Reefer Queen Co. v. Marine Construction & Design Co.

440 P.2d 453, 73 Wash. 2d 783, 1968 Wash. LEXIS 695
CourtWashington Supreme Court
DecidedMay 2, 1968
Docket39012
StatusPublished
Cited by8 cases

This text of 440 P.2d 453 (Reefer Queen Co. v. Marine Construction & Design Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reefer Queen Co. v. Marine Construction & Design Co., 440 P.2d 453, 73 Wash. 2d 783, 1968 Wash. LEXIS 695 (Wash. 1968).

Opinion

Langenbach, J.

This is a third-party action for indemnity by a manufacturer against its subcontractor for damages. It is an offshoot and sequel to Reefer Queen Co. v. Marine Constr. & Design Co., ante p. 774, 440 P.2d 448 (1968). The parties will be designated here in the same manner as they were in that action. Plaintiff will be referred to as plaintiff corporation; J. M. Martinac Shipbuilding Corporation, referred to as Martinac; Marine Construction and Design Company, referred to as Marco, and Mantel Gear Works, Inc., referred to as Mantel, the third-party *784 defendant. (The main facts of this controversy appear in the preceding opinion and will not be repeated.)

Marco is the manufacturer and supplier of purse seine winches for use on tuna fishing vessels. It manufactured and delivered such a winch to Martinac for installation on a tuna fisher it was building for plaintiff corporation. In a winch of the type used for purse seining, there are three soft steel shafts, about 10 inches long and 3 inches in diameter. They are required to be ground to a precise diameter and then case-hardened 1 on the surface to a definite standard of hardness to maintain a bearing in operation.

Marco fabricated such shafts and sent them to Mantel with a purchase or work order with definite written instructions as to the grinding of the exterior and case hardening thereafter to precise specifications. The receipt of such a written order was admitted by Mantel. But one of its office employees, when he received the order, failed to notify the shop foreman that case hardening was included and required. Mantel did not have the requisite equipment to case harden such shafts, and previously had sent such shafts to other shops equipped with case hardening machinery. After Mantel had ground these shafts precisely, they were returned to Marco without being case-hardened. The evidence showed that there were several tests whereby the condition of such shafts might easily be determined — by visual observation, by use of a file or knife, or by special testing devices.

Marco did not inspect these shafts upon their return but placed them in the winch in a soft, exterior condition. During the vessel’s maiden voyage, two breakdowns of the winch occurred. One shaft had failed, and the plaintiff corporation notified Marco, which sent a new shaft for replacement in the vessel in the Canal Zone. The vessel then resumed fishing operations and a second breakdown occurred. At that time, Marco, when notified, sent an officer *785 down, and he discovered that the other two original shafts were likewise defective in that they had not been casehardened by Mantel.

Because of the delays resulting from these shaft failures, plaintiff corporation sued the other parties for damages and loss of profits. The case was tried to a jury, which returned a verdict for damages against Marco. In a second verdict, based upon Marco’s third-party action against Mantel, the jury found for Marco against Mantel but awarded no recovery of any monetary damages.

Following the entry of a judgment for plaintiff corporation against Marco, the court granted Marco a new trial against Mantel. Mantel has appealed, and its appeal was heard following the main appeal by Marco in the prior decision.

Mantel had denied all liability as to Marco and had affirmatively pleaded that Marco had failed to supply it with any plans concerning the use of these three shafts in the idler gears of the purse seine winch when the work order was presented with the unfinished shafts. Mantel had no equipment to case harden such shafts and Marco should have known that they had not been case-hardened, as no charge had been made for such services. (The bill for grinding the shafts was only $4 per shaft.) There was no sales warranty as Mantel had only ground the exterior surface of the shafts, and Marco’s negligence in failing to inspect the returned shafts barred any claim of negligence against Mantel. In addition, Mantel alleged further negligence on Marco’s part in not sending service personnel to the Canal Zone at the time of the first breakdown. By so doing, Marco could have discovered that the two remaining shafts were likewise defective, and thus could have avoided the second breakdown with proportionate diminution of damages.

Mantel maintained that its liability for breach of contract was limited to its share of the costs of making repairs to the defective part, namely $250 which it had already paid. It further claimed that Marco was negligent in not making *786 cursory or simple inspection tests before placing these shafts inside the winch. Another contention was that there was a difference in degree in the negligence between it and Marco. Its negligence might be classified as passive, while that of Marco was active. Under that reasoning, no liability rested upon Mantel.

Mantel’s only assignment of error was that the court erred in granting Marco’s motion for a new trial against it, and in ruling therewith that the question of whether Marco’s negligence was active or passive was a question of fact for the jury.

These two parties agreed that if Marco was actively negligent when it failed to test or inspect the three idler shafts for case hardening before they were installed in the Reefer Queen winch, then Marco cannot recover from Mantel for any negligence on Mantel’s part in failing to send the shafts out to a commercial steel treater for case hardening.

During the arguments pertaining to the post trial motions, the court commented:

“The Court withdrew the issue of negligence from the jury in its indemnity action against Mantel. By doing so it ruled in effect that if the jury found Marco liable to the plaintiff for negligence such negligence would be active negligence as a matter of law, precluding recovery over on indemnity. The jury did, in fact, find Marco negligent. In arguing for a new trial, Marco’s contention is that the jury should have determined what the quality of Marco’s negligence was, ‘active’ or ‘passive.’ Therefore, the precise question for the Court at this time is whether the characterization of negligence as active or passive is a determination which the Court is entitled to make as a matter of law.”
That precisely and exactly states the issue, as I understand it.

It is Mantel’s contention that the verdict of the jury established that Marco was liable to the plaintiff corporation for its negligence in failing to inspect the idler shafts for hardness. And, by its verdict against Mantel for no damages, the jury determined that Mantel did not know the intended use of the idler shafts and did not anticipate *787 or foresee the effects of its failure to fulfill the contract to case harden the shafts, such as the failure of the tuna purse seine winch and the subsequent loss of fish profits.

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Cite This Page — Counsel Stack

Bluebook (online)
440 P.2d 453, 73 Wash. 2d 783, 1968 Wash. LEXIS 695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reefer-queen-co-v-marine-construction-design-co-wash-1968.