Smith Ex Rel. Estates of Smith v. Robin America, Inc. , 484 F. App'x 908 ( 2012 )


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  •      Case: 11-20325   Document: 00511941735   Page: 1   Date Filed: 08/01/2012
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT  United States Court of Appeals
    Fifth Circuit
    FILED
    August 1, 2012
    No. 11-20325                   Lyle W. Cayce
    Clerk
    ROGERS SMITH, Individually and as Heirs of the Estates of Rogers Smith
    III, Deceased, and Rekesha Hopkins, Deceased; WINONA SMITH,
    Individually and as Heirs of the Estates of Rogers Smith III, Deceased, and
    Rekesha Hopkins, Deceased; GEORGIA RANDLE, as Next Friend of K.R. a
    Minor, Individually and as Heirs of the Estate of Kaven Randle, Deceased;
    KARRY BROWN, as Next Friend of K.R. a Minor, Individually and as Heirs
    of the Estate of Kaven Randle, Deceased; MARGARET RANDLE, as Next
    Friend of K.R. a Minor, Individually and as Heirs of the Estate of Kaven
    Randle, Deceased; JEREMY VEAZIE, as Next Friend of K.R. a Minor,
    Individually and as Heirs of the Estate of Kaven Randle, Deceased; TERRIE
    GREEN, as Next Friend of K.R. a Minor, Individually and as Heirs of the
    Estate of Kaven Randle, Deceased; SCHRHONDA RANDLE, Individually
    and as Heirs of the Estate of Kaven Randle, Deceased,
    Plaintiffs - Appellants
    PHIL JACKSON, JR.
    Intervenor Plaintiff - Appellant
    v.
    ROBIN AMERICA, INC., doing business as Subaru-Robin; FUJI HEAVY
    INDUSTRIES USA, INC.; FUJI HEAVY INDUSTRIES LTD.,
    Defendants - Appellees
    Appeal from the United States District Court
    for the Southern District of Texas
    U.S.D.C. No. 4:08-cv-03565
    Case: 11-20325       Document: 00511941735         Page: 2     Date Filed: 08/01/2012
    No. 11-20325
    Before GARZA, DENNIS, and HIGGINSON, Circuit Judges.
    PER CURIAM:*
    This products liability action arises from the deaths of Rogers Smith III,
    Rekesha Hopkins, and Kaven Randle (“decedents”) from carbon monoxide
    poisoning. In the aftermath of Hurricane Ike, sometime between September
    13th and September 18th of 2008, decedents operated a Black Max 6560 portable
    generator manufactured by Powermate Corporation inside a closed garage
    attached to a one-story home in Houston. At some point during this period,
    carbon monoxide emissions from the generator killed decedents.                      Several
    survivors of decedents appeal the district court’s grant of summary judgment to
    the defendant corporation that manufactured the generator’s engine under the
    component parts doctrine, adopted by the Texas Supreme Court. With limited
    exceptions, that doctrine shields suppliers of component parts — as opposed to
    manufacturers of finished consumer products — from liability in products
    liability actions.     Because we conclude that the district court correctly
    determined that, under the component parts doctrine, the engine manufacturer
    had no duty to the decedents, we AFFIRM the grant of summary judgment.
    BACKGROUND
    Plaintiffs-Appellants in this action (“plaintiffs”) are various survivors of
    the decedents. Defendants-Appellees (collectively “Fuji” or “defendants”) are
    Fuji Heavy Industries, the Japanese manufacturing company that built the
    generator engine and several subsidiaries including Robin America, Inc., which
    distributes Fuji’s small engines in the United States. Plaintiffs brought state
    law claims for negligence, negligent misrepresentation, wrongful death, products
    *
    Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should not
    be published and is not precedent except under the limited circumstances set forth in 5TH CIR.
    R. 47.5.4.
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    defects, and survivorship damages against Fuji, Powermate,1 and others. There
    is no dispute that Fuji manufactured the generator engine and supplied it to
    Powermate. The complaint alleged, inter alia, that Fuji breached duties owed
    to decedents by failing to adequately warn foreseeable users of the inherent risks
    associated with using the generator; failing to use ordinary care in providing
    adequate warning labels; and designing and marketing a defective generator
    that was unreasonably dangerous for its intended use.
