Signal Oil & Gas Co. v. Universal Oil Products

545 S.W.2d 907, 21 U.C.C. Rep. Serv. (West) 470, 1977 Tex. App. LEXIS 2575
CourtCourt of Appeals of Texas
DecidedJanuary 13, 1977
Docket7818
StatusPublished
Cited by6 cases

This text of 545 S.W.2d 907 (Signal Oil & Gas Co. v. Universal Oil Products) 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
Signal Oil & Gas Co. v. Universal Oil Products, 545 S.W.2d 907, 21 U.C.C. Rep. Serv. (West) 470, 1977 Tex. App. LEXIS 2575 (Tex. Ct. App. 1977).

Opinions

STEPHENSON, Justice.

Signal Oil & Gas Co. (Signal) as plaintiff, brought this action for damages against Universal Oil Products Company (UOP), Procon, Inc. (Procon) and Alcorn Combustion Company (Alcorn) as defendants. Trial was by jury and judgment was rendered on the verdict that plaintiff take nothing as to all three defendants.

Signal and UOP entered into a contract for the construction of a refinery unit known as an isomax unit at the Signal refinery. UOP employed Procon to assemble the isomax unit. Procon ordered a part of the unit called a reactor charge heater from Alcorn. Alcorn provided the heater as a component part of the total refinery unit. Procon assembled the heater at the refinery site. This isomax unit was started up about the middle of February, 1968. Then on April 26, 1968 one of the tubes in the heater ruptured causing the fire and resulting damages for which this suit was brought.

In the center of this heater were gas burners which were surrounded by steel tubes through which the oil flowed. The design of the heater called for guides or braces for the tubes at about their mid point. The specifications called for the guides to be anchored by stainless steel bolts called 25-12 bolts. About the first of March 1968, it was discovered that some of the middle guides had fallen to the floor of the heater, and the tubes began to bow inward. One of the bolts was fished out, and it was discovered that B-7 bolts had been used and they were not designed to withstand high temperatures.

Signal made two basic claims as to the cause of the rupture. First, that the inward bowing of the tubes, because the tube guides fell off, placed the tubes too close to the burner, causing them to rupture. The second claim was that scaling or coke accumulation had collected inside of the tubes. The jury went along with the first claim as to the cause of the rupture.

Signal’s pleadings alleged causes of action based upon negligence, strict liability and warranty. Evidence was heard and the case was submitted to the jury on all three theories.

Negligence

The jury found that Alcorn was negligent in failing to supply Procon with 25-12 bolts [909]*909and that such negligence was a proximate cause. The jury also found Procon was negligent in using B-7 bolts in erecting the heater and that negligence was a proximate cause. Signal has conceded in its brief that the judgment as to UOP should be affirmed so the issues pertaining to UOP will not be discussed. Other findings by the jury are that Signal was negligent in not shutting down the heater before the fire which was a proximate cause. Also, that Signal was warned of the hazard before the fire and failed to heed that warning which was negligence and a proximate cause. It is agreed by all concerned that Signal cannot recover upon its negligence theory because of the jury findings as to contributory negligence. In its brief, Signal makes the statement that it does not question the sufficiency of the evidence to raise the contributory negligence findings.

Strict Liability

Texas adopted the principles embodied in section 402A of the American Law Institute Restatement (Second) of Torts (1965) in the companion cases, McKisson v. Sales Affiliates, Inc., 416 S.W.2d 787 (Tex. 1967) and Shamrock Fuel & Oil Sales Co. v. Turks, 416 S.W.2d 779 (Tex.1967). This section provides in part that the seller of a product in a defective condition unreasonably dangerous to the user or his property is subject to liability under certain specified conditions. The general effect of adopting this section is to relieve a claimant of the burden of proving negligence and privity.

This jury found that the reactor charge heater as shipped by Alcorn was defective but failed to find that such defective condition was a producing cause of the tube rupture. The jury also found the reactor charge heater as erected by Procon was defective but failed to find that defective condition was a producing cause of the tube rupture.

Signal argues that it is entitled to judgment against Alcorn and Procon on the basis of jury findings as to strict liability. Even though the jury failed to find “producing cause” as to the “defective” issues, Signal relies upon the jury findings as to “proximate cause” to make out its cause of action. As stated above, the jury found that Alcorn was negligent in failing to supply Procon with 25-12 bolts and that such negligence was a proximate cause; also, that Procon was negligent in using B-7 bolts and that was a proximate cause. Then Signal’s claim is that taking these two “proximate cause” issues along with the two issues finding a defective condition make a case of strict liability. In this connection the argument is made that “proximate cause” includes all the elements of “producing cause” and more. That “cause in fact” is a part of both, and “proximate cause” also includes “forseeability.” Also, the argument is made that the sequence of the issues is not important.

Signal cites Pizza Inn, Inc. v. Tiffany, 454 S.W.2d 420, 421 (Tex.Civ.App.—Waco 1970, no writ), in support of this argument. The jury answered the first three issues as follows:

“1. The failure of defendant to design the machine with an extended chute was negligence.
“2. Such failure was a proximate cause of plaintiff’s injury.
“3. The failure of defendant to design the machine with an extended chute, rendered said machine not reasonably fit for the purpose for which it was intended.”

No “producing cause” issue was submitted.

We have not been cited, nor have we found, cases holding that the special issues must be in a certain sequence. We have come to the conclusion that the arrangement of the issues is not important as long as the sense and meaning of the results are clear.

First, as to Alcorn, the negligence and proximate cause issues refer to the failure to supply 25-12 bolts. However, the jury was not asked why the heater shipped by Alcorn was defective. Then, as to Pro-con, the negligence and proximate cause issues refer to the use of B-7 bolts, and again the jury was not asked why the heat[910]*910er as erected by Procon was defective. In fact, the only issue submitted to the jury as to why the heater was defective, inquired about the formation of the deposits in the heater which the jury answered in the affirmative. Signal maintained the heater was defective for two reasons: the use of the B — 7 bolts, and the accumulation of deposits in the tubes.

For these reasons we do not believe it is possible to definitely ascertain that the defect as found by the jury was the same condition as found to be negligence and proximate cause issues submitted as to either Alcorn or Procon. The case before us is not like Pizza. Inn, Inc. v. Tiffany, supra, in which both the negligence issue and the strict liabilities issue used the same wording (the failure of the defendant to design the machine with the extended chute . . ), and there could be no doubt as to the findings by the jury. These points of error are overruled.

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545 S.W.2d 907, 21 U.C.C. Rep. Serv. (West) 470, 1977 Tex. App. LEXIS 2575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/signal-oil-gas-co-v-universal-oil-products-texapp-1977.