Northern Natural Gas Company v. Roth Packing Company, Roth Packing Company v. Northern Natural Gas Company

323 F.2d 922, 1963 U.S. App. LEXIS 3906
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 25, 1963
Docket17240-17244, 17304-17307
StatusPublished
Cited by34 cases

This text of 323 F.2d 922 (Northern Natural Gas Company v. Roth Packing Company, Roth Packing Company v. Northern Natural Gas Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Natural Gas Company v. Roth Packing Company, Roth Packing Company v. Northern Natural Gas Company, 323 F.2d 922, 1963 U.S. App. LEXIS 3906 (8th Cir. 1963).

Opinion

VAN OOSTERHOUT, Circuit Judge.

Timely appeals separately taken by Northern Natural Gas Company (Northern) and Roth Packing Company (Roth) from final judgments 1 entered by the district court in these five consolidated cases are before us for consideration.

Separate complaints were filed by Rabbi Block, an independent contractor with respect to kosher meat, and by four of Roth’s employees wherein they sought compensation for injuries caused by an explosion of gas on Roth’s premises, the gas having leaked from a private pipe line leading to Roth’s plant. The gas was furnished by Northern by virtue of a contract and delivered to Roth’s pipe line at a meter located some one-half mile distant from the plant. Liability was predicated on negligence. Rabbi Block sued both Roth and Northern. The employees’ actions were brought against Northern alone. Northern brought in Roth as a third party defendant. Jurisdiction, based upon diversity of citizenship, is established. 2

Pursuant to stipulation, the claims of Rabbi Block and the four employees have been settled, Roth paying $5,000 on the Rabbi Block settlement and Northern having paid the balance required to settle all the claims. Such settlements were made without prejudice to the rights of Northern and Roth as against each other.

*924 The issues remaining in these cases are those relating to the claims of Roth and Northern against each other. Such issues which were tried to the district court without a jury may be briefly summarized as follows:

1. Roth’s claim that Northern by reason of its negligence was liable to it for damages caused by the explosion to its buildings and personal property and for business interruption, and Roth’s additional claim that it was entitled to reimbursement for the $5,000 that it had paid on the claim of Rabbi Block.

2. Northern’s claim that it was entitled to indemnity from Roth for all sums it had paid in settlement of the claims of Rabbi Block and the four employees. Northern’s position is that it is entitled to indemnity on the basis of a valid contract of indemnity, and alternatively, that it is entitled to relief upon the basis of equitable indemnity.

The trial court in its memorandum opinion thoroughly discusses the evidence bearing on negligence and concludes: “It is our opinion that the joint or concurrent negligence of Northern and Roth cause[d] the explosion and resulting damages.”

Northern’s negligence is based upon its unreasonable delay in answering a service call to check the leak which call it had accepted. Northern, on these appeals, accepts the court’s finding that it is negligent. Roth’s negligence is based upon its failure to exercise reasonable care to provide for the safety of its employees and business invitees upon the premises. Roth challenges the finding that it is negligent.

The court denied Roth’s claim for damages to its property and for business interruption and denied its claim for recovery of the $5,000 it had paid on the $30,000 settlement made with Rabbi Block. The court required Roth to pay Northern $10,000 as the balance of its half share of the settlement made of the Rabbi Block claim. Roth has appealed from the foregoing provisions of the judgment.

Northern’s appeal is from the denial of its claim for contractual indemnity and equitable indemnity. The claims and defenses with respect to such issues will appear in the course of this opinion.

This is a diversity case. The explosion occurred in Iowa; the asserted indemnity contract appears to have been made 1 in Iowa. The parties agree that Iowa law controls.

I.

We shall first consider Roth’s appeal. Under Iowa law, the burden is upon the claimant to prove as an essential element of his cause of action that he is free from negligence on his part which contributes in any way or in any degree to his damage and injury. Beezley v. Kleinholtz, 251 Iowa 133, 100 N. W.2d 105, 107. The court found that. Roth was guilty of such negligence. This finding, if supported by substantial evidence, precludes any recovery by Roth on its claim for damages.

