Case Name: PLANTATION PIPE LINE COMPANY, Plaintiff-Appellee, v. KAISER ALUMINUM AND CHEMICAL CORPORATION, Defendant-Appellant
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1969-04-14
Citations: 222 So. 2d 905
Docket Number: No. 7545
Parties: PLANTATION PIPE LINE COMPANY, Plaintiff-Appellee, v. KAISER ALUMINUM AND CHEMICAL CORPORATION, Defendant-Appellant.
Judges: Before LANDRY, REID and S ART AIN, JJ.
Reporter: Southern Reporter, Second Series
Volume: 222
Pages: 905–921

Head Matter:
PLANTATION PIPE LINE COMPANY, Plaintiff-Appellee, v. KAISER ALUMINUM AND CHEMICAL CORPORATION, Defendant-Appellant.
No. 7545.
Court of Appeal of Louisiana. First Circuit.
April 14, 1969.
Rehearing Denied April 14, 1969.
F. W. Middleton, Jr., of Taylor, Porter, Brooks, Fuller & Phillips, Baton Rouge, for defendant-appellant.
John V. Parker, of Sanders, Miller, Downing & Kean, Baton Rouge, for plaintiff-appellee.
Before LANDRY, REID and S ART AIN, JJ.

Opinion:
SARTAIN, Judge.
Appellant, Kaiser Aluminum and Chemical Corporation (Kaiser) seeks reversal of a judgment of the district court in favor of Plantation Pipe Line Company (Plantation) in the amount of $85,946.65, representing damages to Plantation's pipe line facilities admittedly resulting from Kaiser's negligence.
In January of 1942, the Solvay Process Company (Kaiser's predecessor in title) entered into an agreement with Plantation which granted Plantation an "easement and permit" for the installation and operation of ten pipe lines through Solvay's property. Solvay later conveyed to Kaiser a portion of the lands burdened with and subject to the previously granted "easement and permit".
On December 4, 1964, there existed four 12 inch pipe lines owned and operated by Plantation and crossing the property of Kaiser. Traversing a portion of Kaiser's property from east to west is Monte Sano Bayou which empties into the Mississippi River a relatively short distance west of Plantation's lines. Plantation's lines as they cross the bayou are exposed and are supported at about normal ground level by five concrete piling structures referred to in the engineering profession as bents. These facilities each consist of three 16 inch square concrete piles supporting a concrete cross member 24 feet in width on which the pipes rest.
During the week-end of December 4th through 7th, 1964, the four most southerly bents were severely damaged when a portion of the south bank of the bayou collapsed causing an earth slide.
It is undisputed and acknowledged that the slide was precipitated by Kaiser's placement of huge quantities of a bauxite waste by-product known as pisolite on its property at a point south of the bayou and east of Plantation's pipe lines.
In the course of its manufacturing process Kaiser must daily dispose of tremendous amounts of this material. Kaiser had previously used another area where 100,000 tons of this material were deposited. In August, 1964 it then became necessary that the area near Plantation's servitude be used as this material was accumulating at the rate of 900 tons a day. The earth slide in question resulted from the inability of the sub-soil beneath the pisolite dump to withstand the increased weight of the recently deposited material causing the bayou bank to slide or "slough" off. Plaintiff's pipe supporting structures were damaged as a result of the force of the land slide which actually shifted the land beneath the pilings.
The trial judge reviewed in detail the pertinent testimony of the witnesses. This testimony reflected that Kaiser had on previous occasions conducted extensive studies of the sub-surface soil conditions of their properties near Monte Sano Bayou and had in fact formulated certain safety factors to be followed in stockpiling these huge quantities of pisolites. The safety factors provided that the height of the pile to be limited to 14 feet and the "toe" or outer extension of the pile was restricted to 100 feet from the banks of the bayou. The maximum safe load was predetermined at 1500 pounds per square foot.
The trial judge found that at the time of the slide the stockpile had peaked at 25 feet or 11 feet over the previously established safety limit. Realizing that an unusual situation existed Kaiser discontinued major use of the area near Plantation's lines but did on occasions use it intermittently "in an emergency basis". As a matter of fact just shortly before the slide occurred a bull dozer was being operated in the area spreading the deposited material.
