Pasadena Refining System, Inc. v. Mike McCraven

CourtCourt of Appeals of Texas
DecidedMay 15, 2012
Docket14-10-00837-CV
StatusPublished

This text of Pasadena Refining System, Inc. v. Mike McCraven (Pasadena Refining System, Inc. v. Mike McCraven) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pasadena Refining System, Inc. v. Mike McCraven, (Tex. Ct. App. 2012).

Opinion

Affirmed, in Part, Reversed and Rendered, in Part, and Memorandum Opinion filed May15, 2012.

In The

Fourteenth Court of Appeals

NO. 14-10-00837-CV

PASADENA REFINING SYSTEM, INC., Appellant

V.

MIKE MCCRAVEN, Appellee

NO. 14-10-00860-CV

AUSTIN INDUSTRIAL SERVICES, LP AND BRITISH AMERICAN INSURANCE COMPANY, Appellants

PASADENA REFINING SYSTEM, INC., Appellee

On Appeal from the 151st District Court Harris County, Texas Trial Court Cause No. 2008-18597 MEMORANDUM OPINION

Mike McCraven, who was employed by Austin Industrial Services, LP (Austin), sustained injuries in connection with the replacement of a cart anchor cable of a Coker Unit owned by Pasadena Refining System, Inc. (PRSI). McCraven sued PRSI for negligence, and PRSI, in turn, filed third-party claims against (1) Austin for indemnity or contractual contribution, and (2) British American Insurance Company (BAIC) for additional insured status, breach of contract, and breach of the duty of good faith and fair dealing. Finding negligence, the jury allocated responsibility for McCraven‘s injuries as follows: PRSI 75%; Austin 20%; and McCraven 5%. In the first amended final judgment, the trial court awarded McCraven $5,355,059.42 (95% of $5,636.904.65), plus pre- and post-judgment interest and costs. The trial court awarded PRSI recovery of contractual contribution from Austin of 20% for the liability imposed by the jury‘s verdict. The trial court further found as a matter of law that PRSI was entitled to additional insured status under the CGL policy issued to Austin by BAIC, but that such coverage is only excess, not primary, coverage. The trial court further found that PSRI had nonsuited, without prejudice, its claims for breach of contract and breach of the duty of good faith and fair dealing.

Pending before this court are two appeals, which we have consolidated into one proceeding on our own motion. In the first appeal, PRSI appeals the first amended final judgment entered in favor of McCraven on his negligence claim for the injuries sustained on PRSI‘s premises, and the allocation of responsibility. We affirm that portion of the judgment awarding damages to McCraven on his negligence claim.

In the second appeal, Austin and BAIC appeal the first amended final judgment awarding contractual contribution and ―additional insured‖ status to PRSI. We (1) reverse that portion of the judgment awarding PRSI contractual contribution from Austin and render judgment that PRSI take nothing on its claim for contractual contribution; (2) affirm that portion of the judgment awarding PRSI additional insured status; and (3) 2 reform the judgment to delete the trial court‘s finding that PRSI nonsuited, without prejudice, its claims for breach of contract and breach of the duty of good faith and fair dealing, and render judgment that PRSI take nothing on those claims.

I. PRSI V. MCCRAVEN

A. Background

PRSI owns and operates a refinery, including a Coker Unit. Coke is the black powder that remains after crude oil has been refined and is ultimately used as another fuel source. After the product is removed, the 77-foot tall drum, which holds the remaining coke, is ―quenched‖—filled with 50,000 gallons of water to cool the coke, which is about 900 degrees. It takes about four hours to fill the drum with water, and the coke soaks for an hour and a half. After the coke is cooled to 200 to 215 degrees, the hot water is drained from the drum, i.e., the water is released into a ―sluiceway‖—a five-foot wide drainage ditch. The water released into the sluiceway is black due to the coke residue. The coke is then ―drilled‖ and removed from the drum with front-end loaders, and eventually offloaded from a conveyor to barges.

On September 5, 2007, PRSI generated a priority work order to Austin to replace the anchor cart cable on the second deck of the Coker Unit so that PRSI could drain the sluiceway on schedule. Austin sent a three-man crew, which included Tommy Ford, Kevin Kirkland, and Hugo Benavides, to do the job. A crane or boom truck was needed to lift the cable spool up to the second deck. Tony Shelman, a PRSI representative, recommended that the Austin crew use a Terex crane. After it was discovered that the Terex crane was not available, the Austin crew brought in a boom truck.

The sluiceway covers—metal plates with holes—had been removed prior to September 5, 2007, so that the sluiceway could be ―hydroblasted‖ or cleaned. The sluiceway covers had not been put back in place, leaving the drainage ditch uncovered. Barricade tape had been placed around the area surrounding the open sluiceway. The

3 Austin crew took down the barricade tape, and Benavides drove the boom truck into a barricaded area, straddling the open sluiceway. Whether Shelman granted the Austin crew permission to place the boom truck in the barricaded area was disputed at trial.

After completing the job, the Austin crew needed to move the boom truck from the barricaded area, but needed PRSI‘s permission to remove the boom truck. Shelman initially refused the Austin crew‘s request to move the boom truck. However, Shelman changed his mind and, ―against [his] better judgment,‖ allowed the Austin crew to remove the boom truck after Kirkland claimed that he would be in ―trouble‖ if he were not allowed to move the truck and return it timely.

At the same time, PRSI had already started the ―drain,‖ releasing hot water into the uncovered sluiceway. Also, the drain resulted in the overflow of the sluiceway. The evidence showed that PRSI had been having ongoing problems with the ability of the pumps to prevent water from overflowing the sluiceway during the drain. It was because of the overflow that PRSI told everyone to leave the area.

McCraven, a heavy equipment operator, testified that his supervisor, Greg Gray, assigned him the job of moving the boom truck, and drove him to the Coker Unit. McCraven testified that it was raining at that time. When Gray dropped him off, McCraven did not see the barricade. McCraven testified that ―[t]here was no tape there.‖ McCraven then went to the control room. McCraven encountered Shelman, who told him to ―go ahead and move‖ the boom truck. McCraven responded that he was waiting for the Austin crew. When Ford and Kirkland arrived, McCraven followed them into the control room. In the control room, McCraven heard Ford and Kirkland say something about a barricade, but he was not paying attention to their conversation and he did not know what they were talking about.

McCraven and Kirkland left the control room and walked toward the boom truck. McCraven could not see the uncovered sluiceway due to the flooding of the area. Within

4 three to four feet of the truck, McCraven fell into the sluiceway, up to his hips in the scalding water. McCraven was able to climb out of the ditch. At that moment, McCraven did not realize how badly he was injured. McCraven folded up the outriggers on the boom truck and drove it to the maintenance shop. When McCraven said he wanted to wash the black water off, he was told to take a shower. When McCraven took his socks off, his skin came off, and he was taken to the hospital by ambulance. McCraven suffered second and third degree burns.

The evidence at trial showed that McCraven did not review the Job Hazard Analysis (JHA), the purpose of which was to list the specific hazards of the job. Ford testified that he and Kirkland should have gone over the JHA with McCraven and had McCraven sign it. Ford testified that he intended to tell McCraven about the barricade and the uncovered sluiceway, but McCraven was already heading toward the truck.

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