ROTHENBERG, J.
Union Carbide Corporation ("Union Carbide") appeals from a final judgment awarding William P. Aubin ("Aubin") $6,624,150 in damages on his asbestos-related, products liability claims. Because Aubin failed to present any evidence demonstrating that the defective design of SG-210 Calidria caused Aubin's harm, peritoneal mesothelioma, we reverse the trial court's denial of Union Carbide's motion for a directed verdict as to Aubin's design defect claim. In addition, because the jury instructions given by the trial court were inconsistent with the law in the Third District and in effect directed the verdict in favor of Aubin, we reverse and remand for a new trial as to the warning defect claim consistent with this opinion.
From October 1972 to September 1974, Aubin worked as a superintendent at his father's company, Aubin Construction. During those years, Aubin supervised the construction of a model home community known as Desoto Lakes. As part of his duties, Aubin routinely handled and was otherwise exposed to joint compounds and ceiling textures that were created and distributed by Georgia-Pacific, Kaiser Gypsum, Premix-Marbletite, and other intermediary manufacturers. One of the ingredients used in those joint compounds and ceiling textures was a product mined, processed, and sold in bulk by Union Carbide named SG-210 Calidria, a particular grade of chrysotile asbestos.
Union Carbide touted SG-210 Calidria as being a highly efficient grade of asbestos. Jack Walsh, a Union Carbide sales representative, attributed SG-210's enhanced efficiency to Union Carbide's carefully designed asbestos processing regimen, or as Union Carbide called it, its "proprietary manufacturing process." He testified that SG-210 asbestos was twice passed through a centrifuge in order to separate the chrysotile asbestos fibers and thereby increase the product's effectiveness.
While short-fiber SG-210 Calidria may have been more efficient than other asbestos products, it was also found more dangerous with respect to the development of asbestosis, according to several studies proffered by Aubin. This much was acknowledged by Dr. Carl Dernehl, Union Carbide's former toxicology expert, in a letter he wrote to Union Carbide's medical director in 1967. In that letter, Dr. Dernehl described a study he conducted to discern how the effects of Calidria compared to those of "standard fiber" and "long fiber" asbestos. Based on the results, Dr. Dernehl warned Union Carbide's medical director that: "The only conclusion we can draw from this crude test is that it is possible that our [Calidria] product may be more hazardous to use than long fiber asbestos in that it may induce the disease, asbestosis, at an early time after exposure."
Although Aubin presented studies linking SG-210 Calidria to a higher degree of danger with respect to the development of asbestosis than other types of asbestos, he failed to introduce any evidence suggesting SG-210 Calidria was more dangerous than other asbestos fibers with respect to the contraction of cancer or peritoneal mesothelioma. While there was evidence generally linking chrysotile asbestos to the contraction of mesothelioma, the only relevant evidence in the record suggests that SG-210 Calidria, and chrysotile asbestos generally, was either less dangerous than other types of asbestos with respect to the contraction of mesothelioma, incapable of causing it, or inconclusive on the issue. For instance, in 1967, Dr. I.C. Sayers, of Union Carbide's toxicology department, prepared a report explaining that an experiment comparing the carcinogenic effects of chrysotile asbestos to those of amosite and crocidolite was underway, but not yet complete. Thus, Dr. Sayers wrote that "it is not yet known whether there are significant differences in the number of tumours produced by different types of fibres." Later, in 1970, Dr. Dernehl wrote a report on the toxicity of Calidria asbestos, and concluded that it should be assumed that "Calidria Asbestos will behave like other asbestos" with regard to "the development of lung cancer and mesothelioma." In addition, Aubin proferred the testimony of Dr. Brody, a cell biologist, who testified that while chrysotile asbestos could cause peritoneal mesothelioma, other types of asbestos were "more dangerous" and "more likely to cause the disease" than chrysotile asbestos. Finally, Union Carbide presented the testimony of Dr. Roggli, a pathologist at Duke University, who testified that exposure to chrysotile asbestos cannot cause peritoneal mesothelioma.
The dangers associated with SG-210 Calidria are perhaps better understood by examining its intended use. The evidence showed that Union Carbide marketed and sold SG-210 Calidria to intermediary manufacturers knowing that they would incorporate the asbestos into their joint compound and texture spray products. It was also established that Union Carbide representatives knew the joint compounds and texture sprays ultimately would be sanded and sprayed by contractors during the installation of drywall and completion of finishing work, and that such sanding and spraying would liberate the SG-210 Calidria fibers into the air, creating a cloud of asbestos-laden dust. And as is explained below, that is exactly what happened at Desoto Lakes.
