Daughtry v. Diamond M Co.

693 F. Supp. 856, 1988 U.S. Dist. LEXIS 10249, 1988 WL 92626
CourtDistrict Court, C.D. California
DecidedSeptember 2, 1988
DocketCV 86-6875 AHS (Tx)
StatusPublished
Cited by9 cases

This text of 693 F. Supp. 856 (Daughtry v. Diamond M Co.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daughtry v. Diamond M Co., 693 F. Supp. 856, 1988 U.S. Dist. LEXIS 10249, 1988 WL 92626 (C.D. Cal. 1988).

Opinion

OPINION ON ORDER (1) DENYING MOTIONS FOR DETERMINATION OF GOOD FAITH SETTLEMENT AND FOR DISMISSAL OF CROSS-CLAIMS, COUNTERCLAIMS AND THIRD PARTY CLAIMS; (2) FOR CERTIFICATION UNDER 28 U.S.C. § 1292(b); and, (3) FOR STAY PENDING APPEAL

STOTLER, District Judge.

FACTS

Plaintiff seeks damages for personal injuries suffered while on board an oil rig on October 24, 1985. He alleges he was struck on the head and shoulders by a six-inch rubber vent-hose which was being lifted by a crane on board the rig.

Daughtry filed suit on October 22, 1986 against Diamond M Company and Sun Oil Company, the alleged owners and operators of the Diamond M Falcon, the vessel on which Daughtry sustained his injuries. Jurisdiction of the original complaint was founded on the Jones Act, 46 U.S.C.App. § 668. The pleading contained claims for negligence under 46 U.S.C.App. § 688 1 , unseaworthiness, maintenance and cure and general maritime negligence.

*858 In a first amended complaint, filed with leave of Court on March 31, 1987, Daugh-try named as additional defendants Diamond M Falcon, Ltd. (alleged owner of the vessel), Sun Exploration & Production Co. (alleged operator of the vessel), and Otis Engineering (alleged installer of the hose on board the rig). The first amended complaint stated the same claims as in the original complaint. Daughtry voluntarily dismissed Sun Oil on September 25, 1987.

In his second amended complaint, filed with leave of Court on October 23, 1987, Daughtry added defendant North American Hose & Coupling (NAHC), alleged assembler and distributor of the injury-inflicting hose. The second amended complaint added claims related to products liability against NAHC. In his prayer for relief, Daughtry requested general damages, special damages, lost earnings and future lost earnings, medical expenses and future medical expenses, maintenance and cure benefits, costs of suit and other relief as deemed appropriate by the Court.

NAHC filed a cross-claim for indemnity, against Diamond M Co., Diamond M Falcon, Ltd., Sun Oil, Sun Exploration, Otis, Diamond M Falcon Co. and Semperit Industrial Products, Inc. (alleged manufacturer of the rubber hose) on December 21, 1987. Sun Exploration and the Diamond M entities (hereinafter collectively referred to as Diamond) jointly filed a cross-claim for indemnity on January 13, 1988, naming as cross-defendants NAHC and Semperit. Otis filed a cross-claim for indemnity against Semperit and a counterclaim for indemnity against NAHC on January 28, 1988. All claims against Semperit were dismissed pursuant to a stipulation and Order filed and entered on July 25, 1988.

The hose in question consisted of a string of hose sections coupled together with metal fittings. When connected, the hose string ran approximately 150 feet in length from a test barge to test equipment on the Diamond M Falcon. On the day of the subject accident, the hose was disassembled for repairs. Upon reassembly, the hose was set up to be redeployed to the barge. Part of the hose was draped over the railing of the Falcon and tied off at a handrail.

The feeding process entailed successive liftings by a crane to remove slack in the hose followed by cutting the tie at the handrail to release a length of hose overboard. According to Otis and NAHC, on the day of the accident, Diamond M captain Edward E. Arendt cut the line at the handrail before the slack was out in the hose. As a result, the hose ran over the rail with sufficient force to break free of its metal fitting and strike plaintiff.

Otis participated in the initial assembly of the hose on the Falcon, but claims the hose was disassembled and reassembled by Diamond M personnel on the day of the accident. Otis also claims it did not own the hose and had no duty to maintain and repair the hose. NAHC characterizes itself as a peripheral party to this lawsuit and its liability as correspondingly remote. Diamond claims NAHC supplied the injury-inflicting and allegedly defective hose. According to Diamond, the coupling mechanisms were improperly banded to the hose and the type of hose and coupling were not fit for being lifted by a crane. If the hose was defective as supplied, Diamond argues, NAHC could be liable for all of plaintiff’s damages based on the warranty of workmanlike performance. NAHC maintains Captain Arendt was solely or primarily at fault for plaintiff’s injuries because Arendt cut the soft line (by which the hose was tied to the handrail) too early.

The parties have undertaken substantial discovery in this matter. Defendants Otis and NAHC have reached settlement agreements with plaintiff, whereby each would pay plaintiff $50,000 in exchange for a release of liability (for a total of $100,000). On June 9,1988, Otis and NAHC each filed a motion for determination of good faith settlement pursuant to Cal.Civ.Proc.Code §§ 877 and 877.6. Diamond filed opposition to the motions on June 13, 1988. Otis and NAHC each filed a reply on June 16, 1988.

Settling defendants’ motions came on for hearing before the Court on June 20, 1988. After oral argument, the Court took the *859 motions under submission. Nonsettling defendants filed an evidentiary offer of proof, at the Court’s invitation, on June 24, 1988. On June 28, 1988, the Court issued a minute order denying settling defendants’ motions brought under Cal. Civ.Proc. Code §§ 877 and 877.6 and indicating the Court’s intention to issue a formal opinion on the applicability of §§ 877 and 877.6 to actions under federal maritime law and the Jones Act. (A copy of the minute order is appended hereto.)

On July 19,1988, the Court approved the stipulation of the parties to continue the Pre-Trial Conference to November 7, 1988. A date for trial is to be set then. On August 3, 1988, the settling defendants moved the Court for its order that the issue herein be deemed appealable pursuant to 28 U.S.C. § 1292(b) and that all proceedings be stayed pending that procedure and appeal, if any. Plaintiff opposed only the request for a stay while Sun and Diamond opposed both motions.

DISCUSSION

I

Motion for Settlement

By their motions, Otis and NAHC seek a judicial determination that their respective settlements are in good faith under Cal. Civ. Proc.Code §§ 877 and 877.6 and that all cross-claims against them for contribution and indemnity should be dismissed. The non-settling defendants contest the applicability of §§ 877 and 877.6 to a federal maritime action. They also contend the settlements are not in good faith and, even if they are in good faith, do not relieve the settling defendants from claims for indemnification.

The narrow issue before the Court is whether settling joint tortfeasors in a mul-tidefendant admiralty action may avail themselves of the provisions of Cal.Civ. Proc.Code §§ 877 and 877.6.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
693 F. Supp. 856, 1988 U.S. Dist. LEXIS 10249, 1988 WL 92626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daughtry-v-diamond-m-co-cacd-1988.