O'NEIL v. Crane Co.
O'NEIL v. Crane Co.
Opinion
[EDITORS' NOTE: THIS OPINION IS DEPUBLISHED UPON GRANTING OF PETITION FOR REVIEW. THE OPINION APPEARS BELOW WITH A GRAY BACKGROUND.] [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 1021
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 1022 OPINION
Patrick J. O'Neil died of mesothelioma. His widow, appellant Barbara J. O'Neil (individually and as successor in interest to Patrick O'Neil), and his children, appellants Michael O'Neil and Regan Schneider, sued respondents Crane Co. and Warren Pumps LLC for negligence, negligent failure to warn, strict liability for failure to warn, and strict liability for design defect on the consumer expectation theory. After 15 days of jury trial, the court granted respondents' motion for nonsuit and judgment was entered in their favor. We reverse.
On the Oriskany, O'Neil was first a main engine junior officer, then a boiler division officer. In both assignments, he stood watch in the machinery spaces, that is, in the boiler rooms and engine rooms and machine room, where he was responsible for supervising repairs and maintenance of equipment in those rooms. He also supervised repairs when the Oriskany was in dry dock for a period of about three months, after a fire.
Through testimony from an expert witness, retired Navy Captain William Lowell, from former Crane and Warren employees, and from other witnesses, appellants produced evidence about the Oriskany and about respondents' products:
The main power source on the Oriskany was steam, produced by eight boilers in four rooms. The steam system operated at very high temperatures, and all valves, flanges, and fittings were necessarily covered in insulation. When the Oriskany was built, the primary type of insulation for that purpose was made of 18 percent magnesium and 15 percent asbestos. Asbestos was also used in the packing which was found in pumps and valves.
There were thousands of valves on the Oriskany. Most of the valves in the machinery spaces were made by Crane. All of the Crane valves contained asbestos-containing packing, and Crane itself specified that material. Most of the valves had asbestos-containing insulation. The valves had flange connections, and most of the flange connections required the use of asbestos gaskets.3
There were several hundred pumps on the Oriskany. Fifty-two of them were made by Warren Pumps, including reciprocating steam engine pumps and 6-foot-tall bilge pumps. All but four or five of the 52 pumps were located in the machinery spaces. The pumps had asbestos-containing insulation and asbestos-containing packing and were designed to be used with asbestos-containing gasket insulation. At least in some instances, asbestos-containing packing and insulation were supplied by Warren and were on the pumps when they were delivered. Warren knew that work on the pumps would require removal of asbestos gaskets. *Page 1024
Packing and insulation had to be replaced or removed during the ordinary course of maintenance. The heat involved in steam power meant that the packing and insulation would bake onto the equipment, and could only be removed by being scraped off with a chisel or knife or wire brush. This work created asbestos dust.4
Douglas Deetjen, a shipmate of Patrick O'Neil's, worked in the Oriskany's boiler and engine rooms. He described the process of repacking valves and pumps, and of removing insulation from the equipment in the course of repair or maintenance. This would be done with a knife, scraper, grinder or wire brush, and produced a lot of dust. Deetjen saw O'Neil in the machinery spaces while this work was going on and dust was created. He testified that during these repairs, the dust floated all over the room, so that there was no way to avoid breathing the dust.
Lowell testified similarly, and also testified about dust-producing work undertaken by ship personnel during the repair of the Oriskany.
Deetjen testified specifically that work on Crane valves created dust and that Patrick O'Neil was in the room when that happened. He testified that work on Warren pumps created dust, and that he saw Patrick O'Neil in the room when work was being done on Warren pumps.
The Navy required manufacturers of equipment such as pumps and valves to provide manuals containing information about installation, operation, and maintenance. Manufacturers were required to include information about expected repairs and about safety cautions and requirements. Manuals also identified replacement parts. These manuals were living documents which could be changed during subsequent years.
