Olsen Engineering Corp. v. Hudson Engineering Corp.

289 So. 2d 346
CourtLouisiana Court of Appeal
DecidedApril 11, 1974
Docket9445, 9580
StatusPublished
Cited by13 cases

This text of 289 So. 2d 346 (Olsen Engineering Corp. v. Hudson Engineering Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olsen Engineering Corp. v. Hudson Engineering Corp., 289 So. 2d 346 (La. Ct. App. 1974).

Opinion

289 So.2d 346 (1973)

OLSEN ENGINEERING CORPORATION et al., Plaintiffs-Respondents,
v.
HUDSON ENGINEERING CORPORATION et al., Defendants-Appellees, and
UNITED STATES STEEL CORPORATION, Defendant-Third Party Plaintiff-Relator.
OLSEN ENGINEERING CORPORATION et al., Plaintiffs-Appellees,
v.
HUDSON ENGINEERING CORPORATION et al., Defendants-Appellees, and
UNITED STATES STEEL CORPORATION, Defendant-Third Party Plaintiff-Appellant.

Nos. 9445, 9580.

Court of Appeal of Louisiana, First Circuit.

December 17, 1973.
Rehearing Denied February 11, 1974.
Writ Refused April 11, 1974.

*347 Harry McCall, Jr., and Charles L. Chassaignac, New Orleans, for U. S. Steel Corp.

John F. Pugh, Thibodaux, for Olsen Engineering Corp.

H. F. Foster, III, New Orleans, for American Auto Ins. and Travelers Indem. Co.

Philip J. McMahon, Houma, for Hudson Engineering Corp.

Before SARTAIN, TUCKER and WATSON, JJ.

SARTAIN, Judge.

This appeal and writ application arose out of two suits for property damage allegedly caused by a gas pipeline explosion which occurred near Gibson, Louisiana on December 17, 1968. Plaintiffs in the two suits are Olsen Engineering Corporation and its subrogated insurers, American Automobile Insurance Company and Travelers Insurance Company in Suit No. 9580, and P. R. Insulation, Ltd., Inc. in Suit No. 9581. Named as defendants in Suit No. 9580 were Hudson Engineering Corporation, its insurer, Phoenix Insurance Company of Hartford, United States Steel Corporation and the Travelers Indemnity Company. Named as defendants in Suit No. 9581 were Hudson Engineering Corporation, its insurer, Phoenix Insurance Company of Hartford, United States Steel Corporation, Shell Oil Company and its insurer, the Travelers Indemnity Company.

Hereinafter Olsen Engineering Corporation, American Automobile Insurance Company, Travelers Insurance Company and P. R. Insulation, Ltd., Inc. will be collectively referred to as plaintiffs; Hudson Engineering Corporation will be referred to as Hudson; and United States Steel Corporation will be referred to as U. S. Steel.

In both of these suits U. S. Steel filed a third party demand against Hudson. Both suits were consolidated for trial in the district court.

Shortly before the trial date, Hudson filed an exception of res judicata to U. S. Steel's third party demand against it. Plaintiffs filed a rule to show cause which urged the district court to enter a partial judgment against U. S. Steel decreeing U. S. Steel estopped to deny certain facts and thereby relieving plaintiffs of the necessity of proving the same.

*348 The facts which give rise to both the exception and the rule are that on December 17, 1968 one Malcolm Laird, a Shell Oil Company employee, was killed as a result of the same explosion which plaintiffs allege caused the destruction of their property. Shirley Roberts Laird, individually and on behalf of her two minor children, brought an action for the wrongful death of Malcolm Laird, her husband, in the U. S. District Court for the Eastern District of Louisiana. Numerous defendants were named in that suit but ultimately all defendants were dismissed except Hudson, the alleged designer and builder of the pipeline, and U. S. Steel, the alleged manufacturer of the pipe used in the pipeline. In that suit U. S. Steel filed a cross-claim against Hudson seeking indemnification and/or contribution for any amounts for which it might be cast in judgment. This cross-claim alleged that Hudson's construction and installation of the pipeline was faulty and deficient. Hudson also filed a cross-claim against U. S. Steel seeking indemnification on the grounds that the explosion was caused by the negligence of U. S. Steel. Hudson alleged that the pipe was improperly designed constructed and manufactured by U. S. Steel.

Prior to trial of the Laird case in the federal court, the present suits seeking property damage were filed in state court. In the state court suits U. S. Steel filed a third-party demand against Hudson seeking indemnification and/or contribution for the same reasons as alleged in the federal cross-claim.

Mrs. Laird's claim was tried by jury in the federal court and a verdict was returned in her favor on June 17, 1970. Interrogatories were answered by the jury and those answers established the following facts:

1. The 40 foot section of 30 inch pipe which was involved in the explosion was manufactured by U. S. Steel.
2. The pipe was defectively manufactured by U. S. Steel.
3. The defect of the 40 foot section of the 30 inch pipe in question was the proximate cause of the explosion and fire.

Based on the answers to the interrogatories, judgment was rendered in favor of Shirley Roberts Laird, individually and on behalf of her two minor children, and against U. S. Steel. Mrs. Laird's claim against Hudson was dismissed and the cross-claim of U. S. Steel against Hudson was dismissed. U. S. Steel appealed this decision to the United States Fifth Circuit Court of Appeals and the judgment was affirmed. See Laird v. Hudson Engineering Corporation, 449 F.2d 216 (5th Cir., 1971).

Hudson's exception of res judicata to the third-party demand filed by U. S. Steel in the state court suits was based upon the judgment rendered in the Laird suit which had dismissed the cross-claim of U. S. Steel against it.

Plaintiff's rule and motion for a partial judgment decreeing U. S. Steel estopped to deny certain facts established by the jury in the Laird case was based upon the doctrine of judicial or collateral estoppel.

The trial court sustained the exception filed by Hudson and granted plaintiffs' motion. As to the motion of plaintiffs, the trial court ruled that U. S. Steel was bound by the findings of fact in the Laird case and was thus estopped to relitigate the issue of its negligence under the doctrine of judicial estoppel. The trial court entered this judgment after consideration of the record in the Laird case which was introduced in support of plaintiffs' motion and Hudson's exception.

From the rulings of the trial court on plaintiffs' motion and Hudson's exception, U. S. Steel applied to this court for writs of certiorari and review (Suit No. 9445). We ordered the issuance of alternative writs concerning the trial court's judgment on the plea of estoppel raised by plaintiffs. The application for writs was denied as to *349 the ruling on the exception of res judicata filed by Hudson upon a determination that U. S. Steel had an adequate remedy by appeal. U. S. Steel then perfected an appeal from the judgment sustaining Hudson's exception of res judicata. The writ pending in Suit No. 9445 has been consolidated with the appeal of U. S. Steel in Suit No. 9580 and 9581. Pending this appeal P. R. Insulation, Ltd., Inc. entered into a settlement with the defendants in Suit No. 9581 and that suit has been dismissed. P. R. Insulation, Ltd., Inc. has also been dismissed from the writ pending in Suit No. 9445.

U. S. Steel asserts that the trial court erred in sustaining the exception of res judicata filed by Hudson and in holding U. S. Steel estopped to deny certain facts found by the federal court in the Laird suit.

Thus, the issues presented are (1) whether the dismissal of U. S. Steel's cross-claim in the Laird case is res judicata of the third-party demand asserted by U. S. Steel in these state court suits, and (2) whether the doctrine of judicial estoppel applies herein so as to estop U. S.

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Bluebook (online)
289 So. 2d 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olsen-engineering-corp-v-hudson-engineering-corp-lactapp-1974.