Mills v. Fidelity & Casualty Company of New York

226 F. Supp. 786, 1964 U.S. Dist. LEXIS 6441
CourtDistrict Court, W.D. Louisiana
DecidedFebruary 27, 1964
DocketCiv. A. 8007
StatusPublished
Cited by29 cases

This text of 226 F. Supp. 786 (Mills v. Fidelity & Casualty Company of New York) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mills v. Fidelity & Casualty Company of New York, 226 F. Supp. 786, 1964 U.S. Dist. LEXIS 6441 (W.D. La. 1964).

Opinion

BEN C. DAWKINS, Jr., Chief Judge.

The widow and children of L. V. Mills obtained judgment in the total sum of $85,000 for his wrongful death, rendered in solido against Fidelity & Casualty Company of New York (Fidelity), Yuba Consolidated Industries, Inc. (Yuba), and Yuba’s insurer, Insurance Company of North America. The Court of Appeals for the Fifth Circuit affirmed. Fidelity & Casualty Co. of N. Y. v. Mills, 319 F.2d 63 (5 Cir.1963). Execution of judgment was stayed pending the outcome of the cross-claim and third party complaints now before the court.

Mills was killed in an automobile accident on June 9, 1960. As he proceeded in a southerly direction on Jewella Road, in Shreveport, Louisiana, his station wagon was struck by a 1951 Oldsmobile sedan driven by one Melvin Smith who had swerved to avoid hitting a pile of dirt placed in the north-bound lane by pipeline construction crews. The negligence with which the insured defendants were charged was failure properly to safeguard the public from the obstruction placed in the highway and violation of Shreveport Ordinance No. 10 of 1939.

Fidelity’s insured, United Gas Pipe Line Company (United), had obtained a permit to do the necessary excavating to replace an old, smaller pipeline along the Jewella Road. Ordinance No. 10 of 1939 in Section 11 provides that “ * * * it shall be the duty and obligations of the holder of a permit to safeguard the public in every manner by maintaining the necessary guards, barricades, red lights, etc.; for said protection during construction and by maintaining the street or alley surface in good and safe condition until the City forces begin said repairs or repaving work.”

In a cross-claim against Yuba and its insurer, Fidelity sought indemnity for any judgment that it might be required to pay. Although United secured the permit required by city ordinance for pipeline construction, all of the work was performed by Yuba, directly or through subcontractors, pursuant to a contract between United and Yuba dated April 22, 1960. Under contract general condition B-3, Yuba accepted the work as an independent contractor; condition B-6 placed responsibility for negligence of subcontractors upon the contractor; and condition B-12 required the contractor to familiarize itself with all applicable laws, to take necessary precautions to prevent any accident, to put up and maintain suitable and sufficient barriers, signs, lights and other necessary protection, and to accept full responsibility for results.

Notwithstanding the above provisions, Yuba contends that Section B-23 of the contract required United to direct the safety of the work and that its failure to do so was negligence which precludes its claim for indemnity. Section B-23, in pertinent part, reads:

“B-23 ENGINEER TO DIRECT WORK
“The Engineer shall have the right to direct the sequence in which all work under this Contract shall be conducted insofar as may be necessary to secure the safe and proper progress and the specified quality of the work, and all work shall be done and all materials shall be fur *788 nished to the satisfaction and approval of the Engineer.”

Construing this provision in conjunction with the other contract provisions, it is clear that United did not undertake responsibility to Yuba for safe conduct of the pipeline construction, but, to the contrary, in Section B-12 it specifically placed this responsibility upon Yuba.

A pipeline cannot be inspected after it is completed and covered with dirt. Of necessity the owner must satisfy itself during construction that the materials and workmanship meet required specifications. It was to accomplish this that United in Section B-23 designated its Engineer as its agent to inspect and indicate approval or disapproval of all materials and work, and who would have authority to direct the sequence of all work insofar as might be necessary for safe and proper progress and quality of the work.

The testimony of three witnesses for Yuba at the trial of the principal action established that, from the beginning, Yuba undertook placement and maintenance of all flares, barricades, and other warning devices located at the scene of the accident. Yuba was the tortfeasor whose negligence was the proximate cause of the accident. In Louisiana, a joint tortfeasor who was actually at fault may be required to indemnify another joint tortfeasor who was only technically or constructively at fault. Travelers Insurance Company v. Busy Electric Co., 294 F.2d 139 (5 Cir. 1951); Appalachian Corporation, Inc., v. Brooklyn Cooperage Company, Inc., 151 La. 41, 91 So. 539 (1922); Cf. Northwestern Mutual Fire Association v. Allain, 226 La. 788, 77 So.2d 395 (1954).

Fidelity’s insured was only vicariously or technically at fault. It obtained the municipal permit and assumed the responsibility for safeguarding the public from dangers created by the pipeline construction. The duty owed the public was non-delegable. Even so, where a contract is made with another to perform that duty, and he performs it negligently, he must indemnify the party who was only technically liable. Read v. United States, 201 F.2d 758 (3 Cir. 1953); D. M. Picton & Co. v. Eastes, 160 F.2d 189 (5 Cir. 1947); Cf. American Employers’ Ins. Co. v. Gulf States Utilities Co., 4 So.2d 628 (La.App. 1st Cir. 1941). Yuba contracted, to assume all the responsibilities of United toward the public under local ordinances; it undertook the actual construction of the pipeline; and its negligence resulted in the lack of proper safeguards to protect the public. Therefore, Fidelity is entitled to indemnity from Yuba for any portion of the judgment which Fidelity may be required to pay.

Yuba and its insurer urge that United Gas Corp. v. Guillory, 206 F.2d 49 (5 Cir. 1953) demands a contrary ruling, but in fact that case recognizes the rule we adopt. In Guillory, the third party plaintiff was not entitled to indemnity because it was actually at fault. Judge Rives, writing for the Court, stated at page 53:

“ * * * In Louisiana, indemnity is restricted to cases where the actual fault is attributed to one of the parties and the other is only technically or constructively at fault. It is never applicable where both parties are actually in the wrong. [Cases cited.]”

Yuba subcontracted certain portions of the pipeline construction work to Dorlin P. Magouirk, d/b/a Southern Plumbing Company (Southern). Magouirk undertook clearing of the right-of-way and grading, ditching, backfilling and cleanup. He was the one who actually placed the dirt on the highway, after having placed as much of it as practicable off the highway between the ditch and a railroad spur.

In Section 3 of the Yuba-Southern Plumbing Company contract, the subcontractor obligated himself as follows:

“3.

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Bluebook (online)
226 F. Supp. 786, 1964 U.S. Dist. LEXIS 6441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mills-v-fidelity-casualty-company-of-new-york-lawd-1964.