Seegers Grain Co. v. United States Steel Corp.

577 N.E.2d 1364, 218 Ill. App. 3d 357, 160 Ill. Dec. 793, 1991 Ill. App. LEXIS 1373
CourtAppellate Court of Illinois
DecidedAugust 14, 1991
Docket1-87-3574
StatusPublished
Cited by8 cases

This text of 577 N.E.2d 1364 (Seegers Grain Co. v. United States Steel Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seegers Grain Co. v. United States Steel Corp., 577 N.E.2d 1364, 218 Ill. App. 3d 357, 160 Ill. Dec. 793, 1991 Ill. App. LEXIS 1373 (Ill. Ct. App. 1991).

Opinion

JUSTICE RIZZI

delivered the opinion of the court:

Plaintiff Seegers Grain Company, Inc. (Seegers), brought an action against defendants United States Steel Corporation (U.S. Steel), Kansas City Millwright Company (KCM), and Design Consultants, Inc. (Design Inc.), to recover damages that it suffered when there was “a sudden and calamitous failure and collapse” of one of its steel grain storage tanks which destroyed the tank and caused “damage to the corn contained therein, other storage tanks, conveyor belts, trucks, fans and trees in the immediate vicinity.” Design Inc. was dismissed from the suit prior to trial, pursuant to a settlement agreement. U.S. Steel filed motions to strike and dismiss breach of implied warranty of merchantability and implied warranty of fitness counts in the seventh and eighth amended complaints, which were denied. At the close of the evidence at trial, the trial court granted U.S. Steel’s motion for a directed verdict on the product liability count. At the same time, the trial court ruled that as a matter of law U.S. Steel had no duty with respect to certain allegations in the negligence count, and struck those allegations. The case went to the jury on the negligence and breach of implied warranty counts against U.S. Steel and KCM.

The jury returned verdicts in favor of Seegers and against KCM on all three counts, and assessed Seegers’ recoverable damages in the amount of $2,225,000. The jury also returned verdicts finding U.S. Steel not guilty on all three counts. Seegers appeals from the judgment on the verdicts in favor of U.S. Steel. No other appeals or cross-appeals have been taken.

On appeal Seegers contends that (1) the trial court erred in directing a verdict in favor of U.S. Steel on the product liability count; (2) the trial court erred in denying its motion for a directed verdict on the breach of implied warranty counts; and (3) the trial court erred in ruling that as a matter of law U.S. Steel had no duty with respect to certain allegations in the negligence count, and in striking those allegations. We reverse the directed verdict in favor of U.S. Steel on the product liability count; vacate the verdicts and judgment on the breach of implied warranty counts and strike and dismiss those counts as a matter of law; and reverse the trial court’s rulings and vacate the verdict and judgment on the negligence count. We remand for a new trial on the product liability and negligence counts.

Seegers owned and operated a large public grain conveyor and grain storage business in Crystal Lake, McHenry County, Illinois, serving Illinois farmers since 1962. It had several relatively small grain storage tanks. In the spring of 1976, however, it decided to build a huge grain storage tank with a one-million-bushel grain capacity. After taking bids for the project, in May 1976 Seegers signed a contract with KCM to construct the storage tank. KCM was a construction company that specialized in field-erected, welded steel storage tanks. It did not, however, manufacture parts or accessories.

KCM’s design division manager, Myron Leveridge, designed and made all of the design decisions for the tank. The design and construction of the foundation for the tank, however, were not included in KCM’s contract with Seegers, and Leveridge recommended that Seegers retain Design Inc. to design the foundation. Subsequently, Seegers hired Design Inc. to design the foundation, but Seegers undertook the construction of the foundation. Seegers acted as the general contractor for construction of the foundation.

Leveridge designed a circular tank with a roof that was shaped like a cone with a 12-foot flat top that was circular. The tank had a base diameter of 159 feet and 2 inches, and the circular wall was 48 feet high. The tank measured 86 feet and 37/s inches from the top at the center of the roof to the bottom of the tank.

The circular wall was made by flexing and welding together eight-foot-high steel plates that were 20 and 30 feet in lineal length. There were six rows of steel plates that were welded together from top to bottom, accounting for the 48-foot-high circular wall. The thickness of the steel plates depended on which of the six rows of the steel plates were used; the thicker steel plates were used on the lower rows. The bottom row was five-eighths inch thick. The thickness of each succeeding higher row was as follows: nine-sixteenths inch; one-half inch; seven-sixteenths inch; three-eighths inch; and five-sixteenths inch. Two access doors were provided in the bottom row of the steel plates. One access door was three feet by three feet six inches, and the other access door was seven feet by eight feet.

The conical roof of the tank was made by welding together 12-gauge sheet steel. The roofing sheets were also welded to steel roof joists that were placed radially around the tank. The roof joists were supported by the circular wall of the tank and a flat 12-foot compression ring at the top of the roof in the center of the tank.

The tank was supported by a periphery foundation and the floor of the tank, which was an eight-inch concrete slab. The foundation and slab were designed by Design Inc.

After he designed the tank, but prior to its construction, Leveridge contacted the Kansas City district sales office for U.S. Steel and ordered the steel plates. He spoke to James Hickman, U.S. Steel’s inside salesman at the sales office. Leveridge ordered 102 steel plates which were designated as A283 C steel plates. A U.S. Steel handbook, entitled Handbook of USS Plate Steels (Handbook), provides:

Type of Steel USS Designation Characteristics Applications
ASTM A283 Grades A,B,C & D. Low and intermediate tensile strength, form-able. Storage tank construction, above and below ground.

The Handbook also provides:

“USS ASTMA283
General Description
Low and intermediate tensile strength carbon steel plates of structural quality.
Application
Popular applications requiring some forming because of its low strength. It is often referred to as ‘tank steel’ since it is widely used for fabrication of both above ground and below ground storage tanks.”

The ASTM designation in the Handbook refers to American Society for Testing and Materials. A283 is a standard ASTM designation which is used industry-wide.

U.S. Steel’s written order acknowledgment for the purchase of the A283 C steel plates by Leveridge states that they were to be used to construct a field-erected tank for Seegers at the designated jobsite in Crystal Lake, Illinois. The order acknowledgement also states that the plates were to be in six sets of different thickness: five-eighths inch; nine-sixteenths inch; one-half inch; seven-sixteenths inch; three-eighths inch; and five-sixteenths inch.

In addition, the order acknowledgement states that each of the six sets consisted of a total of 17 plates, 16 plates that were 30 feet long and one plate that was 20 feet long.

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Bluebook (online)
577 N.E.2d 1364, 218 Ill. App. 3d 357, 160 Ill. Dec. 793, 1991 Ill. App. LEXIS 1373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seegers-grain-co-v-united-states-steel-corp-illappct-1991.