In re McNeilus Manufacturing Explosion Coordinated Litigation
In re McNeilus Manufacturing Explosion Coordinated Litigation
Opinion of the Court
This matter is before the Court on Swagelok Company's and San Diego Valve and Fitting Company's ("San Diego Valve") Joint Motion to Certify Question to Minnesota Supreme Court and to Stay Proceedings.
I. Relevant Factual Background
This is a products-liability case arising out of an explosion that occurred at the McNeilus Truck and Manufacturing, Inc., facility in Dodge Center, Minnesota, on January 11, 2017. McNeilus manufactures large trucks for waste removal purposes that are powered by a compressed natural gas ("CNG") system, with the CNG stored in pressurized cylinders on top of the vehicles. During the manufacturing process, after the CNG trucks are painted, they are moved into a heated baking room so that the paint can cure.
On January 11, 2017, McNeilus was finishing a CNG vehicle for Waste Management, a national disposal and recycling company. Four natural gas cylinders were *1077mounted on the top of the truck, connected to a manifold with a high-pressure CNG hose. Swagelok and San Diego Valve manufacture and sell the high-pressure hose and the hose assemblies used on this vehicle. The truck was inside the baking room during the morning of January 11th.
At approximately 10:00 a.m., a massive explosion occurred inside the factory. Several workers were injured, two very seriously, and the facility suffered significant damage. Eemou See was the most severely injured. She and her husband, Sing See, brought this lawsuit against Swagelok and San Diego Valve under negligence and strict-liability theories for the defective design and manufacture of the hose and hose assemblies, and for failure to attach proper warnings regarding use of the equipment. The Sees allege that Swagelok and San Diego Vale defectively manufactured the hose assemblies, causing the CNG to escape the canisters. Specifically, they claim that the gas was able to escape the hose assembly because the high-pressure hose was improperly seated in a fitting. The gas came into contact with a spark in the baking room, causing the explosion.
Swagelok, San Diego Valve, and McNeilus all agree that Ms. See is not at fault for her injuries, but they dispute who among them is responsible for the explosion. Swagelok and San Diego Valve deny that their hose assemblies are defective, and filed a third-party complaint against McNeilus, alleging that McNeilus is responsible for the explosion. They contend that McNeilus unreasonably allowed the CNG truck to be brought indoors without first defueling the vehicle. They claim that the industrial heater in McNeilus' baking room raised the temperature near the CNG cylinders on the truck above 200 degrees Fahrenheit for an extended time prior to the explosion. These factors, according to Swagelok and San Diego Valve, were the cause of the explosion rather than a problem with the CNG hose. Moreover, even if they are found to be somewhat at fault, Swagelok and San Diego Valve assert that their responsibility for the harm in this case will be less than 50%.
Meanwhile, McNeilus sharply contests Swagelok and San Diego Valve's allegations. [See McNeilus Mem. at 5-7, ECF No. 136.] McNeilus argues that: (1) the hose was under-inserted into its fitting at the time of the explosion, causing the hose to separate and allowing the release of CNG; (2) testing of the non-involved end of the same hose reveals that it was also significantly under-inserted in its fitting; and (3) McNeilus has used the same process and the same oven for curing the paint in the baking room for many years at its plant with no prior instance of a CNG release in the paint building. [Id. ] McNeilus, therefore, takes the position that Swagelok and San Diego Valve are fully responsible for the explosion and Ms. See's injuries. Indeed, McNeilus has filed its own complaint against Swagelok and San Diego for the damage caused to the McNeilus factory.
Procedural History
The Sees filed their original Complaint in November of 2017. [ECF No. 1.] On May 22, 2018, this case was consolidated with several that were filed by other McNeilus employees who were injured in the January 11, 2017 explosion. [Order Granting Consolidation (May 22, 2018).] The Court has held several status conferences with the parties to discuss the progress of the litigation, to aid in their efforts at resolution, and to resolve certain discovery disputes. This case is not in its earliest stages, and significant work has already been accomplished by the parties. Nevertheless, the schedule anticipates that there is more to be done. The deadline for completion of fact discovery is still a month *1078away. Expert disclosures and discovery will not be completed until September 20, 2019, and dispositive motions, which are anticipated, must be served, filed, and heard by October 15, 2019. [Third Am. Scheduling Order (Mar. 5, 2019), ECF No. 123.] The case is expected to be trial-ready in December 2019.
