JANETRICHE MILAZZO, District Judge.
Before the Court are cross Motions for Summary Judgment filed by Defendants Kinder Morgan Bulk Terminals, Inc., Kinder Morgan Liquids Terminals, LLC, and Kinder Morgan Energy Partners, LP (collectively "GATX"), Defendant Valero Refining Texas, LP ("Valero"), and Plaintiff. For the following reasons, GATX's Motion (R. Doc. 216) is GRANTED, and Plaintiff's cross Motion (R. Doc. 209) is DENIED AS MOOT. Valero's Motion (R. Doc. 197) is DENIED, and Plaintiff's cross Motion (R. Doc. 210) is GRANTED IN PART.
This is a maritime personal injury action originally brought by Plaintiff Edward Authement.
Plaintiff filed suit in July 2010. His second amended complaint named seventeen defendants, and asserted causes of action under the Jones Act and the general maritime law. The only remaining Defendants are GATX and Valero. Plaintiff has asserted causes of action against each for negligence under the general maritime law and strict products liability. It is undisputed that neither GATX nor Valero was Plaintiff's Jones Act employer.
Summary judgment is appropriate "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c) (2012). A genuine issue of fact exists only "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).
In determining whether the movant is entitled to summary judgment, the Court views facts in the light most favorable to the non-movant and draws all reasonable inferences in his favor. Coleman v. Houston Indep. Sch. Dist., 113 F.3d 528 (5th Cir.1997). "If the moving party meets the initial burden of showing that there is no genuine issue of material fact, the burden shifts to the non-moving party to produce evidence or designate specific facts showing the existence of a genuine issue for trial." Engstrom v. First Nat'l Bank of Eagle Lake, 47 F.3d 1459, 1462 (5th Cir. 1995). Summary judgment is appropriate if the non-movant "fails to make a showing sufficient to establish the existence of an element essential to that party's case." Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). "In response to a properly supported motion for summary judgment, the nonmovant must identify specific evidence in the record and articulate the manner in which that evidence supports that party's claim, and such evidence must be sufficient to sustain a finding in favor of the nonmovant on all issues as to which the nonmovant would bear the burden of proof at trial." Johnson v. Deep E. Tex. Reg. Narcotics Trafficking Task Force, 379 F.3d 293, 301 (5th Cir.2004) (internal citations omitted). "We do not ... in the absence of any proof, assume that the nonmoving party could or would prove the necessary facts." Badon v. R J R Nabisco, Inc., 224 F.3d 382, 394 (5th Cir.2000) (quoting Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994)). Additionally, "[t]he mere argued existence of a factual dispute will not defeat an otherwise properly supported motion." Boudreaux v. Banctec, Inc., 366 F.Supp.2d 425, 430 (E.D.La.2005).
GATX and Valero have each moved for summary judgment and seek dismissal of all claims against them. Plaintiff has also moved for summary judgment as to certain affirmative defenses asserted by each Defendant.
GATX moves this Court for the entry of summary judgment, dismissing Plaintiff's claims for products liability and negligence under the general maritime law. The Court addresses each claim in turn. For
The Supreme Court has recognized products liability as part of the general maritime law. E. River S.S. Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 865, 106 S.Ct. 2295, 90 L.Ed.2d 865 (1986). "The general maritime law is an amalgam of traditional common-law rules, modifications of those rules, and newly created rules." Id. (citations omitted). In developing the general maritime law, courts have consulted state law as well as the Restatement of Torts. Vickers v. Chiles Drilling Co., 822 F.2d 535, 538 (5th Cir.1987) (citations omitted). Thus, the initial question before the Court is whether to apply state law, the Restatement, or some combination of both to this maritime products liability action. The Fifth Circuit has not definitively addressed this issue. See Hebert v. Outboard Marine Corp., 638 F.Supp. 1166, 1170 (E.D.La.1986) (recognizing lack of guidance). Numerous courts, however, have embraced Section 402A of the Restatement (Second) of Torts as the "best expression" of the law of products liability under the general maritime law. Ocean Barge Transp. Co. v. Hess Oil Virgin Islands Corp., 726 F.2d 121, 123 (3d Cir. 1984) (collecting cases); see also Hebert, 638 F.Supp. at 1170 (same); 1 Thomas J. Schoenbaum, Admiralty and Maritime Law § 5-7 (5th ed. 2012) ("The applicable substantive law of products liability in admiralty is Section 402a of the Restatement (Second) of Torts."). Indeed, both the Supreme Court and the Fifth Circuit have applied the Restatement (Second) of Torts in maritime products liability cases. See, e.g., Saratoga Fishing Co. v. J.M. Martinac & Co., 520 U.S. 875, 117 S.Ct. 1783, 138 L.Ed.2d 76 (1997); Vickers, 822 F.2d 535; Pavlides v. Galveston Yacht Basin, Inc., 727 F.2d 330 (5th Cir.1984); Martinez v. Dixie Carriers, Inc., 529 F.2d 457 (5th Cir.1976). Other sections of this Court have applied Section 402A as well. See, e.g., Cargill, Inc. v. Degesch America, Inc., 875 F.Supp.2d 667 (E.D.La.2012); Penn Mar., Inc. v. Rhodes Elec. Servs., Inc., No. 11-02761, 2012 WL 3027937 (E.D.La. July 24, 2012); Daigle v. L & L Marine Trans. Co., 322 F.Supp.2d 717 (E.D.La.2004). Moreover, by applying the Restatement in maritime products liability cases, "the Court furthers the federal interest in establishing uniform rules of maritime law." Transco Syndicate #1, Ltd. v. Bollinger Shipyards, Inc., 1 F.Supp.2d 608, 614 (E.D.La.1998) (citation omitted).
