United States Fire Insurance v. Northern Pacific Railway Co.

193 P.2d 868, 30 Wash. 2d 722, 2 A.L.R. 2d 1065, 1948 Wash. LEXIS 424
CourtWashington Supreme Court
DecidedMay 20, 1948
DocketNo. 30336.
StatusPublished
Cited by4 cases

This text of 193 P.2d 868 (United States Fire Insurance v. Northern Pacific Railway Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Fire Insurance v. Northern Pacific Railway Co., 193 P.2d 868, 30 Wash. 2d 722, 2 A.L.R. 2d 1065, 1948 Wash. LEXIS 424 (Wash. 1948).

Opinion

Schwellenbach, J.

This is an appeal from a judgment dismissing the action of plaintiffs, with prejudice, and granting judgment for costs to defendant.

March 1, 1923, the Northern Pacific Railway Company leased a portion of its right of way at Thiel, Washington, to Con Donovan. The subject matter of the lease was a grain warehouse of 40,000 bushels’ capacity, owned by Donovan.

The lessee was to pay an annual rental of twenty dollars. Section 6 of the lease provided:

*723 “No other railroad or transportation company, or person engaged in transportation, shall be allowed to use any track now or hereafter upon or extending to the premises without permission in writing of the Railway Company, and the Railway Company shall have the exclusive right of carrying all grain to be transported by rail to or from said warehouse.”

Section 7 provided:

“It is understood by the parties that the leased premises are in dangerous proximity to the tracks of the Railway Company, and that persons and property on the leased premises will be in danger of injury or destruction by fire or other causes incident to the operation of a railway, and the lessee accepts this lease subject to such dangers. It is therefore agreed, as one of the material considerations of this lease without which the same would not be granted, that the lessee assumes all risk of personal injury to the lessee and to the officers, servants, employes or customers of the lessee while on said premises, and all risk of loss, damage or destruction to buildings or contents or to any other property brought upon or in proximity to the leased premises by the lessee, or by any other person with the consent or knowledge of the lessee, without regard to whether such loss be occasioned by fire or sparks from locomotive engines or other causes incident to or arising from the movement of locomotives, trains or cars, misplaced switches or in any respect from the operation of a railway, or to whether such loss or damage be the result of negligence or misconduct of any person in the employ or service of the Railway Company or of defective appliances, engines or machinery. And the lessee shall save and hold harmless the Railway Company from all such damage, claims and losses.”

On October 25, 1923, Donovan, with the consent of the railroad company, sold the warehouse and assigned his interests in the lease to H. E. Morrison and C. G. Eubanks, copartners, doing business under the trade name and style of Morrison Warehouse Company.

On June 20, 1944, the railroad company operated a weed burner in the vicinity of the warehouse in a negligent manner, permitting weeds along the right of way to catch fire; the employees operating the water car which followed the weed burner, and the members of the section crew, who *724 were on foot, and followed the water car, were negligent in patrolling and in extinguishing the fires set by the weed burner, in that they left the vicinity of the warehouse without making certain that all fires had been extinguished. As a result, the fires spread along the right of way and the warehouse on the leased premises was destroyed.

Morrison and Eubanks commenced suit against the railroad company for damages in the amount of $6,190. The plaintiffs had, before the fire, insured the warehouse with the appellants herein. Appellants had paid the plaintiffs the sum of $6,190 for the destruction of the warehouse, and, under the policies of insurance, became subrogated to the rights of plaintiffs in any cause of action they had for damages resulting from fire. By stipulation of the parties, appellants were substituted in this action as parties plaintiff.

The trial court found that the loss was occasioned by the negligence of the employees of the railroad company; that the amount of the damage was $6,190; but that section 7 of the lease was a complete legal and valid defense to plaintiffs’ cause of action.

Respondent admits the negligence of its employees, and the amount of the damage. Appellants admit that no question of public policy is involved, so our sole problem is to determine whether or not the acts complained of, which resulted in the loss of the warehouse, came within the provisions of section 7 of the lease.

The trial court might have been influenced in its decision because, as was said in the memorandum opinion, “A nominal annual rental fee of $20.00 is provided for in the lease.” However, that nominal rental fee could have been influenced by the fact that the railway company had the exclusive right of carrying all grain to be transported by rail to and from the warehouse.

The question of what constitutes “operation of a railway” is a matter of first impression before this court, and we must look to the decisions of other jurisdictions to assist us in determining the problem before us.

Connors v. Chicago & N. W. R. Co., 111 Iowa 384, 82 N. W. 953, was an action for damages occasioned by a fire alleged *725 to have been set and negligently permitted to escape by defendant’s employees when burning weeds and grass along its right of way. In reversing a verdict and judgment for plaintiffs, the court said:

“The important inquiry, then, is, what is meant by ‘operating a railway?’ In none of the cases heretofore determined has the application of the statute gone beyond a fire set out or caused by an engine on the track. But under the co-employes’ act (Code, section 2071), allowing recovery by an employe injured by negligence ‘in any manner connected with the use and operation of any railway on or about which they shall be employed,’ the clause ‘use and operation of any railway’ has been frequently considered and defined. Thus, in Stroble v. Railway Co., 70 Iowa, 560, the court, through Beck, J., said: ‘What is the use and operation of a railway? It is constructed for the sole purpose of the movement of trains. That is its sole use. What is the operation of a railway? They can be operated in no other way than by the movement of trains.’ In Nelson v. Railway Co., 73 Iowa, 576, the movement of steam ditching machines, and in Larson v. Railway Co., 91 Iowa, 81, that of a hand car, were held to be operating a railway. In Akeson v. Railway Co., 106 Iowa, 64, after reviewing the authorities, the court concluded that: ‘The only dangers peculiar to railroading are those occasioned by the movement of the engines, cars, and machinery on the track, or directly connected therewith. It is evident that the statute contemplates such injuries only as are caused by the negligent acts of employes so engaged. In no other proper sense is a railway used and operated. * * * If, then, the injury is received by the employe whose work exposes him to the hazards of moving trains, cars, engines, or machinery on the track, and is caused by the negligence of a co-employe in the -actual movement thereof, or in any manner directly connected therewith, the statute applies, and recovery may be had. Beyond this the statute affords no protection.’ ”

Missouri Pac. R. Co. v. H. A. Cady, 44 Kan. 633, 24 Pac.

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193 P.2d 868, 30 Wash. 2d 722, 2 A.L.R. 2d 1065, 1948 Wash. LEXIS 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-fire-insurance-v-northern-pacific-railway-co-wash-1948.