    After discovery, Fuji moved for summary judgment pursuant to Federal
    Rule of Civil Procedure 56(a). The district court determined that Fuji was not
    the manufacturer of the generator but merely of the engine as a component part.
    The district court further concluded that Fuji had no duty to decedents under the
    component parts doctrine set forth in the Restatement (Third) of Torts: Products
    Liability § 5 (hereafter Restatement (Third)), and adopted by the Texas Supreme
    Court, whereby a component manufacturer only has a duty to warn if (1) the
    component itself is defective or (2) if the component manufacturer actively
    participated in integrating the component into the final product. Accordingly,
    the district court granted Fuji’s motion for summary judgment. Plaintiffs timely
    appealed.
    STANDARD OF REVIEW
    This court reviews a district court’s grant of summary judgment de novo,
    applying the same standards as the trial court. Urbano v. Continental Airlines,
    Inc., 
    138 F.3d 204
    , 205 (5th Cir. 1998). Summary judgment is proper if the
    evidence shows that there is no genuine issue as to any material fact and that
    the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P.
    56(a); Kee v. City of Rowlett, 
    247 F.3d 206
    , 210 (5th Cir. 2001). The court views
    all evidence in the light most favorable to the non-moving party and draws all
    1
    Powermate was dismissed from the suit after settling with plaintiffs.
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    reasonable inferences in that party’s favor. Crawford v. Formosa Plastics Corp.,
    
    234 F.3d 899
    , 902 (5th Cir. 2000). The initial burden falls on the movant to
    identify areas essential to the nonmovant’s claim in which there is an “absence
    of a genuine issue of material fact.” Lincoln Gen. Ins. Co. v. Reyna, 
    401 F.3d 347
    , 349 (5th Cir. 2005). Once the movant meets its burden, the nonmovant
    must direct the court’s attention to evidence in the record sufficient to establish
    that there is a genuine issue of material fact for trial. Celotex Corp. v. Catrett,
    
    477 U.S. 317
    , 323-24 (1986). The nonmoving party must produce evidence upon
    which a jury could reasonably base a verdict in its favor. Anderson v. Liberty
    Lobby, Inc., 
    477 U.S. 242
    , 248 (1986); DirectTV Inc. v. Robson, 
    420 F.3d 532
    , 536
    (5th Cir. 2005). To do so, the nonmovant must “go beyond the pleadings and by
    . . . affidavits[,] . . . depositions, answers to interrogatories and admissions on
    file, designate specific facts that show there is a genuine issue for trial.” Webb
    v. Cardiothoracic Surgery Assoc. of N. Tex., P.A., 
    139 F.3d 532
    , 536 (5th Cir.
    1998), overruled on other grounds by Burlington N. & Santa Fe Ry. Co. v. White,
    
    126 S. Ct. 2405
    , 2414 (2006). Unsubstantiated and subjective beliefs and
    conclusory allegations and opinions of fact are not competent summary judgment
    evidence. Morris v. Covan World Wide Moving, Inc., 
    144 F.3d 377
    , 380 (5th Cir.
    1998). This court may affirm the district court’s grant of summary judgment on
    any grounds supported by the record. Griffin v. United Parcel Serv., Inc., 
    661 F.3d 216
    , 221 (5th Cir. 2011).
    Texas law controls this diversity action, and in applying Texas law, this
    court “must do that which [it] think[s] the Texas Supreme Court would deem
    best.” Calbillo v. Cavendar Oldsmobile, Inc., 
    288 F.3d 721
    , 729 (5th Cir. 2002)
    (brackets and internal quotation mark omitted). In applying Texas law in this
    area, this court has noted that “[t]he Texas Supreme Court has long looked to
    the Restatement of Torts as an influential guide in products liability law, and has
    recently heavily relied on the refinements in such law reflected in Restatement
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    Third, Torts: Products Liability.” Cimino v. Raymark Indus., Inc., 
    151 F.3d 297
    ,
    334 (5th Cir. 1998); see also Bostrom Seating, Inc. v. Crane Carrier Co., 
    140 S.W.3d 681
    , 683-85 (Tex. 2004) (applying Restatement (Third) § 5, as anticipated
    in Cimino, 
    151 F.3d at 334
    ).
