Satcher v. Honda Motor Co., Ltd. , 984 F.2d 135 ( 1993 )


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  •               IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    ________________
    No. 91-7138
    ________________
    JAMES C. SATCHER,
    Plaintiff-Appellee,
    versus
    HONDA MOTOR COMPANY, LTD., And
    Its Wholly Owned Subsidiaries,
    AMERICAN HONDA MOTOR COMPANY, INC.,
    AND HONDA R & D CO., LTD.,
    Defendants-Appellants.
    _________________________________________________________________
    Appeal from the United States District Court for the
    Southern District of Mississippi
    (CA-S-87-0635-P)
    __________________________________________________________________
    (January 25, 1993)
    Before JOLLY and DUHÉ, Circuit Judges, and PARKER, District Judge.*
    E. GRADY JOLLY, Circuit Judge:**
    James C. Satcher was riding a Honda motorcycle when he was
    struck by an automobile that traumatically amputated his leg.    He
    sued Honda under theories of strict product liability and negligent
    product design, asserting that the motorcycle was defective and
    *
    Chief Judge of the Eastern District of Texas, sitting by
    designation.
    **
    Local Rule 47.5 provides: "The publication of opinions
    that have no precedential value and merely decide particular
    cases on the basis of well-settled principles of law imposes
    needless expense on the public and burdens on the legal
    profession." Pursuant to that Rule, the court has determined
    that this opinion should not be published.
    unreasonably dangerous because it lacked leg guards.                      He also
    alleged that the design was defective because the motorcycle was
    not readily conspicuous to oncoming motorists.             Honda countered by
    moving for summary judgment on the basis that Mississippi's "open
    and obvious" doctrine barred recovery and that the motorcycle's
    "inconspicuity" was not causally related to Satcher's injuries.
    The district court denied Honda's motion for summary judgment and
    allowed Satcher's case to proceed to trial.               The jury returned a
    verdict for Satcher in the amount of $3,017,000.             Honda Motor Co.,
    Ltd., American Honda Motor Co., Inc., and Honda R & D Co., Ltd.
    (collectively "Honda") appeal.        We hold that under the applicable
    Mississippi law, the consumer expectations test applies in product
    liability cases, and because the alleged defect as well as the
    danger   was   open   and   obvious    to   the   ordinary        consumer,   the
    motorcycle was not "unreasonably dangerous."               Similarly, because
    the danger was open and obvious to a casual observer, Satcher is
    barred from recovery in his negligence claim.                Furthermore, the
    motorcycle's    alleged     "inconspicuity"       could     not    have    caused
    Satcher's injuries, and, because there is no causal relationship,
    the "inconspicuity" claim fails. For the reasons set out below, we
    REVERSE the district court's judgment and RENDER judgment in favor
    of all defendants.
    I
    Before addressing the merits of this appeal, we must deal with
    the procedural issues it presents.          Satcher argues that because
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    Honda did not move for a directed verdict either after Satcher
    presented his case or at the close of its case, and because it
    moved for a new trial and did not ask for JNOV, the district
    court's denial of summary judgment is moot and thus beyond review.
    Furthermore, Satcher argues that because the jury returned a
    verdict for Satcher after it was properly instructed on the "open
    and obvious"   defense,     we   are    precluded    from   finding      that   no
    reasonable   jury   could   have   found     that   the   defect   and    danger
    presented by this motorcycle's lack of leg protection were not open
    and obvious.   Similarly, Satcher argues that the jury's verdict
    supports his "conspicuity" claim and it cannot now be revisited.
    Honda's motion for a new trial was understood by the trial
    judge to include a motion for JNOV, including the argument that the
    defendants were entitled to summary judgment.               At the hearing on
    the defendants' motion for new trial, the trial judge specifically
    commented on this aspect of Honda's motion1 and repeated and
    readopted his denial of Honda's motion for summary judgment.
    It is well established that notices of appeal, with some few
    specific exceptions, are to be read liberally. Foman v. Davis, 
    371 U.S. 178
    , 181-82, 
    83 S.Ct. 227
    , 230 (1962), McLemore v. Landry, 
    898 F.2d 996
    , 999 (5th Cir. 1990).         Consequently, we must read Honda's
    1
    "Now, at the top of Page 3, Item 4 [of Defendants' Motion
    for New Trial], you again bring up open and obvious defense, and
    you say to a casual observer or to any ordinary consumer, which
    again is bringing back the issue of the Court's ruling on the
    motion for summary judgment." (Emphasis ours.) Transcript of
    5/20/91 hearing on defendants' motion for new trial, p.57.
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    notice of appeal as placing before us each of the trial court's
    adverse rulings against Honda, including its denial of summary
    judgment to Honda.       See Moore's Federal Practice               § 203.17[2]
    (appeal from final judgment draws into question and allows attack
    on   all   prior   non-final   orders    and   all    rulings     that    produced
    judgment); Blitzstein v. Ford Motor Co., 
    288 F.2d 738
     (5th Cir.
    1961).
    In reviewing the trial court's ruling on summary judgment,
    this court applies the same standard as the trial court, viewing
    the facts in the light most favorable to the nonmoving party.
    Federal Deposit Ins. Corp. v. Hamilton, 
    939 F.2d 1225
    , 1228 (5th
    Cir. 1991).    We decide questions of law de novo.           Walker v. Sears,
    Roebuck & Co., 
    853 F.2d 355
    , 358 (5th Cir. 1988).            Summary judgment
    is proper if the pleadings, depositions, admissions, and other
    summary judgment evidence demonstrate that there is no genuine
    issue of material fact and that the moving party is entitled to
    judgment as a matter of law.      Fed. R. Civ. P. 56; Celotex Corp. v.
    Catrett, 
    477 U.S. 317
    , 322, 
    106 S.Ct. 2548
    , 2552 (1986); Brown v.
    Southwestern Bell Tel. Co., 
    901 F.2d 1250
    , 1255 (5th Cir. 1990).
    II
    In reversing and rendering, it appears necessary for us to
    point out that district courts are, in diversity cases, bound by
    the decisions of the forum state.         Erie R.R. Co. v. Tompkins, 
    304 U.S. 64
    , 
    58 S.Ct. 817
     (1938); Grenada Steel Industries, Inc. v.
    Alabama    Oxygen    Co.,   
    695 F.2d 883
    ,       885   (5th    Cir.    1983).
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    Furthermore, under the doctrine of stare decisis, the district
    court is bound by the prior decisions of this court in interpreting
    Mississippi     law.     The     trial    judge    failed   to   recognize    these
    principles in denying summary judgment to Honda.                       For example,
    although the district court stated that "[t]he open and obvious
    defense is still alive and well under Mississippi law even though
    this   Court    feels    it    should     be     subsumed   by   the    comparative
    negligence doctrine," (emphasis ours), Satcher v. Honda Motor Co.,
    
