Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
, 2016)
In 2006, Jason Jenkins was injured while Martha Landwehr, Austin, for Amicus Curiae
using an acid-addition system at a chemical Texas Chemical Council
plant. The acid-addition was added to the
plant in 1992 by Occidental Chemical George S. Christian, Austin, for Amicus
Corporation. Occidental sold the plant to Curiae Texas Civil Justice League
Equistar chemicals, L.P., Jenkins’s employer,
in 1998. Jenkins sued Occidental, among Christopher Patton, Lynn Tillotson Pinker &
other defendants, alleging that Occidental’s Cox, LLP, Dallas, Richard A. Smith, for
negligent design of the acid-addition system Amicus Curiae The American Chemistry
caused his injuries. Occidental affirmatively Council
pled two statutes of repose. After a jury trial,
the trial court rendered judgment that Barry N. Beck, David Wayne Lauritzen, Rick
Jenkins take nothing, concluding that the G. Strange, Cotton Bledsoe Tighe & Dawson,
verdict supported at least one of Occidental’s P.C., Midland, Deborah G. Hankinson,
repose defenses. The court of appeals Joseph B. Morris, William Richard Thompson
reversed, concluding that Jenkins’s claim was II, Hankinson LLP, Dallas, for Petitioner
based on Occidental’s negligent design of the
acid-addition system, a theory that survived Charles Randall 'Chad' Flores, David M.
Occidental’s sale of the property and Gunn, Erin Hilary Huber, Russell S. Post,
continued independently of any premises- Beck Redden, LLP, Houston, Douglas W.
liability claim. The Supreme Court reversed, Alexander, Wallace B. Jefferson, Alexander
holding (1) a claim against a previous owner Dubose Jefferson & Townsend LLP, Austin,
for injury allegedly caused by a dangerous Jason A. Itkin, Cory D. Itkin, Kurt Brynilde
condition of real property is a premises- Arnold, Arnold & Itkin LLP, Houston, for
liability claim, regardless of the previous Respondent
property owner’s role in creating the
condition; and (2) because the previous Justice Devine delivered the opinion of the
owner sold the property several years before Court.
Plaintiff’s accident and did not otherwise owe
Plaintiff a duty of care, the court of appeals A claim against a property owner for injury
caused by a condition of real property
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Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
generally sounds in premises liability. That occurs in a large tank in which the TEG must
liability typically ends with the property's be maintained at a certain acidity.
sale. When the property's dangerous Technicians at the Bayport plant initially
condition is caused or created by another, an regulated the acidity by manually adding acid
independent claim against the other may lie or amine to the tank as necessary to adjust
in negligence and that claim, unlike the the pH level. A device for managing the tank's
premises-liability claim against the owner, pH level, referred to in this case as the acid-
does not necessarily end with the property's addition system, was later attached to the
sale. The issue in this cause is whether that tank because it was thought to be a safer
rule also applies to a property owner who process for adding acid. Ironically, this
creates the dangerous condition—that is, "improvement" caused Jenkins's injury.
whether the property owner owes both a duty
in premises liability to warn of the dangerous The acid-addition system was added to the
condition or make it safe and a duty in plant in 1992 by Occidental Chemical
negligence to use reasonable care not to Corporation. Occidental's employees used
create the dangerous condition in the first
place. [478 S.W.3d 643]
The court of appeals concluded that a the device for six years without incident. In
property owner who creates a dangerous 1998, Occidental sold the plant to Equistar
condition on its property may be held Chemicals, L.P., Jenkins's employer.
responsible for injuries under either liability Jenkins's injury occurred in 2006, eight years
theory, and that the negligence claim, unlike later. The acid-addition system was thus used
the premises-liability claim, remains viable by employees of Occidental and Equistar for
even after the property owner sells the fourteen years before Jenkins's injury.
