Matkovic v. Shell Oil Co.

                              No. 85-97
                IN THE SUPREME COURT OF THE STATE OF MONTANA
                                  1985




ELIZABETH M. NATKOVIC, individually,
and as guardian of the persons and
estates of WILLIAM RUSSELL SWEET
and SCOTT JAMES SWEET, Deceased,
et al.,
                       Plaintiffs and Petitioners,


SHELL OIL COMPANY and BLACK HILLS
TRUCKING, INC.,
                       Defendants and Respondents.




ORIGINAL PROCEEDING:


COUNSEL OF RECORD:
         For Petitioners:
              Butte Legal Center; D.L. Holland argued, Butte,
              Montana
         For Respondents:
              Moulton, Bellingham, Longo & Mather; William H.
              Bellingham argued for Shell Oil, Billings, Montana
              Alexander & Baucus; John D. Alexander argued for
              Black Hills Trucking, Great Falls, Montana



                                Submitted:   June 27,   1985
                                  Decided:   September 30, 1985


Filed:




                               Clerk
Mr. Justice Frank B. Morrison, Jr., delivered the Opinion of
the Court.
     This is an action filed for declaratory relief under
Uniform Rule No. 1 of the Montana Rules of Appellate Civil
Procedure in response to Federal District Judge Battin's
certification of certain questions to       this Court.    This
action was commenced in the District Court of the Second
Judicial District, in and for the County of Butte-Silver Bow,
by the plaintiffs on March 28, 1983.     The defendants removed
the case to the United States District Court, for the Dis-
trict of Montana, Billings Division.     By an order entered on
December 12, 1984, the Federal District Court certified the
foll-owing questions.
     1.    Under Montana   law, is a person who carries on an
abnormally dangerous activity strictly liable for harm to
persons resulting from said activity, although the person
engaged in the said activity has exercised the utmost care to
prevent the harm?
     2.    May the defense of assumption of risk be a complete

bar to plaintiff's recovery under the circumstances of ques-
tion number l?
     3.     If a defense of assumption of risk may not be a
complete bar to plaintiff's recovery as posed in question
number 2, then is the defense of assumption of risk treated
like the defense of contributory negligence under Montana
Code Annotated,       27-1-101 et seq., 1983, and apportioned
as under the comparative negligence statute?
     4.     Is the doctrine of contributory negligence available
as a defense under the circumstances of question number l?
     The facts of this case for certification purposes were

recited by the Federal District Court as follows:
          "Elizabeth M. Matkovic is the mother of
          Russell William Sweet, Deceased, and the
           d u l y - a p p o i n t e d g u a r d i a n o f W i l l i a m Rus-
           s e l l Sweet and S c o t t James S w e e t , t h e
           minor c h i l d r e n o f R u s s e l l William Sweet,
           D e c e a s e d , and t h e p e r s o n a l r e p r e s e n t a t i v e
           o f t h e e s t a t e o f R u s s e l l W i l l i a m Sweet,
           Deceased.                  Vicky J e a n S t a c e y i s t h e
           mother and duly-appointed c o n s e r v a t o r o f
           t h e e s t a t e o f Lawrence S w e e t , a p r o t e c t e d
           p e r s o n and t h e m i n o r son o f t h e d e c e d e n t .
           William           Sweet i s t h e            father of            the
           decedent.

           "Defendant, S h e l l O i l , o p e r a t e d o i l w e l l s
           i n North D a k o t a .          O i l we11 production
           w a t e r was p r o d u c e d from t h e w e l l s a s a
           by-product.              Shell O i l hired defendant
           Black H i l l s Trucking t o h a u l t h i s w a t e r
           t o a d i s p o s a l a r e a i n Montana.                     The
           p r o d u c t i o n w a t e r was h i g h l y c o n t a m i n a t e d
           w i t h hydrogen s u l f i d e .

