In the underlying action, appellants Flavio Ramos and his wife asserted claims against respondents for negligence, negligence per se, strict liability, and loss of consortium, alleging that Ramos's exposure to their products during his employment at a metal foundry caused his pulmonary fibrosis.
With the exception of appellants' claim for negligence per se, we conclude that the complaint states viable claims, and we respectfully disagree with the holding in Maxton. As we explain, the component parts doctrine does not shield a product supplier from liability when a party alleges that he suffered direct injury from using the supplier's product as the supplier specifically intended. We therefore affirm in part, reverse in part, and remand with directions to the trial court to enter a new order overruling respondents' demurrers to appellants' claims, with the exception of the claim for negligence per se.
On November 19, 2010, appellants initiated the underlying action. Their second amended complaint (SAC) contained claims against respondents for
The SAC alleged that from 1972 to 1978 and from 1981 to 2009, Ramos worked as a mold maker, machine operator, and laborer for Supreme Casting & Pattern, Inc. (Supreme), which manufactured metal parts through "a foundry and fabrication process."
Respondents sought judgment on the pleadings regarding the SAC, contending that appellants' claims failed under Maxton, which addressed similar claims under circumstances resembling those alleged in the SAC.
In the instant action, the trial court granted judgment on the pleadings regarding the SAC with leave to amend, and advised appellants that to state causes of action, they must "plead around ... Artiglio," as interpreted in Maxton. After appellants filed their third amended complaint, respondents asserted demurrers based on Maxton, which the court sustained with leave to amend. When appellants filed their fourth amended complaint (FAC), respondents again demurred on the basis of Maxton. The court sustained the demurrers without leave to amend, and entered a joint judgment of dismissal in favor of respondents. This appeal followed.
Appellants maintain the trial court erred in sustaining the demurrers to the FAC. Their principal contention is that the injuries alleged in the FAC fall outside the component parts doctrine. They assert that the doctrine, when applicable, relieves a supplier of component parts from liability for injuries arising from an end product into which the supplier's parts have been integrated. Because the FAC alleges that Ramos's injuries resulted from the direct and intended use of respondents' products, and not from injuries resulting from the use of any end product, appellants argue the component parts doctrine does not shield respondents from liability. We agree.
"Because a demurrer both tests the legal sufficiency of the complaint and involves the trial court's discretion, an appellate court employs two separate standards of review on appeal. [Citation.] ... Appellate courts first review the complaint de novo to determine whether ... the ... complaint alleges facts sufficient to state a cause of action under any legal theory, [citation], or in other words, to determine whether ... the trial court erroneously sustained the demurrer as a matter of law. [Citation.]" (Cantu v. Resolution Trust Corp. (1992) 4 Cal.App.4th 857, 879 [6 Cal.Rptr.2d 151], fn. omitted (Cantu).) "Second, if a trial court sustains a demurrer without leave to amend, appellate courts determine whether ... the plaintiff could amend the complaint to state a cause of action. [Citation.]" (Id. at p. 879, fn. 9.)
Under the first standard of review, "we examine the complaint's factual allegations to determine whether they state a cause of action on any available legal theory. [Citation.] We treat the demurrer as admitting all material facts which were properly pleaded. [Citation.] However, we will not assume the truth of contentions, deductions, or conclusions of fact or law [citation], and we may disregard any allegations that are contrary to the law or to a fact of which judicial notice may be taken. [Citation.]" (Ellenberger v. Espinosa (1994) 30 Cal.App.4th 943, 947 [36 Cal.Rptr.2d 360].) In reviewing an order sustaining a demurrer, we will affirm the order on any ground raised in the demurrer, regardless of whether the trial court relied on it; moreover, we will consider new theories offered on appeal to support the ruling. (B & P Development Corp. v. City of Saratoga (1986) 185 Cal.App.3d 949, 959 [230 Cal.Rptr. 192].)
Under the second standard of review, the burden falls upon the plaintiff to show what facts he or she could plead to cure the existing defects in the complaint. (Cantu, supra, 4 Cal.App.4th at p. 890.) "To meet this burden, a plaintiff must submit a proposed amended complaint or, on appeal, enumerate the facts and demonstrate how those facts establish a cause of action." (Ibid.)
Here, appellants neither offer nor suggest factual amendments to the FAC. Our inquiry is thus focused primarily on a question of law, namely, whether the facts as alleged in the FAC necessarily invoke the application of the component parts doctrine.
We begin by discussing the principles governing tort claims involving defective products, giving special attention to their application when a worker alleges injuries from products supplied to his or her employer for use by the employer's workers.
