Westland Oil Co. v. Firestone Tire & Rubber Co.

143 F.2d 326, 1944 U.S. App. LEXIS 3077
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 26, 1944
DocketNo. 12768
StatusPublished
Cited by10 cases

This text of 143 F.2d 326 (Westland Oil Co. v. Firestone Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westland Oil Co. v. Firestone Tire & Rubber Co., 143 F.2d 326, 1944 U.S. App. LEXIS 3077 (8th Cir. 1944).

Opinions

GARDNER, Circuit Judge.

This was an action for damages brought by appellant Westland Oil Company against appellee, Firestone Tire and Rubber Company, to recover damages resulting from a fire which it was alleged had been caused by the negligence of the Firestone Tire and Rubber Company. Appellants Hardware Mutual Insurance Company of Minnesota and Indiana Lumbermen’s Mutual Insurance Company became plaintiffs by intervention on the basis of subrogation to a part of the Westland Oil Company’s alleged damages because they had paid Westland Oil Company fire insurance covering a part of such fire loss. No issue is raised as to these insurance companies, and we shall refer to the Westland Oil Company as plaintiff and the Firestone Tire and Rubber Company as defendant.

Plaintiff at all times here pertinent was engaged in the production, distribution and sale of petroleum products and during such times defendant was engaged in the distribution and sale of tires, auto accessories and gasoline at Minot, North Dakota. Plaintiff was the owner of a steel bulk tank for the storage of gasoline, which was located on its property adjacent to a railway spur track, at Minot, North Dakota, and in 1937 it leased this storage tank to defendant. The storage tank was a horizontal cylinder thirty-three feet long and eleven feet in diameter, with flat ends. It was supported by a concrete foundation and a concrete sub-base and was set up on concrete piers two feet in diameter, with a steel frame work seven feet high and beams running across the uprights with a saddle on each section for the tank to rest on. The tank itself was made of steel, as were also the uprights and the saddle. It had a capacity of 23,459.7 gallons. At the top of this tank there was a manhole covered by a small dome through which passed the inlet pipe which went to within two feet of the bottom of the tank. Through this dome was passed a safety valve designed to equalize pressure by either admitting or releasing air. If the storage tank were filled beyond its capacity it would overflow from or through this safety valve. There was a small lid in the middle of this valve which could be lifted so that a gauge or measuring stick could be inserted without interfering with the valve mechanism. In the space under the storage tank there was a pump house containing pumping equipment. This pump house was located approximately underneath the center, which brought it directly under the safety valve. It was constructed of some 2 x 4s and sheet iron built up to the sides of the tank, the bottom of the tank serving as a roof for the pump house. In this pump house there was a fuel oil pump and also a gasoline pump. The gasoline pump only was in operation at the time of the fire. It was a rotary pump set on cement foundation and so constructed that it could pump gasoline either into or out of the storage tank. It was also used by plaintiff to serve its other adjacent tanks. There is no evidence when this pump had been inspected or repacked prior to the [328]*328fire. It was operated by an electric motor attached .to it by a belt. The switch which controlled the motor was also in the pump house on wires coming from plaintiff’s main building. It was an enclosed metal switch. In the main buillding, twenty-five feet from the storage tank, was a main switch which could be used to turn off the motor and pump.

While" defendant had a written lease from plaintiff on the storage tank and pump, plaintiff agreed for a consideration to handle all operations in connection with the unloading of gasoline from tank cars into this storage tank and for that purpose retained exclusive possession and control of the pump house and pumping equipment.

It is alleged in plaintiff’s complaint that while plaintiff controlled the actual process of unloading of gasoline from the railway tank cars, that defendant was obliged to check the contents of the storage tank and advise plaintiff when it might proceed with the unloading; that on the occasion of the fire, October 3, 1942, defendant failed properly to perform its obligation to check the contents of the storage tank for the purpose of ascertaining whether or not it would contain the contents of the tank car of gasoline spotted at the tank for unloading at that time; that defendant negligently gave plaintiff false or erroneous information and assurance to the effect that the storage tank would hold the contents of the tank car so spotted for unloading and directed plaintiff to proceed to unload the gasoline from the tank car into the storage tank, and that plaintiff, relying upon such assurance, proceeded, by use of the pumping equipment so installed, to unload the gasoline from the tank car into the storage tank; that while the process of unloading was going on the storage tank became filled to capacity and the gasoline overflowed and became ignited, causing serious damage.

Defendant’s answer, with exceptions not here important, denied the material allegations of the complaint and affirmatively alleged that the fire was caused by the negligence of plaintiff and that plaintiff was guilty of contributory negligence.

At the close of plaintiff’s testimony, the court on motion of defendant directed a verdict for defendant. From the judgment of dismissal entered on the directed verdict plaintiff prosecutes this appeal.

The sole question presented on this appeal is whether the court erred in directing a verdict for defendant. It is. contended by plaintiff that on the evidence' presented the jury might reasonably have found: (1) That defendant, both by express agreement and by a course of practice, had assumed the responsibility and legal duty of checking the contents of the gasoline storage tank and determining whether it would hold the quantity of gasoline to be pumped into it; (2) that on the occasion in question defendant negligently failed to exercise reasonable care in determining whether the tank would hold all of the gasoline; (3)' that defendant negligently represented to plaintiff that the storage tank would hold the quantity of gasoline to be pumped into it and that this representation was false; (4) that as a result of such negligence of defendant, the gasoline overflowed from the storage tank in the course of pumping operations “and that the fire originated when this gasoline was ignited by a spark in the pump house underneath the tank.”

The jurisdiction of the Federal court is based solely upon the diversity of .citizenship of the parties. The question here presented must, therefore, be determined by the law of North Dakota. Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188, 114 A.L.R. 1487; Hudson v. Moonier, 304 U.S. 397, 58 S.Ct. 954, 82 L.Ed. 1422.

Where the court directs a verdict in an action founded upon negligence, the evidence must be construed most favorably to the party against whom the verdict is directed and he is entitled to such favorable and legitimate inferences as may reasonably be drawn from the evidence, and when so considered if it can be said that reasonable men may fairly differ in the conclusion to be reached therefrom, the case should be submitted to the jury. First Natl. Bank of Knox v. Bakken, 17 N.D. 224, 116 N.W. 92; Champlin Refining Co. v. Walker, 8 Cir., 113 F.2d 844; Standard Oil Co. v. Lyons, 8 Cir., 130 F.2d 965.

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Bluebook (online)
143 F.2d 326, 1944 U.S. App. LEXIS 3077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westland-oil-co-v-firestone-tire-rubber-co-ca8-1944.