property and relinquishes control over it. 415
S.W.3d 14, 28–31 (Tex.App.–Houston [1st The acid-addition system consists of several
Dist.] 2013). We conclude, however, that a components: a funnel, funnel cover, acid-
claim against a previous owner for injury addition pot, pressurized nitrogen system,
allegedly caused by a dangerous condition of several pipes, and three valves. The first of
real property remains a premises-liability these valves, the acid-inlet valve, connects the
claim, regardless of the previous property funnel to the acid-addition pot. The second
owner's role in creating the condition. valve connects the acid-addition pot to the
Because the previous owner sold the property pressurized nitrogen system. The third valve
several years before the plaintiff's accident connects the pot to the tank. To add acid to
and did not otherwise owe the plaintiff a duty the tank a technician removes the funnel's
of care apart from its ownership and control cover adding the desired amount of acid.
of the property, we reverse the court of Opening the first valve drains the acid into
appeals' judgment and render judgment that the pot. Closing the first valve and opening
the plaintiff take nothing. the second pressurizes the pot's contents.
Closing the second valve and opening the
I third forces the acid into the tank.
Jason Jenkins was injured in April 2006 On the day of the accident, Jenkins was asked
while using an acid-addition system at a to add acid to the tank. He had not performed
Bayport, Texas chemical plant. The Bayport this job before and therefore consulted the
plant produces triethylene glycol ("TEG"), a operating instructions before adding acid to
chemical compound with a variety of the system. He was asked later in the day to
industrial and commercial uses. Production adjust the pH level again because the tank
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Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
had still not reached the desired level. liability, a theory that no longer applied to
Unbeknownst to Jenkins, acid apparently Occidental as it did not own or control the
remained in the acid-addition system under premises at the time of Jenkins's accident.
pressure because when Jenkins opened the Again, the court disagreed, reasoning that
acid-inlet valve—the first of the system's three Jenkins's claim was based on Occidental's
valves—acid was expelled into his face, negligent
injuring his eyes.
[478 S.W.3d 644]
Jenkins sued Occidental, among others,1
alleging that Occidental's negligent design of design of the acid-addition system, a theory
the acid-addition system caused his injuries. that survived Occidental's sale of the property
Occidental generally denied Jenkins's and continued independently of any
allegations and affirmatively pled two statutes premises-liability claim. Id . at 28–31. The
of repose—one governing claims against court of appeals accordingly reversed and
registered or licensed professionals who remanded for the trial court to render
design, plan or inspect improvements to real judgment for Jenkins on the jury's liability
property, and one governing claims against and damages findings.
those who construct such improvements. See
TEX. CIV. PRAC. & REM. CODE §§ 16.008, II
.009.
Depending on the circumstances, a person
The case was tried to a jury. The jury found injured on another's property may have either
Occidental's design of, and operating a negligence claim or a premises-liability
instructions for, the acid-addition system claim against the property owner. Keetch v.
negligent and a proximate cause of Jenkins's Kroger Co., 845 S.W.2d 262, 264 (Tex.1992).
injury and determined Jenkins's damages. When the injury is the result of a
Regarding Occidental's statute-of-repose contemporaneous, negligent activity on the
defenses, the jury found that the acid- property, ordinary negligence principles
addition system was an improvement to real apply. Id . When the injury is the result of the
property that was designed under the property's condition rather than an activity,
supervision of, but not by, a registered or premises-liability principles apply. H.E. Butt
licensed professional. Both parties moved for Grocery Co. v. Warner, 845 S.W.2d 258, 259
judgment on the verdict. Concluding that the (Tex.1992). Although premises liability is
verdict supported at least one of Occidental's itself a branch of negligence law, it is a
repose defenses, the trial court rendered "special form" with different elements that
judgment that Jenkins take nothing. define a property owner or occupant's duty
with respect to those who enter the property.