In connection with the negligence per se claim, the FAC alleges that respondents violated Labor Code section 6390.5, which requires manufacturers and distributors to provide labels on their products in compliance with
Under three distinct but potentially overlapping doctrines, courts have limited a supplier's liability for injury arising from certain uses or applications of its product. Two of these doctrines — often called the "bulk supplier" and "sophisticated buyer" rules — focus on whether the product, before causing injury, passed to, or through, a party who knew (or should have known) of the product's hazards. (Artiglio, supra, 61 Cal.App.4th at pp. 838-839; see Taylor v. American Chemistry Council (1st Cir. 2009) 576 F.3d 16, 24-25.) The first doctrine is ordinarily invoked when a supplier, upon selling a product in bulk to an intermediary who passes it on, warns the intermediary of the product's hazards. (Taylor v. American Chemistry Council, supra, 576 F.3d at pp. 25-26.) In contrast, the second doctrine is ordinarily invoked when the supplier provides the product to a purchaser — either an intermediary or an end user — who knows (or should know) of the hazards, regardless of any warning to the purchaser. (See ibid.) Although conceptually distinct, the two rules are sometimes combined under the term, "bulk sales/sophisticated purchaser doctrine." (See Artiglio, supra, 61 Cal.App.4th at pp. 838-839.)
The third doctrine is known as the "component parts" or, where applicable, "raw materials" doctrine. (Artiglio, supra, 61 Cal.App.4th at p. 839; Springmeyer v. Ford Motor Co. (1998) 60 Cal.App.4th 1541, 1550-1554 [71 Cal.Rptr.2d 190].) Under that doctrine, suppliers of component parts or raw materials integrated into an "end product" are ordinarily not liable for defects in the end product, provided that their own parts or materials were nondefective, and they did not exercise control over the end product. (Artiglio, supra, at pp. 839-840; Bay Summit Community Assn. v. Shell Oil Co. (1996) 51 Cal.App.4th 762, 772 [59 Cal.Rptr.2d 322].) The doctrine is reflected in section 5 of the Restatement Third of Torts, Products Liability, which states that a component part supplier is subject to liability for harm caused by the end product only when the component itself has a defect that results in injury, or the supplier plays a material role in integrating the component into the end product whose defects cause injury. (Rest.3d Torts, Products Liability, § 5.)
The appellate court affirmed the trial court's grant of summary judgment to the supplier. (Artiglio, supra, 61 Cal.App.4th at p. 841.) Following a survey of authorities regarding the "`bulk sales/sophisticated purchaser'" and component parts doctrines, the appellate court stated: "[C]omponent and raw material suppliers are not liable to ultimate consumers when the goods or material they supply are not inherently dangerous, they sell goods or material in bulk to a sophisticated buyer, the material is substantially changed during the manufacturing process and the supplier has a limited role in developing and designing the end product. When these factors exist, the social cost of imposing a duty to the ultimate consumers far exceeds any additional protection provided to consumers." (Id. at pp. 837, 839.)
Applying those factors to the evidence before it, the appellate court concluded that summary judgment was proper. (Artiglio, supra, 61 Cal.App.4th at pp. 840-841.) In so concluding, the court observed that the silicone materials were not inherently dangerous, as they became potentially unsafe only when used in medical devices; that the implant manufacturers were "highly sophisticated buyers"; that the silicone materials were substantially transformed during the manufacturing process; and that the supplier had no role in designing the implants. (Ibid.)
We turn to decisions predating Maxton that addressed products liability claims by workers alleging that they suffered injury from products used in their work. Applications of the principles we have discussed are found in Wright v. Stang Manufacturing Co. (1997) 54 Cal.App.4th 1218, 1222 [63 Cal.Rptr.2d 422] (Wright), Tellez-Cordova v. Campbell-Hausfeld/Scott Fetzger Co. (2004) 129 Cal.App.4th 577 [28 Cal.Rptr.3d 744] (Tellez-Cordova); Schwoerer v. Union Oil Co. (1993) 14 Cal.App.4th 103 [17 Cal.Rptr.2d 227] (Schwoerer), and a decision of the Minnesota Supreme Court, Gray v. Badger Mining Corp. (Minn. 2004) 676 N.W.2d 268 (Gray).
