Delta Fuels, Inc. v. Ohio Dept. of Transp.

2015 Ohio 5545
CourtOhio Court of Appeals
DecidedDecember 31, 2015
Docket15AP-28 15AP-206
StatusPublished
Cited by6 cases

This text of 2015 Ohio 5545 (Delta Fuels, Inc. v. Ohio Dept. of Transp.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delta Fuels, Inc. v. Ohio Dept. of Transp., 2015 Ohio 5545 (Ohio Ct. App. 2015).

Opinion

[Cite as Delta Fuels, Inc. v. Ohio Dept. of Transp., 2015-Ohio-5545.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Delta Fuels, Inc., :

Plaintiff-Appellant, : No. 15AP-28 v. : (Ct. of Cl. No. 2006-03265)

Ohio Department of Transportation, : (REGULAR CALENDAR)

Defendant-Appellee. :

Ohio Department of Transportation, :

Plaintiff-Appellant, :

v. : No. 15AP-206 Delta Fuels, Inc., : (Ct. of Cl. No. 2006-03265)

Defendant-Appellee, : (REGULAR CALENDAR)

Knight Enterprises, Inc. et al., :

D E C I S I O N

Rendered on December 31, 2015

Wickens, Herzer, Panza, Cook & Batista Co., and Joseph E. Cirigliano; Giarmarco, Mullins & Horton, PC, and Daniel J. Kelly; and Ben M. Gonek, for Delta Fuels, Inc.

Michael DeWine, Attorney General, William C. Becker, and Craig D. Barclay, for Ohio Department of Transportation.

APPEALS from the Court of Claims of Ohio Nos. 15AP-28 and 15AP-206 2

SADLER, J. {¶ 1} This decision addresses two appeals from the Court of Claims of Ohio arising out of an unusual procedure in which the court held a simultaneous bench and jury trial to assess certain claims related to a 2005 Toledo-area fuel spill. In case No. 15AP-28, plaintiff-appellant, Delta Fuels, Inc. ("Delta Fuels"), appeals from the court's December 12, 2014 bench trial judgment finding in favor of defendant-appellee, Ohio Department of Transportation ("ODOT"), on Delta Fuels' negligence, breach of contract, and breach of implied warranty claims. In case No. 15AP-206, plaintiff-appellant, ODOT, appeals from the court's March 6, 2015 judgment denying ODOT's motion for judgment notwithstanding the verdict and motion for new trial on ODOT's negligence counterclaim, which, pursuant to ODOT's demand, was tried to a jury and produced a verdict in favor of Delta Fuels.1 For the reasons that follow, we affirm the judgment of the trial court in both instances. I. BACKGROUND {¶ 2} Delta Fuels owns and operates a petroleum terminal facility in Toledo, consisting of five above-ground storage tanks, each capable of holding approximately 2.5 million gallons of fuel, surrounded by a secondary containment system. In this context, a secondary containment system is, in simple terms, a barrier intended by law to be "sufficiently impervious" to contain a spill equivalent to the facility's largest tank, plus a certain buffer percentage, long enough to allow the owner to recapture the gasoline. (Tr. 793.) {¶ 3} On the morning of November 25, 2005, the Friday after Thanksgiving, a Delta Fuels employee inadvertently released over 100,000 gallons of gasoline from an above-ground storage tank. The gasoline escaped underneath the surrounding secondary containment system, entered state land where ODOT was coordinating construction of an entrance and exit ramp to the Veterans Skyway Bridge, and nearly reached the Maumee River.

