NOTICE: This opinion is subject to
formal revision before publication in the preliminary print of the
United States Reports. Readers are requested to notify the Reporter
of Decisions, Supreme Court of the United States, Washington,
D. C. 20543, of any typographical or other formal errors, in
order that corrections may be made before the preliminary print
goes to press.
SUPREME COURT OF THE UNITED STATES
_________________
No. 17–1104
_________________
AIR AND LIQUID SYSTEMS CORP., et al.,
PETITIONERS
v. ROBERTA G. DeVRIES, Individually and as
Administratrix of the ESTATE OF JOHN B. DeVRIES, DECEASED,
et al.
on writ of certiorari to the united states
court of appeals for the third circuit
[March 19, 2019]
Justice Kavanaugh delivered the opinion of the
Court.
In maritime tort cases, we act as a common-law
court, subject to any controlling statutes enacted by Congress. See
Exxon Shipping Co. v.
Baker,
554
U.S. 471, 507–508 (2008). This maritime tort case raises a
question about the scope of a manufacturer’s duty to warn. The
manufacturers here produced equipment such as pumps, blowers, and
turbines for three Navy ships. The equipment required asbestos
insulation or asbestos parts in order to function as intended. When
used on the ships, the equipment released asbestos fibers into the
air. Two Navy veterans who were exposed to asbestos on the ships
developed cancer and later died. The veterans’ families sued the
equipment manufacturers, claiming that the manufacturers were
negligent in failing to warn of the dangers of asbestos.
The plaintiffs contend that a manufacturer has a
duty to warn when the manufacturer’s product requires incorporation
of a part (here, asbestos) that the manufacturer knows is likely to
make the integrated product dangerous for its intended uses. The
manufacturers respond that they had no duty to warn because they
did not themselves incorporate the asbestos into their equipment;
rather, the Navy added the asbestos to the equipment after the
equipment was already on board the ships.
We agree with the plaintiffs. In the maritime
tort context, a product manufacturer has a duty to warn when (i)
its product requires incorporation of a part, (ii) the manufacturer
knows or has reason to know that the integrated product is likely
to be dangerous for its intended uses, and (iii) the manufacturer
has no reason to believe that the product’s users will realize that
danger. The District Court did not apply that test when granting
summary judgment to the defendant manufacturers. Although we do not
agree with all of the reasoning of the U. S. Court of Appeals
for the Third Circuit, we affirm its judgment requiring the
District Court to reconsider its prior grants of summary judgment
to the defendant manufacturers.
I
Kenneth McAfee served in the U. S. Navy
for more than 20 years. As relevant here, McAfee worked on the
U. S. S.
Wanamassa from 1977 to 1980 and then on
the U. S. S.
Commodore from 1982 to 1986. John
DeVries served in the U. S. Navy from 1957 to 1960. He worked
on the U. S. S.
Turner.
Those ships were outfitted with equipment such
as pumps, blowers, and turbines. That equipment required asbestos
insulation or asbestos parts in order to function as intended. When
used as intended, that equipment can cause the release of asbestos
fibers into the air. If inhaled or ingested, those fibers may cause
various illnesses.
Five businesses—Air and Liquid Systems, CBS,
Foster Wheeler, Ingersoll Rand, and General Electric—produced some
of the equipment that was used on the ships. Al-though the
equipment required asbestos insulation or asbestos parts in order
to function as intended, those businesses did not always
incorporate the asbestos into their products. Instead, the
businesses delivered much of the equipment to the Navy without
asbestos. The equipment was delivered in a condition known as
“bare-metal.” In those situations, the Navy later added the
asbestos to the equipment.[
1]
McAfee and DeVries allege that their exposure to
the asbestos caused them to develop cancer. They and their wives
sued the equipment manufacturers in Pennsylvania state court.
(McAfee and DeVries later died during the course of the ongoing
litigation.) The plaintiffs did not sue the Navy because they
apparently believed the Navy was immune. See
Feres v.
United States,
340 U.S.
135 (1950). The plaintiffs also could not recover much from the
manufacturers of the asbestos insulation and asbestos parts because
those manufacturers had gone bankrupt. As to the manufacturers of
the equipment—such as the pumps, blowers, and turbines—the
plaintiffs claimed that those manufacturers negligently failed to
warn them of the dangers of asbestos in the integrated products. If
the manufacturers had provided warnings, the workers on the ships
presumably could have worn respiratory masks and thereby avoided
the danger.
