Sinclair Refining Company v. Piles

221 S.W.2d 12, 215 Ark. 469, 1949 Ark. LEXIS 768
CourtSupreme Court of Arkansas
DecidedJune 6, 1949
Docket4-8791
StatusPublished
Cited by3 cases

This text of 221 S.W.2d 12 (Sinclair Refining Company v. Piles) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair Refining Company v. Piles, 221 S.W.2d 12, 215 Ark. 469, 1949 Ark. LEXIS 768 (Ark. 1949).

Opinion

Holt, J.

Appellee, Erma Lee Piles, a minor, by ber mother, sued appellant, Sinclair Refining Company, and Jim Andas to compensate personal injuries alleged to have been sustained by appellant’s negligence when Erma’s mother, Mrs. Young, attempted to light a fire in a heating stove by using what was thought to be kerosene, and a violent explosion occurred.

The defendants below answered separately with general denials and appellant here, Sinclair, specifically denied liability on the grounds that appellee and her mother were guilty of contributory negligence which would bar recovery and that it was not responsible for the acts of the persons who caused the explosion.

When the cause came on for trial, a non-suit was taken as to Audas. The trial jury awarded appellee $2,500 damages against appellant, Sinclair. This appeal followed.

Appellee, a minor, lived with her mother at Hon, Arkansas. In the early morning of February 25, 1947, Mr. Young, her step-father, brought to the home four gallons of a liquid purchased as kerosene from Claud Stewart’s store, a short distance away. Mrs; Young, after placing a small quantity of this liquid in a glass, poured it over some wood in a cold wood stove, applied a match, and an explosion immediately followed, severely burning and injuring appellee, who was standing near making candy on an oil stove.

Appellant, in January and early February, 1947, bought two tank cars of kerosene from Atlas Refining Company, a manufacturer and refiner of petroleum products, in Shreveport, La. The cars were shipped to appellant at Waldron, Arkansas, and there received by its agent, Harris, who was, by the terms of a written agreement, in charge of its storage tanks and bulk sales station there. An employee of Harris, Jim Audas, removed the liquid from the tank cars to the storage tanks of Sinclair.

Under the terms of the elaborate and lengthy agreement, Harris assumed charge of appellant’s storage tanks and property and made sales and deliveries of appellant’s kerosene and gasoline on a commission basis. These products at all times, until sold and delivered, and also tanks and oil containers, were the property of Sinclair. Section 24 of the agreement provides: “Either party may terminate this agreement at any time with or without cause; and upon the termination thereof the Agent shall forthwith deliver to the Company or its representatives all equipment, property, products, monies, credits, books of account, and station records of whatsoever form entrusted to Agent or coming under Agent’s control. ’ ’

Throughout the agreement, Harris is referred to as Sinclair’s agent, and the agreement is signed by him as Agent. Harris was given an exclusive territory. The proceeds from all sales were the property of Sinclair, duplicate sales slips or forms were furnished by Sinclair for its agent’s use in making sales and deliveries, all proceeds collected from sales were deposited to Sinclair’s credit in the Bank of Waldron and its agent, Harris, was paid his commissions every two weeks. All checks received by Harris or Audas were made payable to Sinclair. The name of Sinclair Refining Company was on Harris’ truck. The duties of its agent, Harris, required him to take proper care of appellant’s products, storage tanks, warehouse, and other equipment as well as to solicit, carry on appellant’s business at its direction, make deliveries, collect accounts and make reports as indicated. The authority of agent, Plarris, to extend credit to customers was controlled by appellant. Appellant furnished all forms used in the business. Sinclair furnished all containers for its kerosene and gasoline. Harris furnished his own truck and a driver, Audas, whom he paid, to make deliveries. Sinclair required Harris to furnish to it the name of his designated agent, Audas, and under the agreement, Harris could only make a change by giving written notice to Sinclair. Sinclair fixed the prices on its products.

Prior to the morning when the explosion occurred and injured appellee, Harris’ driver, Audas, delivered thirty gallons of what was thought to be kerosene to a store keeper, Claud Stewart, which Stewart placed in a metal container furnished by Sinclair with its name printed on it. Stewart had an agreement with Sinclair to sell its products which were to be delivered to him through its agent, Harris. Appellee’s step-father, Young, purchased four gallons of the liquid taken from this tank, thought to be kerosene, and sold to him as such, carried it to Ms home, and, as noted, the expMsion occurred when Mrs. Young poured a small amount of the liquid from the four gallon can over wood in a cold heating stove and applied a lighted match.

There ivas evidence that this liquid sold as kerosene was tested and shown to contain 15 °/o gasoline and that any liquid containing as much as % of 1% gasoline is unsafe for use as kerosene. There was evidence that a sample of kerosene taken from one of the cars in question flashed at 136° Fahrenheit and that from the other car at 134°. Our statute (Ark. Stat. (1947), § 53-604) requires, that “no oils or fluids — which ignite or burn (Called Fire Test) at any temperature less than 140 degrees Fahrenheit — shall be offered for sale or used for illuminating or heating purposes Avithin the State, etc. ’ ’

It is also required that “when any person, firm or corporation shall receive within this- State any of the petroleum oils mentioned in this act for the different purposes mentioned in this act, he shall at once notify the Commissioner of Revenues, or one of his deputies or inspectors, of the quantity of said oils received, and request the inspection of same.” (Ark. Stat. (1947), § 53-608). There was evidence that appellant received the two tank cars of kerosene in this State and failed to notify the Commissioner of Revenue, or to comply with the statute.

We do not attempt to detail the testimony. The record is voluminous. It suffices to say that after a careful review of the evidence, Ave have concluded that the relationship between appellant, Sinclair, and Harris Avas that of principal and agent and that in the circumstances Harris was not an independent contractor and Audas his servant.

As we read the agreement between Sinclair and Harris, and interpret it in the light of the actions and conduct of the parties to it, Aye think that it was the purpose of Sinclair to retain complete control of all that was . done in connection with the sale and delivery of its kerosene, gasoline and products, and that Avhen we give to the testimony its strongest aspect in favor of appellee, as we must, it warranted a finding that Harris and Audas, Harris’ driver, were servants of the company and under its control and supervision.

The agreement, in addition to providing that agent, Harris, should furnish his own truck, provided that he should furnish (subject to appellant’s approval) and pay out of his own funds a driver, and be responsible for, and hold appellant blameless for, any negligent acts of such driver (Audas here). Appellant contends that for this court to hold, in the circumstances, that Harris was not an independent contractor and Audas his servant for whose acts Harris would be responsible, would be contrary to our holding in Magnolia Petroleum Company v. Griych, 206 Ark. 352, 176 S. W. 2d 435. We cannot agree. That case is distinguishable on the facts.

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221 S.W.2d 12, 215 Ark. 469, 1949 Ark. LEXIS 768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-refining-company-v-piles-ark-1949.