Ohio Fuel Gas Co. v. Pace Excavating Co.

187 N.E.2d 89, 91 Ohio Law. Abs. 184, 1963 Ohio App. LEXIS 904
CourtOhio Court of Appeals
DecidedJanuary 4, 1963
DocketNo. 25971
StatusPublished
Cited by7 cases

This text of 187 N.E.2d 89 (Ohio Fuel Gas Co. v. Pace Excavating Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Fuel Gas Co. v. Pace Excavating Co., 187 N.E.2d 89, 91 Ohio Law. Abs. 184, 1963 Ohio App. LEXIS 904 (Ohio Ct. App. 1963).

Opinion

Kovachy, P. J.

This is an appeal on questions of law from a judgment entered in the Court of Common Pleas in favor of the defendants, Pace Excavating Company, Joseph Frate, Kahn Plumbing & Heating Company, and Howard Homes, Inc., pursuant to the sustaining of demurrers filed by said defendants to an amended petition of the plaintiff.

Plaintiff’s amended petition, inter alia, alleges that it is a public utility owning and operating a system of underground gas mains in the City of Parma, Ohio, for the distribution of natural gas; that in 1954 the defendants were engaged in different phases of the construction business and undertook to build a home at 10911 Aaron Drive of said city; that the defendants excavated a trench eight feet deep between the house and the street for the installation of sewer and water lines: that while excavating the trench with mechanical equipment, defendants [186]*186negligently struck and permanently damaged said gas main and, then, backfilled tbe trench and covered the damaged main without having it repaired or warning others of the dangerous condition created; that, as a consequence, the gas main was so weakened that it ultimately failed; that the leaking gas percolated into the dwelling house that was built and ignited and caused a fire and explosion on December 27, 1956; that occupants of the home were injured and subsequently filed actions against the plaintiff for damages exceeding two million dollars; that the plaintiff, upon investigation, concluded that it had been negligent in failing to discover and correct the dangerous condition that had been created by the defendants; that plaintiff’s negligence was passive and secondary; that defendants’ negligence was active and primary; that the plaintiff tendered the defense of the actions to the defendants, which they refused to accept; that plaintiff settled the cases for four hundred thousand dollars, which settlement it believes was reasonable under all the circumstances; that the defendants created the dangerous condition which resulted in a fire and explosion by reason whereof defendants are primarily liable to the aforementioned claimants; and that the plaintiff, because it is secondarily liable, is entitled to indemnification from the defendants and each of them for the sum of four hundred thousand dollars, which plaintiff was required to pay plus $14,608.52, comprising reasonable legal fees and expenses it incurred.

The sole question presented to us in this appeal is whether the trial court was in error in sustaining defendants ’ demurrers and in dismissing plaintiff’s amended petition on the ground that the amended petition failed to state a cause of action.

Plaintiff contends that the law of Ohio provides that primary liability is imposed upon one who actively creates a dangerous condition which directly causes injury to a third person and secondary liability upon one who negligently fails to discover and correct such dangerous condition, and that where one secondarily liable expends money to settle lawsuits filed against it by reason of injury resulting from the dangerous condition so created, the one secondarily liable is entitled to indemnification from the one primarily liable; that its amended petition alleges that an explosion was caused by the active [187]*187negligence of the defendants, which misconduct created a dangerous condition from which injury to third parties resulted; that the plaintiff was passively negligent in failing to discover and correct the dangerous condition created by the defendants; that the defendants, under those circumstances, are primarily liable and the plaintiff secondarily liable; that the plaintiff expended money to settle lawsuits filed against it for which it is entitled to indemnification from the defendants; and that, under such averments, a cause of action is stated under Ohio law.

The defendants, on the other hand, assert that the plaintiff by admitting negligence in its amended petition acknowledges conduct which under common law makes it' concurrently guilty of active negligence with the defendants and consequently constitutes it a joint tortfeasor not entitled to indemnification from the defendants for monies expended in settling the lawsuits filed against it because, they say, under Ohio law there is no contribution or indemnification between joint tortfeasors.

The Restatement of the Law on the subject of Restitution states in paragraph 95, page 415:

“Where a person has become liable with another for harm caused to a third person because of his negligent failure to make safe a dangerous condition of land or chattels, which was created by the misconduct of the other or which, as between the two, it was the other’s duty to make safe, he is entitled to restitution from the other for expenditures properly made in the discharge of such liability, unless after discovery of the danger, he acquiesced in the continuation of the condition.”

Under the heading of Comment in the second paragraph on page 416, it is said:

“In all of these situations the payor is not barred by the fact that he was negligent in failing to discover or to remedy the defect as a result of which the harm was occasioned; in most of the cases it is because of this failure that he is liable. * # # 99

And in addition to this volume on Restitution, captioned “Notes on Restatement of Restitution,” on page 152, Section 95, headed, “Person responsible for dangerous condition,” it is stated:

[188]*188‘ The rule stated in this Section applies to two situations: * * * The second situation is where a person is under a duty to maintain premises in safe condition and another person by a negligent act causes them to be unsafe, with the result that a third person is damaged thereby. In both situations, if the first person has settled a valid claim in favor of the injured person, he is entitled to indemnity from the other in spite of his own negligence, unless after knowledge of the risk, he recklessly imperils the injured person, or unless he consents to the continued existence of the dangerous condition thereby making it his own.”

The law in Ohio recognizes the distinction between one who is actually at fault and guilty of active negligence in creating a dangerous condition resulting in injury to a third person and one who has a duty to keep the instrumentality involved safe by reason of his relationship to it and is guilty of passive negligence in not discovering and correcting the dangerous condition. The former, under such circumstances, is said to be primarily liable, and the latter secondarily liable, and where the one secondarily liable effects a settlement with the one injured that is reasonable and fair, the one secondarily liable is entitled to indemnification from the one primarily liable.

In 28 Ohio Jurisprudence (2d), 316, Indemnity, Section 12, it is stated:

“In regard to the right of one tortfeasor, who has paid the claim or judgment for the tortious injury, to be reimbursed by his joint tortfeasor, the nature of the right depends, in the absence of any express contract in such respect, upon the distinction in legal theory between the right of contribution and the right of indemnity.

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Cite This Page — Counsel Stack

Bluebook (online)
187 N.E.2d 89, 91 Ohio Law. Abs. 184, 1963 Ohio App. LEXIS 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-fuel-gas-co-v-pace-excavating-co-ohioctapp-1963.