Malvern Gravel Co. v. Mitchell

385 S.W.2d 144, 238 Ark. 848, 1964 Ark. LEXIS 518
CourtSupreme Court of Arkansas
DecidedDecember 21, 1964
Docket5-3343
StatusPublished
Cited by4 cases

This text of 385 S.W.2d 144 (Malvern Gravel Co. v. Mitchell) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malvern Gravel Co. v. Mitchell, 385 S.W.2d 144, 238 Ark. 848, 1964 Ark. LEXIS 518 (Ark. 1964).

Opinions

Sam Robinson, Associate Justice,

The issue here is whether the appellant, Malvern Gravel Company, is liable under the Federal Employers’ Liability Act for injuries sustained by appellees, Arlie Mitchell and James Rogers, who were employees of the gravel company at the time they were injured. There were jury verdicts for the plaintiffs, Mitchell and Rogers. The gravel company has appealed. If there is substantial evidence that the gravel company is a common carrier, within the meaning of the Federal Employers’ Liability Act, the trial court was correct in refusing to direct a verdict for appellant, but if there is no substantial evidence that the gravel company is a common carrier within the meaning of the aforesaid Act, the judgments must be reversed.

Mitchell and Rogers, while working in the due course of their employment, were underneath a railway car closing a defective hopper door on a car which belonged to the Missouri Pacific Railroad Company. They were severely injured when an employee of the gravel company, while operating a switch engine, shoved a railway car into the car under which appellees were closing the hopper door.

Mitchell and Rogers, as employees of the gravel company, were awarded compensation under the Arkansas Workmen’s Compensation Law, which limits the amount of compensation recoverable. Later, they filed suits in the Hot Spring Circuit Court against the Missouri Pacific Railroad Company, the Malvern & Ouachita River Railroad Company, and the Malvern Gravel Company, alleging that the defendants were common carriers engaged in interstate commerce; that they were, therefore, liable to appellees under the Federal Employers’ Liability Act. Under that Act, notwithstanding the Arkansas Workmen’s Compensation Law, there is no limit to the amount of recovery for a personal injury. Missouri-Kansas-Texas R. Co. of Tex. v. Waddles, 203 S.W. 2d 350; Schirra v. Delaware, L.&W.R. Co., 103 F. Supp. 812.

The cases of the plaintiffs .against the defendants were consolidated and proceeded to trial. After all parties had rested, the court directed a verdict in favor of the Malvern'& Ouachita River Railroad Company, and there is no appeal from the court’s action in that respect. The jury returned verdicts in favor of each plaintiff in the sum of $200,000 against the Missouri Pacific Railroad Company and the Malvern Gravel Company. Presumably, the Missouri Pacific settled the judgment against it. In any event, it is not a party to this appeal. Only the gravel company has appealed.

The principal issue, and the only one we reach, is whether the appellant, Malvern Gravel Company, is a common carrier within the meaning of the Federal Employers ’ Liability Act. Although it is engaged in interstate commerce, if it is not a common carrier as such a carrier has been defined by the Federal Courts, it is not liable under the Act.

The Federal Employers’ Liability Act provides: “Every common carrier by railroad while engaging in commerce between any of the several States or Territories, or between any of the States and Territories, or between the District of Columbia and any of the States or Territories, or between the District of Columbia or any of the States or Territories and any foreign nation or nations, shall be liable in damages to any person suffering injury while he is employed by such carrier in such commerce, . . .” 45 D.S.C.A., Sec. 51.

The Malvern & Ouachita River Railroad Company, hereinafter called M & O, was issued a charter in Arkansas as a railway company in 1929. Actually, the M & O did not transport anything for anyone and was incapable of doing so. It only owned a right-of-way of about 1% miles with no rails thereon. As rolling stock, it owned one switch, engine, but no tracks on which to operate it and no railway cars to pull. It never, at any time, operated as a railroad or as a common carrier within the meaning of the Federal Employers’ Liability Act. Although it may have been a common carrier under the provisions of Arkansas Constitution, Article 17, Sec. 1, and because of having exercised the right of eminent domain, it was not a common carrier within the meaning of the Federal Employers’ Liability Act. The U.S. Supreme Court has said: “In our opinion, the words ‘common carrier by railroad’ as used in the act, [Federal Employers’ Liability Act], mean one who operates a railroad as a means of carrying for the public, — that is to say, a railroad company acting as a common carrier. This view not only is in accord with the ordinary acceptation of the words, but is enforced by mention of cars, engines, track, roadbed and other property pertaining to a going railroad.” Wells Fargo & Co. v. Taylor, 254 U.S. 175, 41 S. Ct. 93. (Our emphasis.)

In 1932, the Malvern Gravel Company was chartered as a corporation. The incorporators were entirely different from those who had incorporated the M & 0 in 1929. At the present time, the Malvern G-ravel Company owns the controlling stock in the M & 0 but there is no showing as to when the gravel company acquired the M & 0 stock. Sam Clark is the president of both companies. He became associated with both companies about 15 years ago. As a corporation, the gravel company is authorized to excavate, mine, quarry and produce, refine, grade, crush, dress, manipulate, amalgamate and prepare for building and construction purposes or otherwise, prepare for market, and to purchase, manufacture, make, acquire, sell or otherwise dispose of, distribute, and generally deal in and with gravel, sand, stone, rock, clays, ores, metals, and vegetable and mineral substances and building and construction materials of all kinds, etc. It was not authorized to operate as a railway company.

Some time after the Malvern Gravel Company came into existence as a corporation, for the consideration of $2,500 per year, it leased from the M & O, a corporation that had never operated as “a going railroad”, the short right-of-way and a railroad engine owned by M & 0. The gravel company leased rails from the Missouri Pacific and caused them to be placed on the right-of-way it had leased from the M & 0. By using the leased engine, rails and right of way the gravel company has been able to move its products from its plant to a point where they could be placed on the main lines of the Missouri Pacific and Rock Island Railroads, and thus transported in both intrastate and interstate commerce.

The gravel company has never held itself out as a common carrier. In fact, with the exception of a few times, its railway facilities have been used by no one except the gravel company itself. At one time a road contractor had a “batch” plant located on gravel company' property near the gravel plant. The gravel company was selling material to the contractor, and used its own railway facilities to deliver, on its own property, the material it was selling to the contractor. About a half dozen other times the gravel company, as a favor, permitted its facilities to be used, on the gravel company property, to unload material purchased elsewhere by others who did not have a convenient place or facilities to unload heavy material. No charge was made for such accommodations. The gravel company merely did a few friendly acts to help some neighbors.

The Missouri Pacific delivered and picked up its cars on the gravel company property.

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Bluebook (online)
385 S.W.2d 144, 238 Ark. 848, 1964 Ark. LEXIS 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malvern-gravel-co-v-mitchell-ark-1964.