Nelson Yoder, the drywall subcontractor for Desoto Lakes, explained that at the Desoto Lakes construction site, he administered texture sprays with a spray gun onto the walls and ceilings, and applied joint compounds to the walls. After the joint compounds were applied, all the joints and nails were sanded to eliminate imperfections in the finish work and to smoothen the surface. Yoder confirmed that the processes of sanding and spraying created what he described as a "fog" of dust, and that this dust was ever present at the Desoto Lakes construction site. Yoder also attested to the fact that Aubin was regularly present throughout all phases of construction, and, consequently, was exposed to and inhaled the dust.
In fact, by all accounts, Aubin was an active supervisor. Aubin testified that he worked hands on with the joint compounds and texture sprays, hanging and finishing drywall, and cleaning up after the subcontractors when they finished sanding and spraying. Like Yoder, Aubin recalled that the process of sanding and spraying generated thick "clouds" of dust that were present throughout the construction of Desoto Lakes. Aubin specifically remembered using joint compounds made by Kaiser Gypsum and Georgia-Pacific, but did not recall warnings of any kind on the containers or packages in which they were delivered.
Union Carbide stipulated at trial that neither Union Carbide nor the intermediary manufacturers placed warnings on the joint compounds and texture sprays. Union Carbide representatives testified that Union Carbide began placing warnings on its own bags of asbestos in 1968, which read: "Warning, breathing dust may be harmful. Do not breathe dust." Aubin challenged this proposition by offering the testimony of Howard Schutte, a Georgia-Pacific corporate representative, who stated that he did not recall such labels on Union Carbide's bags. In 1972, the Occupational Safety and Health Administration ("OSHA") required that all containers of raw asbestos or asbestos mixtures contain the following warning:
Union Carbide representatives testified that pursuant to this regulation, Union Carbide began placing these warnings on their bags of asbestos in 1972.
It was also hotly contested as to whether Union Carbide otherwise adequately informed intermediary manufacturers about the dangers of asbestos. Union Carbide representatives testified that along with the OSHA warning label, Union Carbide regularly updated its clients regarding the dangers of asbestos as such dangers came to light. Conversely, Aubin introduced evidence suggesting that Union Carbide actively downplayed and even concealed the truth about the dangers of asbestos from its clients and the public, and engaged in a "misinformation campaign."
In any event, Union Carbide stipulated that the intermediary manufacturers did not place any warnings on their products, Union Carbide knew the intermediary manufacturers did not place any warnings on their products, and Union Carbide itself did not directly warn end-users about the dangers of asbestos. Aubin claims that because there were no warnings on these products, he was unaware of the dangers associated with the liberation of SG-210 Calidria asbestos fibers into the air, and, therefore, did not wear any respiratory masks or protective gear while exposed to the asbestos. As a consequence, for roughly two years, Aubin routinely inhaled the lethal dust.
Aubin thereafter contracted peritoneal mesothelioma, an incurable, terminal disease. Aubin attributed his contraction of mesothelioma to his exposure to asbestos, and filed a complaint in the Miami-Dade Circuit Court against numerous defendants, including Union Carbide. In his complaint, Aubin alleged claims of negligence and strict liability based on theories of design, manufacturing, and warning defects. Aubin proceeded to trial against Union Carbide alone, settling or otherwise dismissing his claims against the remaining defendants.
Relying on the component parts doctrine recognized by the Restatement (Third) of Torts: Products Liability § 5 (1997) ("the Third Restatement"), as adopted by this Court in
The jury found in Aubin's favor, awarding $14 million in noneconomic damages and $191,000 in economic damages, and assessing Union Carbide's fault at 46.25 percent. After the trial court entered judgment on the verdict, Union Carbide timely moved for judgment in accordance with its motion for a directed verdict or, in the alternative, a new trial. The trial court denied the motions and amended the judgment to total $6,624,150 to reflect settlements into which Aubin had entered with other defendants. This appeal followed.
Union Carbide's primary contention on appeal is that the trial court erred by refusing to apply the Third Restatement's component parts doctrine, and choosing instead to rely on the Second Restatement. As a result, Union Carbide argues the trial court erred in: (1) denying its motion for a directed verdict; and (2) instructing the jury that Union Carbide had a duty to warn end-users directly without also instructing the jury that Union Carbide could have discharged its duty to warn.
