Burton v. Fisher Controls Co.

723 P.2d 1214, 1986 Wyo. LEXIS 596
Wyoming Supreme Court·Decided August 7, 1986·No. 84-43·Published·Cited by 7 cases

Opinions

URBIGKIT, Justice.

This case comes to the court for reconsideration upon rehearing by the present court. We reverse the prior opinion, Burton v. Fisher Controls Company, Wyo., 713 P.2d 1137 (1986), and sustain the decision of the trial court by affirming the twelve-member jury verdict.

Analysis of the facts may clarify the decision which we now make in this case involving an oil-field accident which oc[1215]*1215curred at a gas well site in the Hay Reservoir area of Sweetwater County on March 8, 1977 by explosion of a “Type 630 Big Joe” gas pressure regulator from excess gas pressure.

Pleading and court file records encompass 1167 pages. Extensive discovery was pursued, and a six-day trial ensued, after which the jury found no negligence against any of the defendants then remaining in the lawsuit and no negligence against two other prior defendants for whom settlement and dismissal had occurred.

Some understanding of the cast of participants is required in order to adequately consider the issues presented. Plaintiff, Donald Burton (Burton), age 48 at the date of the accident, was a field foreman for Davis Oil Company (Davis Oil), and

“ * * * had been employed in the oil business for 25 years. At one time he had his own drilling company. At all times material herein, he considered himself to be knowledgeable about and experienced with high pressured gas wells, including those wells located in the Hay Reservoir gas field.
•⅜ * * * * *
“6. Donald Burton was the production foreman in charge of the Hay Reservoir Well #3, where the accident occurred. In that capacity he supervised, directed and controlled the activities of defendants H & H Services, Olman Heath Co., and Pierce. In his capacity as production foreman, Donald Burton had the responsibility and authority for inspecting and approving all construction and maintenance work performed on Well # 3.” 1

A.J. Deans was the Davis Oil district production superintendent for the area, and Burton’s immediate supervisor. James McCrae was an initial defendant and a coworker of Burton, with a generally comparable Davis Oil line of responsibility as a field foreman, and was amended out of the litigation by the first amended complaint. The partners in Davis Oil were named as defendants in the second amended complaint and then amended out by exclusion in the third amended complaint.

Fisher Controls Company (Fisher Controls) was the manufacturer of the gas regulator equipment which blew up and caused the injury. H & H Services, Inc. (H & H) was a roustabout firm in the general area which provided variant construction and engineering services for available drilling companies and was responsible for the initial installation of the unit. National Supply Company was named as a third-party defendant and was the retail dealer from which H & H, by order of Burton and on the Davis Oil account, secured the regulator for installation at the well-site. Pierce Construction Co. was also a roustabout company and involved in aspects of the installation in January, with a representative onsite on the day of the accident. Olman-Heath was not involved in the January installation, and came in March to reinstall a downstream methanol pump for which the entire rigging had been constructed in January.

At trial, after settlements filed on the date of commencement, the only remaining participants in the litigation were plaintiff, Olman-Heath, the roustabout contractor which had installed the methanol pump the day before the accident, and A.J. Deans, the area supervisor for Davis Oil.

In pretrial motion activities, the court had sustained a motion for summary judgment in behalf of H & H, from which decision an appeal was attempted, and had denied similar motions in behalf of Fisher Controls, Olman-Heath, and Pierce Construction Co. (Pierce). Plaintiff then settled with H & H on the pending appeal, and with Fisher Controls and Pierce, immediately before trial date.

Defendant’s fourth amended complaint was filed on the first day of trial for the purpose of amending out of the complaint and caption prior references to defendants with whom settlements had been made or otherwise deleted from the litigation, and [1216]*1216to leave in the document only plaintiff Burton and defendants Olman-Heath and Deans. No written motion to amend was made, and the oral motion was denied as belated. Additionally added in this last amendment were punitive damages.

Simplistically stated, the regulator was manufactured by Fisher Controls and purchased by National Supply Company for resale as an independent dealer of oil-field equipment and supplies. Harold Hood of H & H was employed by Burton to make the installation on the well in January, 1977, and for this purpose went to National Supply Company and acquired the equipment authorized by Burton on the credit of Davis Oil. The design, parts and configuration of the installation were determined by Burton, to be utilized for the purpose of furnishing well gas as a drilling fluid to drill a new well, Hay No. 4. The particular hookup involved using surplus gas which emigrated from the drill stem to the casing for the purpose of operating a fluid pump which was then used to pump methanol into the well to obviate freeze-ups which were occurring, so that a steady gas supply for drilling could be obtained. The hookup operated successfully in the January period, but the drilling operation of Hay No. 4 went awry, with a stuck drill stem, the usage of Hay No. 3 was consequently discontinued, and the well was shut down. The record contains no evidence of on-site inspection of the methanol equipment by Deans before the accident occurred.

A month or so later, in March, the company in the Denver office determined to commence drilling of Hay No. 5, and Burton was again directed by company officials from Denver, not Deans, to reready Hay No. 3 to make available gas for the drilling purposes in the new well site, Hay No. 5, which included reconnection of the fluid pump. The record simply does not demonstrate with certainty whether the regulator had been removed, but clearly the downstream methanol pump required reinstallation and reactivation, for which purpose Olman-Heath was employed on March 7.2 When Olman-Heath installed the pump, the upstream regulator was already in place, and reason would suggest it probably had not been removed earlier. It did not make any difference, since clearly none of the defendants accepted responsibility for regulator reinstallation, or, by company records, were paid for the service. Pump installation was completed that evening, and the facility seemed to be working suitably, as had been the case with the earlier usage in January.

The record was not clear as to whether the pump was reciprocal, centrifugal or diaphragmatic, but it was powered by gas pressure, not internal combustion. The speed of its operation for injection of methanol into the gas well stem was controllable by adjustment of the regulator or the immediately adjacent downstream needle valve. This system for injection of methanol into the gas well stem for de-icing upon gas production was not an unusual oilfield system, with the regulator required in order to reduce and maintain a constant pressure for pump operation.

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Burton v. Fisher Controls Co., 723 P.2d 1214, 1986 Wyo. LEXIS 596 (Wyo. 1986).

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Burton v. Fisher Controls Co.
723 P.2d 1214 (Wyoming Supreme Court, 1986)