We concur with the trial judge's findings of fact as stated in his written reasons for judgment, to-wit:
"Now, it is apparent that from the recitation of the facts relating to Kaiser's operations that the overloading of the area near the bank with the pisolite material was the main factor in precipitating the slide. That Kaiser was well aware that it had violated its own safety regulations is not disputed.
The impending possibility of a slide was very much in the minds of the Kaiser personnel. Mr. Charles Breaux, the senior engineer of the Baton Rouge works, testified that they knew the conditions which existed and were very concerned about a slide on the south bank of the bayou; however, he said their concern was that the slide might' block the bayou crossing causing a flooding condition. He declared they never anticipated that the slide would move westward and cause damage to Plantation's pipe line. Additional testimony further showing Kaiser's informed position concerning slide possibilities is found in the testimony of Nathan Anderson, Kaiser's plant engineer at the time. He said, 'We knew there might he a slide, hut we did not anticipate the damage would he anything hut minor. We just misjudged the situation . It was a borderline case, and it became an actual case.'
The only reasonable conclusion which can be reached from this testimony is that Kaiser personnel realized the distinct possibilities of a slide of the material, but the far-reaching effect of the consequences were not anticipated. And yet, despite this realization of the situation and conditions present, they continued to allow the deposit of additional materials after August of 1964. In almost a plaintive manner Mr. Breaux declared, 'We had to put the material somewhere.'
The Court believes that the actions of Kaiser in this respect constitute negligence and as submitted by counsel for Plantation — probably gross negligence. Certainly there was a reckless disregard by Kaiser of the consequence of its actions." (Emphasis ours)
Kaiser's principal defense is predicated upon a provision in the original agreement between Solvay and plaintiff which reads as follows:
"Solvay expressly reserves, for itself and its said tenants, the right to make every use of said lands and premises which shall be found necessary to its or their present or future operations, and Solvay shall not be liable to Plantation for any loss or damage to said pipe lines resulting from any use of said lands and premises by Solvay or its said tenants." (Emphasis ours)
With respect to this provision the trial judge considered subsequent agreements entered into between • plaintiff and the Reconstruction Finance Corporation (Solvay's successor and Kaiser's predecessor in title). This latter agreement has the following provision:
"This servitude or easement is granted to and accepted by Plantation Pipe Line Company in lieu and substitution of the servitudes or easements heretofore granted in its favor over the land over which this servitude or easement extends and particulary the servitudes or easements granted by the Solvay Process Company to Plantation Pipe Line Company on January 23, 1942,
The trial judge also concluded that Plantation enjoyed the status of a servitude owner as evidenced by an agreement dated February 5, 1954 between the parties hereto which contains the following language:
"Whereas, Plantation is the owner of a servitude and right of way and ea'sement for the purpose of constructing, maintaining and operating, repairing, removing, changing the size of and replacing pipe or pipes for the transportation of oil, crude petroleum and refined petroleum products
Accordingly, the trial judge determined that contractually Kaiser acknowledged the right of Plantation to use the servitude for the purposes previously outlined and that Plantation was entitled to all rights accruing to a servitude owner under the laws of the State of Louisiana. This meant that Kaiser had "pledged itself not to encroach upon nor effect any changes in the terrain of Plantation's right-of-way, except as permitted in the agreements."
The trial judge then stated:
"Kaiser in denying liability argues that, because of the provisions of the reservation paragraph, it should be exempt from responsibility. In support of this position defendant relies, in part, on Article 752 of the Civil Code quoted as follows:
'Legal servitudes and even those which result from the situation of places, may be altered by the agreement of parties, provided the public interest does not suffer thereby.'