The trial court erred in determining that Aubin's claims are governed by the Second Restatement rather than the Third Restatement and, as a result, erred in denying Union Carbide's motion for a directed verdict with respect to Aubin's design defect claim. In addition, the trial court erred in instructing the jury that Union Carbide had a duty to warn end-users without also instructing the jury that Union Carbide could have discharged this duty by adequately warning the intermediary manufacturers, and reasonably relying on them to warn end-users.
Several of Union Carbide's contentions on appeal turn on whether the trial court applied the correct law to the facts adduced in the litigation below. A trial court's determination regarding the legal standard that governs a case is reviewed de novo.
A review of the record and the case law reveals that the trial court erred as a matter of law in determining that Aubin's claims are governed by Sections 388 and 402 of the Second Restatement. In
Despite this Court's clear adoption of the Third Restatement and its component parts standard, the trial court, during the charge conference, determined that the Second Restatement was controlling, and cited two reasons for so concluding. First, the trial court found it instructive that in
Not surprisingly, Aubin's argument on appeal mirrors the trial court's rationale. Aubin contends that
We disagree with the rationale shared by the trial court and Aubin, as "[t]he decisions of the district courts of appeal represent the law of Florida unless and until they are overruled by [the Florida Supreme] Court."
Union Carbide argues that when
A trial court's ruling on a motion for a directed verdict is reviewed de novo.
In
As is clear from the above passage,
The language in subsection 5(a) instructs courts to refer to the language of Chapter 1 to determine whether a product is "defective." Accordingly, in
The trial court erred in denying Union Carbide's motion for a directed verdict with respect to Aubin's design defect claim because Aubin failed to present any evidence suggesting that the design of SG-210 Calidria caused Aubin's harm. Plaintiffs with asbestos-related design defect claims face three hurdles under the Third Restatement. To succeed, they must demonstrate that: (1) the product was a "designed" product rather than a raw material; (2) the product's design was "defective"; and (3) the defective design caused the plaintiff's harm.
Under the Third Restatement, "a basic raw material such as sand, gravel, or kerosene cannot be defectively designed." Restatement (Third) of Torts: Product Liability § 5 cmt. c. Relying on this language, Union Carbide argues that, like sand, gravel, and kerosene, SG-210 Calidria was naturally occurring chrysotile asbestos, a basic, raw material, and, therefore, it could not have been defectively designed. Conversely, Aubin contends that SG-210 Calidria was not merely raw chrysotile asbestos, but the product of Union Carbide's "proprietary manufacturing process." Aubin argues that there was sufficient evidence presented below for the jury to determine that once raw chrysotile asbestos emerged from the proprietary manufacturing process, it became a "designed" product for purposes of products liability law. We agree with Aubin.
The evidence established that SG-210 Calidria was chrysotile asbestos that had been subjected to Union Carbide's carefully designed asbestos processing regimen. During this process, the chrysotile asbestos was placed through a centrifuge multiple times in order to separate the chrysotile fibers and thereby increase the efficiency of the asbestos when added to water. As a direct result of this process, Union Carbide, in its marketing literature, proclaimed that "Calidria asbestos generally goes twice as far, on a pound for pound basis, as . . . other commercial types used in tape joint compounds." We conclude that this evidence was sufficient to reach the trier of fact for a determination as to whether SG-210 Calidria was "designed" within the meaning of Section 2.
Union Carbide argues that Aubin failed to establish that the design of SG-210 Calidria was defective because Aubin did not present any evidence demonstrating that the foreseeable risks of harm posed by SG-210 Calidria could have been reduced or avoided by the adoption of a "reasonable alternative design." Union Carbide's argument fails because Aubin presented sufficient evidence from which a trier of fact could have determined that the design of SG-210 Calidria was "manifestly unreasonable," a determination that obviates the necessity for demonstrating a "reasonable alternative design."
