Chief Justice TOAL:
In this products liability action, Trinity Manufacturing, Inc. (Trinity), and Matrix Outsourcing, LLC (Matrix), argue that the court of appeals erred in reversing the trial court's decision to grant summary judgment to them on a strict liability cause of action. See Lawing v. Trinity Mfg., Inc., 406 S.C. 13, 749 S.E.2d 126 (2013). In their cross-appeal, Scott and Tammy Lawing ask this Court to reverse the court of appeals' decision affirming the trial court's decision to charge the jury on the sophisticated user defense. We affirm in part and reverse in part the decision of the court of appeals.
This case revolves around the packaging and labeling of sodium bromate, a chemical which contributed to a fire that occurred in a plant owned by Engelhard Corporation (Engelhard) in Seneca, South Carolina, in June 2004. At the time of the fire, Scott Lawing worked at Engelhard's Seneca plant as a maintenance mechanic.
To complete its refining process, Engelhard used approximately 120 metric tons per annum of sodium bromate, which is classified as an oxidizer. An oxidizer is a chemical that initiates or promotes combustion in other materials, thereby causing fire either by itself or through the release of oxygen or other gases. In other words, when an oxidizer such as sodium bromate is heated to a certain temperature, it releases oxygen and contributes to the combustion of other materials.
Engelhard purchased the sodium bromate from Univar USA, Inc. (Univar). Univar sourced the sodium bromate through Trinity, who in turn, utilized its subsidiary, Matrix, to obtain the sodium bromate from a Chinese manufacturer. The Chinese manufacturer shipped the sodium bromate to the Port of Charleston, and from there, a common freight carrier
The shipment of sodium bromate involved in the fire was delivered to Engelhard on February 16, 2004, whereupon Engelhard inspected and accepted the shipment. The sodium bromate arrived packaged in woven plastic bags, each weighing twenty-five kilograms.
The bags of sodium bromate arrived at Engelhard stacked upon each other on wooden pallets, with thirty-six bags per pallet. The pallets were stacked two pallets high. Each of the pallets was "shrink-wrapped" so that the bags would remain on the pallet.
Paul Bailey, an Engelhard employee who was responsible for receiving shipments when the fire occurred, testified that none of the pallets in the February 2004 shipment contained warnings identifying the contents of the pallets as an oxidizer, and there were no warnings on the sides of the bags themselves that could be seen through the shrink-wrap. Within each shrink-wrapped pallet, some bags of the sodium bromate were stacked so that the black text on the bags appeared face-up,
At trial, Dr. Jerry Purswell, who testified as an expert in the field of Occupational Health and Safety Administration (OSHA) regulations, opined that the labeling on the bags of sodium bromate did not satisfy the OSHA HazCom requirements
Upon receipt of a shipment of sodium bromate, Engelhard employees typically moved the double-stacked pallets of sodium bromate — still shrink-wrapped — directly to the warehouse for storage, where Engelhard stored the chemical until it was needed for production.
On May 20, 2004 — the week before Engelhard's annual "shutdown week" — Engelhard employees moved four pallets of sodium bromate from the warehouse to the refinery hallway to be used in production. During the shutdown week, Engelhard stopped regular production in order to perform routine maintenance. However, Engelhard policies provided that production materials were not to be left in the refinery during shutdown week.
On June 1, 2004, Lawing, along with Keith Black and Curtis Martin, were assigned to work under Steve Knox during the shutdown week as part of a maintenance crew tasked with using an oxyacetylene cutting torch to cut out and replace condensate pipe in the refinery hall — not far from where the four pallets of sodium bromate had recently been moved.
Martin and Lawing each testified that they noticed the bags of sodium bromate in the work area on the day of the fire, but saw no label indicating that they should move the bags. Lawing testified that when he saw the bags, he looked for a "label or something that told me I needed to move it" and when he did not see one, he "thought they were fine." Lawing stated that if he had seen an oxidizer symbol, he would have moved the pallets. Lawing testified that at the time, he thought the bags contained baking soda.
