Texaco, Inc. v. Petroleum Specialists Corp.

35 Cal. App. 3d 427, 110 Cal. Rptr. 641, 38 Cal. Comp. Cases 927, 1973 Cal. App. LEXIS 722
CourtCalifornia Court of Appeal
DecidedNovember 19, 1973
DocketCiv. No. 40573
StatusPublished
Cited by2 cases

This text of 35 Cal. App. 3d 427 (Texaco, Inc. v. Petroleum Specialists Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texaco, Inc. v. Petroleum Specialists Corp., 35 Cal. App. 3d 427, 110 Cal. Rptr. 641, 38 Cal. Comp. Cases 927, 1973 Cal. App. LEXIS 722 (Cal. Ct. App. 1973).

Opinion

Opinion

HASTINGS, J.

Facts

Texaco, Inc., appellant (hereinafter Texaco), is owner of the modern “supertanker,” the SS Texaco Montana. On July 4, 1967, the ship was docked in the Los Angeles Harbor, at Wilmington, California, to discharge its cargo of fuel. Texaco had a contract with respondent, Petroleum Specialists Corp. (hereinafter PSC), providing that said company would discharge cargoes from Texaco tankers in Los Angeles (Wilmington) and Long Beach Harbors. In practice, when a Texaco vessel docks, PSC’s crew (approximately seven men on this occasion) replaces the vessel’s crew. On the above date, the PSC crew went aboard the Texaco Montana at 4 p.m., and the ship’s crew disembarked from the vessel. William Skinner, president of PSC, was in charge of this crew, which included Charles Bays (hereinafter Bays), an experienced pumpman and seaman. The only “or[432]*432ders” from Texaco to which PSC’s crew were subject were the written instructions from the ship’s chief mate outlining the sequence in which the vessel’s tanks were to be discharged. At all times pertinent hereto, the ship and the PSC personnel on it were under the control and supervision of PSC’s president, and Texaco did not interfere with PSC’s operations. It was stipulated at the trial that Bays was doing seaman’s work.

The Texaco Montana has nine sets of cargo tanks, numbered consecutively from front (fore) to the rear (aft). Thus, the number 8 tanks are aft. Cargo is discharged by being pumped through pipelines connected near the bottom of each tank. The main cargo valve through which the bulk of the cargo is removed is operated by a valve wheel on the main deck. The pipelines run from the tanks to the pumps that are located in a pump room near the rear (aft)' of the ship. Attached to each set of tanks on the main deck is a drop valve. Though generally not used to discharge cargo, it can be used during discharge operations to assist in restoring prime to a pump.

On July 5, 1967, at approximately 4 a.m., Bays was discharging cargo from number 8 port tank when the main cargo pump began to speed up. Bays was familiar with the racing sound and knew that the pump had lost, or was losing, its prime (running dry). The pump is lubricated by the liquid flowing through it. A dry pump overheats and can burn up, or cause an explosion. This can happen quickly, so, according to Bays, he had to act immediately to bring liquid to the pump, thus restoring its prime.1 One customary and accepted method to restore prime to the pump is to perform an operation called a “flying switch.” This involves two persons. To accomplish it on the pump that had lost its prime, one person must close the number 8 port tank’s main suction valve while the other man opens the number 8 drop valve, which would drop fuel back into the lower lines and through to the pump. The opening and closing of valves is done by hand. Bays decided to perform the “flying switch” with another employee of PSC, one Mr. Pollock (hereinafter Pollock), who had just finished discharging cargo from the number 8 starboard tank and was nearby. Pollock closed the main suction valve, and Bays tried to open the drop valve but it was jammed. According to Bays, when he found he could not turn the valve wheel, which was about three feet in diameter, he stepped to the side of the wheel, grabbed the top of it with both hands, put the heel of his foot on one of the bottom spokes, [433]*433and with great effort opened the valve. When the valve “cracked open,” he felt pain through his leg and back, but he proceeded to complete the “flying switch” and restored prime to the pump. He then continued working until his 16-hour shift ended at 8 a.m.

Bays sued Texaco on claims of unseaworthiness2 and negligence. Texaco cross-complained against PSC for indemnity for any damages Bays might recover against it. The jury returned a general verdict in favor of Bays against Texaco for $60,000 and also returned a general verdict (denying indemnity) in favor of PSC against Texaco. Texaco appeals from the judgment in favor of PSC.

Issues

I.

Texaco contends the evidence is insufficient to support the verdict and judgment for the following reasons:

A. Federal maritime law is controlling, and under said law PSC contractually owes Texaco a duty of workmanlike performance.
B. Bays was contributorily negligent, and this constituted a breach of PSC’s warranty of workmanlike performance.
1. Bays’ contributory negligence may be inferred from the amount of the jury award of damages.
2. The evidence compels a conclusion of contributory negligence on Bays’ part, and this is imputed to PSC as a matter of law.
C. Independent of Bays’ negligence, PSC breached its warranty of workmanlike performance by failing to instruct its employees with respect to safety precautions.
D. The evidence was insufficient as a matter of law to establish conduct on Texaco’s part sufficient to preclude indemnity.

II.

Texaco contends that, assuming the evidence was sufficient, Texaco is entitled to a new trial because the court committed reversible error in instructing the jury.

[434]*434Argument

A. Both parties agree that federal maritime law is controlling, and that PSC had a duty to perform its services in a workmanlike manner. From this point of departure, however, each steers a different course. Texaco cites numerous cases establishing the principle that the contract between the shipowner and a stevedore company carries with it a warranty that the work performed by the stevedore company will be done properly and safely. A breach of this warranty entitles the shipowner to indemnity where the shipowner has paid damages for an injury sustained by a stevedore working on the ship, although unseaworthiness of the vessel also played a part in the accident causing the injury. (Italia Soc. v. Ore. Stevedoring Co. (1964) 376 U.S. 315 [11 L.Ed.2d 732, 84 S.Ct. 748]; Crumady v. The J. H. Fisser (1959) 358 U.S. 423 [3 L.Ed.2d 413, 79 S.Ct. 445]; Weyerhaeuser S. S. Co. v. Nacirema Co. (1958) 355 U.S. 563 [2 L.Ed.2d 491, 78 S.Ct. 438]; Ryan Co. v. Pan-Atlantic Corp. (1956) 350 U.S. 124 [100 L.Ed. 133, 76 S.Ct. 232].) A recent California case, Standard Oil Co. v. Intrepid, Inc., 26 Cal.App.3d 135 [102 Cal.Rptr. 604], summarizes the numerous cases and states at pages 139-140: “The preceding principles establish that the duty of workmanlike performance is, in effect, a form of strict liability which is imposed upon the contractor by law in case he breaches the implied term of the contract. . . . Under what is now well established federal maritime law, the shipowner is precluded from recovery in an indemnity action only if its conduct prevented or seriously handicapped the contractor in performing a workmanlike job

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35 Cal. App. 3d 427, 110 Cal. Rptr. 641, 38 Cal. Comp. Cases 927, 1973 Cal. App. LEXIS 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texaco-inc-v-petroleum-specialists-corp-calctapp-1973.