Baltimore and Ohio R. Co. v. Commercial Transport, Inc.

• Decision Date: 04 January 1960
• Docket Number: No. 12674.,12674.
• Citation: 273 F.2d 447
• Parties: BALTIMORE AND OHIO RAILROAD COMPANY, Plaintiff-Appellee, v. COMMERCIAL TRANSPORT, INC., and Edgar C. Francis, Defendants-Appellants.
• Court: U.S. Court of Appeals — Seventh Circuit

273 F.2d 447 (1960)

BALTIMORE AND OHIO RAILROAD COMPANY, Plaintiff-Appellee, v. COMMERCIAL TRANSPORT, INC., and Edgar C. Francis, Defendants-Appellants.

No. 12674.

United States Court of Appeals Seventh Circuit.

January 4, 1960.

Bernard H. Bertrand and John M. Ferguson, East St. Louis, Ill., Wagner, Conner, Ferguson, Bertrand & Baker, East St. Louis, Ill., of counsel, for appellants, Commercial Transport, Inc., and Edgar C. Francis.

P. Eugene Smith, Dayton, Ohio, John C. Roberts, East St. Louis, Ill., Marshall & Smith, Dayton, Ohio, Edward W. Stubbs, Jr., of Kramer, Campbell, Costello & Wiechert, East St. Louis, Ill., for appellee, Baltimore & O. R. Co.

Before SCHNACKENBERG, PARKINSON¹ and CASTLE, Circuit Judges.

CASTLE, Circuit Judge.

This diversity action was brought by plaintiff-appellee, The Baltimore and Ohio Railroad Company against Commercial Transport, Inc., and Edgar C. Francis, defendants-appellants to recover damages in the sum of $69,104.17. The damages were alleged to have been sustained as a result of the negligent operation of a tractor-trailer operated for defendants which collided with a diesel locomotive of plaintiff at a railroad-highway crossing. The amount claimed by plaintiff as damages included $6,997.88 it expended in payment of hospital and medical bills of members of the train crew who were injured and burned in the collision. The balance claimed was for damage to the diesel engine, railroad cars, cargo and tracks.

By stipulation defendants agreed to the fairness and reasonableness of damages claimed to the extent of $47,455.33. Left in dispute was $21,648.84 which included the medical and hospital bills of the crew and certain percentages added to the direct cost of labor and materials used by plaintiff in repairing its property and equipment. Liability of defendants was not stipulated.

The jury returned a verdict for plaintiff for $65,000.00 on which judgment was entered. The defendants appealed contending that the district court erred (1) in admitting evidence concerning plaintiff's payment of hospital and medical expenses of its injured employees, (2) in the admission of certain evidence concerning the cost of repairs to damaged equipment and property, (3) in the exclusion of evidence concerning the design of the diesel locomotive, and (4) in giving certain instructions tendered by plaintiff and refusing certain instructions requested by defendants.

The main contested issues are (1) whether plaintiff, as a matter of law, had a right to recover for amounts expended in payment of hospital and medical bills of its injured employees, and (2) whether evidence of percentage increases added to the amounts paid for labor and materials under a formula utilized by twenty-five major railroads in charging each other for repairs was admissible in proving the cost to plaintiff of repairs it made to its damaged property and equipment.

The trial court permitted the introduction of evidence, over defendants' objection, that plaintiff paid hospital and medical bills of injured members of the train crew, together with the amount of such expenditures. Defendants objected to admission of evidence of such payments as elements of damage. They do not question the fairness or reasonableness of the amounts involved but contend that the plaintiff was under no legal obligation to pay these bills, was a mere volunteer in doing so, and is therefore, as a matter of law, not entitled to recover such amounts from defendants.

In a similar situation this court rejected the contention that a railroad was a mere volunteer and held it entitled to indemnification for amounts paid for medical services to its employees for injuries caused by the negligent third party. Chicago, Rock Island & Pacific Railway Company v. United States, 7 Cir., 220 F.2d 939. Similar holdings were made in St. Louis-San Francisco Ry. Co. v. United States, 5 Cir., 187 F.2d 925 and United States v. Chicago, Rock Island & Pacific Ry. Co., 10 Cir., 171 F.2d 377. In the cases cited settlements had been made with the employee compromising his claim against the railroad. Such factor, however, does not in our opinion serve to alter the legal principle involved nor afford a basis for distinguishing the cases cited. Settlement does not affect legal liability. The district court did not err in admitting evidence concerning payment of the hospital and medical bills by plaintiff.

On the issue of damages, as distinguished from liabilitiy, the defendants admitted the fairness and reasonableness of damages to the extent of $47,455.33. Repairs to the diesel engine and track were made by plaintiff itself. The stipulated figure included the total dollar amount plaintiff paid its employees for time spent in making the repairs to the engine and track and the amount paid suppliers for the material used. Left in dispute, as to...