Invoking federal maritime jurisdiction, the
manufacturers removed the cases to federal court. The manufacturers
then moved for summary judgment on the ground that manufacturers
should not be liable for harms caused by later-added third-party
parts. That defense is known as the “bare-metal defense.”
The District Court granted the manufacturers’
motions for summary judgment. The U. S. Court of Appeals for
the Third Circuit vacated and remanded.
In re Asbestos Prods.
Liability Litigation, 873 F.3d 232, 241 (2017). The Third
Circuit held that “a manufacturer of a bare-metal product may be
held liable for a plaintiff’s injuries suffered from later-added
asbestos-containing materials” if the manufacturer could foresee
that the product would be used with the later-added
asbestos-containing materials.
Id., at 240.
We granted certiorari to resolve a disagreement
among the Courts of Appeals about the validity of the bare-metal
defense under maritime law. 584 U. S. ___ (2018). Compare 873
F.3d 232 (case below), with
Lindstrom v.
A-C Prod.
Liability Trust,
424 F.3d 488 (CA6 2005).
II
Article III of the Constitution grants the
federal courts jurisdiction over maritime cases. Under 28
U. S. C. §1333, the federal courts have “original
jurisdiction, exclusive of the courts of the States, of
. . . [a]ny civil case of admiralty or maritime
jurisdiction, saving to suitors in all cases all other remedies to
which they are otherwise entitled.”
When a federal court decides a maritime case,
it acts as a federal “common law court,” much as state courts do in
state common-law cases.
Exxon Shipping Co., 554 U. S.,
at 507. Subject to direction from Congress, the federal courts
fashion federal maritime law. See
id., at 508, n. 21;
Miles v.
Apex Marine Corp.,
498 U.S.
19, 27 (1990);
United States v.
Reliable Transfer
Co.,
421 U.S.
397, 409 (1975);
Detroit Trust Co. v.
The Thomas
Barlum,
293 U.S.
21, 42–44 (1934). In formulating federal maritime law, the
federal courts may examine, among other sources, judicial opinions,
legislation, treatises, and scholarly writings. See
Exxon
Co.,
U. S. A. v.
Sofec,
Inc.,
517 U.S.
830, 839 (1996);
East River S. S. Corp. v.
Transamerica Delaval Inc.,
476 U.S.
858, 864 (1986).
This is a maritime tort case. The plaintiffs
allege that the defendant equipment manufacturers were negligent in
failing to warn about the dangers of asbestos. “The general
maritime law has recognized the tort of negligence for more than a
century . . . .”
Norfolk Shipbuilding &
Drydock Corp. v.
Garris,
532 U.S.
811, 820 (2001); see also
Kermarec v.
Compagnie
Generale Transatlantique,
358 U.S.
625, 631–632 (1959). Maritime law has likewise recognized
common-law principles of products liability for decades. See
East River S. S. Corp., 476 U. S., at 865.
In this negligence case, we must decide whether
a manufacturer has a duty to warn when the manufacturer’s product
requires later incorporation of a dangerous part—here, asbestos—in
order for the integrated product to function as intended.
We start with basic tort-law principles. Tort
law im- poses “a duty to exercise reasonable care” on those whose
conduct presents a risk of harm to others. 1 Restatement (Third) of
Torts: Liability for Physical and Emotional Harm §7, p. 77
(2005). For the manufacturer of a product, the general duty of care
includes a duty to warn when the manufacturer “knows or has reason
to know” that its product “is or is likely to be dangerous for the
use for which it is supplied” and the manufacturer “has no reason
to believe” that the product’s users will realize that danger. 2
Restatement (Second) of Torts §388, p. 301 (1963–1964).
In tort cases, the federal and state courts have
not reached consensus on how to apply that general tort-law “duty
to warn” principle when the manufacturer’s product requires later
incorporation of a dangerous part in order for the integrated
product to function as intended. Three approaches have emerged.
The first approach is the more
plaintiff-friendly foreseeability rule that the Third Circuit
adopted in this case: A manufacturer may be liable when it was
foreseeable that the manufacturer’s product would be used with
another product or part, even if the manufacturer’s product did not
require use or incorporation of that other product or part. See,
e.g., 873 F. 3d, at 240;
Kochera v.
Foster
Wheeler,
LLC, 2015 WL 5584749, *4 (SD Ill., Sept. 23,
2015);
Chicano v.
