Nutt v. Loomis Hydraulic Testing Co.

552 F.2d 1126, 1977 A.M.C. 2340
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 27, 1977
DocketNo. 75-2429
StatusPublished
Cited by7 cases

This text of 552 F.2d 1126 (Nutt v. Loomis Hydraulic Testing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nutt v. Loomis Hydraulic Testing Co., 552 F.2d 1126, 1977 A.M.C. 2340 (5th Cir. 1977).

Opinions

JOHN R. BROWN, Chief Judge:

This case, like most suits for indemnity, combines the best of musical chairs and hot potato — the object of the game is to be sitting pretty when the judicial music stops, by leaving the other party holding the spud. Here, while appellant was stuck with only half of the potato, he objects strenuously to having to bear any of it at all. In more austere terms it is the case of a vessel owner, cast entirely for the death of the operator of the other vessel, seeking and successfully obtaining contribution-indemnity under the 50/50 Divided Damages rule. The loser, owner of the other vessel, challenges any contribution on the ground (i) that negligence of its operator may not be imputed to it and, as an anchor to windward, urges (ii) apportionment should be based on comparative fault, not the old-time rigid 50/50 rule. We reject (i) but sustain (ii). Accordingly, our ditty in this case modifies the judgment of the magistrate below by reducing the amount of damages required to be borne by appellant, but as modified, we affirm.

The Accident

Decedent Uwell J. Derouen was employed by Loomis Hydraulic Testing Company, Inc. (Loomis) as a shop foreman. Bobby R. Nutt (Nutt) was an employee of Union Oil Company of California (Union). On December 12, 1966, the Decedent, together with Earl T. Strickland, a sales representative for Loomis, took the company motorboat1 to check Loomis employees on Graeey-Hellum Rig # 5, a Union well.2 Decedent and Strickland arrived at the rig [1128]*1128around 4 p. m., stayed for about a half hour and departed.

When they departed Gracey-Hellums Rig # 5, Decedent was the operator. He proceeded down the canal, which dead-ended where Rig # 5 was located, doing approximately (as the parties described it, in very unnautical terms) 35 miles per hour. The weather was very cold and both men were heavily clothed. Due to the cold and wind they were both sitting behind the windshield which was cracked. As Derouen approached Union’s Main Terminal Area canal, he was navigating the motorboat parallel to and approximately 16 feet to the left of a mud bank five to eight feet high topped with thick vegetation four to six feet high. Derouen slowed the motorboat to about 15 to 18 miles per hour as he entered the intersection of that canal and the canal leading to Union’s Main Terminal.

At this time Nutt had departed Union’s Main Terminal at the end of that canal in Union’s crew boat.3 As the crew boat approached the intersection, it was approximately 30 to 40 feet from the left bank or to the left of the center of that canal. The sliding plexiglass window to the left of Nutt was cracked and fogged. Immediately prior to entering the intersection and in order to execute his turn, Nutt slowed his port engine, and turned his wheel slightly to the left. This action caused the boat to list to the left and begin her turn to port. At this point, the motorboat came into sight. At that moment the crew boat swerved to starboard and the motorboat simultaneously swerved to port resulting in the collision, which caused decedent’s death and totally destroyed Loomis’ boat.

State Trial Court

Suit was filed in Louisiana State Courts on Decedent’s behalf against Nutt, Union, and Union’s insurer, Aetna Casualty & Surety Company (Aetna).4 These defendants filed a third party petition against Loomis and its insurer, The Home Insurance Company (Home), seeking contribution-indemnity under the hold harmless provision of the service contract between Loomis and Union.5 After being impleaded, Loomis filed a reconventional demand against Union seeking damages for the loss of its vessel in the collision.

On June 8, 1971 the state trial court entered its judgment. It found that “both vessels were negligently operated and that this negligence of both proximately caused the collision”.6 After finding both parties [1129]*1129negligent, the trial court applied the rules of comparative negligence then applicable to maritime tort claims growing out of a collision. In doing so, the trial court assessed Nutt’s negligence at 60% and Decedent’s contributory negligence at 40%.

Judgment was therefore entered in favor of Decedent’s widow and minor son, in the amount of $112,639.42, which represented the total Judgment award in favor of these plaintiffs7 ($145,000.00), less 40% deducted for the Decedent’s contributory negligence, plus court costs and interest. The court also found that Loomis did not intend to indemnify Union’s own negligence under the contract, and accordingly dismissed Union’s third party complaint against Loomis. Finally, Loomis received a judgment in the amount of $1,000.00, in its reconventional demand filed against Union for the damage to its boat.

After the Judgment of the Lower Court was affirmed by the First Circuit Court of Appeals for the State of Louisiana, and the Supreme Court of Louisiana denied writs, Union paid the heirs of Decedent $112,-639.42.

The Federal Indemnity Action

After Union was forced to pay the heirs of Decedent $112,639.42, it instituted litigation in United States District Court seeking contribution,8 under the Divided Damages rule,9 from Loomis and Home. After answer was filed, a joint stipulation of facts 10 was agreed upon and filed along with legal memorandum of counsel. On September 17, 1974, the'case was referred to the United States Magistrate for “adjudication on stipulation of facts and memorandum.”

Based upon the stipulated facts, the Magistrate concluded that, since the collision in question was caused by the mutual fault of both vessels and their operators,11 Union was entitled, as a matter of fact and of law under the Divided Damages rule, to contribution from Loomis in the amount of $56,-319.71. Judgment was entered accordingly. It is from this judgment that Loomis and Home appeal, contending that (i) the District Court erred in imputing the negligence of Decedent to Loomis; (ii) United States v. Reliable Transfer Co., 1975, 421 U.S. 397, 95 S.Ct. 1708, 44 L.Ed.2d 251, 1975 A.M.C. 541 should be applied retroactively to this ease; and (iii) under Reliable Transfer, Loomis should not have to pay anything, since Decedent’s award has already been reduced by 40%, the extent of Decedent’s contributory negligence.

Imputed Negligence

Loomis contends that the District Court erred in imputing the negligence of the Decedent to Loomis. Loomis relies primari[1130]*1130ly on the cases of Drewery v. Daspit Brothers Marine Divers, Inc., 5 Cir., 1963, 317 F.2d 425, 1963 A.M.C. 1787; and Loffland Brothers Co. v. Roberts, 5 Cir., 1968, 386 F.2d 540, 1968 A.M.C. 1463. Union argues in response that those cases are inapplicable. to a collision case where both vessels are at fault and the Divided Damages rule applies. Union relies on Empire Seafoods, Inc. v. Anderson,12 5 Cir., 1968, 398 F.2d 204, 1968 A.M.C. 2664, cert. denied, 393 U.S. 983, 89 S.Ct.

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552 F.2d 1126, 1977 A.M.C. 2340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nutt-v-loomis-hydraulic-testing-co-ca5-1977.