    DISCUSSION
    Under Texas law, “[i]n order to recover for an injury on the theory of
    products liability, the plaintiff bears the burden of proving that (1) the defendant
    placed a product into the stream of commerce; (2) the product was in a defective
    or unreasonably dangerous condition; and (3) there was a causal connection
    between that condition and the plaintiff's injuries or damages.”            Ranger
    Conveying & Supply Co. v. Davis, 
    254 S.W.3d 471
    , 479 (Tex. App. 2007) (citing
    Houston Lighting & Power Co. v. Reynolds, 
    765 S.W.2d 784
    , 785 (Tex. 1988);
    Armstrong Rubber Co. v. Urquidez, 
    570 S.W.2d 374
    , 376 (Tex. 1978)). “A product
    may be unreasonably dangerous . . . because of a failure to provide adequate
    warnings or instructions,” known as a “marketing defect.” 
    Id.
     at 480 (citing Am.
    Tobacco Co. v. Grinnell, 
    951 S.W.2d 420
    , 426 (Tex. 1997); Caterpillar, Inc. v.
    Shears, 
    911 S.W.2d 379
    , 382 (Tex. 1995); Turner v. Gen. Motors Corp., 
    584 S.W.2d 844
    , 847 (Tex. 1979)). “A marketing defect is proven when the evidence
    shows that a defendant fails to warn of a product’s potential dangers, when
    warnings are required, and that the lack of adequate warnings or instructions
    renders an otherwise adequate product unreasonably dangerous.” 
    Id.
     (citing,
    inter alia, Lucas v. Tex. Indus., Inc., 
    696 S.W.2d 372
    , 377 (Tex. 1984)). “The
    elements of a marketing defect cause of action are (1) a risk of harm must exist
    that is inherent in the product or that may arise from the intended or reasonably
    anticipated use of the product, (2) the supplier of the product knows or
    reasonably should foresee the risk of harm at the time the product is marketed,
    (3) the product has a marketing defect, (4) the lack of instructions or warnings
    renders the product unreasonably dangerous to the ultimate user or consumer
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    of the product, and (5) the failure to warn or instruct causes the user’s injury.”
    
    Id.
     (citing Olympic Arms, Inc. v. Green, 
    176 S.W.3d 567
    , 578 (Tex. App. 2004)).
    The Texas Supreme Court has explained that “a defendant’s failure to
    warn of a product’s potential dangers when warnings are required is a type of
    marketing defect. . . . Generally, a manufacturer has a duty to warn if it knows
    or should know of the potential harm to a user because of the nature of its
    product.” Grinnell, 951 S.W.2d at 426 (citations omitted). “In Texas, . . .
    whether a duty exists is a question of law for the court to decide from the facts
    surrounding the occurrence in question.” Ford v. Cimarron, Ins. Co., 
    230 F.3d 828
    , 830 (5th Cir. 2000). Accordingly, in order to ascertain whether a Texas tort
    plaintiff can survive a summary judgment motion in which the defendant argues
    it owed no legal duty to the plaintiff, the court “must ascertain whether [the
    plaintiff] proffered evidence raising a material fact issue as to whether” such a
    duty existed. See Boudreaux v. Swift Transp. Co., Inc., 
    402 F.3d 536
    , 543 (5th
    Cir. 2005).
    Here, plaintiffs argue that the district court erred in concluding that
    defendants had no duty to provide warnings as a matter of law. Plaintiffs argue
    that Fuji had a duty to warn decedents of the dangers of carbon monoxide
    poisoning associated with operating a portable generator in an attached garage
    because Fuji either (1) manufactured the generator, rather than merely
    supplying the engine as a component part; (2) had a duty as a component part
    supplier because the engine was defective and Fuji actively participated in
    integrating the engine into the final generator; or (3) assumed a duty to warn by
    placing inadequate warnings on the engine.
    I. Whether Fuji Manufactured the Generator
    Plaintiffs argue that the component parts doctrine does not apply because
    Fuji owed decedents a duty as the manufacturer of the generator itself.
    Plaintiffs argue that Fuji should be considered the manufacturer of the
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    generator because the engine essentially is the generator; Fuji’s brand name
    “Subaru” is prominently displayed on the generator, creating a presumption that
    Subaru is the manufacturer under the “branded car doctrine”; and Fuji actively
    worked with Powermate to such a high degree in the design and integration
    process of the engine, that Fuji should be considered to be the manufacturer.
    These arguments lack merit.