The court of appeals, however, did not agree W. Invs., Inc. v. Urena, 162 S.W.3d 547, 550
that the verdict supported either of (Tex.2005). Under premises-liability
Occidental's statute-of-repose defenses. See principles, a property owner generally owes
415 S.W.3d 14, 19–28 (discussing sections those invited onto the property a duty to
16.008 and 16.009 of the Texas Civil Practice make the premises safe or to warn of
and Remedies Code ). Apart from repose, dangerous conditions as reasonably prudent
Occidental argued that the court of appeals under the circumstances. Corbin v. Safeway
should affirm the trial court's judgment Stores, Inc., 648 S.W.2d 292, 295 (Tex.1983)
because Occidental had not breached any ; Smith v. Henger, 148 Tex. 456, 226 S.W.2d
duty of care owed to Jenkins. Under this 425, 431 (1950). That duty generally runs
argument, Occidental maintained that with the ownership or control of the property
Jenkins's claim sounded solely in premises and upon a sale ordinarily passes to the new
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Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
that section 385 pertains to the liability of owner's contractors or servants, may share
entities other than a possessor or vendor of that duty while they control the property, but,
land). Strakos also does not purport to as Strakos recognizes, the duty of these third
separate a property owner's responsibility for parties is not necessarily co-extensive with
dangerous property conditions from the that of the property owner because "the
owner's control over the property. Like modern approach is to place contractors on
section 385, Strakos speaks only to the the same footing as manufacturers of goods
actions of third parties, and we have and apply the same general principles of
consistently limited its application negligence even after the acceptance of the
accordingly. See, e.g., In re Weekley Homes, work." Strakos, 360 S.W.2d at 792. The
L.P., 180 S.W.3d 127, 132 (Tex.2005) (duty of contractor's duties are thus tied not only to its
contractor performing repairs); Lefmark control of the premises but also to the quality
Mgmt. Co. v. Old , 946 S.W.2d 52, 54 of its contracted work. This latter duty may be
(Tex.1997) (duty of former property judged under ordinary-negligence principles
manager); Science Spectrum, Inc. v. even after the contractor no longer controls
Martinez, 941 S.W.2d 910, 912 (Tex.1997) the premises. Id .
(duty of adjacent tenant); City of Denton v.
Page , 701 S.W.2d 831, 835 (Tex.1986) (duty Similar legal implications have not developed
of fire marshal). with respect to land conveyances, where the
deed has traditionally been viewed as the
To be sure, an owner may have responsibility parties' full agreement, excluding all other
for a dangerous condition on its property terms and liabilities. RESTATEMENT
whether created by the owner or others. But (SECOND) OF TORTS § 352 cmt. a. In this
to conclude that the property owner owes the area, "the ancient doctrine of caveat emptor"
same duty of care as an independent retains "much of its original force," requiring
contractor for the condition's creation is the vendee to make his own inspection of the
another matter because the respective duties property and relieving the vendor of
of contractor and property owner are not the responsibility for existing defects. Id . Hence,
same. the general rule is that "vendors of real
property are not liable for injuries caused by
An owner who creates a dangerous condition dangerous conditions on real property after
on its own property has breached no duty of conveyance." Roberts, 886 S.W.2d at 367–68.
care unless and until the owner exposes
certain people to the danger. The owner's The court of appeals recognized this general
duty in this instance is rooted in its control rule. 415 S.W.3d at 31 (quoting Roberts, 886
over the property, which is to say premises S.W.2d at 367–68 ). But the court also
liability. Such liability rests on two theoretical recognized a new exception for certain former
assumptions: (1) the property owner controls property owners4 who, like Occidental,
the premises and is therefore responsible for purportedly occupy dual roles as both owner
dangerous conditions on it, see Cnty. of and designer of the defective improvement.5
Cameron v. Brown, 80 S.W.3d 549, 556 The court concludes that in this latter role the
(Tex.2002), and (2) the property owner is in a property owner is similar to the independent
superior position to know of and remedy the contractor in Strakos and should have similar
dangerous condition, see Austin v. Kroger liability. Id . We, however, disagree.