In Tellez-Cordova, the plaintiff asserted strict liability claims based on warning and design defects against manufacturers of grinding tools the plaintiff had used. The plaintiff's complaint alleged that he had suffered injury as the result of exposure to toxic dust released from abrasive discs powered by the tools. (Tellez-Cordova, supra, 129 Cal.App.4th at pp. 579-580.) The defendants successfully demurred to the complaint on the basis of the component parts doctrine. (Id. at p. 581.) In reversing, the appellate court noted that the complaint alleged that the tools were specifically designed to be used with the abrasive discs for the purpose of grinding metals, and that toxic dust was created when the tools were used for the purpose intended by their manufacturers. (Id. at pp. 582-583.)
In Schwoerer, the plaintiff worked as a mechanic on a boring machine cutting an underground tunnel. (Schwoerer, supra, 14 Cal.App.4th at p. 109.) While in the tunnel, he used a solvent his employer had purchased and provided. (Ibid.) Through intermediary suppliers, the employer received the manufacturer's material safety data sheet warning that exposure to the solvent could cause skin and respiratory irritation, but the employer did not pass those warnings along to the plaintiff. (Ibid.) Because the plaintiff's job responsibilities required him to dip machine parts into the solvent, he frequently worked "up to his elbows" in it, yet his employer provided no protective clothing. (Ibid.) After the plaintiff suffered permanent liver damage, he asserted products liability claims against the manufacturer and intermediary suppliers, who secured summary judgment in their favor on the
The appellate court reversed, concluding that the warnings were insufficient to apprise the plaintiff of the injuries he actually suffered. (Schwoerer, supra, 14 Cal.App.4th at pp. 112-114.) Focusing on whether the warnings given provided sufficient notice of the solvent's potential for causing liver damage, the court determined they did not: "[P]laintiff claims his liver was irreparably damaged, an injury different in kind from and significantly greater than any consequence of dermal exposure against which the [material safety data sheet] warned." (Id. at pp. 110-114.)
Particularly instructive is Gray. There, a foundry worker asserted products liability claims based on a failure to warn against a silica sand supplier, alleging that he contracted silicosis due to exposure to the supplier's sand, which he had used in making casting molds in the foundry. (Gray, supra, 676 N.W.2d at pp. 271-272.) After an appellate court determined that the worker's claims failed because the foundry was a sophisticated purchaser of sand, the Minnesota Supreme Court reversed, concluding that there were triable issues regarding the application of "bulk sales" and "sophisticated purchaser" doctrines. (See id. at pp. 275-280.) Regarding these doctrines, the court noted that the supplier had provided only inadequate warnings regarding the hazards of its sand to the foundry, and that there was no evidence the supplier had reason to believe the foundry would provide adequate warnings to its workers. (Ibid.)
The court also rejected application of the component parts doctrine, stating: "Although sand is a raw material and is not inherently dangerous, it is nevertheless dangerous when used in a foundry process. [The supplier] specifically develops sand for foundry use and has conceded that it understands the manner in which silica is used in the foundry process. More importantly, the sand is not used as a component of a finished product, and it is the sand — not the finished product — that is dangerous to foundry workers." (Gray, supra, 676 N.W.2d at p. 281.)
We next examine whether respondents' demurrers to the FAC were properly sustained. As explained below, with the exception of the claim for
According to the FAC, although state and federal regulations identified the products or their constituents as hazardous, respondents provided no warnings to Ramos.
We reach the same conclusion regarding the strict liability claim predicated on a defective design. That claim invokes the "consumer expectations" test for defects, alleging that respondents' products "failed to perform as safely as an ordinary user would expect when used in an intended or reasonably foreseeable manner ...." Because the test does not require plaintiffs to identify an alternative safer "design" for the products, we see no fatal defect in the claim.
In sustaining respondents' demurrers without leave to amend, the trial court understandably concluded that the claims in the FAC failed under Maxton. However, to the extent Maxton can be read to conclude that the component parts doctrine, as set forth in Artiglio, is ordinarily applicable to the type of claim asserted in the FAC, we disagree with its rationale. For the reasons explained below, neither the component parts doctrine nor its underlying rationale supports such application to the facts alleged here.