The maintenance crew used the oxyacetylene torch to cut the pipe, which was suspended approximately fifteen to twenty feet above the floor. After about two hours of work, a piece of hot slag fell and landed on or near one of the pallets of sodium bromate. There was a "flash" on the pallet, which erupted into a ball of fire that engulfed Lawing, Martin, and Black. According to Knox, the eruption of fire "sounded like a jet taking off."
The Lawings — as well as Black and Martin (collectively, the plaintiffs)
Prior to trial, the defendants made a number of dispositive motions, including motions for summary judgment on the Lawings' claims. In particular, the defendants filed a joint motion for summary judgment on the Lawings' strict liability cause of action. The trial court addressed these motions and other matters during a two-day pre-trial hearing. The trial court granted the defendants' motion for summary judgment on the strict liability claim, ruling that Lawing was not a "user" of sodium bromate as required by section 15-73-10 of the South Carolina Code. S.C.Code Ann. § 15-73-10 (2005) (requiring a plaintiff to be a "user" or "consumer" of a product to recover under a strict liability theory).
The trial court consolidated the plaintiffs' cases and bifurcated the trial into a liability phase and a damages phase. Five causes of action were submitted to the jury. Three were against all of the defendants: negligence as to packaging,
Although the trial court had denied the defendants' motion for a directed verdict as to the sophisticated user defense at the conclusion of all of the evidence, the court charged the defense to the jury. As to the negligence cause of action, the trial court charged the jury, in pertinent part:
The trial court then explained that South Carolina common law requires a supplier of a dangerous product to provide a warning to the user, consumer, or purchaser. The trial court stated:
After explaining the elements of negligence, the trial court charged the sophisticated user defense:
The jury found for the Lawings on only one cause of action: breach of express warranty as to warning labels against Univar. The jury returned defense verdicts on the Lawings' other causes of action. Thereby, Trinity and Matrix were absolved of liability.
A consolidated appeal to the court of appeals followed. However, during the pendency of the appeal, Univar settled with all of the plaintiffs. Only the Lawings' appeal of the grant of summary judgment on their strict liability claim and their appeal of the jury verdict in favor of Trinity and Matrix proceeded to disposition at the court of appeals.
The court of appeals affirmed the trial court's decision to charge the sophisticated user defense on the negligence and breach of the implied warranty of merchantability claims. Lawing, 406 S.C. at 33, 749 S.E.2d at 136. In addition, the court of appeals reversed the trial court's decision to grant Trinity and Matrix's summary judgment motion on the strict liability claim, finding that the trial court too narrowly interpreted the term "user" under section 15-73-10, and holding that Lawing was indeed a "user" of sodium bromate for purposes of the statute. Id. at 37, 749 S.E.2d at 138. Therefore, the court of appeals remanded the matter for a new trial on the Lawings' strict liability claim. Id. at 37, 749 S.E.2d at 139.
The Lawings, as well as Trinity and Matrix, filed petitions for writs of certiorari, asking this Court to review the court of appeals' decision. This Court granted both petitions for writs of certiorari to review the court of appeals' opinion pursuant to Rule 242, SCACR.
Trinity and Matrix argue that the court of appeals erred in holding that Lawing was a "user" of the sodium bromate, and therefore, the court of appeals erred in reversing the trial court's grant of summary judgment on the strict liability claim, which was based on the trial court's finding that Lawing was not considered a "user" under section 15-73-10 of the South Carolina Code. Moreover, Trinity and Matrix argue that the court of appeals set forth a far too expansive definition of "user" for purposes of a strict liability analysis under South Carolina law.
When reviewing an order granting summary judgment, the appellate court applies the same standard as that used by the trial court pursuant to Rule 56(c), SCRCP. Turner v. Milliman, 392 S.C. 116, 122, 708 S.E.2d 766, 769 (2011). Summary judgment is appropriate where the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Rule 56(c), SCRCP; Turner, 392 S.C. at 122, 708 S.E.2d at 769.
"Determining the proper interpretation of a statute is a question of law, and this Court reviews questions of law de novo." Perry v. Bullock, 409 S.C. 137, 140, 761 S.E.2d 251, 252-53 (2014) (citation omitted).