We note that Union Carbide is correct in pointing out that Aubin failed to present any evidence regarding a "reasonable alternative design." As is demonstrated from the transcript of the charge conference, Aubin's counsel did not believe such evidence was necessary because he litigated the design defect claim as if it was governed by the Second Restatement's "consumer expectations" standard:
As has already been established, however, the Third Restatement rejects the consumer expectations test as an independent basis for finding a product defectively designed. Restatement (Third) of Torts: Products Liability § 2 cmt. g. ("Under Subsection (b), consumer expectations do not constitute an independent standard for judging the defectiveness of product designs.");
While the plain language of subsection 2(b) requires plaintiffs with design defect claims to prove the availability of a "reasonable alternative design," satisfying subsection 2(b) is not the exclusive means by which plaintiffs may establish liability for a defective design under the Third Restatement. Under comment e., plaintiffs may forego the demonstration of a "reasonable alternative design" by showing that the product design at issue is "manifestly unreasonable." Restatement (Third) of Torts: Products Liability § 2 cmt. e. A product design is "manifestly unreasonable" when "the extremely high degree of danger posed by its use . . . so substantially outweighs its negligible social utility that no rational, reasonable person, fully aware of the relevant facts, would choose to use . . . the product."
In this case, the record is replete with evidence regarding the dangers posed by the design of SG-210 Calidria, as well as its social utility. The evidence established that the design of SG-210 Calidria improved the efficiency of the asbestos when added to water, but also increased the hazards associated with the development of asbestosis, a terminal disease. We conclude that this evidence was sufficient to reach the trier of fact for a determination as to whether the design of SG-210 Calidria was "manifestly unreasonable" within the meaning of Section 2.
Under Section 5, the last hurdle is proving that the design defect caused the plaintiff's harm.
In this case, Aubin failed to present any evidence suggesting that the defective
Union Carbide claims the trial court erred by denying its motion for a directed verdict regarding Aubin's warning defect claim. We affirm because there was sufficient evidence adduced at trial to create a factual issue regarding whether, based on the foreseeable risks of harm posed by SG-210 Calidria, Union Carbide discharged its duty to warn end-users by adequately and sufficiently warning the intermediary manufacturers, and reasonably relying on them to warn the end-users.
Subsection 2(c) of the Third Restatement provides that a product:
Restatement (Third) of Torts: Products Liability § 2. As is clear from the plain language of subsection (c), the warning defect standard focuses on the notion of "reasonableness" for judging the adequacy of warnings, a malleable notion that is intertwined with the facts and circumstances of each case. "Whether the warning actually given was reasonable in the circumstances is to be decided by the trier of fact." Restatement (Third) of Torts: Products Liability § 2 cmt. i. Comment i of Section 2 also assists the trier of fact by providing a non-exhaustive list of factors to guide the determination as to whether a warning was adequate in any given situation:
Additionally, comment i lists a number of factors for the trier of fact to consider when determining whether a manufacturer such as Union Carbide may rely on an intermediary to warn end-users, and thereby discharge its duty to warn, or conversely, is required to warn end-users directly:
Thus, under the Third Restatement, the determination as to whether a manufacturer like Union Carbide discharged its duty to warn end-users by adequately warning an intermediary is clearly a question reserved for the trier of fact. This is consistent with longstanding Florida law, which provides that "[t]he sufficiency and reasonableness of a manufacturer's warnings are fact questions appropriate for the jury to decide unless such warnings are `accurate, clear, and unambiguous.'"
"Among the factors to be considered" by the trier of fact in determining whether a manufacturer has a duty to warn end-users are: (1) "the gravity of the risks posed by the product"; (2) "the likelihood that the intermediary will convey the information to the ultimate user"; and (3) "the feasibility and effectiveness of giving a warning directly to the user." Restatement (Third) of Torts: Products Liability § 2 cmt. i. The use of the word "among" demonstrates that this list of factors is intended to be inclusive rather than exhaustive. At bottom, the "standard is one of reasonableness."
For example, we find that the intermediary's education, knowledge, expertise, and relationship with end-users bear heavily on the reasonableness of a manufacturer relying on that intermediary to relay warnings to the end-users. This calls into question whether the "learned intermediary" doctrine applies in asbestos-related products liability cases, and if so, how.
In Florida, the "learned intermediary" doctrine originated as a defense available to prescription drug manufacturers in failure to warn cases.
In Florida, a variant of the learned intermediary doctrine has been extended outside of the prescription drug context, although not as a complete defense. Instead, the intermediary's level of education, knowledge, expertise, and relationship with the end-users is informative, but not dispositive, on the issue of whether it was reasonable for the manufacturer to rely on that intermediary to relay the warning to end-users.
