Sears, Roebuck & Co. v. SHAMROCK CONST. CO., INC.

441 So. 2d 379, 1983 La. App. LEXIS 9597
CourtLouisiana Court of Appeal
DecidedNovember 9, 1983
Docket83-CA-417
StatusPublished
Cited by3 cases

This text of 441 So. 2d 379 (Sears, Roebuck & Co. v. SHAMROCK CONST. CO., INC.) 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
Sears, Roebuck & Co. v. SHAMROCK CONST. CO., INC., 441 So. 2d 379, 1983 La. App. LEXIS 9597 (La. Ct. App. 1983).

Opinion

441 So.2d 379 (1983)

SEARS, ROEBUCK AND COMPANY
v.
SHAMROCK CONSTRUCTION CO., INC. and Commercial Union Insurance Company.

No. 83-CA-417.

Court of Appeal of Louisiana, Fifth Circuit.

November 9, 1983.

*380 Bruce C. Butcher, Chaffe, McCall, Phillips, Toler & Sarpy, New Orleans, for plaintiff-appellant.

Edward A. Rodrigue, Jr., Boggs, Loehn & Rodrigue, New Orleans, for defendants-appellees.

Before CURRAULT, GAUDIN and GRISBAUM, JJ.

CURRAULT, Judge.

Plaintiff, Sears, Roebuck and Company brought an action for property damages against defendant, Shamrock Construction Company, a contractor employed by plaintiff, Sears Roebuck and Company, to repave a concrete area located at its facilities on Jefferson Highway. Also made party defendant was defendant's insurer, Commercial Union Insurance Company.

The facts reveal that by letter dated February 6, 1979, William J. Hogan, the president of Shamrock Construction Company, Inc. (Shamrock), submitted a proposal to Charles Easterling, the manager of the Sears Regional Distribution Center located at 1601 Jefferson Highway, Jefferson, Louisiana (Sears). Pursuant to that proposal, Shamrock provided Sears with a suggestion for alleviating a water drainage problem at the receiving area of the warehouse by removing the concrete driveway and replacing it at a higher elevation.

The concrete which Shamrock contracted to remove was located directly over two 3,000 gallon underground gasoline storage tanks, and the filler caps for the underground tanks were apparent on the surface of the driveway area.

On the basis of the Shamrock proposal, a written contract dated February 26, 1979 was entered into by Sears and Shamrock pursuant to which Shamrock agreed to perform all of the labor, materials and work *381 necessary to, among other things resolve the water drainage problem.

On April 23, 1979, three employees of Shamrock proceeded to break the concrete above the gasoline tanks. In the afternoon of the first day of work, Sears personnel were informed by a Shamrock employee that an underground waterline had been broken by Shamrock. Later that same afternoon, gasoline began leaking from the underground storage tanks and the fire department was contracted in Jefferson Parish. An emergency unit arrived at the scene and took immediate measures to prevent a dangerous explosion. A chemical substance known as "light water" was pumped over the area to minimize the possibility of fire and the area was covered with sand. The fire department also ordered that the gasoline be pumped out of the tanks, trucked away and safely disposed of.

Pursuant to their request, Sears reimbursed the fire department for its expenses, and also paid for all of the costs of pumping, removing and disposing of the gasoline. In addition, the two underground gasoline storage tanks were replaced. Written request was subsequently made by Sears to Shamrock for reimbursement of these expenses, including a portion of the tank replacement costs. Shamrock and its insurance carrier refused; and, as a result, plaintiff filed this action for damages alleging the defendant's negligence. Trial was held on April 8, 1982 and September 27, 1982.

On the first morning of the hearing, the court granted plaintiff leave to amend the petition to include the issue of contractual liability. At that time, plaintiff also attempted to increase the amount of damages sought in its petition from Six Thousand Three Hundred Five Dollars and Twelve Cents ($6,305.12) to Fourteen Thousand Three Hundred Seventy-Six Dollars ($14,376), which motion was denied by the trial court. On October 28, 1982, the trial court rendered judgment in defendant Shamrock's favor dismissing plaintiff's case. That judgment was amended on November 5, 1982 to include a finding in favor of the defendant-insurer, Commercial Union Insurance Company.

Plaintiff, Sears, consequently perfected this appeal from the judgment of the trial court.

The issues presented for appeal are:

(1) Whether the damage to the underground storage tank was due to the negligence of Shamrock;

(2) Whether the terms and conditions of the contract between Sears and Shamrock, as a matter of law, require Shamrock, and its defendant insurer, to fully indemnify Sears for all of the damages it sustained;

(3) Whether Sears is entitled to indemnification for reasonable attorneys' fees as an expense under the indemnification provision in the contract;

(4) Whether Sears should have been granted leave to amend its petition to set forth an additional item of damage;

(5) Whether Sears should have been permitted to introduce evidence at trial to show its additional damages incurred in connection with the emergency.

The first issue presented by appellant alleges defendant's liability pursuant to LSA-C.C. art. 2762, 2769 (implied warranty) and LSA-C.C. art. 2315 (negligence). Appellant contends that it satisfied its burden of proof under those articles noting that while the burden of proof is by a preponderance of the evidence, that the burden may be satisfied by circumstantial evidence. A & M Pest Control Serv. v. Fejta Const. Co., 338 So.2d 946 (La.App. 4th Cir.1976).

As appellant aptly notes, the test of sufficiency in a circumstantial evidence case is set forth by the Louisiana Supreme Court in Naquin v. Marquette Casualty Company, 244 La. 569, 153 So.2d 395, 397 (La.1963). In Naquin, the court stated:

"... Taken as a whole, circumstantial evidence must exclude other reasonable hypotheses with a fair amount of certainty. This does not mean, however, that it must negate all other possible causes. Otherwise, the mere identification by the record of another possibility, although not *382 shown to be causally active, would break the chain of causation."

See also Carter v. The City Parish Government of East Baton Rouge, et al, 423 So.2d 1080 (La.1982).

In Jordan v. Travelers Insurance Company, 257 La. 995, 245 So.2d 151, 155 (La. 1971), the Louisiana Supreme Court stated, citing Naquin, among other cases:

"... Whatever the descriptive term used, however, proof by direct or circumstantial evidence is sufficient to constitute a preponderance, when, taking the evidence as a whole, such proof shows that the fact or causation sought to be proved is more probable than not."

Causation herein, as appellant points out, can only be inferred from the circumstantial evidence surrounding the gasoline spillage.

In this regard, the trial court judge found as a factual matter that:

"The expert testimony introduced at the time of the trial showed that: (1) Sears had previous problems with leaks in the tanks in question; (2) There was no damage done to the tanks themselves by the breaking of concrete by Shamrock; (3) The damages were not caused by any work performed by Shamrock. Likewise, there was no evidence to show that the leaks were caused by the work of defendant, Shamrock. Further, there was evidence to show these tanks were leaking previously." (Reasons for Judgment)
It is well settled in Louisiana that:
"When there is evidence before the trier of facts which, upon its reasonable evaluation of credibility, furnishes a reasonable factual basis for the trial court's finding, on review the appellate court should not disturb this factual finding in the absence of manifest error ....

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Bluebook (online)
441 So. 2d 379, 1983 La. App. LEXIS 9597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sears-roebuck-co-v-shamrock-const-co-inc-lactapp-1983.