Section 15-73-10 of the South Carolina Code provides that "[o]ne who sells any product in a defective condition unreasonably dangerous to
Section 15-73-10 does not define "user." Instead, the General Assembly expressly adopted the comments to section 402A of the Restatement of Torts (Second) — which discuss the meaning of "user" — as the expression of legislative intent for that section. See S.C.Code Ann. § 15-73-30 (2005) ("Comments to [section] 402A of the Restatement of Torts, Second, are incorporated herein by reference as the legislative intent of this chapter.").
Comment l to section 402A of the Restatement of Torts (Second), titled "User or consumer," provides in pertinent part:
Restatement (Second) of Torts § 402A cmt. l (1965) (emphasis added).
Comment o, however, explains that in comment l, the American Law Institute (ALI) did not intend to express either approval or disapproval of expanding section 402A to allow recovery to those other than users or consumers. Comment o provides, in pertinent part:
Restatement (Second) of Torts § 402A cmt. o (emphasis added).
We have not yet applied the comments to section 402A to determine whether a plaintiff should be considered a "user" under section 15-73-10. In fact, there has been only one occasion on which we have addressed the interpretation of the term "user" under section 15-73-10 for purposes of a strict liability claim. See Bray v. Marathon Corp., 356 S.C. 111, 116, 588 S.E.2d 93, 95 (2003).
In Bray, we found that an employee who suffered an emotional injury after watching a coworker being crushed by a trash compactor was a "user" of the trash compactor for purposes of section 15-73-10 because she was operating the controls of the defective trash compactor at the time of the accident. 356 S.C. at 116, 588 S.E.2d at 95. Further, in line with comment o, we provided that a bystander analysis does not apply to a strict liability cause of action, stating that a "user of a defective product is not a mere bystander but a primary and direct victim of the product defect." Id. at 117, 588 S.E.2d at 95.
As an expert at trial testified, a product's labeling is considered part of the product's package. See also Restatement (Second) of Torts § 402A cmt. h ("No reason is apparent for distinguishing between the product itself and the container in which it is supplied; and the two are purchased by the user or consumer as an integrated whole."). The very purpose of warnings issued through labels on products is "to provide information to people about hazards and safety information they do not know about so they may avoid the product altogether or avoid the danger by careful use." David G. Owen, Products Liability Law 621 (2d ed.2008). Indeed, labels and other aspects of packaging are typically a user's first line of defense in assessing a product's danger, and oftentimes, the only indication that a product is a highly flammable or otherwise dangerous product.
The fact that Lawing noticed the pallets of sodium bromate within the work area on the day of the fire — but failed to request their removal because he did not see a label indicating their dangerous nature — is crucial for purposes of determining whether he should be considered a "user" of the sodium bromate. According to Lawing's testimony, he used the sodium bromate's labeling — or the lack thereof — to evaluate the safety of the product the day of the fire. Therefore, we find that Lawing's actions fall under comment l because Lawing used the information on the sodium bromate's packaging to complete work in close proximity to the pallets of sodium bromate, and to assess the need to avoid or move the nearby sodium bromate, regardless of the fact that he did not actually handle the sodium bromate.
Similar to the court of appeals, we find that Lawing was not a "casual bystander" with regard to the sodium bromate. See Lawing, 406 S.C. at 34, 749 S.E.2d at 137. On the day of the fire, there was the potential for Lawing to interact with the sodium bromate while completing his work in the refinery hall, especially after Engelhard employees failed to move the sodium
Although the court of appeals properly found that Lawing should be considered a "user" under section 15-73-10, we agree with Trinity and Matrix's contention that the court of appeals set forth far too broad a definition of "user" for purposes of a strict liability analysis in South Carolina.
After citing the comments to section 402A discussing the definition of "user," the court of appeals stated:
Lawing, 406 S.C. at 34-35, 749 S.E.2d at 137 (emphasis added).