1 ODOT's notice of appeal states that it also appeals from the court's December 12, 2014 judgment, which in

addition to stating a decision on Delta Fuels' claim, also memorialized the jury verdict on ODOT's counterclaim. However, ODOT's assignments of error and briefs on appeal challenge the judge's decision to deny ODOT's motions for judgment notwithstanding the verdict and new trial. Nos. 15AP-28 and 15AP-206 3

{¶ 4} Litigation giving rise to this appeal commenced on April 24, 2006, with Delta Fuels filing a complaint in the Court of Claims against ODOT alleging negligence, breach of contract, and breach of implied warranties.2 On June 7, 2006, ODOT filed an answer and counterclaim. ODOT subsequently amended its answer and counterclaims several times, with the last amendment filed on February 27, 2014. ODOT's original and amended answers and counterclaims included attached, endorsed jury demands. On April 10, 2014, for the first time, Delta Fuels filed its own general demand for a jury trial. {¶ 5} The case proceeded to trial from November 10 through November 19, 2014. In a rare combined bench and jury trial, the judge and the jury heard evidence pertaining to both Delta Fuels' claim and to ODOT's counterclaim. The judge discussed with the jury and with the attorneys the unusual split nature of the proceeding, which the judge thought to have occurred only once before in the Court of Claims. Neither party objected to the nature of the proceeding. {¶ 6} Delta Fuels' theory for its negligence claim centered on ODOT's relocation of Delta Fuels' private waterline to just a few feet from the base of its secondary containment system. Delta Fuels presented evidence that its clay-based secondary containment system could hold water prior to the waterline construction and, therefore, could theoretically hold fuel and that ODOT's engineers owed a duty to design and construct the ramp project, including relocation of the waterline, in a manner that did not adversely affect its neighbors. Specifically, Delta Fuels' experts opined that ODOT's location of the new waterline approximately four feet from the foot of the berm with a trench wall cut just two and one-half feet from the foot of the berm, ODOT's use of a granular base to bed the waterline, and ODOT's construction of a connected sewer approximately one hundred yards away at a depth of seventeen feet, combined to create a "drawdown"/French drain effect. (Tr. 485.) According to these experts, the drawdown effect of ODOT's waterline construction dried out and cracked the clay-based secondary containment system, thereby increasing its permeability and allowing the fuel to quickly 2 Delta Fuels initiated suit against a host of entities involved in the bridge and ramp project, with the crux of the claims centered on ramp construction activities which allegedly compromised the secondary containment system. Claims asserted by Delta Fuels against the various involved contractors were either resolved privately or in the common pleas court. One of these cases, Delta Fuels case against an engineering firm hired by ODOT named DLZ, ultimately resulted in a jury verdict of $1,260,000 for Delta Fuels after a 40 percent reduction for Delta Fuels' own negligence. Nos. 15AP-28 and 15AP-206 4

escape underground onto ODOT's land. Further, Delta Fuels presented evidence that, by cutting sand seams with the waterline trench and filling the trench with a granular base, ODOT created a preferential pathway for the fuel to migrate to the sewer system and approach the river. {¶ 7} Regarding its response to the fuel spill, Delta Fuels presented evidence that its actions reflected its initial belief that the spill approximated 10,000 gallons or less, and difficulties in measuring the fuel in the tanks delayed discovering the ultimate quantity of fuel lost. Delta Fuels also contended that it believed the Toledo environmental services department had been contacted on the day of the spill who, by procedure, would have then alerted the Ohio Environmental Protection Agency ("Ohio EPA"). {¶ 8} Delta Fuels additionally claimed that ODOT breached implied warranties and two contracts with Delta Fuels: the 2002 Right of Entry Agreement and the 2004 eminent domain settlement agreement and judgment entry. In the 2002 Right of Entry Agreement, ODOT and Delta Fuels agreed that the state and its contractors could have access to property at issue in a pending eminent domain proceeding for the purpose of relocating a portion of the berm and a fuel pipeline, constructing a fence, and tying in a drainage facility in connection with the ramp project. Delta Fuels presented evidence that ODOT's relocation of the waterline in July 2002 went outside the scope of the right of entry granted and encroached on Delta Fuels' easement associated with the waterline.

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Bluebook (online)
2015 Ohio 5545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delta-fuels-inc-v-ohio-dept-of-transp-ohioctapp-2015.