Union Pacific Railroad Company, a Corporation v. Bridal Veil Lumber Company, a Corporation

This is a diversity case of two corporations, citizens of different states. Union Pacific was plaintiff in the trial court and is appellant here. Bridal Veil Lumber Company, defendant and appel-lee, operates a lumber mill at Bridal Veil, Oregon. The mill is on land leased from the Union Pacific and it is served by a spur track of the railroad.

On March 14, 1946, a Union Pacific engine was switching freight cars on the spur track. Daniel W. Fagan, a brakeman, was on one of the cars and was participating in the switching movement in the regular course of his employment by Union Pacific.

As the cut of cars on which Fagan was riding approached the private railway crossing of Bridal Veil, a lumber company employee came down a ramp from the mill (the ramp is parallel to the spur track) driving a lumber carrier known as a hyster and swung it on to the crossing in front of the oncoming cars. Fagan had been riding the lead car on a ladder on the side. However, just before the car collided with the hyster, Fagan had moved around the comer of the car and was on a ladder at the end of the car at the time of impact and he was injured in the collision.

Fagan pursued his employer, Union…