services, Inc., Bp Exploration & Oil Company v. Maintenance Services, Inc., 313 F.3d 936, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20127, 2002 U.S. App. LEXIS 26088 (6th Cir. 2002).

Opinion

313 F.3d 936

BP EXPLORATION & OIL COMPANY, Plaintiff-Appellee/Cross-Appellant,
v.
MAINTENANCE SERVICES, INC., Defendant-Appellant/Cross-Appellee,
DJA Inspection Services, Inc., Defendant.
BP Exploration & Oil Company, Plaintiff-Appellant,
v.
Maintenance Services, Inc., Defendant-Appellee.

No. 01-3137.

No. 01-3194.

No. 01-4291.

United States Court of Appeals, Sixth Circuit.

Argued: October 16, 2002.

Decided and Filed: December 18, 2002.

COPYRIGHT MATERIAL OMITTED COPYRIGHT MATERIAL OMITTED John C. Fickes (briefed), Clair E. Dickinson (briefed), Brouse & McDowell, Akron, OH, Joseph T. Dattilo (argued and briefed), Brouse & McDowell, Cleveland, OH, for Plaintiff-Appellee/Cross-Appellant in 01-3137, 01-3194.

Michael K. Yarbrough (argued and briefed), Scott D. Phillips (briefed), Frost, Brown & Todd, Columbus, OH, Thomas D. Amrine (briefed), Frost, Brown & Todd, Cincinnati, OH, for Defendant-Appellant/Cross-Appellee in 01-3137, 01-3194.

John C. Fickes (briefed), Clair E. Dickinson (briefed), Brouse & McDowell, Akron, OH, Joseph T. Dattilo (argued and briefed), Brouse & McDowell, Cleveland, OH, for Plaintiff-Appellant in 01-4291.

Michael K. Yarbrough (argued and briefed), Scott D. Phillips (briefed), Frost, Brown & Todd, Columbus, OH, Thomas D. Amrine (briefed), Frost, Brown & Todd, Cincinnati, OH, for Defendant-Appellee in 01-4291.

Before: MARTIN, Chief Circuit Judge; RYAN, Circuit Judge; and COHN, District Judge.*

OPINION

RYAN, Circuit Judge.

We have combined for decision, in a single opinion, two appeals that come to us from the district court involving the same parties.

In the first appeal, the district court entered judgment for the plaintiff, BP Exploration & Oil Company, in the amount of $603,695.54 on a jury verdict finding the defendant, Maintenance Services, Inc. (MSI), sixty percent liable and the plaintiff forty percent liable for causing a leak in a fuel storage tank owned by BP. MSI appeals from an order denying its motion to reduce BP's damages award by $50,000 that BP received in settling its claims against another defendant, St. Paul Fire and Marine Insurance Company. In its cross-appeal, BP challenges the district court's refusal to grant judgment as a matter of law on the issue of BP's alleged contributory negligence.

In the second appeal, BP appeals the district court's decision regarding the amount of post-judgment interest MSI must pay. For the following reasons, we AFFIRM the district court's judgment in both cases.

I. BACKGROUND

In August 1997, BP contracted with MSI for "repairs, upgrades and seal installation" on a fuel storage tank (Tank 20) owned by BP and located in Canton, Ohio. As part of the contract, MSI named BP as an additional insured under MSI's Commercial General Liability Insurance policy with St. Paul Fire and Marine Insurance Company (St. Paul). In September 1997, MSI began the repair work, which consisted of filling holes in the tank's floor, welding patches over corroded areas, and using cutting torches to replace seals in the tank's "floating roof." During these repairs, MSI burned a small hole in the floor of the tank.

Initially, the hole went undetected. MSI completed the repairs, and BP, without testing the newly repaired tank floor for defects, refilled it with fuel. According to its manual, BP could have performed an "8-foot water test," in which water is added to an empty tank in order to discover any leakage. Unfortunately, BP did not test the tank, and in early November 1997, BP began to notice inconsistencies between its fuel receipts and its sales and inventory. Following a heavy December rain, BP personnel found a "stain" on the ground near Tank 20, and after pumping the fuel out of the tank, BP discovered the hole. By this time, approximately 45,000 gallons of fuel had escaped into the soil, necessitating a significant cleanup operation and prompting action by at least one adjoining property owner.

About two years later, BP filed suit in the U.S. District Court for the Northern District of Ohio for damages exceeding $3 million. BP's initial complaint named MSI and St. Paul as defendants, but BP later added two other defendants, DJA Inspection Services, Inc. (DJA), a company that inspected Tank 20 prior to MSI's repairs, and American Safety Risk Retention Group, Inc. (ASRR), DJA's insurer. BP proceeded against these four parties under two alternative theories of liability.

BP's first, ultimately winning theory posited that MSI had burned the hole in Tank 20 while conducting its repairs. On this theory, BP sued MSI for negligence and breach of contract relating to the repair work. BP also sued St. Paul for breaching the insurance contract by failing to defend and indemnify BP in suits arising from MSI's misconduct. BP also sued both MSI and St. Paul on claims relating to the scope of coverage provided by the insurance policy. BP's second, ultimately losing theory was that DJA had failed to discover the hole during the inspection preceding MSI's repairs. Pursuant to this theory, BP sued DJA for negligence and breach of contract relating to the inspection and sued ASRR for breach of the insurance policy covering DJA's work.

Before trial, BP settled its claims against St. Paul. The parties executed a "BuyBack and Release Agreement," in which St. Paul promised to pay BP $50,000 in exchange for BP's promise to release all of its claims against St. Paul. The agreement expressly provided that its terms were not to be construed as an admission of coverage or liability. The money was paid and St. Paul was dismissed from the case. Soon thereafter, BP also dismissed its claims against ASRR, DJA's insurer.

The district court conducted a jury trial on BP's negligence and breach of contract claims against both MSI and DJA. At the close of MSI's case, BP moved for judgment as a matter of law, dismissing MSI's defense that BP was guilty of contributory negligence. The district court denied the motion, and BP now cross-appeals from that decision. At the trial's conclusion, the jury returned a verdict exonerating DJA but finding MSI liable for negligence and breach of contract. The jury awarded BP $935,404 in damages on the negligence claim and $78,000 on the contract claim, but it also found BP liable for contributory negligence. Pursuant to Ohio's comparative negligence statute, the jury allocated sixty percent of the fault to MSI and forty percent to BP. The district court adjusted the damages awards and entered judgment against MSI, accordingly.

MSI then filed a motion to alter or amend the judgment on two grounds. First, MSI challenged the $78,000 judgment on the contract claim as duplicative of the judgment on the negligence claim. The district court agreed and vacated the jury's award of $78,000. BP did not appeal that decision. Second, MSI argued that BP's award on the negligence claim should be reduced by the $50,000 that BP received from St. Paul. The district court rejected this argument and denied the motion, reasoning that BP's claims against MSI and St. Paul were based on different injuries and thus were not subject to Ohio's statutory setoff rule.

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Bluebook (online)
313 F.3d 936, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20127, 2002 U.S. App. LEXIS 26088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bp-exploration-oil-company-plaintiff-appelleecross-appellant-v-ca6-2002.