    First, plaintiffs argue that the engine was a final, completed product
    designed for use as a generator.       However, plaintiffs fail to point to any
    probative evidence that Fuji manufactured the generator. Rather, all the record
    evidence indicates that Powermate manufactured the generator, incorporating
    the Fuji engine as a component part. The affidavits and depositions by current
    and former Powermate and Fuji executives all indicated as much. For instance,
    former Powermate Vice President Tom Graber averred that “Powermate
    included component engines from a number of different manufacturers,
    including from [Fuji], Honda, and others[,] . . . [and] integrated the component
    engines, along with all other component parts from other component
    manufacturers, into the generator to assemble a final product for sale to the
    public.” Plaintiffs fail to point to any contrary evidence creating a genuine issue
    of fact as to whether Fuji, rather than Powermate, manufactured the final
    generator product. See Cimino v. Raymark Industries, Inc., 
    151 F.3d 297
    , 332
    (5th Cir. 1998) (“Some components, such as raw materials, valves, or switches,
    have no functional capabilities unless integrated into other products. Other
    components, such as a truck chassis or a multi-functional machine, function on
    their own but still may be utilized in a variety of ways by assemblers of other
    products.” (emphasis added) (quoting Restatement (Third) § 5 cmt. a, which the
    court correctly predicted the Texas Supreme Court would adopt)); Ranger, 
    254 S.W.3d at 481-85
     (rejecting plaintiff’s argument that conveyor manufactured by
    defendant was not a component of “larger bale-handling system” because
    7
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    defendant’s “conveyors stood alone and . . . their only purpose was to act as
    conveyors,” and instead concluding that defendant “had no duty to warn of the
    dangers of the larger system . . . because the conveyor was a component of the
    larger bale-handling system” (internal quotation mark omitted)); Restatement
    (Third) § 5 cmt. d (“Product components include products that can be put to
    different uses depending on how they are integrated into other products. For
    example, . . . an engine for industrial machines may be adapted to a variety of
    different industrial uses.”).
    Second, plaintiffs argue that, under the “branded car doctrine,” Fuji is
    presumed to be the manufacturer of the generator because the Fuji brand name
    “Subaru” is prominently displayed on the generator. “Under the branded car
    doctrine, evidence that the name of a corporation or individual is printed on the
    side of the vehicle raises a presumption that the party is the owner of the
    vehicle.”   Better Beverages, Inc. v. Meschwitz, 
    643 S.W.2d 502
    , 504 (Tex. App.
    1982). Texas courts have “extend[ed] the branded car doctrine to apply to cases
    involving identification of the manufacturer” of a product. 
    Id.
     However, this
    presumption “is not conclusive, . . . and can be rebutted by evidence to the
    contrary.” 
    Id.
     (citing Maintenance & Equipment Contractors v. John Deere Co.,
    
    554 S.W.2d 28
     (Tex. Civ. App. 1977); accord Mobley v. Moulas, 
    468 S.W.2d 116
    ,
    119 (Tex. Civ. App. 1971) (“[T]he [branded car] doctrine merely creates a
    rebuttable presumption . . . which ceases to have effect, application or function
    upon the introduction of direct and positive evidence establishing the contrary.”).
    Here, the record evidence is sufficient to rebut a presumption arising under the
    branded car doctrine. See Better Beverages, 
    643 S.W.2d at 504
     (determining that
    defendant soda company rebutted presumption arising from presence of its
    trademark on bottle by evidence showing separate company manufactured soda
    purchased by plaintiff); Mobley, 
    468 S.W.2d at 119
     (determining presumption
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    rebutted by evidence establishing that bus was owned and operated by company
    other than defendant although defendant’s name was on bus).
    Finally, plaintiffs argue that Fuji’s level of involvement in working with
    Powermate rises to such a degree that Fuji should be considered the
    manufacturer of the generator. However, plaintiffs’ contentions regarding the
    extent of Fuji’s collaboration with Powermate are properly analyzed under the
    “substantial participation” exception to the component parts doctrine, see
    Restatement (Third) § 5(b), which we will address below.
    II. Application of the Component Parts Doctrine
    In Bostrom Seating, Inc. v. Crane Carrier Co., 
    140 S.W.3d 681
     (Tex. 2004),
    the Texas Supreme Court adopted the component parts doctrine, whereby “if the
    component-part manufacturer does not participate in the integration of the
    component into the finished product, it is not liable for defects in the final
    product if the component itself is not defective.” 
