Oiltanking Houston, L.P., Oiltanking Holdings Americas, Inc., Oiltanking Partners, L.P., and Oiltanking North America, L.L.C. v. Alberto Delgado, Individually and as Representative of the Estate of Javier Delgado, Victoria Delgado, Individually and as Next Friend of Maria Delgado, a Minor Child, Jimmy Gutierrez, Jesus Delgado, Samuel Delgado, Edgar Delgado

502 S.W.3d 202, 2016 Tex. App. LEXIS 8407, 2016 WL 4145997
Court of Appeals of Texas·Decided August 4, 2016·No. NO. 14-14-00158-CV·Published·Cited by 10 cases

Opinion

SUBSTITUTE OPINION

William J. Boyce, Justice

We deny the motion for rehearing filed by appellees as moot. We withdraw our opinion issued January 28, 2016, and we issue this substitute opinion in its place.

*205 Oiltanking Houston, L.P., Oiltanking Holdings Americas, Inc., Oiltanking Partners, L.P., and Oiltanking North America, L.L.C. (collectively, “Oiltanking”) appeal from a judgment in favor of the appellees following a jury trial. We reverse the trial court’s judgment and render a take-nothing judgment in favor of Oiltanking.

Background

Javier Delgado, an employee of independent contractor L-Con, Inc., died in an explosion on June 2, 2012, when hydrocarbon fumes ignited while he was welding a flange on one end of á 24-inch pipe used to transport crude oil; The explosion occurred at Oiltanking’s oil storage facility near the Houston Ship Channel. Javier Delgado was being assisted by L-Con employees Edgar Delgado, Raul Granados, and Doyle Todd, who were injured in the explosion.

Members of Javier Delgado’s family filed a wrongful death claim against Oil-tanking, which owned the premises and hired L-Con to work on the .pipe. Edgar Delgado, Granados, and Todd also filed personal injury claims against Oiltanking. We refer to Javier Delgado, Edgar Delgado, Granados, and Todd collectively as “the claimants.”

The 24-inch pipe was connected to an above-ground oil storage tank before welding began. Extensive trial testimony addressed (1) implementation of pre-welding procedures to block off the pipe, pump out the contents, disconnect it from the oil storage tank, install a plug to isolate the portion being welded, remove residual hydrocarbons inside the pipe, vent hydrocarbon vapors inside the pipe, and perform “sniff’ tests for vapors; (2) which aspects of the process were controlled by Oiltank-ing, and which were controlled by L-Con; and (3) the chain of events leading to the explosion.

Oiltanking designated L-Con as a responsible third party under Chapter 33 of the Civil Practice and Remedies Code; the trial court struck this designation at the close of evidence. Based on this ruling, the jury charge’s liability questions contained a single yes-or-no answer blank by which the jury was asked to decide whether any negligence on Oiltanking’s part proximately caused the occurrence.

By an 11-1 vote, the jury answered questions in favor of the claimants on three distinct liability theories; it also answered in favor of the claimants on a separate question submitted under Chapter 95 of the Civil Practice and Remedies Code to establish property owner Oiltank-ing’s liability arising from injuries to an independent contractor’s employees who were constructing, repairing, renovating, or modifying an improvement to real property.

The jury charge submitted four threshold liability questions followed by 14 questions relating to actual damages predicated on affirmative answers to at least one of the liability questions. The jury charge also submitted questions relating to punitive damages; the jury did not answer the punitive damages questions because its answers to the threshold liability questions were not unanimous.

Jury Questions Nos. 1, 3, and 4 each asked: “Did the negligence, if any, of Oil-tanking proximately cause the occurrence in question?” These three questions defined “negligence” or “negligent” conduct differently under three distinct liability theories as set forth below.

• The jury answered “yes” in response to Jury Question No. 1, which submitted a negligent undertaking theory against Oiltanking “[w]ith respect to (1) cleaning, de-pressuring,' flushing, draining, purging the 24” pipe and making the 24” pipe free of hazardous *206 materials or (2) the performance of regular gas-tests _” See Torrington Co. v. Stutzman, 46 S.W.3d 829, 837 (Tex.2000). The jury was instructed that “Oiltanking was negligent only if’ it “undertook to perform services that it knew or should have known were necessary” for each claimant’s protection; it failed to exercise ordinary care in performing those services; and the claimants either relied upon Oiltanking’s performance, , or that performance increased the risk of harm to them. See id. at 838.
• The jury answered “yes” in response to Jury Question No. 3, which submitted a liability theory against Oiltank-ing “[w]ith respect to the condition of the premises .... ” The jury was instructed that “Oiltanking was negligent only if’ the “condition posed an unreasonable risk of harm;” Oiltank-ing “had actual knowledge of the danger;” and Oiltanking “failed to exercise ordinary care to protect [the claimants] from the danger, by both failing to adequately warn [the claimants] of the condition and fading to make the condition reasonably safe.” See generally Clayton W. Williams, Jr., Inc. v. Olivo, 952 S.W.2d 523, 528-29 (Tex.1997); see also Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640, 643 (Tex.2016) (“Although prem- • ises liability is itself a branch of negligence law, it is a ‘special form’ -with different elements that define a property owner or occupant’s duty with respect to those who enter the property.”) (quoting W. Invs., Inc. v. Urena , 162 S.W.3d 547, 550 (Tex.2005)).
• Jury Question No. 3 was predicated on a' “yes” answer to Jury Question No. 2, which the jury provided. Jury Question No. 2 asked: “Did Oiltanking exercise or retain some control over the manner in which L-Oon performed its work, other than the right to order the work to start or stop or to inspect progress or receive reports?”
• Taken together, the “yes” answers to Jury Questions Nos. 2 and 3 satisfy the control and actual knowledge requirements for a property owner’s liar bility on claims arising from death or injury to an independent contractor’s employees who construct, repair, renovate, or modify an improvement to real property. See Tex. Civ. Prac. & Rem. Code Ann. § 95.003(1), (2) (Vernon 2011).
• The jury answered “yes” to Jury Question No. 4, which submitted a negligent activity theory against Oil-tanking under which “negligence” was defined as the “failure to use ordinary care, that is, failing to do that which a person of ordinary prudence would have done under the same or similar circumstances or doing that which a person of ordinary prudence would not have done under the same or similar circumstances.” The charge defined “ordinary care” as “that degree of care, which would be used by a person of ordinary prudence under the same or similar circumstances.” See generally Colvin v. Red Steel Co., 682 S.W.2d 243, 245 (Tex.1984).

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Oiltanking Houston, L.P., Oiltanking Holdings Americas, Inc., Oiltanking Partners, L.P., and Oiltanking North America, L.L.C. v. Alberto Delgado, Individually and as Representative of the Estate of Javier Delgado, Victoria Delgado, Individually and as Next Friend of Maria Delgado, a Minor Child, Jimmy Gutierrez, Jesus Delgado, Samuel Delgado, Edgar Delgado, 502 S.W.3d 202, 2016 Tex. App. LEXIS 8407, 2016 WL 4145997 (Tex. Ct. App. 2016).

502 S.W.3d 202 (Oiltanking Houston, L.P., Oiltanking Holdings Americas, Inc., Oiltanking Partners, L.P., and Oiltanking North America, L.L.C. v. Alberto Delgado, Individually and as Representative of the Estate of Javier Delgado, Victoria Delgado, Individually and as Next Friend of Maria Delgado, a Minor Child, Jimmy Gutierrez, Jesus Delgado, Samuel Delgado, Edgar Delgado) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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