Texas, L.P., 465 S.W.3d 193, 203 (Tex.2015).3
Third parties, such as the No Texas case supports the court's dual-role
analysis. Moreover, the weight of authority
[478 S.W.3d 647] elsewhere rejects
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Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
2An exception exists when the vendor actively Dorman actually shares the court of appeals'
conceals or fails to disclose a known legal analysis, and that court observed that its
dangerous condition. Id. § 353. analysis was unique. See Dorman, 782 P.2d at
708 n. 3 (recognizing "that no court has
3 In Austin, we referenced a prior decision explained the applicability of § 352 [of the
discussing the landowner's superior position Second Restatement of Torts] as we do
to know of dangerous conditions and also here").
referenced the "Restatement (Third) of Torts:
Liab. for Physical & Emotional Harm § 51 6 See, e.g., Gresik, 33 A.3d at 599 & nn.6–7
cmt. t (2012) (addressing landowner's (declining to impose liability on a former steel
‘superior knowledge of the dangerous mill owner for a deadly explosion that
condition’)." Id. Although not previously occurred six years after the mill's sale and
briefed, Jenkins asserted during oral that resulted from the former owner's
argument that this reference to comment t to improvements); Conley v. Stollings, 223
section 51 constituted our acceptance of the W.Va. 762, 679 S.E.2d 594, 597–600 (2009)
Third Restatement's unitary duty of care and (holding former owners owed no duty to all-
an implicit abandonment of traditional terrain vehicle driver who was killed after
premises-liability principles. The collateral running into an unmarked steel cable
reference, however, will not bear that weight. installed by former owners because they sold
Its purpose was, as the parenthetical states, the property "almost two months before the
merely to highlight the law's assumption that accident occurred"); Papp v. Rocky Mountain
the landowner possesses superior knowledge Oil & Minerals, Inc., 236 Mont. 330, 769 P.2d
of premises defects. 1249, 1256–57 (1989) (holding former owners
who rebuilt an oil separator facility were not
4 The court indicated that the exception does liable for the death of the buyer's employee
not necessarily apply to "former home from an accidental gas release after they sold
owners" who create "a dangerous condition the facility and released control); Preston v.
through their design or construction work" Goldman, 42 Cal.3d 108, 227 Cal.Rptr. 817,
but only to "an industrial plant owner who 720 P.2d 476, 481 (1986) (rejecting plaintiff's
employed design professionals." 415 S.W.3d assertion that the former owners' liability
at 35 n. 27. should be evaluated based on "their roles as
designers and builders" and not upon their
5 The court of appeals cited three cases from
"status as landowners"); Century Display
other jurisdictions it found factually
Mfg. Corp. v. D.R. Wager Constr. Co., 71
analogous. 415 S.W.3d at 35 (citing Stone v.
Ill.2d 428, 17 Ill.Dec. 664, 376 N.E.2d 993,
United Eng'g, a Div. of Wean, Inc., 197 W.Va.
996–98 (1978) (holding former owner of
347, 475 S.E.2d 439, 443–44 (1996) (holding
manufacturing plant was not liable for fire
former plant owner liable for its negligent
when new plant owner had inspected the
design of conveyor belt); Dorman v. Swift &
property before purchase and had a
Co., 162 Ariz. 228, 782 P.2d 704, 706–08
"reasonable opportunity to discover the
(1989) (holding former plant owner liable for
dangerous condition complained of [i.e.,
negligent design of conveyor belt); and
tanks and pipes containing flammable
Carroll v. Dairy Farmers of Am., Inc., No. 2–
material] and to take the necessary
04–24, 2005 WL 405719, at *6 (Ohio Ct.App.
precautionary measures to protect against
Feb. 22, 2005) (not designated for
it"); Carlson v. Hampl, 284 Minn. 85, 169
publication) (finding fact issue as to whether
N.W.2d 56, 57 (1969) (holding former owner
former plant owner was negligent in its
was not liable for negligent construction of
design, fabrication, and installation of
stairway because he was no longer in control
support platform)). Of the three, only
of the property at the time of the injury and
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Occidental Chem. Corp. v. Jenkins, 478 S.W.3d 640 (Tex., 2016)
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