It seems to the Court, that as contended by the plaintiff, Article 752 and the provision relied upon should be construed so as not to defeat the purpose for which the servitude agreement was confected. Further, our courts have held that public policy prohibits one from contracting away responsibility for his own negligence. Hayes v. Hayes, 8 La.Ann. 468 and Sandel & Lastrapes v. Shreveport [La.App.], 129 So.2d 620. Counsel for plaintiff has ably expressed the interpretation the Court gives to this disputed provision and its relation to the entire contract and, accordingly, I quote from his brief: ' the right to make "every use" of the land does not include the right to make negligent use of the land, resulting in harm to others.' " (Emphasis by the trial judge)
Kaiser urges here on appeal that the exculpatory provision of the initial agreement between Plantation and Solvay does not contravene public policy and cites Jennings v. Ralston Purina Company, 201 So.2d 168 (2d La.App., 1967); Freeman v. Dept. of Highways, 197 So.2d 188 (1st La.App., 1967); Arnold v. Stupp Corporation, 205 So.2d 797 (La.App., 1st Cir., 1968); Forsyth v. Jefferson Downs, Inc., 152 So.2d 369 (La.App., 4th Cir., 1963) writ refused 244 La. 895, 154 So.2d 767 (1963) ; Celestin v. Employers Mutual Liability Insurance Company of Wisconsin, 387 F.2d 539 (5th Cir., La., 1968). Accordingly, they contend that the trial judge erred in relying on the Hayes and Sandel cases as controlling for the proposition that it is against public policy for one to absolve himself of his own negligence by contract. In Freeman this court had occasion to disagree with the holding of our brethren of the Second Circuit in Sandel. Because of this difference of opinion, the Louisiana Supreme Court granted writs and in their decision (217 So. 2d 166, 177) stated:
"On the facts found by the Court of Appeal on the merits of the case, we think it clear that the matter may be distinguished from the case at bar. However, it is true that, in considering an exception of no cause of action filed by the City, which was predicated on the provisions of Sections SC-6 and SC-15 of the contract, the Court of Appeal ruled that the exception was without merit because the exculpating clauses were contrary to public policy since they would permit a contractee ' to stipulate exemption from negligent acts which cause injury.' No authority is cited for this holding, and we know of none which supports the view that it is against public policy for contracting parties to agree that, in case one of them fails to perform a certain act timely and thus delays the other in the performance of his obligations, the former will not be held responsible for any damages caused by the delay. Accordingly, in this respect, we find that the Court of Appeal, First Circuit, was correct in refusing to follow the decision in the Sandel case."
While we agree with counsel for Kaiser that the Hayes and Sandel cases are not in themselves dispositive of the issue here, we concur with the result reached by the trial judge when he considered the other agreements (quoted above) which pertain to the same servitude and the rights and obligations of the parties and their successors which flow therefrom.
In the final analysis, the decision for resolution here concerns the interpretation of the first mentioned provision. Is the reservation of the " right to make every use of said lands " so exculpatory as to include "negligent use" thereof as urged by Kaiser; or, is the provision subject to a different interpretation that excludes negligent use of the lands and liability for resulting damages as urged by Plantation?
The trial judge's consideration of previous agreements concerning the subject of servitude adopts the contention of Plantation's counsel who urged that although the contract in question is a servitude agreement, the rules of our Civil Code relative to the interpretation of agreements are nonetheless applicable. The pertinent articles which apply in the instant matter are:
Article 1945:
"Legal agreements having the effects of law upon the parties, none but the parties can abrogate or modify them. Upon this principle are established the following rules:
Second — That courts are bound to give legal effect to all such contracts according to the true intent of all the parties;
"Third — That the intent is to be determined by the words of the contract, when these are clear and explicit and lead to no absurd consequences; "
Article 1948:
"When there is a doubt as to the true sense of the words of a contract, they may be explained by referring to other words or phrases used in making the same contract."
Article 1949:
"When there is anything doubtful in one contract, it may be explained by referring to other contracts or agreeements made on the same subject between the same parties, before or after the agreement in question."
Article 1950:
"When there is anything doubtful in agreements, we must endeavor to ascertain what was the common intention of the parties, rather than to adhere to the literal sense of the terms."
Article 1951:
"When a clause is susceptible of two interpretations, it must be understood in that in which it may have some effect, rather than in a sense which would render it nugatory."
Article 1955:
"All clauses of agreements are interpreted the one by the other, giving to each the sense that results from the entire act."
Other articles of the Civil Code relative to servitudes that should be considered are:
Article 771:
"When a servitude is established, everything which is necessary to use such servitude is supposed to be granted at the same time with the servitude. "
Article 772:
"He to whom a servitude is due, has a right to make all the works necessary to use and preserve the same."
