Murphy Corporation v. Petrochem Maintenance, Inc.

180 So. 2d 716, 1965 La. App. LEXIS 3830
CourtLouisiana Court of Appeal
DecidedNovember 16, 1965
Docket6460
StatusPublished
Cited by13 cases

This text of 180 So. 2d 716 (Murphy Corporation v. Petrochem Maintenance, Inc.) 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
Murphy Corporation v. Petrochem Maintenance, Inc., 180 So. 2d 716, 1965 La. App. LEXIS 3830 (La. Ct. App. 1965).

Opinion

180 So.2d 716 (1965)

MURPHY CORPORATION
v.
PETROCHEM MAINTENANCE, INC., et al.

No. 6460.

Court of Appeal of Louisiana, First Circuit.

November 16, 1965.
Rehearing Denied December 21, 1965.

*717 Boris F. Navratil, of Breazeale, Sachse & Wilson, Baton Rouge, for appellant.

David M. Ellison, Jr., of Taylor, Porter, Brooks, Fuller & Phillips, John S. White, Jr., of Kennon, White & Odom, Fred H. Belcher, Jr., of McCollister, Belcher, McCleary & Fazio, Baton Rouge, for appellees.

Before ELLIS, LOTTINGER, LANDRY, REID and BAILES, JJ.

LANDRY, Judge.

This action initiated as a suit by plaintiff, Murphy Corporation (sometimes hereinafter referred to simply as "Murphy"), a wholesale distributor of petroleum products, against Rheem Manufacturing Company and Petrochem Maintenance, Inc (sometimes hereinafter referred to as "Rheem" and "Petrochem", respectively), to recover certain damages reputedly sustained by Murphy due to the leakage of a 10,000 gallon underground gasoline storage tank which Murphy purchased from Rheem and which tank was installed by Petrochem on certain property under lease by one of Murphy's retailers, Food Town Ethical Pharmacies, Inc. (sometime hereinafter referred to as "Food Town"). Petrochem reconvened praying for judgment against Murphy for the cost of removing the defective tank and installing its replacement.

The trial court rendered judgment rejecting plaintiff's main demand and awarded damages to defendant Petrochem on its reconventional demand against Murphy. Certain third party demands were filed by the original defendants which incidental actions in turn spawned still other counterclaims and third party suits as will hereinafter appear.

A brief narration of the events and circumstances prompting the main demand herein is essential to a clear understanding of the issues raised by the numerous claims and counterclaims presented by the instant appeal.

In October, 1961, Murphy entered into an agreement with Food Town, in pursuance of which the latter agreed to retail the former's products, provided Murphy would modernize an old service station then existing on certain premises leased by Food Town in the City of Baton Rouge. The contract, if in writing, is not of record. The transcript does show, however, a chattel mortgage dated October 2, 1961, securing a note in the sum of $12,613.68 executed by Food Town in favor of Murphy on the *718 following property: 8 computing pumps; two underground gasoline storage tanks with a capacity of 10,000 gallons each, 4 whiteway lights; 2 tapered poles; 1 air compressor, 4 air and water standards; and 1 T-pole with lighted price signs. It is acknowledged that Murphy purchased two 10,000 gallon tanks from Rheem and arranged for Southern Transfer Company, Inc. (sometimes hereinafter referred to as "Southern"), to transport the tanks to the installation site. Murphy also asked for bids for renovation of the service station in question including the installation of the two storage tanks, and awarded the contract for the work to defendant Petrochem. Neither the request for said bids, the bids themselves nor the contract between Murphy and Petrochem were placed of record herein. Petrochem, however, entered into a subcontract with one J. V. Pearson to excavate the necessary hole with a dragline and lower the tanks into the resulting pit.

Approximately three months after completion of the work, Food Town's employees discovered that the tank utilized for the storage of "regular" gasoline contained water in amounts exceeding that usually encountered as the result of normal condensation. Repeated tests, the nature of which are immaterial, indicated water was entering the tank from a leak in the underground facility. By digging around the tank and pressure testing its piping arrangement, it was ultimately determined the leak was in the tank itself rather than in the inlet and outlet components thereof. Careful hand excavation eventually disclosed the leak at the very bottom of one end of the tank where a weld had been opened by a blow from some unknown source. Petrochem removed the defective tank and replaced it with a new one of similar size ordered by Murphy from Rheem. Meanwhile, to retain its customers, Food Town connected a regular gas pump to the remaining tank which contained premium gasoline and sold premium gasoline at regular gas prices to patrons requesting the less expensive fuel. Murphy, as the general contractor, reimbursed Food Town its losses so sustained and seeks recovery thereof in its main demand together with the cost of the new tank.

Appellant's initial action is predicated on the alleged concurrent negligence of Rheem in improperly unloading the tank and that of Petrochem in failing to properly test the tank before installation and installing the receptacle in a faulty and improper manner. In response to Murphy's main demand, Petrochem third-partied its co-defendant, Rheem, alternatively, on the grounds Rheem manufactured and delivered a defective tank, failed to properly inspect and test the reservoir before delivery, improperly loading the tank on the conveyance for transportation to the job site and negligently unloading the tank upon delivery. Third-party defendant, Rheem, in turn, third-partied Southern alleging the defect in the tank resulted from its negligent unloading at the job site by Southern and prayed for judgment against Southern in whatever amount might be awarded Murphy. In offset of Petrochem's reconventional demand, Murphy filed third party petitions against Rheem and Southern for any sum Petrochem might recover thereon. In turn, Rheem third-partied Southern praying for judgment against said third party defendant in any amount Murphy was awarded on its third party demand against Rheem or, alternatively, for contribution by Southern. Finally, Southern filed an exception of prescription against the third party action of Murphy.

The appeal by Murphy alleges the following errors:

"SPECIFICATION OF ERRORS

I. The Trial Judge erred in holding that `proper workmanship' contemplated by Article 2762, R.C.C., does not require the contractor to make an inspection of materials and equipment delivered to him for the project he is undertaking and does not require him to perform *719 such tests as in his expert opinion are desirable to assure a final product free of defects.
II. The Trial Judge erred in not holding Southern Transfer Company responsible for losses sustained by plaintiff as a result of a defective tank delivered by it, under the doctrine of `res ipsa loquitur'.
III. The Trial Judge erred in not concluding that plaintiff had proved its case against Southern Transfer Company to a reasonable certainty by circumstantial evidence."

We note that appellant has apparently changed the basis of its case from the alleged negligence of Petrochem in failing to pre-test and properly install the tank coupled with the asserted concurrent negligence of Southern in improperly unloading the facility, to the avowed breach by Petrochem of the contractual obligation arising from the "Letting Out of Labor and Industry" imposed by LSA-C.C. Article 2762. Considering the stipulations of LSA-C.C.P. Article 2164, which direct the appellate courts to render such judgment as is just, legal and proper upon the record on appeal, we will consider appellant's contention that it is entitled to prevail upon the basis of the hereinabove cited statutory authority.

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Bluebook (online)
180 So. 2d 716, 1965 La. App. LEXIS 3830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-corporation-v-petrochem-maintenance-inc-lactapp-1965.