Section 402A provides as follows:
The threshold inquiry under Section 402A is whether the defendant is a seller or manufacturer of the allegedly defective
Plaintiff nonetheless contends that GATX is liable under Section 402A as a "distributor" who "places a product on the market or introduces it into the stream of commerce." (Id.) This argument is unpersuasive for multiple reasons. First, while comment f to Section 402A provides that liability may extend to a "distributor," the reference is made in the context of describing when a person is "engaged in the business of selling products," under Section 402A(1)(a). Restatement (Second) of Torts § 402A cmt. f (emphasis added). There is nothing in Section 402A or its comments to suggest liability extends beyond one who sells or manufactures products. To the contrary, Section 402A and the comments repeatedly use the terms "sell," "seller," and "selling" when describing the scope of liability. Moreover, Black's Law Dictionary defines a "distributor" as a "wholesaler, jobber, or other manufacturer or supplier that sells chiefly to retailers and commercial users." Black's Law Dictionary (9th ed. 2009) (emphasis added).
Second, extending liability to entities such as GATX that act merely as conduits in the stream of commerce is inconsistent with the policy justifications for imposing strict liability. As explained in comment c, "by marketing his product for use and consumption, [the seller or manufacturer] has undertaken and assumed a special responsibility towards any member of the consuming public." Restatement (Second) of Torts § 402 cmt. c. (emphasis added). Thus, the "public has a right to and does expect ... that reputable sellers will stand behind their goods." Id. (emphasis added). And finally: "public policy demands that the burden of accidental injuries caused by products intended for consumption be placed upon those who market them." Id. (emphasis added). Thus, only a defendant who plays an active role in marketing products to the public, i.e., a seller or manufacturer, should be subject to the "special rule" of strict liability. See Restatement (Second) of Torts § 402 cmt. a.
Third, the case law cited by Plaintiff — most of which is non-binding state court precedent — does not support his expansive interpretation of liability under Section 402A. (See R. Doc. 242 n. 10.) The few Fifth Circuit authorities cited apply primarily Louisiana law, only tangentially discussing the Restatement. See generally Reeves v. AcroMed Corp., 103 F.3d 442 (5th Cir.1997); CNG Producing Co. v. Columbia Gulf Transmission Corp., 709 F.2d 959 (5th Cir.1983); Fruge's Heirs v. Blood Servs., 506 F.2d 841 (5th Cir.1975). More importantly, the limited discussion of the Restatement in these cases does not support whatsoever the extension of liability to GATX.
Given the foregoing, the Court finds that GATX is neither a manufacturer nor seller under Section 402A. Accordingly, the products
Negligence is an actionable wrong under the general maritime law. Withhart v. Otto Candies, LLC, 431 F.3d 840, 842 (5th Cir.2005) (citations omitted). "The elements of a maritime negligence cause of action are essentially the same as land-based negligence under the common law." Id. (citation omitted). To state a claim for relief, the plaintiff must demonstrate that: (1) the defendant owed a duty; (2) the defendant breached that duty; (3) the plaintiff sustained damages; and (4) the defendant's wrongful conduct caused his damages. In re Great Lakes Dredge & Dock Co., LLC, 624 F.3d 201, 211 (5th Cir.2010) (citations omitted).
