Oliver v. Monsanto Co.

56 F.R.D. 370, 16 Fed. R. Serv. 2d 791, 1972 U.S. Dist. LEXIS 11936
CourtDistrict Court, S.D. Texas
DecidedSeptember 19, 1972
DocketCiv. A. No. 67-G-45
StatusPublished
Cited by10 cases

This text of 56 F.R.D. 370 (Oliver v. Monsanto Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oliver v. Monsanto Co., 56 F.R.D. 370, 16 Fed. R. Serv. 2d 791, 1972 U.S. Dist. LEXIS 11936 (S.D. Tex. 1972).

Opinion

AMENDED MEMORANDUM AND ORDER

NOEL, District Judge.

One last issue remains for this Court’s determination before this lengthy and multi-party case embarks on its voyage to the docket of the United States Court of Appeals for the Fifth Circuit. Based on new and controlling case law, A. A. Pruitt, third-party defendant, has urged reconsideration of this Court’s prior ruling on the indemnity question.

When a chemical flash fire erupted in the Monsanto plant on March 15, 1967, five employees of Pruitt were among the eight persons injured. The Pruitt employees were doing maintenance work for Monsanto pursuant to a contract between the two firms. Claims filed by some of the Pruitt employees in state court were removed by defendant, Monsanto, which then filed a Third-Party Complaint against Pruitt. The complaint alleged a contractual obligation on the part of Pruitt to defend the claims and satisfy any judgments against Monsanto.

The third-party indemnity claim was severed from the negligence claims. There being no dispute about the facts, the parties submitted an Agreed Statement of the Case. Each party presented motions for summary judgment and supporting briefs directed to interpretation of the contract. By docket entry made January 31, 1969, the Court rendered its decision on the third-party claim. The Court held that “all of the injuries and claims made the subject of this thirtparty action were ones ‘arising out of the performance of the Work’ within the [372]*372meaning of the indemnity clause of the Monsanto-Pruitt contract.” With respect to Pruitt’s employees, this was the only finding necessary. Under the contract, if the actions arose out of the work, Pruitt was obligated to defend the claims of its injured employees and pay any award. The Court declined to decide the indemnity issue as to the non-Pruitt employees at that time. Those cases have since been settled.

Pruitt subsequently assumed Monsanto’s defense of the negligence claims. All plaintiffs settled with defendant Monsanto (represented by Pruitt’s counsel) except Pruitt employees C. J. Oliver and James B. Evans, Jr. Their claims went to trial, which resulted in a jury verdict favorable to plaintiffs. Final judgment was entered on April 20, 1972. Defendant filed Notice of Appeal on May 15 and 18, respectively.

On May 19, Pruitt filed a Motion for Reconsideration directed to the denial of its Motion for Summary Judgment on January 31, 1969, thereby attempting to reopen the indemnity question. In opposition, Monsanto filed its Response. An exchange of briefs followed. The motion and related jurisdictional question are now ripe for determination.

Concerning the Court’s jurisdiction of Pruitt’s Motion for Reconsideration, the docket entry of January 31, 1969 was the Court’s final pronouncement or order on the indemnity issue. United States v. F. & M. Schaefer Brewing Co., 356 U.S. 227, 78 S.Ct. 674, 2 L.Ed.2d 721 (1958). Nonetheless, lacking the determination required by Fed.R. Civ.P. 54(b), the order was unappealable but remained subject to revision until final judgment.

Upon entry of final judgment on April 20, 1972, all prior decisions, rulings and orders (including the order of January 31, 1969) became final and appealable. 9 Moore’s Federal Practice ¶ 110.07 at p. 109 (1970). Bearing the foregoing in mind, a question is raised as to whether this Court can consider Pruitt’s present motion which was filed more than ten days after entry of final judgment, the latter being the maximum period allowed for amending final judgments. Fed.R.Civ.P. 59. The ten-day limitation period applies to the motion unless Pruitt is entitled to relief under Rule 4, which would allow Pruitt thirty days rather than ten days.

Pruitt is entitled to relief under Fed.R.Civ.P. 60(b), which provides relief from mistakes, inadvertence, surprise, and other errors. Both Professors Wright and Moore are of the view that the term “mistake” should encompass judicial mistake in applying the appropriate law. 3 Barron & Holtzoff, Federal Practice & Procedure U1325 at 407 (Wright ed. 1958); 7 Moore’s Federal Practice jf60.22(3) (1971). Rule 60(b) is liberally construed. In re Casco Chem Co., 335 F.2d 645 (5th Cir. 1964). The Court of Appeals for the Fifth Circuit has followed the sensible suggestion of the academicians. Meadows v. Cohen, 409 F.2d 750 (5th Cir. 1969); McDowell v. Celebreeze, 310 F.2d 43 (5th Cir.1962).

The purpose behind allowing the trial court to correct its own errors is to prevent expensive appeals. Schildhaus v. Moe, 335 F.2d 529, 531 (2nd Cir.1964). Rule 60(b) is applicable to a motion for reconsideration where, as here, it is based on a change in the controlling ease law. Schildhaus v. Moe, supra; Tarkington v. United States Lines Co., 222 F.2d 358 (2nd Cir.1955). Because it was filed within the thirty-day limit for notice of appeal, Fed.R.App.P. 4, Pruitt’s motion will be deemed timely filed. Meadows v. Cohen, supra; Moore, supra ¶62.22(3) at 261.

Pruitt contends that two cases decided after this Court entered its order of January 31, 1969, changed the law applicable to the indemnity question. Joe Adams & Son v. McCann Construction Co., 475 S.W.2d 721 (Tex.1971); Martin Wright Electric Co. v. W. R. Grimshaw [373]*373Co., 419 F.2d 1381 (5th Cir.1969) cert. den. 397 U.S. 1022, 90 S.Ct. 1263, 25 L.Ed.2d 532 (1970) (applying Texas law). In each case a claim for indemnification was denied.

The Adams court attempted to distinguish prior Texas cases but one commentator has forcefully argued that the decision has changed the Texas law, Case Note, 50 Texas L.Rev. 520 (1972). Previous Texas policy gave broad effect to general indemnity provisions. E.g., Ohio Oil Co. v. Smith, 365 S.W.2d 621 (Tex.1963). Indemnification was frequently allowed even where the indemnitee negligently caused the accident. E. g., Spence & Howe Construction Co. v. Gulf Oil Corp., 365 S.W.2d 631 (Tex. 1963). In Adams, the Texas Supreme Court adopted a stricter view in applying indemnity contracts. It held that “an indemnity agreement will not protect the indemnitee against the consequences of his own negligence unless

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56 F.R.D. 370, 16 Fed. R. Serv. 2d 791, 1972 U.S. Dist. LEXIS 11936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oliver-v-monsanto-co-txsd-1972.