           "On J a n u a r y 2 9 , 1 9 8 1 , B l a c k H i l l s Truck-
           i n g b r o u g h t a t r u c k , w h i c h was u s e d t o
           haul t h i s water, i n t o a garage i n Sidney,
           Montana, f o r s e r v i c i n g a n d r e p a i r .        The
           d e c e d e n t , a n employee o f t h e g a r a g e , was
           a s s i g n e d t h e d u t y o f s e r v i c i n g and re-
           pairing t h e truck.            P l a i n t i f f s claim t h a t
           w h i l e t h e d e c e d e n t was w o r k i n g o n t h e
           t r u c k , h e was overcome by h y d r o g e n s u l -
           f i d e g a s e m i s s i o n s and d i e d a s a r e s u l t
           o f such exposure."



     UNDER MONTANA LAW, I S A PERSON WHO CARRIES ON AN ABNOR-
MALLY DANGEROUS ACTIVITY STRICTLY LIABLE FOR HARM TO PERSONS
           R M SAID ACTIVITY, ALTHOUGH THE PERSON ENGAGED I N
RESULTING F O
THE SAID ACTIVITY HAS EXERCISED THE UTMOST CARE T PREVENT
                                                    O
THE HAm?

        The      genera 1 r u l e       describing          liability          for   abnormally

d a n g e r o u s a c t i v i t y i s found i n R e s t a t e m e n t      (Second) - T o r t s
                                                                                    of

§   519 ( 1 9 7 6 ) , which s t a t e s :

           " (1) One who c a r r i e s on a n a b n o r m a l l y
           dangerous a c t i v i t y i s s u b j e c t t o l i a b i l i -
           t y f o r harm t o t h e p e r s o n , l a n d o r c h a t -
           tels         of    another        resulting        from      the
           a c t i v i t y , a l t h o u g h he h a s e x e r c i s e d t h e
           u t m o s t c a r e t o p r e v e n t t h e harm.

           " ( 2 ) This strict l i a b i l i t y is limited t o
           t h e k i n d o f harm, t h e p o s s i b i l i t y o f
           which      makes   the   activity        abnormally
           dangerous."

        This Court has previously adopted a                               similar theory i n

D u t t o n v.   Rocky Mountain P h o s p h a t e            ( 1 9 6 8 ) , 1 5 1 Mont.   54,   438
P.2d 674.    In that case, this Court articulated a standard of
strict liability for damage to crops and livestock caused by
flouride being emitted from a phosphate plant.
     Shell Oil Company recognizes that this Court might apply
strict liability principles in an abnormall-y dangerous situa-
tion, but argues that the facts of this case do not warrant
submission of the theory.       However, that issue is for the
Federal District Court.     We are only asked whether we would
adopt strict liability standards where abnormally dangerous
activities are in fact involved.      Our answer to that question
is in the affirmative.     The standard set forth in Restatement
(Second) - Torts
         of         $   519 (1976), set forth above, is the one
that should be followed in submitting this issue to the jury.
     Shell Oil urges this Court to require the submission of
Restatement (Second) - Torts
                     of         §    520 (1976), if   $   519 is to be
given.   We agree with this position.
     Restatement   (Second) - Torts 5 520
                            of                  (1976), provides:
         "In determining whether an activity is
         abnormally   dangerous,   the following
         factors are to be considered:
         " (a) existence of a high degree of risk
         of some harm to the person, land or
         chattels of others;
         "(b) likelihood that the harm          that
         results from it will be great;
         " (c) inability to eliminate the risk by
         the exercise of reasonable care;
         " (d) extent to which the activity is not
         a matter of common usage;

         " (el inappropriateness of the activity
         to the place where it is carried on; and
         "(f) extent to which its value to the
         community is outweighed by its dangerous
         attributes."
    The definition of abnormally dangerous activity con-
tained in 5 520 should be given in conjunction with an in-
s t r u c t i o n s e t t i n g f o r t h t h e p r i n c i p l e of l i a b i l i t y enunciated