We specifically note that under the Second Restatement, the determination as to whether a manufacturer may rely on intermediaries to relay warnings to end-users is substantially the same as under the Third Restatement. Like the Third Restatement, Florida courts applying Section 388 of the Second Restatement have held that the determination as to whether a bulk supplier may rely on an intermediary to warn end-users is a question reserved for the trier of fact.
Restatement (Second) of Torts § 388 cmt. n. (emphasis added).
Additionally, Florida courts applying the Second Restatement in determining whether a bulk supplier has discharged its duty to warn end-users have relied on a list of factors that is nearly identical to those outlined in the Third Restatement:
As is detailed below, there was sufficient evidence presented at trial to create factual questions to be resolved by the jury regarding: whether Union Carbide warned its customers; whether the alleged warnings were adequate; the actual degree of dangerousness of SG-210 Calidria with respect to the contraction of mesothelioma; whether it was feasible or unduly burdensome for Union Carbide to warn end-users directly; and each of the intermediary's degree of education, knowledge, expertise, and relationship with the end-users. For example, although Union Carbide presented evidence that it regularly apprised its customers of the dangers associated with asbestos by providing them with the latest scientific reports and studies, Aubin presented evidence that Union Carbide misled its customers into thinking SG-210 Calidria was safe. And although Union Carbide claimed that it began placing warnings on its asbestos bags in 1968, a Georgia-Pacific representative called by Aubin testified that he did not recall such labels on Union Carbide's bags of asbestos. Further, while Aubin challenged the adequacy of the OSHA warnings, he testified at trial that if he had seen Union Carbide's OSHA warning, he "more than certainly" would have taken steps to protect himself from the hazards of asbestos. In addition, while Aubin presented expert testimony attributing his contraction of mesothelioma to his exposure to SG-210 Calidria, Union Carbide presented expert testimony that it was relatively unlikely, if not impossible, that Aubin contracted peritoneal mesothelioma from exposure to chrysotile asbestos. Lastly, although Aubin claimed that it would have been feasible for Union Carbide to warn end-users directly, or to contractually require intermediary manufacturers to warn end-users, Union Carbide offered the testimony of Jack Walsh, a Union Carbide sales representative, who testified that Union Carbide did not sell directly to consumers; claimed Union Carbide had no way of identifying the end-users; attested to the fact that Union Carbide was not involved in how the intermediary manufacturers designed, distributed, or packaged their products; and contended that Union Carbide was incapable of requiring intermediary manufacturers to place warnings on products containing Union Carbide's asbestos. Because the evidence was conflicting, and supported different reasonable inferences, the duty to warn issue was a question of fact to be determined by the jury. Thus, the trial court properly denied Union Carbide's motion for a directed verdict as to Aubin's warning defect claim.
While the standard of review for jury instructions is abuse of discretion, such "discretion, as with any issue of law is strictly limited by case law."
We note that at the time the charge conference was held, no standard instructions existed regarding products liability warning defects.
While Aubin's requested special instruction is technically accurate, it was, standing alone, misleading because Florida law provides that this duty may be discharged by reasonable reliance on an intermediary. Recognizing that Aubin's requested instruction was misleading, Union Carbide requested that Aubin's special instruction be supplemented with an explanation of how the duty to warn could have been discharged by Union Carbide. The trial court rejected Union Carbide's request, and delivered Aubin's instruction without further explanation. This was error.
As has already been discussed, under both the Third Restatement and the Second Restatement, the determination as to whether a manufacturer like Union Carbide may rely on intermediaries to warn end-users is to be analyzed by the trier of fact,
The trial court, however, did not instruct the jury on any of these factors. And while the trial court did instruct the jury regarding the general negligence standard, which theoretically subsumes many of these considerations, the instruction to the jury that Union Carbide had a duty to warn end-users effectively foreclosed such considerations, and amounted to a directed verdict since Union Carbide had stipulated at trial that it had not warned end-users. Because the trial court's instruction communicated to the jury that Union Carbide had a duty to warn end-users, but did not inform the jury that Union Carbide could have discharged its duty by adequately warning the intermediary manufacturers and reasonably relying on them to warn end-users, we conclude that the instruction given was misleading and entitles Union Carbide to a new trial.
We note that although the Fourth District in
Affirmed, in part; reversed, in part; and remanded for a new trial.
Not final until disposition of timely filed motion for rehearing.