Article 777:
"The owner of the estate which owes the servitude can do nothing tending to diminish its use, or to make it more inconvenient. "
A perusal of the above articles clearly announces the proposition that it is the duty of the court to determine the true intent of the parties (C.C. Art. 1945). When there is doubt as to the true sense of the words of a contract reference may be had to other words or phrases in making the same contract (C.C. Art. 1948); or, when there is anything doubtful in one contract reference may be had to other contracts or agreements made on the same subject between the same parties, before or after the agreement in question (C.C. Art. 1949). Also, when there is anything doubtful concerning a provision in an agreement the court must ascertain the common intention of the parties rather than adhere to the literal sense of the terms (C.C. Art. 1950) and interpret the contract in such a manner as to give it effect rather than render it nugatory. In doing so all clauses are interpreted one by the other, giving to each the sense that results from the entire act. (C.C. Art. 1955).
In the agreement under consideration which was executed on January 23, 1942, two things are purported to be accomplished, namely: (1) the granting of a servitude by Solvay to Plantation which would permit the establishment of ten 12" pipe lines by Plantation; and, (2) the reservation by Solvay of the "complete use" of its lands and release from "any loss or damage" resulting from such use by Sol-vay. The first purpose is clear and presents no problem. The second reason is not clear and is the subject of this litigation. In resolving the intent of Solvay in reserving unto itself the future use of its lands we note that the first controversy concerning the intent of the agreement occurred in 1947 between plaintiff and Reconstruction Finance Corporation (Kaiser's predecessor in title) and this controversy was resolved on April 16, 1947 by the execution of a new agreement which had for its express purpose a settlement of issues growing out of the first agreement and giving rise to a suit in the U. S. District Court of Louisiana. This agreement was in lieu of the servitude granted by Solvay on January 23, 1942. The new agreement contained no exculpatory clauses.
Subsequently, each time Kaiser endeavored to construct on or over or in any other way encroach upon the servitude granted Plantation specific authority was obtained from Plantation and such changes and additions were performed at the cost of Kaiser. This is the agreement dated February 5, 1954 and other similar agreements dated January 20, 1958, March 30, 1960 and August 2, 1962.
These agreements and particularly that of April 16, 1947, clearly evidences an intent contrary to Kaiser's interpretation of the exclusionary clause. These agreements also clearly distinguish the case at bar from the facts which supported our conclusion in the Freeman case. More on this latter point later.
Counsel for Kaiser contends that the agreement of April 16, 1947 is not applicable to the instant controversy because it pertains to lands other than that in which the land slide occurred. The matter may be more clearly understood if we note that Kaiser's plant is located on the east bank of the Mississippi River immediately south of the old bridge. Monte Sano Bayou traverses Kaiser's property from east to west and empties in the Mississippi River. Kaiser purchased its property from two owners. The property north of Monte Sano Bayou was purchased from the Reconstruction Finance Corporation. The property south of the bayou was purchased from Solvay. Kaiser argues that inas much as the agreement of April 16, 1947 was between Plantation and Reconstruction Finance Corporation, the agreement only modified that portion of the servitude which was located north of the bayou and that the original agreement remained in effect when Kaiser purchased the southern portion of its property directly from Sol-vay. While it is true that the parties are not the same it nevertheless remains that Reconstruction Finance Corporation was a successor in title to Solvay, predecessor in title to Kaiser, and clearly shows what intent Reconstruction Finance Corporation and Plantation gave to the original agreement. We do not see how Kaiser at this time can imply a different intent than did its predecessors in title.
As stated above the facts in this case are clearly distinguishable from those of the Freeman case for here we have subsequent interpretations placed on an agreement together with supplemental agreements specifically negating exculpatory intentions.
In Freeman the Supreme Court on rehearing footnoted with approval the factual basis upon which we upheld an exculpatory provision, to-wit: (217 So.2d 166, 175)
"4. In this connection, the Court of Appeal in its opinion correctly observes :
'Before considering the hereinabove cited clear and unambiguous contract provisions which we deem decisive of the case at hand, we note that the parties are experienced in the complexities of highway construction and its attendant problems. We also find from the evidence that all concerned were or should have been aware of the delays normally to be expected in the course of road construction of the scope involved in these contracts. Nothing in the record indicates an overzealousness on defendant's part to include exculpatory provisions in the contracts to diminish the effect of the agreements or take advantage of an inexperienced or naive party. The previously quoted paragraphs entitled 'Revision of Plans' and 'Delays and Extensions' expressly provide for the eventuality of delays and specifically and lucidly establish the mode of payment to plaintiff in the event delays should occur.