GATX moves for summary judgment on the ground that it does not owe any duty to Plaintiff. Specifically, GATX argues that to the extent any duties were owed to Plaintiff, such duties were imposed solely upon Plaintiff's Jones Act employers, the owners of the vessels on which Plaintiff served, and vessel operators. In support of this argument, GATX notes that a Jones Act employer has a non-delegable duty to provide a seaman with a reasonably safe place to work. Similarly, GATX argues the duty to furnish a seaworthy vessel is a non-delegable duty owed by the owner of a vessel. Finally, GATX cites certain federal regulations which, according to GATX, establish that vessel operators are charged with the duty to supervise cargo transfer and warn of dangerous products.
The existence of a duty vel non is a question of law. In re Great Lakes, 624 F.3d at 211 (citation omitted). Whether a duty is owed "depends on a variety of factors, `most notably the foreseeability of the harm suffered by the complaining party.'" Canal Barge Co., Inc. v. Torco Oil Co., 220 F.3d 370, 377 (5th Cir.2000) (quoting Consol. Aluminum Corp. v. C.F. Bean Corp., 833 F.2d 65, 67 (5th Cir.1987)). In the context of maritime torts, the Fifth Circuit has defined the concept of foreseeability:
Consol. Aluminum, 833 F.2d at 68. Thus, the issue before the Court is whether Plaintiff's exposure to benzene was a harm of the general sort to a person of a general class that a reasonably thoughtful owner of a shoreside warehouse facility would have anticipated as a probable result of its failure to warn,
Plaintiff argues this Court should derive a duty of care from certain federal regulations (other than those cited by GATX).
The Court has granted GATX's motion for summary judgment. Because no claims remain against GATX, Plaintiff's cross motion for summary judgment is denied as moot.
As did GATX, Valero moves for the dismissal of Plaintiff's claims for negligence and products liability. The Court addresses each claim in turn. For the following reasons, the Motion is denied.
As a preliminary matter, Valero contends the Court need not address the merits of Plaintiff's product liability claim, i.e., whether the product was unreasonably dangerous. Specifically, Valero argues that it had no "legal duty" to warn Plaintiff. (R. Doc. 197.) That duty, Valero argues, is owed by Plaintiff's Jones Act employers, by the owner of Plaintiff's vessels (according to the doctrine of unseaworthiness), and by Plaintiff's vessel operators (according to certain federal regulations).
Valero erroneously conflates the concepts of negligence, unseaworthiness, and strict products liability. That Plaintiff may have causes of action for negligence or unseaworthiness does not foreclose recovery against a manufacturer for an allegedly defective product. See Lewis v. Timco, Inc., 716 F.2d 1425, 1433 (5th Cir.1983) (Politz, J., dissenting) ("A negligence action focuses on conduct, specifically the quality of the act causing the injury; a strict products liability action focuses on the product itself."). Whereas negligence and unseaworthiness actions focus on the relationship between specific plaintiffs and defendants, "[s]trict products liability concerns itself with the relationship between the manufacturer and society as whole." Id. Moreover, the comments to Section 402A specifically recognize that strict liability is a "special rule" that "does not preclude liability based upon the alternative ground of negligence." Restatement (Second) of Torts § 402A cmt. a.; see also id. at cmt. m ("The liability stated in [Section 402A] does not rest upon negligence. It is strict liability.") Indeed, plaintiffs often join causes of action for negligence, unseaworthiness, and products liability in the same suit. See generally Williams v. Brasea, Inc., 497 F.2d 67 (5th Cir.1974); Martinez v. Dixie Carriers, Inc., 529 F.2d 457 (5th Cir.1976); Vickers, 822 F.2d 535. Finally, Valero cites no authority, nor can this Court find any, to support its argument that the availability of a Jones Act negligence claim and/or a claim for unseaworthiness precludes a cause of action for strict products liability as a matter of law.