In addition to litigation, there have been meaningful efforts to resolve all of the cases arising from the explosion at McNeilus. All parties participated in two days of private mediation in January 2019 with retired Magistrate Judge Arthur Boylan. Then, the Court held a global settlement conference on April 10, 2019 for the cases that were not resolved at the mediation. Although many of the cases that arose from this tragedy have now been settled, the Sees, Swagelok, and San Diego Valve were unable to come to a resolution. The day before the undersigned held the April 10th settlement conference, Swagelok and San Diego filed the pending motion to certify a question to the Minnesota Supreme Court. [ECF No. 131.]
II. The Motion to Certify
Swagelok and San Diego Valve argue that the Court should certify the following question to the Minnesota Supreme Court:
When a worker is injured through the combined fault of the employer and third-party tortfeasors, can the third-party tortfeasors be held jointly and severally liable for payment of the entire verdict amount if, when the employer's fault is compared, they are neither individually nor in the aggregate more than 50% at fault?
[Defs.' Mem. at 1, ECF No. 133.] The defendants assert that they have structured their defense to demonstrate that McNeilus is solely, or at least 50%, at fault for Ms. See's injuries based on the holding of Gaudreault v. Elite Line Services ,
The importance of this legal question to the present litigation is obvious. If the rule followed in Gaudreault is correct, and Swagelok and San Diego Valve persuade a jury that they are less than 50% at fault, they would only be required to pay a fraction of the damages that may be awarded to the Sees. If, on the other hand, Fish states the correct rule of law, Swagelok and San Diego Valve could be required to pay the entire verdict if the jury finds them to be in any way at fault, even if they are still considerably less at fault than McNeilus. Gaudreault and Fish are at odds, and although the Minnesota Supreme Court has now granted review in Fish , it has not previously answered the question. Swagelok and San Diego Valve's joint motion asks this Court to give the Minnesota Supreme Court the chance to resolve the uncertainty created by these *1079opposing decisions. For the reasons explored below, that motion is denied.
A. Legal Standard
Minnesota has adopted the Uniform Certification of Questions of Law Act ("QLA").
If a federal court certifies a question of law, the order must include:
(1) the question of law to be answered;
(2) the facts relevant to the question, showing fully the nature of the controversy out of which the question arose;
(3) a statement acknowledging that the Supreme Court of [Minnesota], acting as the receiving court, may reformulate the question; and
(4) the names and addresses of counsel of record and the parties appearing without counsel.
Whether to certify a question under the QLA is a question committed to the federal courts' sound discretion. See Friedlander v. Edwards Lifesciences, LLC , No. 16-CV-1747 (SRN/KMM),
B. Analysis
For two reasons, the Court declines to invoke its authority to certify a question to the Minnesota Supreme Court in this case. First, the Court finds that certification of the question would be premature. The motion to certify here is premised upon the possibility that a jury *1080would find that Swagelok and San Diego Valve together are less than 50% at fault. As noted above, however, there is significant dispute about the percentage of fault attributable to McNeilus, Swagelok, and San Diego Valve. Discovery is ongoing, dispositive motions have yet to be filed, and the case is many months away from trial. Though Swagelok and San Diego Valve confidently allege that their products are not at all responsible for Ms. See's injuries, it remains entirely possible that a jury could find them to be primarily at fault for the explosion. See
None of the cases cited by Swagelok and San Diego in their memorandum certified a question of law where the legal issue had potentially significant impact, but had not yet become ripe.
*1081Second, the Court finds certification in this case is unnecessary and imprudent because the Minnesota Supreme Court granted review in Fish . The question raised by Swagelok and San Diego Valve is almost certain to be answered by the Minnesota Supreme Court because it is squarely presented by the appeal in Fish . While it is possible , as the defendants allege, that the Fish court might reverse its grant of review or frame the opinion in a way that avoids answering the critical question common to both Fish and this litigation, such outcomes are far less likely than the court issuing an opinion that resolves the damages-allocation issue and settles whether the lower court's ruling in Fish or Judge Ericksen's ruling Gaudreault is correct.
