Tenneco Oil Co. v. Chicago Bridge & Iron Co.

495 So. 2d 1317
CourtLouisiana Court of Appeal
DecidedDecember 5, 1986
DocketCA-4430 to CA-4447
StatusPublished
Cited by15 cases

This text of 495 So. 2d 1317 (Tenneco Oil Co. v. Chicago Bridge & Iron Co.) 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
Tenneco Oil Co. v. Chicago Bridge & Iron Co., 495 So. 2d 1317 (La. Ct. App. 1986).

Opinion

495 So.2d 1317 (1986)

TENNECO OIL COMPANY
v.
CHICAGO BRIDGE & IRON COMPANY, et al.
Ronald D. ECKLUND
v.
TENNECO OIL COMPANY, et al.
Lezlie Dolese NUNEZ, etc.
v.
TENNECO OIL COMPANY, et al.
Olga DUBROC, et uc.
v.
TENNECO OIL COMPANY.
Robert D. COLLINS and Nancy L. Collins
v.
TENNECO OIL COMPANY, et al.
Donald A. SOULANT
v.
TENNECO OIL COMPANY, et al.
BURNSED PETROLEUM CORPORATION
v.
TENNECO OIL COMPANY.
Maurice C. JACOB, et al.
v.
TENNECO OIL COMPANY, et al.
Darlene G. FAUST and Jack J. Faust, Jr.
v.
TENNECO OIL COMPANY, et al.
Martin GRANGER
v.
TENNECO OIL COMPANY.
Julienne Newsome NEUMEYER
v.
TENNECO OIL COMPANY.
Lyle RICE and Mary Ellen Rice
v.
TENNECO OIL COMPANY. *1318
Charles J. MERCIER, et al.
v.
TENNECO OIL COMPANY, et al.
Michael GRIFFIN, et al.
v.
TENNECO OIL COMPANY, et al.
Ralph J. SAUCIER, et al.
v.
TENNECO OIL COMPANY, et al.
Ronald D. ECKLUND, et al.
v.
TENNECO OIL COMPANY, et al.
Barbara ECKLUND
v.
TENNECO OIL COMPANY, et al.
Arthur SAVOR, et al.
v.
TENNECO OIL COMPANY, et al.

Nos. CA-4430 to CA-4447.

Court of Appeal of Louisiana, Fourth Circuit.

April 30, 1986.
On Rehearing September 22, 1986.
Writ Granted December 5, 1986.
Writs Denied December 5, 1986.

*1319 Monroe & Lemann, Benjamin R. Slater, Jr., Benjamin R. Slater, III, Julie E. Rodrigue, Mark E. Van Horn, New Orleans, for defendant-appellee Chicago Bridge and Iron Co., Inc.

Walker, Bordelon, Hamlin & Theriot, Alvin J. Bordelon, Jr., Terrence K. Knister, New Orleans, for plaintiff-appellant Tenneco Oil Co.

Hammett, Leake & Hammett, Dominic J. Gianna, John D. Person, New Orleans, for defendant-appellant Fluor Engineers, Inc.

Lozes, Cooper & Lozes, Felicien P. Lozes, New Orleans, for defendant-appellant Graffney, Inc.

Martzell & Thomas, John R. Martzell, Michael W. Robinson, New Orleans, for plaintiffs-appellants Lyle and Mary Ellen Rice.

Donald F. deBoisblanc, Catherine Leary, New Orleans, for plaintiffs-appellants Ronald Ecklund, et al., Ralph Saucier, et al., Donald Soulant, et al., Charles Mercier, et al., and Arthur Savoy, et al.

Frederick A. Miller & Associates, James C. Cockfield, New Orleans, for intervenor Hartford Acc. & Indem.

Before GULOTTA, SCHOTT, BYRNES, LOBRANO and WILLIAMS, JJ.

Writ Granted December 5, 1986 in Docket No. 86-C-1055.

Writs Denied December 5, 1986 in Docket Nos. 86-C-2085 and 86-C-2086.

BYRNES, Judge.