General Elec. Co., 2004 WL 2250990,
*9 (ED Pa., Oct. 5, 2004);
McKenzie v.
A. W. Chesterson
Co., 277 Ore. App. 728, 749–750, 373 P.3d 150, 162 (2016).
The second approach is the more
defendant-friendly bare-metal defense that the manufacturers urge
here: If a manufacturer did not itself make, sell, or distribute
the part or incorporate the part into the product, the manufacturer
is not liable for harm caused by the integrated product—even if the
product required incorporation of the part and the manufacturer
knew that the integrated product was likely to be dangerous for its
intended uses. See,
e.g.,
Lindstrom, 424 F. 3d,
at 492, 495–497;
Evans v.
CBS Corp., 230 F. Supp. 3d
397, 403–405 (Del. 2017);
Cabasug v.
Crane Co., 989
F. Supp. 2d 1027, 1041 (Haw. 2013).
The third approach falls between those two
approaches. Under the third approach, foreseeability that the
product may be used with another product or part that is likely to
be dangerous is not enough to trigger a duty to warn. But a
manufacturer does have a duty to warn when its product
requires incorporation of a part and the manufacturer knows
or has reason to know that the integrated product is likely to be
dangerous for its intended uses. Under that approach, the
manufacturer may be liable even when the manufacturer does not
itself incorporate the required part into the product. See,
e.g.,
Quirin v.
Lorillard Tobacco Co., 17 F.
Supp. 3d 760, 769–770 (ND Ill. 2014);
In re New York City
Asbestos Litigation, 27 N.Y.3d 765, 793–794, 59 N. E. 3d
458, 474 (2016);
May v.
Air & Liquid Systems
Corp., 446 Md. 1, 29, 129 A.3d 984, 1000 (2015).
We conclude that the third approach is the most
appropriate for this maritime tort context.
To begin, we agree with the manufacturers that a
rule of mere foreseeability would sweep too broadly. See gener-
ally 1 Restatement (Third) of Torts: Liability for Physical and
Emotional Harm §7, Comment
j, at 82; 2 Restatement (Second)
of Torts §395, Comment
j, at 330. Many products can
foreseeably be used in numerous ways with numerous other products
and parts. Requiring a product manufacturer to imagine and warn
about all of those possible uses—with massive liability looming for
failure to correctly predict how its product might be used with
other prod- ucts or parts—would impose a difficult and costly
burden on manufacturers, while simultaneously overwarning users. In
light of that uncertainty and unfairness, we reject the
foreseeability approach for this maritime context.
That said, we agree with the plaintiffs that the
bare-metal defense ultimately goes too far in the other direction.
In urging the bare-metal defense, the manufacturers contend that a
business generally has “no duty” to “control the conduct of a third
person as to prevent him from causing physical harm to another.”
Id., §315, at 122. That is true, but it is also beside the
point here. After all, when a manufacturer’s product is dangerous
in and of itself, the manufacturer “knows or has reason to know”
that the product “is or is likely to be dangerous for the use for
which it is supplied.”
Id., §388, at 301. The same holds
true, we conclude, when the manufacturer’s product requires
incorporation of a part that the manufacturer knows or has reason
to know is likely to make the integrated product dangerous for its
intended uses. As a matter of maritime tort law, we find no
persuasive reason to distinguish those two similar situations for
purposes of a manufacturer’s duty to warn. See Restatement (Third)
of Torts: Products Liability §2, Comment
i, p. 30
(1997) (“[W]arnings also may be needed to inform users and
consumers of nonobvious and not generally known risks that
unavoidably inhere in using or consuming the product”).
Importantly, the product manufacturer will often
be in a better position than the parts manufacturer to warn of the
danger from the integrated product. See generally G. Calabresi, The
Costs of Accidents 311–318 (1970). The product manufacturer knows
the nature of the ultimate integrated product and is typically more
aware of the risks associated with that integrated product. By
contrast, a parts manufacturer may be aware only that its part
could conceivably be used in any number of ways in any number of
products. A parts manufacturer may not always be aware that its
part will be used in a way that poses a risk of danger.[
2]
To be sure, as the manufacturers correctly point
out, issuing a warning costs time and money. But the burden usually
is not significant. Manufacturers already have a duty to warn of
the dangers of their own products. That duty typically imposes a
light burden on manufacturers. See,
e.g.,
Davis v.
Wyeth Labs.,
Inc., 399 F.2d 121, 131 (CA9 1968);
Butler v.
