Grace & Co. v. City Of Los Angeles

168 F. Supp. 344 (1958)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D is the owner of Berth 59, Los Angeles Harbor, and together with defendant, Outer Harbor Dock and Wharf Co., operated a certain steel and concrete shed at Berth 59 in that portion of Los Angeles County known as San Pedro. P was the owner of approximately 1,960 bags of coffee, which had been stored in the shed at Berth 59 after having been discharged by various vessels and was awaiting delivery to P. In the public street adjacent to the shed was an 8-inch cast-iron water pipeline. A lateral line leading into the shed from the 8-inch pipe burst, flooding the floor of the shed and damaging P's coffee. When the pipe was installed 40-years before it was the best pipe available. Subsequent to the installation D became cognizant that the soil in the harbor area was highly corrosive and the pipes were a disaster waiting to burst. Based upon economic consideration, D established a policy of doing nothing about maintaining, repairing, or replacing the pipelines until a leak occurred and water was discovered on the surface of the ground. P sued for negligence. P contends that D knew or should have known that failure was certain and that without some sort of inspection, there was negligence on D's part. P claims that D had knowledge that a break was imminent, for some months prior, there appeared to be a leakage in the system of more than 130.00 cubic feet of water per day. Experts testified at the trial that in a graphitic corrosion break there is no gradual leakage, but that the surface of the pipe gives way all at once and thus allows water to spurt from the pipe. P claims liability under the doctrine of Rylands v. Fletcher and, second, negligence. (The Robertson 5^th Casebook has skipped the Fletcher analysis).