None of the respondents' manuals included a warning about asbestos dust, or any recommendation concerning use of respirators or dust-reduction methods such as wetting friable asbestos. In the 1980's, Warren questioned Navy specifications on asbestos packing, raising issues about the health hazards. A Warren representative testified that nothing prevented it from doing so sooner, or from including warnings in the manuals.
Deetjen testified that his orders included an order to look at the manuals supplied by manufacturers. *Page 1025
The jury also heard evidence on the Navy's design and procurement process. Appellants' expert witness testified that a shipbuilder, building a ship for the Navy, would turn to qualified manufacturers and direct them to the "broad specifications" the Navy provided. (For instance, the Navy might specify that pumps should deliver 600 gallons a minute, be turbine driven, and able to operate at temperatures of up to 600 degrees.) The manufacturer would take that information and design the pumps. Lowell testified that "the Navy didn't design pumps. The manufacturers designed the pumps."
Appellants also presented the deposition testimony of Roland Doktor, a manager at Warren Pumps, designated as the person most knowledgeable about issues in this case. When asked "what does it mean to be built to a military specification?" he answered, "There are a certain set of guidelines that are put forward in the specifications as far as materials and properties, testing, things like that, to make sure that the pump will meet the requirements as it needs to be on the ship."
Respondents also called witnesses on this subject. Retired Admiral David Sargent testified about the shipbuilding process. This included the testimony that the Navy and manufacturers engaged in a design process, going back and forth between the Navy and the manufacturer, in which the manufacturer produced drawings for the Navy. This process resulted in Navy specifications.
There was also evidence concerning scientific knowledge of the dangers of asbestos at the relevant times and of respondents', and the Navy's, actual knowledge of the dangers of asbestos;5 evidence about Patrick O'Neil's disease; damages evidence; and evidence relevant to causation. (Rutherford v.Owens-Illinois, Inc. (1997)
Crane moved for nonsuit on all causes of action on the ground that there was no evidence that Patrick O'Neil was exposed to asbestos from Crane products, that there was no evidence that any exposure from Crane products was a substantial factor in causing O'Neil's disease, and other grounds. Warren Pumps joined in Crane's motion, and also moved for nonsuit on the ground that there was no evidence that Patrick O'Neil was exposed to asbestos from the maintenance or repair of a Warren pump. *Page 1026
Neither motion was based on the component parts defense, but questions concerning that defense arose during oral argument on the motions, and the court granted the motions on that basis. The court also found that the pumps and valves were not dangerous or defective except that they included (or were designed to work with) asbestos, and that the release of asbestos was not caused by the normal use of the equipment but by maintenance which was under the supervision of the Navy.6
The trial court found that this defense applied here. We do not. *Page 1027
Walker v. Stauffer Chemical Corp. (1971)
Lee v. Electric Motor Division (1985)
The defendant in Fierro v. International Harvester Co.
(1982)
As In re TMJ Implants Products Liability Litigation
(D.Minn. 1995)
Artiglio v. General Electric Co. (1998)
In contrast, we found that the defendants inTellez-Cordova, supra,
The Restatement Third of Torts is in accord. In section 5, titled "Liability Of Commercial Seller or Distributor of Product Components for Harm Caused by Products Into Which Components Are Integrated," it provides that "One engaged in the business of selling or otherwise distributing product components who sells or distributes a component is subject to liability for harm to persons or property caused by a product into which the component is integrated if: [¶] (a) the component is defective in itself, as defined in this Chapter, and the defect causes the harm; or [¶] (b)(1) the seller or distributor of the component substantially participates in the integration of the component into the design of the product; and [¶] (2) the integration of the component causes the product to be defective, as defined in this Chapter; and [¶] (3) the defect in the product causes the harm." (Rest.3d Torts, Products Liability, § 5.)7
In comment a, the Restatement defines "components": "Product components include raw materials, bulk products, and other constituent products sold for integration into other products. Some components, such as raw *Page 1030 materials, valves, or switches, have no functional capabilities unless integrated into other products. Other components, such as a truck chassis or a multifunctional machine, function on their own but still may be utilized in a variety of ways by assemblers of other products." (Rest.3d Torts, Products Liability, § 5, com. a, pp. 130-131.)