In contrast, Artiglio addressed claims against a supplier of a material for injuries caused by the finished product into which the material was integrated. (Artiglio, supra, 61 Cal.App.4th at pp. 833-834.) Artiglio's statement of the component parts doctrine underscores its circumscribed application: "[C]omponent and raw material suppliers are not liable to ultimate consumers when the goods or material they supply are not inherently dangerous, they sell goods or material in bulk to a sophisticated buyer, the material is substantially changed during the manufacturing process and the supplier has a limited role in developing and designing the end product." (Id. at p. 839,
Furthermore, application of the component parts doctrine, as set forth in Artiglio, is ill suited to the assessment of the FAC's claims. To begin, an inquiry into whether the supplier's product was "inherently dangerous" — the first factor specified in Artiglio — presupposes that the product was potentially a component of multiple end products, and focuses on whether the supplier's product was foreseeably dangerous in all those uses. Thus, in Artiglio, the appellate court determined that the manufacturer's silicone was not inherently dangerous because it had been safely incorporated into many nonmedical devices, and became potentially dangerous only when used in breast implants. (Artiglio, supra, 61 Cal.App.4th at p. 840.) That type of inquiry, however, is inappropriate when a worker alleges that he suffered injury by using a product as intended by its supplier. As explained above (see pts. B.1. & B.3., ante), in suitable circumstances, a supplier must warn workers of hazards they will encounter when the supplier's product is put to the use intended or specified by the supplier.
The second Artiglio factor, namely, whether the supplier sold in bulk to a sophisticated purchaser, focuses attention on whether the purchaser knew, or
The fourth Artiglio factor — whether the supplier has control over the end product — is also ordinarily pertinent only to injuries arising from an end product into which the supplier's product has been incorporated. When, as in the FAC, a worker alleges that he suffered injuries directly from the supplier's product, but not from his employer's end product, the supplier's lack of control over the design and development of the end product is irrelevant to the rationale underlying the component parts doctrine, and thus to the supplier's liability. In sum, insofar as Maxton determined that the component parts doctrine is applicable to claims of the type alleged in the FAC, we respectfully disagree.
Respondents also raise other contentions related to Maxton and the trial court's application of that decision. Their principal contention is that the products they supplied to Supreme were necessarily defect free because they constituted versatile raw materials that were safe when they left respondents' control. They place special emphasis on comment c to section 5 of the Restatement Third of Torts, which is quoted in Maxton and other cases upon which they rely. (Maxton, supra, 203 Cal.App.4th at p. 90; Arena, supra, 63 Cal.App.4th at p. 1191.)
Comment c addresses sand, gravel and other materials when they take the form of "basic raw material[s]," and sets forth limitations on their suppliers' liability for design and warning defects when they are integrated into end products. (Rest.3d Torts, Products Liability, § 5, com. c, p. 134.) The comment states that such basic raw materials generally do not suffer from design defects, and that their suppliers ordinarily are not required to provide
In our view, comment c is inapplicable to the claims asserted in the FAC, as the comment is intended to illuminate section 5, which concerns the liability of a component part supplier "for harm to persons ... caused by a product into which the component is integrated ...." (Rest.3d Torts, Products Liability, § 5, italics added.) No such injury is alleged in the FAC. Furthermore, the FAC does not allege that respondents' products were sold to Supreme in the form of "basic" raw materials. On the contrary, the FAC alleges that the products were specialized materials that respondents sold for use in the metal casting manufacturing process, and that the products posed known hazards to Ramos when used as intended. Respondents' contention that their products were defect free would require us to reject the FAC's factual allegations, which we decline to do.
Relying on the "sham pleading" doctrine, respondents contend that certain allegations in the FAC must be disregarded. Under that doctrine, a court may set aside amendments that omit harmful allegations in the original complaint or add allegations inconsistent with the harmful allegations. (State of California ex rel. Metz v. CCC Information Services, Inc. (2007) 149 Cal.App.4th 402, 412 [57 Cal.Rptr.3d 156].) As the mold material suppliers note, appellants' initial complaints alleged that Ramos suffered injuries when exposed to dust from their products while transporting the products, mixing
The record further discloses that appellants amended those allegations only because the trial court, in applying Maxton, advised them that their claims would fail if Ramos's exposure to dust occurred "in the course of a process that substantially changed [the product]." In response to that advice, appellants made the amendments described above. Under the circumstances, we conclude that there was no "sham pleading." In sum, with the exception of the claim for negligence per se, the FAC stated causes of action not subject to demurrer.