As evident from our application to Lawing in this case, we would not restrict the term "user" to plaintiffs who are injured while handling or operating the dangerous product. However, the court of appeals' expansive definition including as a "user" all "persons who could foreseeably come into contact with the dangerous nature of a product" could be interpreted as to allow a bystander employee to recover under section 15-73-10. As discussed, supra, Bray clearly prohibits bystander recovery for purposes of strict liability. See Bray, 356 S.C. at 117, 588 S.E.2d at 95. Furthermore, including a foreseeability analysis in a determination of whether a plaintiff constitutes a "user" under section 15-73-10 is improper. See Bray, 356 S.C. at 117, 588 S.E.2d at 96 ("Because [section] 15-7310 limits liability to the user or consumer, there is no need
A case-by-case analysis is more appropriate for courts' determination of who constitutes a "user" under section 15-73-10. Therefore, we hold that the court of appeals erred in setting forth its broad definition of "user," and affirm as modified the court of appeals' decision on this issue.
The Lawings argue that the court of appeals erred in affirming the trial court's decision to charge the sophisticated user defense to the jury. We agree.
An appellate court will not reverse the trial court's decision regarding jury instructions unless the trial court committed an abuse of discretion. Cole v. Raut, 378 S.C. 398, 404, 663 S.E.2d 30, 33 (2008) (citing Clark v. Cantrell, 339 S.C. 369, 389, 529 S.E.2d 528, 539 (2000)). An abuse of discretion occurs when the trial court's ruling is based on an error of law or is not supported by the evidence. Id.
Suppliers and manufacturers of dangerous products are generally under a duty to warn the ultimate user of the dangers associated with the use of the product. See Livingston v. Noland Corp., 293 S.C. 521, 525, 362 S.E.2d 16, 18 (1987) (citing Gardner v. Q.H.S., Inc., 448 F.2d 238, 242 (4th Cir.1971) (finding that the duty to warn arises when the user may not realize the potential danger of a product)). However, the sophisticated user doctrine, which arose from comment n to section 388 of the Restatement (Second) of Torts,
In arguing that the court of appeals erred in affirming the trial court's decision to charge the jury on the sophisticated user defense, the Lawings contend that the sophisticated user defense is not the law of South Carolina. We agree that prior to the court of appeals' opinion in this case, neither this Court, nor the court of appeals, had explicitly adopted the defense.
Trinity and Matrix — similar to the court of appeals — center their argument around Engelhard's knowledge of the nature and use of sodium bromate, an unsurprising approach given that the sophisticated user defense revolves around an intermediary's knowledge and awareness of the danger associated with the use of a particular product. See Lawing, 406 S.C. at 30-32, 749 S.E.2d at 135-36. Indeed, based on the testimony in this case, there is no doubt that Engelhard was very familiar with sodium bromate and understood its dangerous nature.
However, a sophisticated user has a responsibility separate and apart from the responsibility to adequately label a dangerous product. Under the specific factual circumstances in this case, the proper focus is the labeling on the sodium bromate shipped to Engelhard, not the use of sodium bromate in Engelhard's plant. Engelhard's knowledge of the dangers of sodium bromate does not affect the suppliers' duty to properly label sodium bromate as a hazardous and flammable product, because the knowledge of sodium bromate's inherent qualities are useless to a person who comes into contact with the chemical but cannot identify it.
In other words, there is a critical distinction between an intermediary's knowledge of the dangerous qualities and nature of a product, and the ability of the third party user to identify and recognize that product on its face. When considering
Black testified that employees like himself utilized labeling on products as their "first line of defense" within the plant. Because maintenance workers, including Lawing, received training to familiarize themselves with hazard labels, i.e., the oxidizer symbol, with no visible hazard label, these employees who encountered the shrink-wrapped pallets of sodium bromate were unable to identify it as a dangerous product. Under these facts, Engelhard's knowledge regarding the properties of sodium bromate and its transfer of that information to its employees is insignificant.
Therefore, we find that the evidence does not support a jury charge on the sophisticated user defense because the evidence in this case that does support that charge — i.e., Engelhard's experience with sodium bromate, the fact that it employed chemical engineers, and the MSDSs which were available — is merely a distraction from the real issue: the visibility of the labels indicating danger on the pallets of sodium bromate. Accordingly, the trial court abused its discretion in charging the sophisticated user defense to the jury, and we reverse the court of appeals' decision on this issue.