A careful review of the entire' record convincingly establishes that the court’s finding of negligence on the part of Roth, which contributed to its injury, is supported by substantial evidence. No purpose will be served in setting out the rather extensive evidence bearing upon this issue. The trial court’s memorandum opinion demonstrates that its negligence findings are supported by substantial evidence. The trial court’s denial of Roth’s claim for property damage and business interruption is affirmed.

The remaining issues raised by Roth’s appeal are covered and controlled by our disposition of the indemnity issue raised by Northern’s appeal. Our findings on that issue, that contractual indemnity exists, affords an additional basis for affirmance on Roth’s appeal.

II

Northern’s principal point in support of its appeal is that the trial court erred in denying it contractual indemnity. Northern in support of its claim for contractual indemnity relies upon a contract *925 entered into between Northern and Roth on December 15, 1954, 3 and particularly paragraph 3 thereof reading:

“Company agrees to exercise due diligence in maintaining delivery of natural gas but does not guarantee an uninterrupted delivery. It is expressly agreed that Company shall not be held liable in damages or otherwise for any interruption or failure, in whole or part, in gas delivery; nor shall Company be liable for damages to persons and/or property due to or on account of any such interruption or failure in gas delivery, or due to, or on account of any leakage or escape of gas or in any manner connected with the transportation or handling thereof beyond point of delivery to Customer hereunder, which point is hereby mutually agreed to be at Outlet of meter.” (Emphasis added.)

The district court found that the purpose of this contract “was to save the gas company harmless from any obligation to respond for damages to persons and property, and that insofar as this was the intended effect, the provision was and is invalid and void.”

Although we agree with the interpretation of the purpose of this contract, we do not agree with the conclusion that it is invalid. Inasmuch as the precise reason for voiding the contract is not clearly set out or explained in the court’s opinion, we shall attempt to dispose of the attacks upon its validity as they are made in Roth’s brief. We have heretofore upheld the trial court's determination that both Roth and Northern were guilty of negligence which caused the injuries here involved and such finding, so far as material, applies to the indemnity issue. Roth’s defense to the contractual indemnity claim is thus summarized in its brief: “The contract * * * does not constitute an indemnity agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re RFC & Rescap Liquidating Trust Action
332 F. Supp. 3d 1101 (D. Maine, 2018)
Goodyear Tire v. J.M. Tull Metals
629 So. 2d 633 (Supreme Court of Alabama, 1993)
Manning v. International Harvester Co.
381 N.W.2d 376 (Court of Appeals of Iowa, 1985)
Tigges v. City of Amess
356 N.W.2d 503 (Supreme Court of Iowa, 1984)
Kunen v. First Agricultural National Bank
382 N.E.2d 750 (Massachusetts Appeals Court, 1978)
Hawkins Const. Co. v. FIRST FEDERAL S. & L. ASS'N
416 F. Supp. 388 (S.D. Iowa, 1976)
Hysell v. Iowa Public Service Co.
534 F.2d 775 (Eighth Circuit, 1976)
Laverty, Inc. v. Mel Jarvis Construction Co., Inc.
513 F.2d 1307 (Eighth Circuit, 1975)
Petznick v. Clark Equipment Company
333 F. Supp. 913 (D. Nebraska, 1971)
Ellis v. J. A. Tobin Construction Co.
455 S.W.2d 510 (Supreme Court of Missouri, 1970)
Iowa State Commerce Commission v. Northern Natural Gas Co.
161 N.W.2d 111 (Supreme Court of Iowa, 1968)
Florence Lustig Crossman v. Babs, Inc.
384 F.2d 219 (Fifth Circuit, 1967)
Mayhew v. Iowa-Illinois Telephone Co.
279 F. Supp. 401 (S.D. Iowa, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
323 F.2d 922, 1963 U.S. App. LEXIS 3906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-natural-gas-company-v-roth-packing-company-roth-packing-company-ca8-1963.