    758 F.Supp. 393
    , 396 (S.D. Miss. 1991), it proceeded to apply the
    open and obvious defense based on holdings from the Seventh Circuit
    and other foreign jurisdictions, using a subjective standard. This
    burst of inspired creativity directly contravened our holding in
    Melton v. Deere & Co., 
    887 F.2d 1241
    , 1243-44 (5th Cir. 1989), and
    the Mississippi law upon which Melton is based.                    Notwithstanding
    the judge's belief that there are good policy reasons for his
    approach, he was not free to apply his ex cathedra approach.
    For the reasons set out in Toney v. Kawasaki Heavy Industries,
    
    975 F.2d 162
     (5th Cir. 1992), we reverse the district court's
    judgment entered upon the jury verdict in this case.                    As a matter
    of   law,   Satcher     stated    no     claim    against   Honda.       Under   the
    applicable Mississippi law, the consumer expectations test applies
    in product liability cases, and because the alleged defect and
    danger   were   open    and    obvious     to     the   ordinary    consumer,    the
    motorcycle was not "unreasonably dangerous."                 Similarly, because
    the danger was open and obvious to a casual observer, Satcher is
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    barred from recovery in his negligence claim.       Furthermore, the
    motorcycle's   alleged   "inconspicuity"   could   not   have   caused
    Satcher's injuries, and, because there is no causal relationship,
    the "inconspicuity" claim fails.2     The district court erred in
    failing to grant Honda's motion for summary judgment.       This case
    should never have gone to trial.      The judgment of the district
    court is REVERSED and judgment for defendants is herewith RENDERED.
    REVERSED and RENDERED.
    2
    Satcher additionally sued Honda on the theory that the
    motorcycle was unreasonably dangerous because Honda failed to
    manufacture it in such a way that it was adequately conspicuous
    to other vehicles. Even assuming the merit of this argument, the
    evidence shows that Mrs. Fagan, the driver of the automobile that
    collided with Satcher, first saw the motorcycle from a distance
    and thought it was a child playing in the road. Satcher, 
    758 F.Supp. at 393-94
    . It is therefore clear that Fagan recognized
    the motorcycle as an object that she should approach with care
    and attempt to evade. At the time of impact, Mrs. Fagan's
    automobile was "either stopped or barely moving." Satcher, 
    758 F.Supp. at 394
    . Yet she still turned her car into the
    plaintiff's lane of traffic; indeed, she turned her car directly
    in front of the plaintiff's motorcycle. The plaintiff's
    motorcycle could not have been any more conspicuous at this
    point. There is simply no causal connection between the
    motorcycle's "inconspicuity" and Mrs. Fagan's collision with it.
    As a matter of law, causation is lacking and this claim fails.
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