    Id.
     at 683 (citing, inter alia,
    Restatement (Third) § 5). Section 5 provides:
    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
    (b)(2) the integration of the component causes the product to
    be defective, as defined in this Chapter; and
    (b)(3) the defect in the product causes the harm.
    Restatement (Third) § 5. Plaintiffs argue that the component parts doctrine does
    not shield Fuji from liability on the alternative grounds that Fuji “substantially
    participate[d] in the integration of the [engine] into the design of the [generator]”
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    and that the “component [engine] was defective in itself.” See id. We address
    these arguments in turn and determine that the summary judgment record does
    not create a genuine issue of material fact as to either contention.
    First, plaintiffs argue that the evidence creates a genuine issue of material
    fact as to whether Fuji actively participated in the integration of its engine into
    the generator. Plaintiffs argue that Fuji actively participated in integration by
    designing the engine specifically for the generator and sending its engineers to
    Powermate’s facilities to work hand-in-hand in the design and integration
    process. We also consider here those portions of the record plaintiffs reference
    in their argument that Fuji’s allegedly close relationship with Powermate means
    Fuji manufactured the generator.
    The summary judgment evidence does not give rise to a genuine issue of
    fact as to whether Fuji substantially participated in the integration of the engine
    into the design of the generator, within the meaning of Restatement (Third)
    § 5(b)(1), which the Texas Supreme Court would look to in addressing the
    matter. See Cimino, 
    151 F.3d at 334
    ; Bostrom Seating, 140 S.W.3d at 683. The
    pertinent evidence is as follows.       Graber averred: “Powermate included
    component engines from a number of different engine manufacturers, including
    from [Fuji], Honda, and others. . . . [Fuji] . . . w[as] not involved with Powermate
    in a joint venture with respect to the sale of Powermate generators. Powermate
    integrated the component engines, along with all other component parts from
    other component manufacturers, into the generator to assemble a final product
    for sale to the public. Generally, [Fuji] would provide mechanical and technical
    assistance to ensure that [Fuji]’s component engines operated as designed when
    mounted. However, where given, this assistance was minimal[] . . . .” Brad
    Murphy, Robin America’s Vice President of Sales and Marketing, testified that
    a Fuji engineer visited Powermate’s “facilities” in order to answer “technical
    questions” such as questions about “the power that the engine produces and . . .
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    how it will interact with . . . [Powermate’s] product.” Finally, Hitoshi Taguchi,
    a Fuji Corporate Representative, testified that the engine here was designed
    “according to [Powermate’s] specifications[] . . . in which the fuel tank does not
    come with the engine,” whereas Fuji’s general purpose engines generally come
    with their own fuel tank.
    This evidence does not create a genuine issue of fact as to whether Fuji
    substantially participated in integrating its engine into the generator design.
    Several illustrations from the commentary to § 5 are instructive in determining
    whether the level of participation indicated by the evidence here is sufficient to
    subject Fuji to liability under § 5(b):
    Substantial participation in the integration of the component into the
    design of another product.        When the component seller is
    substantially involved in the integration of the component into the
    design of the integrated product, the component seller is subject to
    liability when the integration results in a defective product and the
    defect causes harm to the plaintiff. Substantial participation can
    take various forms. The manufacturer or assembler of the
    integrated product may invite the component seller to design a
    component that will perform specifically as part of the integrated
    product or to assist in modifying the design of the integrated
    product to accept the seller’s component. Or the component seller
    may play a substantial role in deciding which component best serves
    the requirements of the integrated product. When the component
    seller substantially participates in the design of the integrated
    product, it is fair and reasonable to hold the component seller
    responsible for harm caused by the defective, integrated product. A
    component seller who simply designs a component to its buyer’s
    specifications, and does not substantially participate in the
    integration of the component into the design of the product, is not
    liable within the meaning of Subsection (b). Moreover, providing
    mechanical or technical services or advice concerning a component
    part does not, by itself, constitute substantial participation that
    would subject the component supplier to liability.
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    Restatement (Third) § 5 cmt. e; see also Toshiba Int’l, 152 S.W.3d at 778
    (applying this comment). None of these illustrations are analogous to the
    circumstances evidenced here.