In order to prevail on a products liability claim under Section 402A, a plaintiff must establish: (1) that the defendant sold or
Under Section 402A, a product is defective only if it is "unreasonably dangerous" to the ultimate user or consumer. Restatement (Second) of Torts § 402A(1). A product may be unreasonably dangerous due to lack of adequate instructions or warnings. See Reyes v. Wyeth Labs., 498 F.2d 1264, 1273-75 (5th Cir.1974). Two comments to the Restatement elaborate upon this theory of liability. Under comment j, a manufacturer must warn of dangers which the manufacturer either knows or should know at the time the product is sold. Pavlides, 727 F.2d at 338 (interpreting Restatement (Second) of Torts cmt. j); Borel v. Fibreboard Paper Prods. Corp., 493 F.2d 1076, 1088 (5th Cir.1973) (same). In determining the scope of this duty, "the manufacturer is held to the knowledge and skill of an expert." See Borel, 493 F.2d at 1089; Pavlides, 727 F.2d at 338 (citation omitted). Comment k recognizes a certain subspecies of products — those which are "unavoidably unsafe" because they are incapable of being made safe for their ordinary and intended use. Restatement (Second) of Torts § 402A cmt. k. Comment k clearly applies in the instant case, because commercial products containing benzene "possess[] both unparalleled utility and unquestioned danger." Borel, 493 F.2d at 1088.
In general, an unavoidably unsafe product must be accompanied by proper directions and proper warnings. See Alman Bros. Farms & Feed Mill, Inc. v. Diamond Labs., Inc., 437 F.2d 1295, 1303 (5th Cir.1971) ("It is well recognized that [under comment k] an adequate warning and proper instructions must be given to a potential user of the product.") (emphasis added); Davis v. Wyeth Labs., Inc., 399 F.2d 121, 128-29 (9th Cir.1968) ("As [comment k] stresses ... strict liability is avoided ... only where sale is accompanied by proper directions and proper warnings.") (emphasis added) (footnote omitted);
Valero argues that the general awareness of the dangers associated with handling
The plaintiff in Martinez died from exposure to noxious fumes after stripping a barge that had been used to transport Hydrol-D — a petrochemical mixture containing a substantial concentration of benzene. 529 F.2d at 460. His surviving spouse filed a wrongful death action against, inter alia, the manufacturer of Hydrol-D for negligence and strict product liability. Id. In assessing both claims, the court found the following facts particularly important: (1) the plaintiff and his co-employees were advised prior to stripping the barge that it contained a residue of "dripolene, the generic name in the industry for a common industrial substance that [the manufacturer] marketed under the trade name `Hydrol-D,'" id.; (2) the barge was equipped with large permanent signs on the main deck with the words, "Warning, Dangers Cargo, No Visitors, No smoking, No Open Lights," id. at 462 (internal quotation marks omitted); (3) at the time of loading, the manufacturer placed a benzene warning card on the barge, in compliance with Coast Guard regulations,
With respect to the products liability claim, the issue before the court was whether the manufacturer's warnings were adequate under Section 402A. See id. at 465-67. Crucially, Martinez did not address the threshold issue before this Court — whether the manufacturer was required to provide warnings in the first place.
This Court finds Borel v. Fibreboard Paper Products Corporation instructive on the circumstances in which the manufacturer of an inherently dangerous product is obligated to provide warning under Section 402A.
On appeal, the manufacturers challenged, inter alia, the jury's finding that their products were unreasonably dangerous for failure to provide a warning. Id. at 1093. They argued that the danger resulting from exposure to asbestos was "obvious." Id. In rejecting this argument, the court first cited the plaintiff's pre-trial testimony that he was unaware inhalation of asbestos could cause serious illness. Id. The court continued: "[f]urthermore, we cannot say that, as a matter of law, the danger was sufficiently obvious to asbestos installation workers to relieve the defendants of the duty to warn." Id.
Here, as in Borel, the plaintiff testified that he was unaware of the full extent of the dangers associated with the allegedly defective product until some point after he had already been exposed. More importantly, however, the Court cannot conclude on the record before it that the danger of exposure to products containing benzene was sufficiently obvious to tankermen like Plaintiff as to relieve Valero of its duty to warn. This determination is fact-intensive and must therefore be resolved at trial. See Jackson, 499 F.2d at 812 (finding that whether a danger is sufficiently known as to relieve a defendant of its duty to warn is "an issue for the jury"). Accordingly, summary judgment is denied.