Based on the foregoing, we affirm the court of appeals' decision reversing the trial court's grant of summary judgment to Trinity and Matrix on the Lawings' strict liability claim, but in doing so, modify the definition of "user" set forth by the court of appeals for purposes of section 15-73-10.
BEATTY and HEARN, JJ., concur. KITTREDGE, J., concurring in part and dissenting in part in a separate opinion. PLEICONES, J., dissenting in a separate opinion.
Justice KITTREDGE.
I concur in part and respectfully dissent in part. I join the majority in its construction of the term "user" for purposes of section 15-73-10 of the South Carolina Code (2005). I dissent with respect to the "sophisticated user" doctrine and would adopt what I believe to be the excellent analysis of the court of appeals concerning the doctrine and its application to this case.
I offer two additional comments. First, I do not agree with the majority "that prior to the court of appeals' opinion in this case, neither this Court, nor the court of appeals, had explicitly adopted the [sophisticated user] defense." The doctrine was clearly recognized in Bragg v. Hi-Ranger, Inc., 319 S.C. 531, 550, 462 S.E.2d 321, 332 (Ct.App.1995), when the court of appeals "conclude[d] the trial court properly charged the jury concerning the sophisticated user defense." Nevertheless, I would modify Bragg in one respect. The jury charge approved in Bragg instructed the jury that manufacturers have no duty to warn of risks associated with a product when the product is to be distributed to a "learned intermediary" or sophisticated user. Id. at 549, 462 S.E.2d at 331. A similar charge was given in this case. See Lawing v. Trinity Mfg., Inc., 406 S.C. 13, 32, 749 S.E.2d 126, 136 (Ct.App.2013). However, contrary to the jury charges in Bragg and in this case, the sophisticated user doctrine does not negate the existence of a duty on the part of the manufacturer. As the court of appeals correctly observed, "the sophisticated user doctrine does not operate to defeat any duty. It simply identifies circumstances the jury must consider when determining
Second, I would not avoid the issue of the sophisticated user doctrine's existence and applicability by creating a distinction between the labeling and the use of the sodium bromate, as if the two are not related. I view the issues of labeling and use as inextricably connected in this case. It is undisputed that Trinity Manufacturing and Matrix Outsourcing knew that Engelhard employees would be in close proximity to the sodium bromate, working with or around the dangerous product. While acknowledging "Engelhard was very familiar with sodium bromate and understood its dangerous nature," the Court states that "Engelhard's knowledge of the dangers of sodium bromate does not affect the suppliers' duty to properly label sodium bromate as a hazardous and flammable product." I believe Engelhard's knowledge of the dangers of sodium bromate is at the heart of the sophisticated user defense. Engelhard's knowledge of those dangers is a critical factor in assessing "`whether the supplier ... acted reasonably in assuming that the intermediary would recognize the danger and take precautions to protect its employees.'" Bragg, 319 S.C. at 550, 462 S.E.2d at 332 (quoting O'Neal v. Celanese Corp., 10 F.3d 249, 253 n. 2 (4th Cir.1993)). Again, I refer to the court of appeals' opinion:
Lawing, 406 S.C. at 31-32, 749 S.E.2d at 135-36. I would affirm the court of appeals with respect to the sophisticated user doctrine.
JUSTICE PLEICONES, dissenting.
I respectfully dissent. I agree with Justice Kittredge that the Court of Appeals properly decided the "sophisticated user" issue, and that the doctrine has been part of South Carolina's jurisprudence since 1995. I disagree with the majority, with Justice Kittredge, and with the Court of Appeals, however, on the question whether Lawing was a `user' within the meaning of S.C.Code Ann. § 15-73-10 (2005), and would therefore uphold the trial court's decision to grant summary judgment to Trinity and Matrix on Lawing's strict liability claim.
Section 15-73-10 imposes strict liability on sellers to users and consumers under certain circumstances. The meaning of the terms "user" and "consumer" are elucidated by the Comments to § 402A of the Restatement of Torts Second.
This is a tragic case, but for the reasons given above, I respectfully dissent, and would affirm the Court of Appeals on the "sophisticated user" issue, and reverse that court on the