Swagelok and San Diego Valve argue that the Minnesota Supreme Court's grant of review in Fish favors certification here because it would give them a chance to present their view of the issue to be decided in that case. They claim to be entitled to a "seat at the table" for the Fish decision because of its potential importance to this case. This argument is ultimately unpersuasive. Swagelok and San Diego Valve essentially seek certification so that they can intervene and offer legal argument in the Fish appeal. However, they offer no support, and this Court is not aware of any, for the proposition that the certification procedures in the QLA may be invoked by parties in ongoing federal district court litigation who want to weigh in on a pending state court appeal. Indeed, if Swagelok and San Diego Valve were defending this case in state court, there would be no procedural mechanism for "intervening" in the Fish appeal from the discovery stage of similar, but entirely unrelated litigation. The certification statute should not be employed to create such a vehicle here.
Swagelok and San Diego Valve also argue that certification will allow the Minnesota Supreme Court to see the unfair consequences of adopting the Fish rule in a case with facts as "egregious" as this one-they posit that it would be unfair to find them liable for the entire award when their percentage of fault will likely be as low as 1%. Again, the Court is not persuaded. Not only is it sheer speculation that the apportionment of fault in this case would lead to an egregious outcome if Fish remains good law, but Fish itself presents a similarly stark factual scenario. Fish involves a jury verdict that found the third-party tortfeasor to be only 20% at fault and an employer to be 75% at fault.
Because the question Swagelok and San Diego Valve seek to certify is ultimately *1082going to be answered in Fish , it is only a matter of time before the parties in this case have the assistance of a settled legal landscape. Because clarification of the legal issue is on the horizon and the motion is premature, the certification motion is denied.
ORDER
For all the foregoing reasons, Swagelok and San Diego's Joint Motion to Certify Question to Minnesota Supreme Court and to Stay Proceedings [ECF No. 131] is DENIED.
At the May 9, 2019 motions hearing, counsel for the defendants withdrew the request to stay these proceedings at this time. The Court denied the motion to stay on the record, noting that the possibility of a stay may be at a later date.
The Minnesota Supreme Court granted review in Fish on April 16, 2019. http://macsnc.courts.state.mn.us/ctrack/docket/docketEntry.do?action=edit&deID=1031177&csNameID=86884&csInstanceID=105809&csIID=105809.
The Sees oppose the motion to certify, arguing in part that Fish is so clearly correct and consistent with settled Minnesota law that there is "no uncertainty" to be resolved. [Pl.'s Opp'n at 3, 9, ECF No. 137.] The Court disagrees with this assessment. The Fish and Gaudreault decisions are both well-reasoned, grounded in precedent, and persuasive. While the plaintiffs may be correct that the holding of Fish will ultimately be affirmed by the Minnesota Supreme Court, the opposite outcome is just as possible. It is an overstatement of the clarity of the legal landscape to describe the issues as "well-settled."
Swagelok and San Diego also cite Johnson v. John Deere Co. ,
See McNeilus Mem. in Opp'n to Mot. to Certify at 5-7 (arguing that the evidence does not support apportioning more than 50% of fault to McNeilus based on an examination showing the Swagelok hose was under-inserted into the fitting), ECF No. 136.
Though there is currently a December 2019 trial-ready date in this case, it is difficult to say when a trial may actually take place. It is also uncertain whether the Minnesota Supreme Court will have issued its decision in Fish ahead of any trial date. If the parties here are unable to resolve the litigation ahead of trial, the Court can revisit the question of a stay down the road.
Reference
- Full Case Name
- IN RE: MCNEILUS MANUFACTURING EXPLOSION COORDINATED LITIGATION Filed as to See v. Swagelok, 17cv5237 and McNeilus Truck and Mfg. v. Swagelok Co., 18cv997
- Status
- Published