L. Sonneborn Sons,
Inc., 296 F.2d
623, 625–626 (CA2 1961);
Ross Labs. v.
Thies,
725 P.2d 1076, 1079 (Alaska 1986);
Moran v.
Faberge,
Inc., 273 Md. 538, 543–544, 332 A.2d 11, 15
(1975). Requiring a manufacturer to also warn when the manufacturer
knows or has reason to know that a required later-added part is
likely to make the integrated product dangerous for its intended
uses should not meaningfully add to that burden.
The manufacturers also contend that requiring a
warning even when they have not themselves incorporated the part
into the product will lead to uncertainty about when product
manufacturers must provide warnings. But the manufacturers have not
pointed to any substantial confusion in those jurisdictions that
have adopted this approach. And the rule that we adopt here is
tightly cabined. The rule does not require that manufacturers warn
in cases of mere foreseeability. The rule requires that
manufacturers warn only when their product
requires a part
in order for the integrated product to function as intended.
The manufacturers further assert that requiring
a warning in these circumstances will lead to excessive warning of
consumers. Again, however, we are not aware of substantial
overwarning problems in those jurisdictions that have adopted this
approach. And because the rule we adopt here applies only in
certain narrow circumstances, it will not require a plethora of new
warnings.
Requiring the product manufacturer to warn when
its product requires incorporation of a part that makes the
integrated product dangerous for its intended uses—and not just
when the manufacturer itself incorporates the part into the
product—is especially appropriate in the maritime context. Maritime
law has always recognized a “special solicitude for the welfare” of
those who undertake to “venture upon hazardous and unpredictable
sea voy- ages.”
American Export Lines,
Inc. v.
Alvez,
446 U.S.
274, 285 (1980) (internal quotation marks omitted). The
plaintiffs in this case are the families of veterans who served in
the U. S. Navy. Maritime law’s longstanding solicitude for
sailors reinforces our decision to require a warning in these
circumstances. See
Yamaha Motor Corp.,
U. S. A. v.
Calhoun,
516 U.S.
199, 213 (1996);
Miles, 498 U. S., at 36;
Moragne v.
States Marine Lines,
Inc.,
398 U.S.
375, 387 (1970).
For those reasons, we conclude as follows: In
the maritime tort context, a product manufacturer has a duty to
warn when (i) its product requires incorporation of a part, (ii)
the manufacturer knows or has reason to know that the integrated
product is likely to be dangerous for its intended uses, and (iii)
the manufacturer has no reason to believe that the product’s users
will realize that danger. We do not purport to define the proper
tort rule outside of the maritime context.
One final point for clarity: Courts have
determined that this rule applies in certain related situations,
including when: (i) a manufacturer directs that the part be
incorporated, see,
e.g.,
Bell v.
Foster Wheeler
Energy Corp., 2016 WL 5780104, *6–*7 (ED La., Oct. 4, 2016);
(ii) a manufacturer itself makes the product with a part that the
manufacturer knows will require replacement with a similar part,
see,
e.g.,
Chesher v.
3M Co., 234 F. Supp. 3d
693, 713–714 (S. C. 2017);
Quirin, 17 F. Supp. 3d, at
769–770;
May, 446 Md., at 29, 129 A. 3d, at 1000; or (iii) a
product would be useless without the part, see,
e.g.,
In
re New York City Asbestos Litigation, 27 N. Y. 3d, at
793–794, 59 N. E. 3d, at 474. In all of those situations,
courts have said that the product in effect requires the part in
order for the integrated product to function as intended. We agree.
The maritime tort rule we adopt today therefore encompasses those
situations, so long as the manufacturer knows or has reason to know
that the integrated product is likely to be dangerous for its
intended uses, and the manufacturer has no reason to believe that
the product’s users will realize that danger.
* * *
In the maritime tort context, we hold that a
product manufacturer has a duty to warn when (i) its product
requires incorporation of a part, (ii) the manufacturer knows or
has reason to know that the integrated product is likely to be
dangerous for its intended uses, and (iii) the manufacturer has no
reason to believe that the product’s users will realize that
danger. The District Court should evaluate the evidence under that
rule. Although we do not agree with all of the reasoning of the
Third Circuit, we affirm its judgment requiring the District Court
to reconsider its prior grants of summary judgment to the defendant
manufacturers.
It is so ordered.
Comments
Be the first to comment
Leave a Comment