To the extent Valero re-urges its argument that the availability of a Jones Act negligence claim or an unseaworthiness claim precludes a cause of action for negligent failure to warn, that argument is rejected for substantially the same reasons articulated in the previous subpart. Other than cite the generally recognized rules that the duty to provide a reasonably safe to place work and the duty to furnish a seaworthy vessel are owed by the Jones Act employer and vessel owner, respectively, Valero provides little else in support of its argument. In fact, to speak of unseaworthiness in terms of "duty" is misleading, as the doctrine of unseaworthiness is predicated without regard to fault or the use of due care. Brister v. A.W.I., Inc., 946 F.2d 350, 355 (5th Cir.1991) (citations omitted). More importantly, Valero provides no authority, nor can this Court find any, for the proposition that the Jones Act
The Court now pauses to consider the extent to which its denial of Valero's request for summary judgment under Section 402A controls the analysis of the second part of Valero's Motion — whether Valero can prove that it has no duty to warn under a traditional negligence analysis. The causes of action for negligence and strict liability are conceptually different. As explained supra, while the latter focuses on the condition of the product, the former probes the conduct of the defendant. See also Jackson, 499 F.2d at 812. In failure-to-warn cases, however, "[t]he distinction between the two lessens considerably." Werner v. Upjohn Co., Inc., 628 F.2d 848, 858 (4th Cir.1980). For example, the Borel court addressed whether a jury's finding of strict liability for failing to warn of a foreseeable danger is inconsistent with a separate finding that the same defendants were not negligent in failing to warn of the same danger. See 493 F.2d at 1093-94. The court summarized the law as follows: "when a failure to give adequate warning is alleged to have made a product unreasonably dangerous, the standard for strict liability is essentially similar to the standard for establishing negligence." Id. at 1093. Accordingly, the court found the jury's verdict inconsistent.
Given the foregoing, the Court finds no practical difference in the legal standard to be applied in a failure-to-warn case when
Plaintiff moves for summary judgment on various affirmative defenses asserted by Valero. The parties essentially re-urge the arguments made in support of and in opposition to Valero's Motion for Summary Judgment. Thus, much of the Court's previous analysis applies to the instant Motion.
Valero's sixth defense is that "it owed no duty to the Plaintiff." This defense, however, is not an affirmative defense. An affirmative defense is one on which the defendant bears the burden of proof of trial. See Crescent Towing & Salvage Co., Inc. v. M/V ANAX, 40 F.3d 741, 744 (5th Cir. 1994). The existence of a duty to warn is a prima facie element of the plaintiff's case, regardless of whether the plaintiff invokes Section 402A or general principles of negligence. As discussed supra, this issue will be decided at trial.
Valero's Eighth Defense reads as follows:
Plaintiff repeatedly characterizes this defense in his Motion as "failure to follow instructions." Thus, Plaintiff only moves for summary judgment on Part C of the Eighth Defense. Unfortunately, because Plaintiff largely rehashes word-for-word arguments made in his opposition memorandum to Valero's Motion, he does not address directly why the entry summary judgment is appropriate as to this particular defense. Plaintiff's argument appears
In response to Plaintiff's Motion, Valero employed the same tactic as Plaintiff, namely, to copy and paste arguments from memoranda associated with a different motion. Nonetheless, Valero has identified evidence in the record that creates a genuine factual dispute as to whether warnings were provided at Valero's dockside facilities. Accordingly, summary judgment on this affirmative defense is denied.
Valero's Thirteenth Defense is that the chemicals and solvents at issue in this case "presented no unreasonable risk of harm." Again, this is not an affirmative defense — Plaintiff bears the burden of proving a product defect. The existence of an alleged defect for failure to warn will be decided at trial, as discussed supra.
Valero's Fourteenth Defense reads as follows:
Plaintiff focuses on only part of this allegedly affirmative defense — that the chemicals and solvents were manufactured and distributed in compliance with federal and state regulations.
Valero's Fifteenth Defense reads as follows:
Valero appears to assert two separate affirmative defenses here: (1) that Plaintiff had actual knowledge of the hazards associated with handling Valero's products; and (2) that Plaintiff's employers were "learned intermediaries." Plaintiff's Motion does not address the latter defense whatsoever. Indeed, Plaintiff does not even mention his employers by name, much less discuss whether they were learned intermediaries upon whom Defendant may rely to provide warnings.
"Actual knowledge" is indeed an affirmative defense. See Pavlides, 727 F.2d at 340 ("Where a plaintiff has made out a prima facie case of `failure to warn' of a hazard, the manufacturer may assert as an
For the reasons previously stated, GATX's Motion for Summary Judgment is GRANTED and Plaintiff's cross Motion for Summary Judgment DENIED AS MOOT. No claims remain against GATX. Accordingly, GATX is dismissed from this suit.
Valero's Motion for Summary Judgment is DENIED. Genuine issues of material fact are present as to whether Valero's products were defective. Plaintiff's cross Motion for Summary Judgment is GRANTED IN PART. Valero is precluded from asserting the affirmative defense of actual knowledge.