Dumas v. Angus Chemical Co.

728 So. 2d 434, 1998 La. App. LEXIS 3510, 1998 WL 847892
CourtLouisiana Court of Appeal
DecidedDecember 9, 1998
Docket31,398-CA
StatusPublished
Cited by7 cases

This text of 728 So. 2d 434 (Dumas v. Angus Chemical Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dumas v. Angus Chemical Co., 728 So. 2d 434, 1998 La. App. LEXIS 3510, 1998 WL 847892 (La. Ct. App. 1998).

Opinion

728 So.2d 434 (1998)

Marzell Ike DUMAS, et al., Plaintiffs-Appellants,
v.
ANGUS CHEMICAL COMPANY, et al., Defendants-Appellees.

No. 31,398-CA.

Court of Appeal of Louisiana, Second Circuit.

December 9, 1998.
Rehearing Denied January 14, 1999.

*435 Dennis Hennen, Monroe, Calvin C. Fayard, Jr., Harold W. Aswell, Farmerville, Chester A. Bradley, III, Charles H. Heck, Monroe, Russ M. Herman, New Orleans, Michael J. Mestayer, New Iberia, David W. Robinson, Baton Rouge, for Plaintiffs' Steering Committee.

Herman, Herman, Katz & Cotlar, LLP By Russ M. Herman, James C. Klick, Steve Herman, New Orleans, for Plaintiffs-Appellants.

Lugenbuhl, Burke, Wheaton By Claude F. Bosworth, New Orleans, for Appellee Aetna and the Standard Fire Insurance Company.

Cook, Yancey, King & Galloway By Samuel W. Caverlee, Shreveport, for Appellee Ford, Bacon & Davis.

Davenport, Files & Kelly By Thomas W. Davenport, Jr., M. Shane Craighead, Monroe, for Appellee Glitsch, Inc. and Foster Wheeler Construction.

Hudson, Potts & Bernstein By Ben R. Hanchey, Monroe, for Appellee Angus Chemical Company.

Bickel & Brewer By Michael J. Collins, Elizabeth Handschuch, Dallas, TX, for Appellee IMC Global, Inc.

Before MARVIN, C.J., GASKINS and PEATROSS, JJ.

GASKINS, J.

This case arises from the May 1, 1991 explosion at the Angus Nitroparaffin Plant in Sterlington, La. The plaintiffs in this class action suit are appealing the grant of a partial summary judgment in favor of one of the defendants, Glitsch, Inc., the company that designed the processing tanks holding the chemical that allegedly exploded. Glitsch contended that it should not be liable for exemplary damages under La. C.C. art. 2315.3 because it did not store, handle, or transport the chemical involved. The trial court agreed and granted Glitsch's request for partial summary judgment on the issue of exemplary damages. For the following reasons, we affirm the trial court judgment.

*436 FACTS

One of the chemicals manufactured by the Angus chemical plant was nitromethane (NM), a substance used, among other things, for making fuel for race cars. Under certain conditions, this chemical is easily detonated and is more explosive than TNT. According to the plaintiffs, the Angus plant had previously been the sole producer of this chemical in the free world for some time. However, due to competition from another chemical producer, Angus undertook to improve the purity of the NM it manufactured. This required the construction of two additional distillation columns, SE16 and SE17. Glitsch had designed and manufactured the older distillation columns in use at the plant and Angus contracted with Glitsch in 1989 to design the two new distillation columns. The first column was designed to remove a substance called propionitrile from the chemical mix and the second column was used to store and redistill the NM. The plaintiffs contend that on the date of this catastrophe, an NM line was heated by fire and the line served as a fuse to detonate SE17 and then SE 16, causing the explosion which resulted in loss of life, injury and extensive property damage for numerous persons.

On April 29, 1992, a class action suit was filed against numerous defendants, including Angus Chemical Company, the owner of the plant, and Glitsch, Inc. Among other things, the plaintiffs sought to recover exemplary damages against Glitsch under former La. C.C. art. 2315.3. This article provided that, in addition to general and special damages, exemplary damages may be awarded, if it is proven that the plaintiffs injuries were caused by the defendant's wanton and reckless disregard for public safety in the storage, handling, or transportation of hazardous or toxic substances.[1]

On November 19, 1996, Glitsch filed a motion for partial summary judgment on the issue of exemplary damages, claiming that the company never stored, handled or transported any hazardous substances prior to or at the time of the explosion on May 1, 1991. Glitsch argued that Angus contracted with Glitsch to design two skid-mounted units or towers to be used in distilling NM. According to Glitsch, the SE16 tower was completed in 1988 and the SE17 tower was completed in 1989. Glitsch contends that it merely designed and caused to be manufactured the devices which were used by others in the storage or handling of hazardous substances. It asserts that designing and manufacturing a piece of equipment does not constitute handling, storing or transporting a hazardous or toxic substance. Glitsch claimed that it did not construct the towers, did not install them, never operated them, did not test the chemicals involved and did not provide any start up service to Angus. Glitsch also asserts that it never actually possessed NM or exercised control over the chemical. Therefore, La. C.C. art. 2315.3 has no application to the company and it is not liable for exemplary damages. Glitsch also points out that the former La. C.C. art. 2315.3 is punitive and, as such, is to be strictly construed.

The plaintiffs opposed the motion for partial summary judgment, arguing that Glitsch designed and caused to be manufactured SE16 and SE17 which were used for the storage, handling and transport of NM. Therefore, the plaintiffs contend that there is a genuine issue of material fact as to whether Glitsch should be liable for exemplary damages.

The trial court granted Glitsch's motion for summary judgment. In reasons for judgment, the court noted that Glitsch admits that it designed the two distillation systems and caused them to be manufactured. It was though these systems that hazardous substances flowed. However, Glitsch neither installed nor operated the systems. The court recognized the plaintiffs' argument that, once installed, the distillation systems controlled the flow of hazardous material and their assertion that this constituted the storage, handling, or transport of hazardous substances. The court also recognized that the penalty *437 provision was to be strictly construed and found that Glitsch's activities did not constitute the storage, handling, or transport of hazardous or toxic substances for the purposes of La. C.C. art. 2315.3.

The plaintiffs filed a motion for new trial which was denied. On December 22, 1997, a judgment was filed, dismissing with prejudice the plaintiffs' exemplary damage claims against Glitsch. The court also certified the judgment as an appealable final judgment as required by La. C.C.P. art. 1915(B)(1) and (2). The plaintiffs have appealed the trial court judgment, continuing to urge that there is a genuine issue of material fact as to whether Glitsch stored, handled, or transported the hazardous substance.[2]

SUMMARY JUDGMENT

The plaintiffs claim that the issue of whether Glitsch stored, handled, or transported hazardous substances is a question of fact which may not properly be decided on a motion for summary judgment.

Before its repeal, La. C.C. art. 2315.3 provided:

In addition to general and special damages, exemplary damages may be awarded, if it is proved that the plaintiff's injuries were caused by the defendant's wanton and reckless disregard for public safety in the storage, handling, or transportation of hazardous or toxic substances.

Appellate courts review summary judgments de novo under the same criteria that govern the district court's consideration of whether summary judgment is appropriate. Schroeder v. Board of Supervisors of Louisiana State University, 591 So.2d 342 (La. 1991); Smith v.

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Bluebook (online)
728 So. 2d 434, 1998 La. App. LEXIS 3510, 1998 WL 847892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dumas-v-angus-chemical-co-lactapp-1998.