Continental Casualty Co. v. Ohio Edison Co.

126 F.2d 423, 1942 U.S. App. LEXIS 4149
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 12, 1942
DocketNo. 8906
StatusPublished
Cited by6 cases

This text of 126 F.2d 423 (Continental Casualty Co. v. Ohio Edison Co.) 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
Continental Casualty Co. v. Ohio Edison Co., 126 F.2d 423, 1942 U.S. App. LEXIS 4149 (6th Cir. 1942).

Opinion

MARTIN, Circuit Judge.

The appellant, Continental Casualty Company, insured Richman Brothers Company, owner of a retail clothing store in Youngstown, Ohio, against liability to the public for injuries received upon the assured’s premises and upon the immediately adjacent highways. The insurer was expressly subrogated to the rights of the assured against persons causing liability covered by the policy.

In an Ohio court of common pleas, a judgment was rendered against Richman Brothers Company for $15,000 damages for personal injuries received by Margaret Miller while walking in front of its store. This judgment was remitted to $10,000 by the State Court of Appeals and was affirmed in that reduced amount by the Supreme Court of Ohio. Appellant insurer paid the judgment, with interest, and also the expenses of the defense of the suit.

Appellant, by subrogation to the rights of its assured, brought this action in the United States district court against Ohio Edison Company, upon the ground that liability of its assured to Margaret Miller accrued from the failure of appellee, Ohio Edison Company, to perform its duty under a contract with Richman Brothers Company, and from its failure to ' protect the public in carrying on work imposed upon it by the contract.

Richman Brothers Company had erected an electric sign, extending about six feet from the front of its building and being at its lowest point some fifteen feet above the sidewalk.

Prior to the Miller accident, a power company, subsequently consolidated with appellee, had entered into a contract with the store company to inspect this sign. The duties of the power company under the contract included weekly inspections, oiling and greasing the flasher, adjusting flasher brushes- and replacing burned put lamps; cleaning opalite letters every month; cleaning the opalite portion of the sign every three months; and, once a year, painting the opalite and exposed lamp sign, removing and cleaning all lamps, and the extra painting of letters and border approximately six months later. The power company expressly assumed no liability for improper or defective wiring, or for any personal or property damage caused by the sign as a result of wind, storm, defective material, improper hanging, “etc.”; nor was there, in the contract, any assumption whatever of liability accruing to Richman Brothers Company from the performance by the power company of its work under the contract.

Appellee, Ohio Edison Company, in performance of its obligation to paint the sign, employed Walker Sign Company to do that work. An employee of the sign company permitted a bucket of paint, which had been fastened to a saddle seat, to become disengaged and to fall. Margaret Miller was struck and injured thereby.

In her action for damages in the court of common pleas, Margaret Miller joined as defendants Richman Brothers Company, Walker Sign Company, and the appellee. In an amended petition, she omitted the sign company as a defendant; and, at the trial, dismissed her action against Ohio Edison Company without prejudice, and elected to proceed against the Richman Brothers Company alone.

The charges of her complaint against the appellee, Ohio Edison Company, which were not pressed to trial, were the power company’s alleged negligence in failing to fasten the bucket of paint so that it would not fall; in failing to maintain barriers, or guards; and in failing to warn pedestrians not to walk under the sign.

The charges against Richman Brothers Company, which she pressed successfully to verdict and judgment, were that company’s negligence in failing to warn pedestrians when it knew that the sign was being altered and repaired, and in failing to station guards to divert the course of pedestrians from the sidewalk underneath the sign.

The Supreme Court of Ohio, in the syllabus to its opinion affirming the judgment against Richman Brothers Company, said: “One who erects and maintains a large electric sign projecting over the street from his building has a duty to prevent its becoming a cause of danger to the traveling public by reason of any de-[425]*425feet, either in structure, repair, or use, against which reasonable skill can guard. Such duty arises from the danger to others incident to the maintenance of such sign and the performance of any work in its repair where located, which duty he cannot avoid or shift to another by means of any contract.” Richman Brothers Co. v. Miller, 131 Ohio St. 424, 3 N.E.2d 360, 361.

Before the trial of the Miller ' case, Richmond Brothers Company, taking the position that entire responsibility for the accident rested upon appellee, requested the latter to assume the cost of defense of the litigation. This, the appellee declined to do. After the judgment was rendered, Richman Brothers Company demanded that appellee satisfy the judgment and pay the cost and expense of the litigation. The appellee disclaimed responsibility upon the ground that Margaret Miller’s recovery against Richman Brothers Company resulted from the latter’s own negligence.

The instant action was instituted against appellee by the insurer of Richman Brothers Company, upon the predicate that all duties owed by its assured to Margaret Miller were duties which devolved upon appellee by virtue of its contract with Richman Brothers Company and by reason of its duty, while performing work under the contract, to protect the public from injury. The appellant avers that the proximate cause of the injury to Margaret Miller was the failure of appellee to fulfill these duties.

Appellant asserts that Richman Brothers Company is entitled to exoneration by ap-pellee for loss and expense sustained as a result of the injury to Margaret Miller; and that appellant, as insurer, having paid such loss and expense is subrogated to the rights of Richman Brothers Company and is entitled to indemnification by appellee.

The district court sustained a demurrer to the petition of appellant; an appeal was taken; and, in Continental Casualty Company v. Ohio Edison Company, 6 Cir., 101 F.2d 1008, the judgment on demurrer was reversed and the cause remanded by this court upon the authority of Fidelity & Casualty Co. of New York v. Federal Express, Inc. (Fidelity & Casualty Co. of New York v. Fornaro Company) 6 Cir., 99 F.2d 681.

In the' Fidelity & Casualty Company cases cited, which were disposed of in a single opinion, the facts were that an insurer, having in performance of its contractual obligation paid judgments rendered against its insured in tort actions for personal injuries resulting from negligence, brought suits for indemnity against parties charged to have been authors of the primary and active wrongful conduct which, in each instance, led to the injury and subsequent judgment against the insured. The defendants had been co-defendants with the insured in the tort actions and had been adjudged free from liability to the respective plaintiffs.

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126 F.2d 423, 1942 U.S. App. LEXIS 4149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-casualty-co-v-ohio-edison-co-ca6-1942.