Louis Dreyfus Corp. v. Continental Grain Co.

542 So. 2d 677, 1989 La. App. LEXIS 653, 1989 WL 35054
CourtLouisiana Court of Appeal
DecidedApril 13, 1989
DocketNo. 88-CA-1875
StatusPublished
Cited by1 cases

This text of 542 So. 2d 677 (Louis Dreyfus Corp. v. Continental Grain 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
Louis Dreyfus Corp. v. Continental Grain Co., 542 So. 2d 677, 1989 La. App. LEXIS 653, 1989 WL 35054 (La. Ct. App. 1989).

Opinion

SCHOTT, Chief Judge.

Plaintiff, Louis Dreyfus Corporation,1 brought this action for damages against [679]*679defendant, Continental Grain Company, based upon a contract between the parties. The contract obliged Continental to provide grain elevator services to Dreyfus at Continental’s Westwego, Louisiana facility from April, 1971 until October, 1978. These services consisted in unloading barges of grain owned by Dreyfus and loading like quantities and qualities of grain on ships provided by Dreyfus. The elevator consisted of numerous storage silos for grain with a complex network of buckets moving on belts throughout the facility.

On December 22, 1977 a tragic explosion occurred at the elevator destroying the facility and causing the loss of the lives of many of Continental’s employees and others at the facility. The contract between the parties contained a “Force Majeure” clause which provided, in pertinent part, as follows:

“A party shall not be liable for nonperformance or delay in performance due in whole or in a part to any cause either not within its control or which it could not by reasonable diligence have avoided.”

Dreyfus’ claim for damages is based on allegations that the explosion was Continental’s fault and that Continental’s inability to perform grain elevation services for the price set out in the contract caused a loss for Dreyfus which was forced to pay higher prices for the services at other grain elevators.

The case was tried to a commissioner of the Civil District Court and his report and recommended judgment dismissing Dreyfus’ suit were adopted by the trial judge. The report which is extensive and contains a summary of the evidence produced at trial concludes that Dreyfus failed to establish fault on Continental’s part even with the application of the doctrine of res ipsa loquitur to the facts. The report of the commissioner is made part of this opinion by reference.

In this Court Dreyfus relies so heavily on the doctrine of res ipsa loquitur that we begin with a discussion of the doctrine. Our task is relatively simple because the meaning and effect of res ipsa loquitur in Louisiana was clearly and completely set forth by the Supreme Court in the landmark case of Boudreaux v. American Insurance Company, 262 La. 721, 264 So.2d 621 (1972). From the opinion these principles emerge: 1) Res ipsa is a rule of circumstantial evidence whereby defendant’s negligence is inferred because the facts indicate such negligence to be the more probable cause of injury in the absence of another as-plausible explanation by credible witnesses. 2) The rule does not dispense the plaintiff from proving negligence by a preponderance of the evidence, but it is a step in the process of plaintiff’s proof which permits him in a proper case to place in the scales an inference of defendant’s negligence along with proof of the accident and sufficient circumstances to supply the inference. 3) The real test of applying res ipsa is whether the facts suggest the defendant’s negligence, rather than other factors, as the most plausible explanation of the accident. 4) Res ipsa is defeated if an inference that the accident was due to a cause other than defendant’s negligence could be drawn as reasonably as one due to his negligence. 5) Res ipsa is “simply another formulation” of plaintiff’s burden in a tort action to prove more probably than not that his injury was caused by defendant’s negligence. 264 So.2d at 636.

Considering the foregoing principles we initially reject plaintiff’s argument based on Moak v. Link-Belt Company, 229 So.2d 395, 407 (La.App. 4th Cir.1970) that because “something went wrong” and since the grain elevator was in the exclusive control of Continental we should infer that Continental’s negligence caused the damage, regardless of what instrumentality within the plant caused the explosion. This discussion in the Moak case was simply dicta but was nonetheless overruled in part by the Boudreaux case.

Dreyfus’ burden of proof was heavier than that of a plaintiff who attempts to invoke the doctrine of res ipsa in a tort case. This is not a tort case but an action in contract between two sophisticated parties who anticipated the possibility that the contract might be disrupted and agreed precisely on what Dreyfus had to prove in [680]*680the event this occurred. The force maj-eure clause quoted above insulates Continental from liability to Dreyfus if the explosion was wholly or partially due to a cause not under Continental’s control or one which Continental could not have avoided by reasonable diligence. Under these terms Dreyfus was entitled to recover only if the cause of the explosion was wholly within Continental’s control or wholly one which Continental could not have avoided by reasonable diligence; but Dreyfus was not entitled to recover even if the cause of the explosion was partially within Continental’s control or in part could have been avoided by the reasonable diligence of Continental.

When Dreyfus’s proof is measured against this contractual burden of proof the evidence is far short of supporting its claim. However, even assuming that Dreyfus is entitled to rely on the doctrine of res ipsa loquitur, as in a tort action, the conclusions of the trial court are not clearly wrong.

Dreyfus established that grain dust suspended in air throughout the elevator was the fuel for the explosion. While offering lay testimony that the dust was especially heavy just before the explosion and that Continental’s dust evacuation system was either not functioning properly or was inadequate, this evidence was not so compelling to warrant a finding on the appellate level that Continental was derelict in its precautions against excessive dust. In the first place, the credibility of Dreyfus’ lay witnesses and the weight to be given to the opinions of its expert, Frank Weaver, were for the trial court to resolve, and the trial court rejected much of this testimony. Second, grain dust in a grain elevator is a problem which cannot be completely solved despite the exercise of reasonable diligence on the part of the operator. And third, the evidence firmly established that Continental did exercise reasonable diligence to avoid the problem of excessive dust.

However, Dreyfus contends that the presence of the dust would not have caused the explosion except for an ignition source and that the evidence was sufficient to supply the inference that Continental’s negligence caused the ignition of the dust. This evidence consisted of the expert testimony of Frank Weaver and some vague unsubstantiated testimony of some lay witnesses. Based upon some scorch marks on the cover of the belt going from the barges to the elevator Weaver theorized that this belt had caught on fire because of friction and when the burning section passed over one of the silos containing grain and dust a piece of the burning rubber fell into the silo igniting the dust. However, Continental’s plant superintendent testified that this belt wasn’t even running before the accident and this testimony was corroborated by an interpretation of some photographs made by a Continental executive, Max Spencer. These two witnesses offered convincing testimony that the belt caught on fire after the explosion, fell back due to the force of gravity, and burned inside the covering causing the scorch marks. The trial court’s resolution of this conflicting testimony in Continental’s favor is not manifestly erroneous.

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Related

Louis Dreyfus Corp. v. Continental Grain Co.
544 So. 2d 410 (Supreme Court of Louisiana, 1989)

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Bluebook (online)
542 So. 2d 677, 1989 La. App. LEXIS 653, 1989 WL 35054, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-dreyfus-corp-v-continental-grain-co-lactapp-1989.