Dickerson v. Continental Oil Co.

449 F.2d 1209
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 28, 1971
DocketNo. 30631
StatusPublished
Cited by29 cases

This text of 449 F.2d 1209 (Dickerson v. Continental Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dickerson v. Continental Oil Co., 449 F.2d 1209 (5th Cir. 1971).

Opinions

TUTTLE, Circuit Judge:

This appeal, accurately described by the trial court as “a multiple donnybrook” in which theories of initial, contingent and secondary liabilities abound, arose out of an explosion and fire which occurred on February 3, 1967 on an offshore stationary (fixed) drilling platform located in the Gulf of Mexico, on the Outer Continental Shelf. Multiple suits for damages for wrongful deaths, personal injuries and property damage growing out of the explosion were filed. Before discussing the merits of these suits, it is necessary briefly to set forth the facts involved and, in so doing, to delineate the relationships of the multiple parties involved.

I. FACTS

Prior to February 3, 1967, the date of the explosion, Houma Well Service, a drilling contractor under a written agreement with Continental Oil Company, the owner of the stationary platform involved, was drilling oil wells on the platform. The drilling rig utilized was owned by Houma, but prior to the accident, it was sold to Crown Petroleum Corporation.

On January 23, 1967, Continental hired an independent contractor to begin testing one of these wells. During these tests, water, gas and oil were produced. This product was run through a separator and thereby stripped of its liquids. These liquids, referred to as “condensate,” were highly volatile and unstable. Though there were various methods of disposing of the condensate, Continental directed that it be poured into a white tank located on the northeast corner of the platform. This tank was normally used for storing diesel fuel, which is not highly volatile, and the record reveals that all those working in the general area thought the tank contained only diesel fuel. Indeed, prior to the explosion, condensate was never even stored on a drilling platform, much less in a “diesel” tank. The tank itself was not plugged and Continental’s representative told no one that it contained condensate.

While this testing was proceeding Continental hired a contract welder, Duddle-ston, to do some work on a rack on which a Schlumberger unit was to be placed. Pursuant to this agreement, Jim Dud-dleston, son of the owner of the welding operations, reported to the platform. One Harvey Herrington also came aboard. He was to act as a tool pusher for the new owner of the rig, Crown Petroleum. On February 2nd, while testing was still in progress, Donald Ray Smith, the foreman for Continental and their only representative on the platform, called together both Herrington and Jim Duddleston to tell them they were to install the rack. Smith testified that this conversation occurred at about 7:00 a. m. on February 2nd. He also testified that later that morning — about 10:00 a. m. — he noticed that the four inch bull plug was not in the top of the white tank and asked Herrington to find it and put it on. He also said that he wanted no drilling done on the rack while the plug was missing, but never told anyone just what the tank contained nor how dangerous it really was. Smith also testified that at no time did he think that there would be cutting done with a cutting torch above the white tank. He left the platform around noon on February 3rd, leaving Herrington in charge. At about 3:45 that afternoon, while Dud-dleston was welding over the white tank, the explosion occurred. A bucket which one of Herrington’s workers had placed over the hole, apparently disappeared and the trial court found that there was no covering over the hole from 11:30 a. m. until the time of the explosion.

[1213]*1213All plaintiffs, except those in the Dud-dleston case, an entirely separate issue to be dealt with infra, named as original defendants, Continental Oil Company and Duddleston Welding Company. Continental has, in turn, filed third party demands and/or cross claims against Crown Petroleum Corporation, Insurance Company of North America, Dud-dleston and Houma Well Service, Inc. These parties have also cross-claimed but we will deal first with the issues raised by the original plaintiffs and defendants.

Of the six plaintiffs in this case, five —Joyce A. Clark, Esta Faye Bishop, Ruth Clark, Lula Mae Taylor, and Shirley Hester — are appealing from what they consider inadequate and erroneous damage awards for wrongful death; the sixth, William Ernest Dickerson, appeals from his award for personal injuries on the ground of inadequacy. In addition, while agreeing with the trial court’s finding that the negligence of Donald Ray Smith, Continental’s drilling foreman, was a proximate cause of the accident, they also maintain that the trial court erred in failing to impose liability on James Duddleston, the welder. They argue that welding over the open tank made him a joint tort feasor; it was a contributing cause to the explosion but was not such as to insulate Continental from liability. We will deal first with these latter contentions, and then exam-me the individual damage awards of the plaintiffs.

II. APPLICABLE LAW

In Rodrigue v. Aetna Casualty and Surety Company, 395 U.S. 352, 89 S.Ct. 1835, 23 L.Ed.2d 360, the Supreme Court held that fixed platforms on the Outer Continental Shelf were “artificial islands.” They were to be treated as federal enclaves within a state, and were to be governed by the Outer Continental Shelf Lands Act, 43 U.S.C.A. § 1331 et seq., which incorporated and federalized the law of the adjacent state where not inconsistent with federal law.1 In determining liability and the amount of . damages to be awarded in this case the law of Louisiana thus applies.

III. CONTINENTAL’S LIABILITY

We begin with the liability of Continental. The trial court found that the negligence of Continental was “clear, convincing and gross.” Specifically Continental was negligent in the following particulars which proximately caused the explosion:

(a) In failing to provide safe storage for liquids and gases with highly volatile properties;

(b) In causing or permitting said liquids and gases to be stored in a tank which was being used for diesel fuel and liquids of less dangerous properties;

[1214]*1214(c) In permitting welding operations in an area containing an explosive atmosphere nearby;

(d) In failing to post signs and otherwise warn workmen that the storage tank contains highly volatile liquids and gases; and

(e) In storing condensate on board a platform at sea when safer alternatives were available.

We agree with these findings and the conclusion of the trial court.

It is Continental’s view, however, that the trial court held it liable primarily on the basis of a failure to warn the plaintiffs that condensate had been placed in the tank and that it was highly volatile, This, they feel, was not a substantial cause of this accident, particularly when taken in connection with other facts found by the trial court. For example, it notes the finding that had the four-inch opening on the top of the tank been closed in a proper manner, the accident probably would not have occurred.

The Louisiana courts have generally defined proximate cause as being:

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449 F.2d 1209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dickerson-v-continental-oil-co-ca5-1971.