Schnadig Corp. v. Walser

261 F. Supp. 311, 1966 U.S. Dist. LEXIS 7553
CourtDistrict Court, M.D. North Carolina
DecidedDecember 16, 1966
DocketCiv. A. No. C-1-S-66
StatusPublished

This text of 261 F. Supp. 311 (Schnadig Corp. v. Walser) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schnadig Corp. v. Walser, 261 F. Supp. 311, 1966 U.S. Dist. LEXIS 7553 (M.D.N.C. 1966).

Opinion

OPINION:

HAYES, District Judge:

This action was brought by plaintiff against Billy and Bob Walser, partners trading as Billy’s Truck Stop and their employer Shiloh Miller and Grubb Oil Co., to recover damages for the destruction of property by a gasoline fire. The parties stipulated the damages to the tractor were $3300.00; to the trailer $1816.00, and the cargo of furniture $4500.00. There were other damages not stipulated. The jury awarded a verdict for $11,516.59.

Grubb Oil Company is the distributor of Atlantic Gasoline in Davidson County, North Carolina where the accident occurred.

The Walsers had operated two gas stations for the Grubb Oil Co. near the Yadkin River for three years. The State condemned the location to widen the highway. Thereafter the Grubb Oil Co. procured about 5 acres of land on the South side of the town of Lexington at the junction of #29 and #29 new by-pass. It erected there a building the first floor of which was used as a restaurant and the top floor as a sleeping quarters for truck drivers. It built six concrete islands 2% feet by 20 feet and located on each island two pumps for the distribution of gasoline and diesel oil and fuel. It furnished and installed electric motors and pumping equipment in each of these twelve pumps to draw gasoline from its buried storage tanks and pump it into automobiles and truck or tractor tanks. It procures Walser brothers to operate these premises under an Oil Contract by the terms of which Grubb Oil Co. was to inspect, repair and maintain the pumping equipment, including the wiring, but Walsers were to maintain the restaurant. Walsers were to retail the gasoline supplied by Grubb Oil Co. and pay it one cent on each gallon of fuel sold.

Upon the completion of the installation in early 1961 Walser began the operation and sold a large quantity of gasoline. At times 25 to 30 tractor units would congregate there. Sales averaged from 75,000 to 80,000 gallons per month. Plaintiff had patronized the place regularly for several years.

The equipment received rough treatment. At one time a pump was knocked [313]*313over by a truck. The gasoline hose was 20 feet long and frequently they were abused and leaked; sometimes the nozzles too. Grubb Oil Co. replaced the hose and nozzles and procured electrical repair and paid for it.

On April 29, 1965, Stephens, plaintiff’s driver on his way from the manufacturing plant in Georgia to a point in Virginia, drove his outfit up to one of these gas pumps, stopping his tractor about 4 feet from it and asked the attendant Miller to put 50 gallons of gasoline in his tractor tank. Miller later inserted the nozzle in the tractor tank, then returned to the pump where with a lever he tripped the gas register to zero, then pulled on the switch to start the pump when instantly fire arose in the bottom of the pump and spread over to the plaintiff’s outfit and the flames, enveloped the tractor and trailer, shooting skyward from 25 to 50 feet. The meter registered 162.4 gallons of gas pumped into the fire. The hose was burnt off of the nozzle and the glass at the top of the pump was gone, hence the gas was being pumped at the rate of 20 gallons per minute into the flames.

The theory of the case was negligent use of the electrically operated pump without exercising reasonable care as to its condition. Reasonable inspection would have disclosed exposed wiring and that the failure to exercise reasonable care under the circumstances was negligence which proximately caused the damage.

Grubb Oil Co. moved for a directed verdict as to it on the ground that it owed no duty to the plaintiff; that the negligence, if any, was that of Walser brothers; they in turn moved for a directed, verdict in their favor on the ground that it was the duty of Grubb Oil Co. to inspect, repair and maintain the pumping equipment. The court reserved its rulings under Rule 50 of the Federal Rules of Civil Procedure and let the jury render its verdict. It found the issue of negligence in favor of the plaintiff and assessed its damages in the sum of $11,516.59.

