Union Pacific Railroad v. Kaiser Agricultural Chemical Co.

425 N.W.2d 872, 229 Neb. 160, 1988 Neb. LEXIS 246
CourtNebraska Supreme Court
DecidedJuly 15, 1988
Docket86-526
StatusPublished
Cited by95 cases

This text of 425 N.W.2d 872 (Union Pacific Railroad v. Kaiser Agricultural Chemical Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Pacific Railroad v. Kaiser Agricultural Chemical Co., 425 N.W.2d 872, 229 Neb. 160, 1988 Neb. LEXIS 246 (Neb. 1988).

Opinion

Shanahan, J.

UNION PACIFIC-KAISER AGREEMENT

From 1976 and pursuant to its agreement with Kaiser Agricultural Chemical Company, the Union Pacific Railroad Company supplied tracks and service to Kaiser’s chemical facility. The trackage agreement, drafted by Union Pacific, included the following provision:

Section 9. LIABILITY.
The Industry [Kaiser] agrees to indemnify and hold harmless the Railroad Company for loss, damage or injury from any act or omission of the Industry, its employes or agents, to the person or property of the parties hereto and their employes and agents, and to the person or property of any other person or corporation, while on or about the Track; and if any claim or liability other than from fire shall arise from the joint or concurring negligence of the parties hereto, it shall be borne equally by the parties at fault.

NATURE OF APPEAL

Based on its agreement with Kaiser, Union Pacific sued Kaiser on account of the railroad’s settlement of claims which arose out of a train-vehicle collision in which one of Kaiser’s customers sustained property damage and a Kaiser employee sustained bodily injury.

In its amended petition, Union Pacific claimed that injuries *162 to Kaiser’s employee and property damage to Kaiser’s customer were “caused by negligent acts or omissions” of Kaiser, specifically alleged Kaiser’s “negligent” conduct, suchas failure to provide precautionary measures to avoid or prevent the accident, and asserted that Kaiser “knew, or should have known, in the exercise of ordinary care” that its conduct created an unreasonable risk of harm to Kaiser’s employee who was hurt in the accident. Union Pacific’s petition concluded with a prayer for indemnification of $95,000.

Kaiser answered, denied it was negligent, and alleged that any damages from the accident were caused by Union Pacific’s active negligence in contrast with Kaiser’s negligence, which was passive only.

Each party moved for summary judgment to dispose of the liability question under their agreement. Finding that Union Pacific was “entitled to contribution” pursuant to the agreement with Kaiser, the district court granted summary judgment to the railroad, overruled Kaiser’s motion for summary judgment, and, in a subsequent bench trial, determined that the settlements achieved by Union Pacific were reasonable and in good faith. Because Union Pacific had “admitted some negligence” regarding the accident, the district court concluded that Union Pacific was “entitled to indemnification of 50 percent of the settlements rather than for full indemnity” and awarded a $47,500 judgment to the railroad.

Kaiser contends that Neb. Rev. Stat. § 48-148 (Reissue 1984) of the Nebraska Workers’ Compensation Act immunizes Kaiser from liability outside the compensation act concerning an injury to a Kaiser employee, and, therefore, Kaiser is not liable to Union Pacific under the indemnity agreement for rail service. Kaiser also contends that there is no negligence on its part which renders Kaiser liable for indemnification under the agreement with Union Pacific. Finally, Kaiser claims that the settlements by Union Pacific were not reasonable and in good faith. Union Pacific contends the issue of negligence is irrelevant to recovery under the indemnity agreement with Kaiser.

A summary judgment is properly granted when the *163 pleadings, depositions, admissions, stipulations, and affidavits in the record disclose that there is no genuine issue concerning any material fact or the ultimate inferences deducible from such fact or facts and that the moving party is entitled to judgment as a matter of law. Wibbels v. Unick, post p. 184, 426 N.W.2d 244 (1988); Lowry v. State Farm Mut. Auto. Ins. Co., 228 Neb. 171, 421 N.W.2d 775 (1988). In appellate review of a summary judgment, the court views the evidence in a light most favorable to the party against whom the judgment is granted and gives such party the benefit of all reasonable inferences deducible from the evidence. See Ford v. American Medical International, 228 Neb. 226, 422 N.W.2d 67 (1988).

THE ACCIDENT

Trucks at Kaiser were loaded through doorways or docks on the east side of its building. Two sets of parallel Union Pacific tracks ran through the loading area for a distance of 225 feet along Kaiser’s building. The west, or closest, rail of the track used to spot railroad cars at Kaiser’s loading docks was 5 feet from Kaiser’s building. For a number of years, in loading at Kaiser, drivers had been parking their trucks across the Union Pacific tracks.

On the morning of March 26, 1981, Walter Cunningham, a driver for Corbet, Inc., drove his semi, which included a 42-foot flatbed trailer, to the loading area at Kaiser, where a Kaiser employee told Cunningham to park the semi across the two sets of tracks adjacent to Kaiser’s building. Cunningham backed the semi up to one of the doorway-loading docks near the northeast corner of Kaiser’s building and parked his rig with approximately 20 feet of the trailer’s length across the railroad tracks. To load bags of fertilizer on the trailer, Cunningham and Kaiser’s loading crew, including Gerald Blomenkamp, used a conveyor belt to move bags from the building’s interior to the semi for stacking on the trailer. Around 12:15 p.m., while Kaiser’s employees were on their lunch break, Cunningham sat in the semi’s cab, waiting to resume loading the bagged fertilizer. An empty boxcar was standing 10 feet south of the Corbet semi. At this time, but unbeknown to Cunningham, the crew of a Union Pacific switch engine was entering Kaiser’s premises from the south to remove empty boxcars at Kaiser. As *164 the switch engine coupled onto the boxcar near the semi, the boxcar was pushed or “bumped” into the Corbet rig, moving the trailer an “inch and a half.” Afterward, as Cunningham related: “[T]he brakeman come on back and said we’re sorry about that, poor communications with his walkie-talkie or two-way____”

About that time, which was around 12:30 p.m., the Kaiser loading crew returned from lunch. A Union Pacific crewman told David Moyer, leadman for the Kaiser crew, that the boxcar had collided or bumped into the semi. After the Union Pacific crewman, Cunningham, and Moyer had determined there was no damage to the semi, the switch engine and its crew left with the boxcar which had collided with the trailer. The semi remained in its loading position and location at Kaiser’s dock. Moyer knew that the switch engine would return later that day, because he had told the engine crew where to spot cars after the empty was removed. The switch engine’s engineer did not realize that the boxcar had struck the trailer. None of the train crew informed the engineer about the collision. Kaiser had no safety rules governing trucks parked on Union Pacific’s tracks or any warning procedure for “trains in the vicinity, ” but did have a “general practice” of maintaining a 30-foot interval between a spotted car and a truck at the loading dock.

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Bluebook (online)
425 N.W.2d 872, 229 Neb. 160, 1988 Neb. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-pacific-railroad-v-kaiser-agricultural-chemical-co-neb-1988.