Hardware Dealers Mut. Fire Ins. Co. v. Standard Oil Co.

15 So. 2d 155, 1943 La. App. LEXIS 425
CourtLouisiana Court of Appeal
DecidedJune 28, 1943
DocketNo. 6639.
StatusPublished

This text of 15 So. 2d 155 (Hardware Dealers Mut. Fire Ins. Co. v. Standard 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
Hardware Dealers Mut. Fire Ins. Co. v. Standard Oil Co., 15 So. 2d 155, 1943 La. App. LEXIS 425 (La. Ct. App. 1943).

Opinion

The Ethridge-Atkins Corporation, hereinafter referred to as the corporation, prior to and on November 16, 1940, was engaged in the sale and servicing of automobiles and other motor vehicles in a building at the intersection of Spring and Milam Streets in the City of Shreveport, Louisiana. Protection against loss from fire was carried by the corporation with plaintiffs herein, Hardware Dealers Mutual Fire Insurance Company and Minnesota Implement Mutual Fire Insurance Company. On said date, while W.B. King, an employee of the Standard Oil Company of Louisiana, was running gasoline from a tank truck on or near the sidewalk on the Milam Street side of the building into the storage tank of the corporation, located beneath the basement floor of the building, the gasoline ignited causing damage by fire to automobiles, stock, furniture and fixtures, amounting to $1,451.90. The insurers paid the loss and took from the corporation a subrogation of its rights against the Standard Oil Company of Louisiana, arising from the fire loss, on the theory that the fire resulted from acts of negligence of its agent, King. Fortified with this subrogation, augmented, as they allege, by legal subrogation, plaintiffs instituted this suit against the Standard Oil Company of Louisiana *Page 156 and its insurer, the Fidelity and Casualty Insurance Company of New York, to recover the amount of said loss.

To properly comprehend plaintiffs' position and their theory of negligence as regards King's acts, an understanding of the physical situation and the modus operandi in transferring gasoline into the storage tank of the corporation is necessary. The north side of the corporation's building faced Milam Street adjacent to which runs a ten foot sidewalk which declines easterly. The floor of the basement at point where the gasoline was being transferred is several feet below the sidewalk level. The storage tank is a few feet south of the north wall of the building and, as said before, is below the concrete floor. Gasoline is conducted into this tank through a line of two inch pipe described as follows:

One section, vertical to the tank, extends three or four feet above the floor, is a short distance from the wall of the building, at the top of which is affixed what is called a T joint, having three openings. Into the upper end of the joint is screwed a short section of pipe, probably eight or ten inches long, which is closed by a cap referred to throughout the testimony as "A". We shall likewise refer to it. From the third or side opening in this joint, runs a line of pipe through the wall and beneath the sidewalk to near the north edge thereof to the end of which is connected a short perpendicular section which comes to the sidewalk's surface. This opening is referred to as the intake. In the line leading into the wall about one foot from "A", is located a valve whose function is to stop the flow of gasoline both ways. Above the point "A" there is a large transparent glass window in the building's wall. Its base adjoins the walk. This window admits clear view from the south portion of the sidewalk into the basement where are located the pipes above described.

The storage tank of Ethridge-Atkins Corporation has a capacity of five hundred gallons. During the morning of November 16, 1940, one of its colored employees reported to Mr. J.E. Bynum, its Parts Manager, whose duty it was also to order, receive and pay for gasoline needed by his company, that the tank was empty. He immediately placed an order with the local bulk station agent of the Standard Oil Company of Louisiana for two hundred gallons of gasoline. The employee, King, was instructed to deliver the needed gasoline. The tank on the truck he used for the purpose has three compartments containing, respectively, 104 1/2, 101 and 100 1/2 gallons. King had delivered gasoline in this tank to the corporation on previous occasions. The course invariably followed by him was to spot his tank at or near the intake and then notify Mr. Bynum that he was ready to deliver the gasoline. Mr. Bynum would then call one of the colored helpers and instruct him to assist Mr. King in the transfer. The boy would go into the basement, open the valve in the line above referred to and then inform Mr. King that all was ready. King would then remove the cap from the intake, insert the nozzle of the hose of his tank therein and release the gasoline. After the desired quantity had run King informed the colored boy who then would close the valve, go outside and check the quantity of gasoline that had gone into the tank; this done, he would report to Mr. Bynum and upon this report payment would be made to King.

When King arrived with gas the day of the fire, in keeping with established practice, he contacted Mr. Bynum and informed him that he had 205 gallons (two full compartments) of gasoline and inquired if the storage tank would accommodate it. Naturally, Mr. Bynum thinking the tank empty, assured him that it would. Neither of the negro boys who formerly were delegated by Mr. Bynum to look after transfer of the gas was available. Mr. Bynum then accompanied King to the truck to satisfy himself that the tank contained the quantity of gas Mr. King had represented. Satisfying himself on this score, he and King turned their attention to the basement. They discussed whether the cap "A" should be removed. Bynum told King that he felt sure it should as he recalled having seen it taken off by other delivery men at time of deliveries. He told King it was all right to remove it and he did so. King thought that perhaps the opening served as a vent but was not certain about it. After he removed the cap and ascertained that the valve was open, he came from the basement to his truck and placed the nozzle of the hose in the intake above referred to. Mr. Bynum was near by. King suggested to him that he watch through the window to see if the gas was going through; that is, that none was coming out at point "A". Bynum assured him *Page 157 that all was well and after the lapse of about two minutes, left the scene. The contents of one of the compartments were transferred but before the other was emptied the gas, unknown to King, began to overflow through "A" and soon spread so near to an open burning gas heater on the floor of the basement, thirty-five feet away, to explode and the fire resulted.

The negligence accredited to the Standard Oil Company is set out in Articles 22 and 23 of the petition. They read:

"That the Standard Oil Company of Louisiana was negligent in allowing and permitting its employee referred to hereinabove, believed to be John King, to handle such a highly inflammable product and dangerous instrumentality as gasoline without being familiar with the handling of such, and that it was further negligent in permitting said employee to attempt the delivery of the said gasoline to Ethridge-Atkins Corporation when he was totally unfamiliar with the storage tank facilities of Ethridge-Atkins Corporation.

"That the Standard Oil Company of Louisiana was further negligent thru its employee and servant, believed to be John King, in directing the flow of gasoline into the line leading to the storage tank, at a time when an opening existed in the said line to the knowledge of the said employee; that it was foreseeable and to be expected that gasoline would or might escape from the said opening and that the said employee was further negligent in not constantly observing the opening to make certain that none of the gasoline would escape at the said opening created by the removal of the lock cap at the T joint inside the building."

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Bluebook (online)
15 So. 2d 155, 1943 La. App. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardware-dealers-mut-fire-ins-co-v-standard-oil-co-lactapp-1943.