                                             I1 AND I11

     MAY THE DEFENSE OF ASSUMPTION OF RISK RE A COMPLETE BAR
TO PLAINTIFF'S RECOVERY UNDER THE CIRCUMSTANCES OF QUESTION
NUMBER 1; AND, I F NOT, THEN I S THE DEFENSE OF ASSUMPTION OF
RISK TREATED LIKE THE DEFENSE OF CONTRIBUTORY NEGLIGENCE
UNDER MONTANA CODE ANNOTATED, §§ 27-1-101, ET SEQ., 1 9 8 3 , AND
APPORTIONED AS UNDER THE COMPARATIVE NEGLIGENCE STATUTE?

           In   Z a h r t e v.     Sturm,    R u g e r & Co.        (Mont.    19831,      6 6 1 P.2d

17,    40 St.Rep.            316,     t h i s Court h e l d t h a t assumption o f r i s k

was a v a i l a b l e a s a d e f e n s e i n a p r o d u c t s l i a b i l i t y c a s e b u t

t h a t t h e d e f e n s e was t o b e compared w i t h t h e c o n d u c t o f t h e

defendant.             W e see n o r e a s o n t o a p p l y a d i f f e r e n t s t a n d a r d t o

s t r i c t l i a b i l i t y which a r i s e s a s t h e r e s u l t o f c o n d u c t i n g an

abnormally             dangerous        activity.           Therefore,          we     hold       that

assumption of               risk    i s an a v a i l a b l e d e f e n s e w h e r e d e f e n d a n t

c o n d u c t s an a b n o rm a l l y d a n g e r o u s a c t i v i t y , b u t t h e d e f e n s e i s

n o t absolute.             The f i n d e r o f f a c t m u s t d e t e r m i n e w h a t p a r t of

t h e t o t a l cause is a t t r i b u t a b l e t o p l a i n t i f f ' s assumption of

risk.           If    it i s d e t e r m i n e d t h a t p l a i n t i f f ' s c o n d u c t i s more

responsible             than     defendant,        then     plaintiff         cannot      recover.

If plaintiff's               c o n d u c t i s found t o b e e q u a l t o o r less t h a n

defendant's             conduct,       then p l a i n t i f f ' s    recovery      must      be    re-

duced by t h e p e r c e n t a g e a t t r i b u t a b l e t o p l a i n t i f f .



        I S THE DOCTRINE OF CONTRIBUTORY NEGLIGENCE AVAILABLE AS
A DEFENSE UNDER THE CIRCUMSTANCES OF QUESTION NUMBER 1 3

        I n Brown v. N o r t h A m e r i c a n M a n u f a c t u r i n g Co.          ( 1 9 7 8 ) , 176

Mont.       98,       576    P.2d     711,    this      Court       held    that   contributory

negligence i s n o t an a v a i l a b l e defense i n a strict l i a b i l i t y

case       for       defective       products.          Matkovic           contends    that       this

Court       should          likewise     hold     that    contributory negligence                   is

not    a    defense         t o abnormally dangerous                 activity.         F7e    agree.

        I n Z a h r t e v.        S t u r m , Ruger & Co.,          supra, we affirmed our

position             i n Brown,     holding       that    contributory negligence                   is

not a v a i l a b l e a s a defense i n a products l i a b i l i t y case based

upon        strict          liability        principles.              The      same     rationale


                                                    5
forecloses contributory negligence as a defense to strict
liability arising out of abnormally dangerous activity.                  We,
therefore, hold that assumption of risk is the only available
defense and, as previously stated, must he compared with the
conduct of the defendant.
      A copy of this opinion shall be mailed to the Clerk of
the   United   States   District    Court    of        Montana,    Billings
Division.                                A

                                    /                         //   ---


                                   Jdstice
                                     1                        L/*"
                                                                /"
We concur:                                        /'