We cannot see that respondents' pumps and valves are component parts under this body of law. Component parts manufacturers are exempt from liability because they make multiuse or fungible products, designed to be incorporated into some other product. The component will be substantially altered by the customer, and the manufacturer of the component will have no control over the design of that finished product, or the warnings or labels on those products.
Here, in contrast, respondents did not supply a "building block" material, dangerous only when incorporated into a final product over which they had no control. Instead, respondents made "`separate product[s] with a specific purpose and use.'" (In re TMJ Implants Products Liability Litigation,supra,
In the component parts cases, the component manufacturer may not even know what the customer intends to do with the part, and the point of the doctrine is that they need not know. Without such a rule, suppliers would have to hire experts to learn of the dangers of each possible use, in order to understand the risks. (Tellez-Cordova, supra,
Taylor v. Elliott Turbomachinery Co., Inc. (2009)
The plaintiff in Taylor, like Patrick O'Neil, worked on an Essex-class aircraft carrier, and was exposed to asbestos from pumps, valves and other equipment. Taylor found, inter alia, that the component parts defense shielded those defendants. In its analysis, Taylor cited the fact that the plaintiff therein acknowledged that the equipment was intended to operate "as part of a larger `marine steam propulsion system.'" (Taylor, supra, at p. 584.)Taylor then cited that plaintiff's argument that the equipment was not multiuse, but was manufactured to the Navy's specifications for a particular purpose, but found the argument unpersuasive. Citing Artiglio, supra,
We reach a different conclusion. The defendant inArtiglio met all the criteria which define a component parts seller. As we have seen, respondents here do not. We also disagree with the finding that the entire steam system of an aircraft carrier (or, as respondents here argue, the ship itself) is a "finished product" as that term is used in the context of the component parts defense. Such a broad definition would make the analysis unworkable. For instance, under the defense, a component maker may be liable if it is substantially involved in the design of the finished product. (Springmeyer v. Ford Motor Co., supra,
Nor are we persuaded by Taylor's reference toArtiglio, and customer specifications.Artiglio found that GE was not deprived of the component parts defense merely because it had formulated the silicone to its customer's specifications. (Artiglio,supra,
Moreover, we agree with appellants that respondents would not be shielded by the component parts defense even if they were manufacturers of components, because that defense does not apply if the product itself is defective.
The trial court here found that respondents' products were not defective because they posed no danger until the asbestos was disturbed. We cannot see that this is correct. Appellants' design defect case was that respondents' valves and pumps were defective because they were designed to be used with asbestos-containing insulation and packing which would become dangerous during the ordinary and foreseeable use of the products. That is a perfectly acceptable theory. The performance of a product during ordinary, expected and routine maintenance and repair is part of the functionality of that product. A car which only exploded when the oil was changed or the tires rotated could not be deemed nondefective. (See DeLeon v.Commercial Manufacturing Supply Co. (1983)
Jones v. John Crane, Inc., supra,
This was not a ground for the trial court ruling, but the parties heavily brief the issue on appeal, no doubt becauseTaylor found the argument persuasive, at least insofar as the causes of action were based on a failure to warn. We do not.
We begin with basic principles: "This doctrine of strict liability extends to products which have design defects, manufacturing defects, or `warning defects.'" (Sparks v.Owens-Illinois, Inc., supra,
Under these principles, respondents would clearly be liable to a sailor who was injured as a result of exposure to the asbestos-containing packing and insulation they supplied with their pumps and valves. Respondents do not contend otherwise. Instead, they seek a different result because O'Neil was injured not by the original packing and insulation, but by replacement parts. In support, they cite cases which do not consider a manufacturer's liability for the components of its products, or for replacement parts, or the kind of interdependent products (valves and pumps along with their insulation and packing) which this case presents. We see nothing in these cases which would cut off respondents' responsibility for failure to warn or design defect, at the point in time at which their products were subject to predictable and ordinary maintenance or repair.
For instance, in Powell v. Standard Brands Paint Co.