The sole question raised in this appeal is the applicability of La.R.S. 9:2772 to the various causes of action asserted in these consolidated cases by Tenneco and others against Chicago Bridge and Iron Company (CBI). The trial court ruled in favor of CBI, holding the causes of action perempted. We affirm.

On August 31, 1983 a fire occurred at Tank # 68 located on the premises of the Tenneco Refinery at Chalmette, La. As a result of that fire, a multitude of law suits were filed for personal injuries and property damage. As owner of Tank # 68, Tenneco *1320 was made a defendant in all of these suits. Tenneco filed third party demands against Fluor Engineers, Inc. and its subcontractor, Gaffney, Inc., who at the time of the fire, were engaged in construction work in the area of Tank # 68. Tenneco also third-partied CBI, the builder of Tank # 68, asserting defects in design and construction. In addition, Tenneco filed a separate suit against all of the above named parties seeking damages for its own property losses.

Gaffney and Fluor third partied CBI, alleging defects in design and/or construction. Gaffney also amended its third party demand to allege in the alternative that CBI failed to warn Tenneco and others of a potentially dangerous use of the tanks it built.

CBI filed exceptions to all claims on the grounds that the ten year peremptive period of La.R.S. 9:2772[1] barred any action against a contractor involving deficiencies in the survey, design, supervision or construction of an immovable. The trial court granted the exception and dismissed all claims against CBI. This appeal followed.

It is not disputed that Tenneco owns Tank # 68 or that CBI constructed it in 1967. Nor is it disputed that more than ten years have passed since Tenneco took possession of the tank and CBI last performed any work on it. The determinative issue before the trial court was whether the tank was an immovable or an improvement to an immovable.

In 1979, the legislature revised the Civil Code Articles dealing with property, including Articles 462 & 463 which define an immovable.

Among the issues raised by the parties to this appeal is the question of which version of the relevant articles applies to this case. In the instant matter, the operative facts which gave rise to this action occurred in 1983 when the tank caught fire and burned. We therefore hold that the 1978 revision should be used to determine the classification of Tank # 68. P.H.A.C. Services, Inc. v. Seaways International, Inc., 403 So.2d 1199 (La.1981).

Article 462 of the Civil Code provides that:

Tracts of land, with their components parts, are immovables.

Article 463 defines component parts as follows:

Buildings, other constructions permanently attached to the ground, standing timber, and unharvested crops or ungathered fruits of trees, are component parts of a tract of land when they belong to the owner of the ground.

In P.H.A.C. Services, supra, the Supreme Court noted that the 1978 revision effected several changes in the prior law. One of the changes noted by the Court was that:

"Constructions other than buildings are now classified as movables unless they are component parts of a tract of land.
*1321 To be a component part of a tract of land, a construction must meet two requirements: it must be permanently attached to the ground, and it must belong to the owner of the ground." P.H.A.C. Services, supra at 1203.

There is no dispute regarding Tenneco's ownership of the land and the tank. We consider the tank to be an "other construction" under C.C. Art. 463 and must therefore address the meaning of the phrase "permanently attached to the ground."

In Graffagnino v. Lifestyles, Inc., 402 So.2d 742 (La.App.4th Cir.1981), this court held that a structure described as an "O'Dome", which was designed to be portable and rest on a wooden platform, was an immovable. The Court reasoned that:

"While the O'Dome is designed to be portable, it is also designed to withstand storms and high winds. Therefore, when in use, it is designed to have a degree of permanency.
When used as a dwelling it is integrated with the soil and stationary. It is movable only when disassembled, i.e. not in use." Id at 744

The Graffagnino court cited with approval the First Circuit's reasoning in Ellis v. Dillon, 345 So.2d 1241 (La.App. 1st Cir. 1977) to the effect that courts must determine what buildings or other constructions qualify as an immovable in light of the social needs of the time.

We are of the opinion that when interpreting the phrase "permanently attached" as used in C.C. Art. 463, the emphasis should be on the word "permanent". As held by this Court in Graffagnino, supra,

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Bluebook (online)
495 So. 2d 1317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tenneco-oil-co-v-chicago-bridge-iron-co-lactapp-1986.