On the coming in of the verdict each defendant moved to set aside the verdict and to grant their motion for a directed verdict or in the alternative to grant a new trial. These motions are denied.

The evidence was sufficient to take the case to the jury. North Carolina is a common law state and recognizes that electricity and gasoline are dangerous instrumentalities. Calhoun v. Nantahala Power & Light Co., 216 N.C. 256, 4 S.E.2d 858; Moore v. Beard-Laney, Inc., 263 N.C. 601, 139 S.E.2d 879. In Moore v. Beard-Laney, Inc. supra, the court defines the standard of care of gasoline as follows: “We take judicial notice that gasoline is a flammable commodity. The basic duty to use ordinary care or reasonable care under the circumstances requires a person handling an inherently dangerous instrumentality or commodity, like gasoline, to use care commensurate with the known exceptional danger.” In that case the delivery man permitted gas to overflow the tank and when the station owner cut off the pump switch a spark ignited the gas, resulting in a big fire and damages. The trial court ruled the evidence was insufficient and granted an involuntary non-suit. The Supreme Court reversed and ordered a trial by a jury. It also said: “A reasonable inference to be drawn from the evidence is that the gasoline overflowing from the storage tank was ignited by a spark created when Pennell cut off the electric switch on the pump which pumps gasoline in the storage tank.”

Circumstantial evidence is sufficient to establish negligence when the facts proved and the reasonable inferences to be drawn therefrom make it more probable that the injury was the result of negligence. Frazier v. Suburban Rulane Gas Co., 247 N.C. 256, 100 S.E.2d 501. “Direct evidence of negligence is not required, but the same may be inferred from acts and attendant circumstances, and * * * if the facts proved establish the more reasonable probability that the defendant has been guilty of actionable negligence, the case cannot be withdrawn from the jury, [314]*314though the possibility of accident may arise on the evidence. * * * ‘The plaintiff is not bound to prove more than enough to raise a fair presumption of negligence on the part of the defendant and of resulting injury to himself.' ” In that case a chicken house was destroyed by fire which an expert testified could have been caused by a leaking pipe or an accumulation of soot in the burner, either of which adequate inspection would have disclosed. A recovery in that case was sustained.

The same principles are stated in Schulz v. Pennsylvania Railroad Co., 350 U.S. 523, 76 S.Ct. 608, 100 L.Ed. 668. There the trial court stated: “ ‘There is some evidence of negligence, and there is an accidental death. But there is not a shred of evidence connecting the two’.” A directed verdict for the defendant was affirmed by the •Court of Appeals which, while conceding a

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tennant v. Peoria & Pekin Union Railway Co.
321 U.S. 29 (Supreme Court, 1944)
Schulz v. Pennsylvania Railroad
350 U.S. 523 (Supreme Court, 1956)
Frazier v. Suburban Rulane Gas Company
100 S.E.2d 501 (Supreme Court of North Carolina, 1957)
Moore v. Beard-Laney, Inc.
139 S.E.2d 879 (Supreme Court of North Carolina, 1965)
Howard v. . Texas Co.
169 S.E. 832 (Supreme Court of North Carolina, 1933)
Livingston v. . Investment Co.
14 S.E.2d 489 (Supreme Court of North Carolina, 1941)
Wilson v. . Dowtin
2 S.E.2d 576 (Supreme Court of North Carolina, 1939)
Calhoun v. . Light Co.
4 S.E.2d 858 (Supreme Court of North Carolina, 1939)
Calhoun v. Nantahala Power & Light Co.
216 N.C. 256 (Supreme Court of North Carolina, 1939)
Livingston v. Essex Investment Co.
219 N.C. 416 (Supreme Court of North Carolina, 1941)
Rogers v. Gulf Oil Corp.
49 S.E.2d 409 (Supreme Court of North Carolina, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
261 F. Supp. 311, 1966 U.S. Dist. LEXIS 7553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schnadig-corp-v-walser-ncmd-1966.