The judgment of dismissal is affirmed solely with respect to the claim for negligence per se in the FAC, and reversed with respect to the other claims in
Epstein, P. J., and Edmon, J.,
In several of the cases, the pertinent injuries arose from a finished product sold to the public that contained the defendant's product as a component, or from another component of the finished product not provided by the defendant. In each case, the appellate court concluded that the defendant was not liable for the injuries because it lacked material control over the finished product. (Lee v. Electric Motor Division (1985) 169 Cal.App.3d 375, 381-387 [215 Cal.Rptr. 195] [supplier of "ordinary, off-the-shelf" electric motors not liable for injuries from meat grinding machine lacking emergency brake because supplier had no role in machine's design and manufacture]; Wiler v. Firestone Tire & Rubber Co. (1979) 95 Cal.App.3d 621, 627-629 [157 Cal.Rptr. 248] [supplier of tires lacking valves not liable for injuries arising from defective valve, as intermediate manufacturer attached valve to tire before providing it to injured party]; Walker v. Stauffer Chemical Corp. (1971) 19 Cal.App.3d 669, 672 [96 Cal.Rptr. 803] [supplier of acid not liable for injuries from drain cleanser containing acid as component, as acid was substantially changed during the process of making the cleanser, over which supplier had no control].)
Similarly, in all but one of the cases, a worker alleged injuries from the employer's manufacturing system that incorporated the defendant's product, or from an item used in combination with that product, and the appellate court determined that the defendant lacked material control regarding the particular hazard that caused the injuries. (Taylor, supra, 171 Cal.App.4th at pp. 577-586 [worker's injuries arose from asbestos-laden gaskets and packing, rather than from defendant's valves used with the gaskets and packing]; Gray v. R.L. Best Co. (N.Y.App.Div. 2010) 78 A.D.3d 1346 [910 N.Y.S.2d 307, 309] [worker injured by accidental operation of employer's aluminum extrusion press while replacing part supplied by defendant]; Ranger Conveying & Supply Co. v. Davis (Tex.App. 2007) 254 S.W.3d 471, 475-485 [worker injured when bale fell from employer's truck onto conveyor belt owned by employer and provided by defendant]; Brocken v. Entergy Gulf States, Inc. (Tex.App. 2006) 197 S.W.3d 429, 435-438 [worker received shock from employer's electrical system that incorporated defendant's circuit breaker, which was rendered ineffective by employer's error in designing system]; Toshiba Internat. Corp. v. Henry (Tex.App. 2004) 152 S.W.3d 774, 777-786 [worker injured by accidental operation of aluminum "scrap winder" into which defendant's part had been incorporated]; Temple v. Wean United, Inc. (1977) 50 Ohio St.2d 317, 323-329 [364 N.E.2d 267, 270-274] [plaintiff injured by accidental operation of punch press into which defendant's "on-off" buttons had been incorporated].)
In the remaining case, a worker alleged that he suffered injuries from hot materials from a "quench tank" supplied by the defendant after the tank had been integrated into the employer's manufacturing system. (Zaza v. Marquess & Nell, Inc. (1996) 144 N.J. 34, 42 [675 A.2d 620, 624].) The appellate court concluded that the component parts doctrine shielded the defendant from liability, reasoning that the defendant built the tank according to the employer's specifications, and that the tank was defective only because the employer integrated it into the manufacturing system without suitable safety mechanisms. (675 A.2d at pp. 626-636.) Here, in contrast, the FAC alleges that respondents did not design their products in accordance with Supreme's specifications, and that Supreme was unaware of the products' hazards.
In a related contention, respondents observe that several out-of-state courts, applying the sophisticated purchaser doctrine, have found suppliers of sand and similar materials to employers not liable for injuries to employees engaged in making end products. However, in each case, evidence in the record established that the employer had full knowledge of the hazards, or that the hazards were apparent to the employer. (Bates v. E.D. Bullard Co. (La.Ct.App. 2011) 76 So.3d 111, 113, 114 [evidence showed that hazards from silica sand to workers engaged in sandblasting were "`common knowledge'"]; Bergfeld v. Unimin Corp. (8th Cir. 2003) 319 F.3d 350, 354 [foundry knew that excessive exposure to silica dust was hazardous]; Cowart v. Avondale Industries, Inc. (La.Ct.App. 2001) 792 So.2d 73, 76-77 [sand supplier provided adequate warnings of hazards to foundry]; Phillips v. A.P. Green Refractories Co. (1993) 428 Pa.Super. 167 [630 A.2d 874, 883] [foundry had full knowledge of dangers of silica dust]; Smith v. Walter C. Best, Inc. (W.D.Pa. 1990) 756 F.Supp. 878, 886-889 [same]; Ryntz v. Afrimet Indussa, Inc. (6th Cir. 1989) 887 F.2d 1087 [employer had full knowledge of dangers of cobalt dust]; Beale v. Hardy (4th Cir. 1985) 769 F.2d 213, 214-215 [foundry had extensive knowledge of dangers from silica dust and appropriate safety measures].) Not only does the FAC contain no admission of such knowledge, it asserts that Ramos's employer was unaware of the hazards of respondents' products.