Foster v. American Oil Co.

172 So. 2d 334, 1965 La. App. LEXIS 4552
CourtLouisiana Court of Appeal
DecidedFebruary 8, 1965
DocketNo. 1585
StatusPublished
Cited by3 cases

This text of 172 So. 2d 334 (Foster v. American Oil 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
Foster v. American Oil Co., 172 So. 2d 334, 1965 La. App. LEXIS 4552 (La. Ct. App. 1965).

Opinion

CHASEZ, Judge.

The plaintiff, Thomas Foster, brought suit ex delicto against:

1. American Oil Company
[335]*3352. Louis I. Brill, individually, and as a partner of Brill Equipment Company
3. Dorothy A. Brill, individually, and as a partner of Brill Equipment Company
4. Brill Equipment Company, a partnership
5. H. E. Salzberg Company, Inc.
6. Brill-Salzberg Joint Venture, under New York law a joint venture comprised of Brill Equipment Company and H. E. Salzberg Company, Inc., and
7. B. & R. Excess Corporation, an insurance corporation,

to recover damages as a result of an injury he sustained while dismantling a steel storage tank. At the time of the injury he was employed by Southern Scrap Material Co., Ltd., who is not a party defendant to this action.

The B. & R. Excess Corporation filed exceptions to plaintiff’s suit. These exceptions were never tried and since this matter was tried on the merits, this Court considers plaintiff’s action against this defendant abandoned.

A review of the transactions relative to the tank on which plaintiff was injured is necessary.

American Oil Company closed its plant at Destrehan, Louisiana, where the steel storage tank on which the plaintiff was injured was located. American Oil Company sold to Brill Equipment Company (hereinafter referred to as Brill) the bulk of the heavy equipment of the refinery, including several large storage tanks for scrap and salvage. The sale was “as is, where is” and contemplated removal of the equipment and tanks from the premises as reflected by the following quotation from the contract:

“1. Buyer represents and warrants that it is experienced in the purchase, dismantling and removal of such equipment and facilities; that its representatives have visited the site and inspected the equipment, facilities, and material so that it is fully aware of the nature and condition thereof; that it understands that the equipment and facilities have been used in petroleum refining and handling and have not been cleaned or made gas free, and that it has purchased and accepted delivery of such equipment, facilities and material ‘as is’ and ‘where is.’
* * ❖ 5fS % *
“Buyer shall dismantle and remove from Seller’s premises all of the equipment and facilities which were purchased from Seller, and shall dismantle and load aboard rail cars or trucks, ready for shipment, the equipment of Seller not covered by the sale but listed in Exhibit ‘A’ of attached Schedule ‘L’

Brill thereafter formed a joint venture under the laws of New York with H. E. Salzberg Company, Inc., which became known as Brill-Salzberg Joint Venture (hereinafter referred to as Brill-Salzberg). The contract between American Oil Company and Brill was assigned to Brill-Salz-berg.

Brill-Salzberg then entered into an agreement with Southern Scrap Material Co., Ltd., (hereinafter referred to as Southern Scrap) plaintiff’s employer, to dismantle the storage tanks which it had purchased. The agreement, dated March 28, 1960, in part reads:

“1. Description of work. Contractor [Southern Scrap material Co., Ltd] shall furnish and pay all labor, materials, supplies, services, tools, equipment, utilities, transportation facilities and plant, and do and perform all things necessary for the performance and completion of the following work:
“Dismantle 55,000 and 80,000 barrel storage tanks, located on the premises of the former American Oil Refinery at Destrehan, Louisiana.”

A few days later, to-wit, on April 1, 1960, Southern Scrap purchased from Brill-Salz-berg thirteen of the tanks, which they had contracted to demolish, among which was Tank No. 12, the tank on which plaintiff was working when he was injured. All of the above sales of the tanks were for the purpose of dismantling and selling .for scrap, and all the sales were “as'is, where is.”

[336]*336After the above transactions took place Southern Scrap proceeded to dismantle the tanks.- The plaintiff was injured on Tank No. 12 which was owned by his employer, Southern Scrap Material Co., Ltd. While cutting the top of the tank, the plaintiff fell into the tank; he was struck by a piece of falling metal and suffered serious injuries. The plaintiff contends that the fall was caused by-a latent defect in the tank. The defendants contend that the fall was caused by the negligent manner in which the top of the tank was being disassembled.

After a trial on the merits, the trial court rendered judgment against the plaintiff. The Court held that Brill-Salzberg and Southern Scrap were in a contractor-subcontractor relationship within the trade business or occupation of each, thus a workmen’s compensation action quoad Brill-Salzberg (and likewise Brill and H. E. Salzberg, Inc., since they were parties to the j oint venture) was the exclusive remedy under LSA-R.S. 23:1601. He based this conclusion on the grounds that the sale of the 13 tanks did not change the relationship established by the March 28, 1960, agreement but at most converted it into a joint venture. He found the defendant, American Oil Company, not to be the owner of the tanks and thus not responsible for accidents or injuries occurring during the dismantling operations, and, furthermore, could not be held liable as vendor.

We find, as a matter of fact, with due deference to the Court below, that Brill-Salzberg and Southern Scrap were not in a contractor-sub-contractor relationship. The sale of the tanks to Southern Scrap was a valid sale which transferred full ownership to it. While it is true that it contained various options which would allow Brill-Salzberg to repurchase component parts after the tanks had been demolished at a stipulated price, and allowed Brill-Salzberg to sell the tanks before the demolition began, (Brill-Salzberg and Southern Scrap to share the profits equally in that event) it was still a valid contract of sale with valid consideration giving complete ownership to Southern Scrap. The only relationship between Brill-Salzberg and Southern Scrap then was that of vendor-vendee. Thus if any action lies against the defendants, Brill-Salzberg, composed of Brill and Salzberg, it would be an action ex delicto. The plaintiff argues in this Court that the defendants, American .Oil Company and Brill-Salzberg, should be liable for the damages sustained by plaintiff because he was injured on the premises under control of Brill-Salzberg and owned by American Oil Company, or all defendants as vendors, for selling an object with 'a latent vice or defect which might reasonably cause injury. For the purpose of this opinion, we may assume that the injury occurred because of a weak inner structure in the top of the tank; we, however, feel that plaintiff has failed in his burden of proof in this regard.

The plaintiff contends that the American Oil Company and Brill-Salzberg breached the duty of providing him with safe premises on which to carry on his work. Since the injury allegedly occurred as a result of a defective condition in the inner structure of the tank which, at that time, was the property of Southern Scrap, his employer, we believe, only in a technical sense, was he on the premises owned by or under control of defendants.

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

Related

Manuel v. Odeco, Inc.
563 So. 2d 1179 (Louisiana Court of Appeal, 1990)
Romano v. Juneau
198 So. 2d 499 (Louisiana Court of Appeal, 1967)
Foster v. American Oil Co.
175 So. 2d 299 (Supreme Court of Louisiana, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
172 So. 2d 334, 1965 La. App. LEXIS 4552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-v-american-oil-co-lactapp-1965.