(1985)
Cadlo v. Owens-Illinois, Inc. (2004)
Respondents cannot be analogized to the sulfuric acid supplier, who merely shipped a product in its customer's own choice of transportation, or to the defendants in Blackwell andDeep Vein Thrombosis, which were connected to the alleged dangerous product only by a choice made by the customer. In the cases respondents rely on, the two products were connected by some actor other than the defendant manufacturer, or by time and happenstance, outside the control of the defendant.
In contrast, respondents incorporated asbestos-containing products into their own products, which needed the asbestos-containing products in order to function. The injury was caused by the operation of respondents' products with replacement products which had the same dangerous propensities as the original parts. Respondents' cases do not address that situation. Other cases do. Under those cases, respondents can be held strictly liable for injury caused by dust emanating from replacement asbestos. We believe that that is the correct rule.
In Tellez-Cordova, supra,
Under the reasoning of these cases, a manufacturer is liable in strict liability for the dangerous components of its products, and for dangerous products with which its product will necessarily be used. That was appellants' evidence; that respondents incorporated asbestos-containing products into their products and knew those products would over time be replaced with the same kind of product, and that the products were defective because they required asbestos packing and insulation, and because they had no appropriate warnings. We can see no relevance to the fact that the injury was caused by the operation of its product in conjunction with a replacement part which is no different than the original. If respondents had warned the hypothetical original user, or protected that person by avoiding defective design, subsequent users, too, would have been protected.
Again, Taylor is to the contrary.9 It found that the defendants in that case were not liable for the plaintiff's injury, because the injury "did not come from [the defendants'] equipment itself, but was instead released from products made or supplied by other manufacturers and used in conjunction with [the defendants'] equipment," and that "[a]lthough a manufacturermay owe a duty to warn when the use of its product in combination with the product of another creates a potential hazard, that duty arises only when the manufacturer's own product causes or creates the risk of harm." (Taylor,supra,
We see several flaws in this reasoning. First, becauseTaylor does not seem to distinguish between harm caused by the original packing and insulation and harm caused by replacement parts, the holding is contrary to the rule that a manufacturer is liable for the dangers of its product's components. (Vandermark v. Ford Motor Co., supra,
Next, Taylor reached its conclusion through what is in our view a misunderstanding of Tellez-Cordova, DeLeon, and Wright, cases which it sought to distinguish.10
Taylor wrote that "in Tellez-Cordova, the plaintiff alleged that it was the action of respondents'tools themselves that created the injury-causing dust. Here, in contrast, Mr. Taylor's injuries were caused not by any action of respondents' products, but rather by the release of asbestos from products produced by others. This is a key difference, because before strict liability will attach, the defendant's product must `cause or create the risk of harm.' [Citation.] Second, unlike the abrasive wheels and discs inTellez-Cordova, which were not dangerous without the power of the defendants' tools, the asbestos-containing products at issue in our case were themselves inherently dangerous. It was their asbestos content — not any feature of respondents' equipment — that made them hazardous." (Taylor, supra,
This analysis misunderstands the facts ofTellez-Cordova. The allegation in that case was that the defendant's products, although harmless (and useless) without the attachments, were harmful when used as intended. The fact that the respirable dust emanated from the attachments, not the tools, was thus irrelevant. The use of the defendant's "own product" created the harm.
Tellez-Cordova holds that a manufacturer is liable when its product is necessarily used in conjunction with another product, and when danger results from the use of the two products together. That is appellants' evidence here. Asbestos does of course have inherent dangers, but appellants' evidence was that the asbestos incorporated into (and onto) respondents' products caused injury when it was removed. In fact, there was no evidence that the asbestos packing or insulation was dangerous until it was baked on, and removed. (See SanFrancisco Unified School Dist. v. W.R. Grace Co.
(1995)
Taylor sought to distinguish DeLeon v. CommercialManufacturing Supply Co., supra,
Taylor sees Wright v. Stang Manufacturing Co.,supra,
Mosk, J., and Kriegler, J., concurred.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.