'We also find that as an experienced engineer, plaintiff was or should have been aware of the likelihood of such delays and signed the contracts with full knowledge and appreciation of the possibility that progress of the work would from time to time be delayed by circumstances revealed during planning and construction, by changes dictated by the defendant during work progress and by the necessity of approval of plans both by various segments of the Department iwvolved in a project of such magnitude and by at least one agency of the Federal Government.' (See 197 So.2d at page 198.)" (Emphasis ours)
In short, we said that the language therein contained was clear and unambiguous and that nothing in the record indicated an overzealousness on defendant's part to include exculpatory provisions or to take advantage of an inexperienced or naive party. We also noted that an experienced •engineer such as Freeman was or should have been aware of the likelihood of the delays that followed and the necessity of approval of plans by various agencies all of which Freeman complained caused him damages.
Such are not the facts in the case at hand. Any doubts as to the meaning of the exculpatory clause now asserted by Kaiser were resolved against them by their predecessor in title, Reconstruction Finance Corporation. Further, we find as did the trial judge that Kaiser knowingly exceeded its own safety requirements by literally doubling the risk. By their own admission they were not to pile these pisolites to a height greater than 14 feet nor to a point within 100 feet of the bayou. By permitting this material to be deposited in closer proximity to the hank of the bayou and at a height of 25 feet Kaiser took a deliberate calculated risk. This risk was taken knowing that the land upon which this material was deposited was subject to slides. The record reveals that as far back as 1953 Plantation protested the deposition of debris by Kaiser on their right of way on the north side of the bayou; that a bank slide similar in nature to the instant one though not of such magnitude occurred on January 27, 1954 which resulted in Kaiser's payment for damages to one of Plantation's concrete bents. Further, in 1954 extensive sub-surface soil studies were made by Kaiser which conclusively pointed up the instability of the land bordering the bayou and the reason for the 1954 slide. It is also noted that in 1953 while Kaiser was constructing a mud thickener on land near the bayou two slides occurred. All of this points up our reasoning for concurring with the aforementioned findings of fact by the trial judge which facts also distinguish this case from the Freeman case.
In Freeman we were concerned with delays which we held should have been reasonably foreseen by Freeman as an experienced engineer. In the instant matter we have a deliberate use of land by Kaiser near Plantation's right of way when Kaiser was fully possessed of information clearly indicating the possibility of a slide with resulting damages. This is qute evident when Kaiser's engineer stated "We knew there might be a slide but we did not anticipate the damage would be anything but minor. We just misjudged the situation It was a borderline case and it became an actual case." The appellation of gross negligence to this incident by the trial judge under these circumstances is not manifest error.
Finally, it is urged that Plantation is bound by the initial agreement and particularly the aforementioned exculpatory clause because the agreement was entered into for a nominal consideration of $1,000.-00. There is not one scintilla of evidence in this entire record to support any conclusion that this was not anything but fair and adequate compensation for a servitude. If this was an inadequate or nominal consideration the burden rests with Kaiser to show this and in the absence of such showing we have no other alternative but to conclude that the agreement was entered into between two knowledgeable corporations after appropriate bargaining. There is nothing in this record to further indicate that Plantation was granted this servitude as a gratuity or was permitted to cross the lands of Solvay by sufferance.
Finally, Kaiser urged contributory negligence on the part of Plantation asserting that the latter's pipe line walkers should have observed the storage of the pisolites in close proximity to Plantation's lines and having observed the same should have taken necessary steps to warn Kaiser of or take necessary steps to prevent the impending land slide. We agree with the trial judge's determination that the defense of contributory negligence is without merit for the reason that Plantation's employees did not have available to them the information that remained within the knowledge of Kaiser's personnel.
Accordingly, for the above and foregoing reasons the judgment of the district court is affirmed at appellant's costs.
Affirmed.