    Rather, all the evidence indicates that the engine at issue was a general
    multi-purpose small engine of a kind that Fuji sold to various manufacturers,
    similar to other engines that Powermate purchased from Fuji, Honda, and other
    engine manufacturers for use in Powermate generators. The evidence indicates
    that Fuji provided the engine to Powermate without its own fuel tank, pursuant
    to Powermate’s specifications, but that this was the only sense in which the
    engine was designed or built to Powermate’s specifications. The Restatement
    explains that “[a] component seller who simply designs a component to its
    buyer’s specifications, . . . is not liable within the meaning of [§ 5](b).” Id.
    Whatever the extent of any technical advice Fuji engineers may have made
    available to Powermate — which the record indicates was minimal — “providing
    mechanical or technical services or advice concerning a component part does not,
    by itself, constitute substantial participation that would subject the component
    supplier to liability.” Id.
    Moreover, plaintiffs’ argument fails even assuming that Fuji substantially
    participated in integrating the engine within the meaning of § 5(b)(1). In order
    to show that a component part maker is subject to liability under § 5(b), a
    plaintiff must show not only that the component part maker “substantially
    participate[d] in the integration of the component into the design of the product,”
    but also, inter alia, that “the integration of the component cause[d] the product
    to be defective.” Restatement (Third) § 5(b)(1)-(3); see also id. § 5 cmt. f (“The
    mere fact that the component seller substantially participates in the integration
    of the component into the design of a product does not subject the seller to
    liability unless the integration causes the product to be defective . . . . The
    component seller is not liable for harm caused by defects in the integrated
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    product that are unrelated to the component.”). Here, plaintiffs do not even
    argue that the integration of the engine into the design of the generator had any
    effect on the nature of the warnings that Powermate placed on the generator,
    and point to no evidence going to this point, and our review of the record
    indicates that no genuine issue of fact exists with respect to this requirement.
    Rather, Graber’s uncontroverted affidavit stated that “Powermate did not fail to
    place applicable warnings on its generators or . . . modify or change its own
    warnings based on” its use of Fuji engines. Thus, plaintiffs fail to demonstrate
    the existence of a genuine fact issue as to a necessary factual predicate to their
    “substantial participation” argument. See Malacara v. Garber, 
    353 F.3d 393
    ,
    404 (5th Cir. 2003) (“To survive summary judgment, the nonmovant must
    submit or identify evidence in the record to show the existence of a genuine issue
    of material fact as to each element of the cause of action.”).
    Plaintiffs argue in the alternative that Fuji had a duty under the
    “defective component” exception to the component parts doctrine.                            See
    Restatement (Third) § 5(a). They contend that the engine had a design defect
    that rendered it unreasonably dangerous for its intended use because it was not
    equipped with an automatic cut-off switch to shut down the engine when carbon
    monoxide levels were building to an unsafe level or a carbon monoxide detection
    system.
    Under Texas law, “[w]hen a claimant alleges a design defect, the burden
    is on the claimant to prove by a preponderance of the evidence that (1) there was
    a safer alternative design and (2) the defect was a producing cause of the
    personal injury, property damage, or death for which the claimant seeks
    recovery.” Hunter v. Ford Motor Co., Inc., 
    305 S.W.3d 202
    , 209 (Tex. App. 2009)
    (citing Tex. Civ. Prac. & Rem. Code § 82.005(a)(1), (b)).2
    2
    Section § 82.005 provides in relevant part:
    (a) In a products liability action in which a claimant alleges a design defect, the
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    Plaintiffs have failed to point to any summary judgment evidence creating
    a genuine issue of fact as to this question. The only portions of the record
    discussing such devices do nothing to evidence that such devices “w[ere]
    economically and technologically feasible at the time the [engine] left [Fuji’s]
    control,” see Tex. Civ. Prac. & Rem. Code § 82.005(b)(1), nor that a generator
    engine without such a device is defective. Plaintiffs point to an October 26, 2006
    U.S. Consumer Products Safety Commission (“CPSC”) staff report as evidencing
    the safety benefits of such devices and the viability of building them into
    portable generators. The only page of that report addressing the devices
    plaintiffs contend were required indicates that “[i]nterlocking or [a]uto [s]hutoff
    [d]evices” are “[s]ensors [that] shutoff [sic] generator[s] if CO buildup is
    detected.” The report states that “CPSC staff demonstrated proof-of concept3 for
    two approaches”: (1) “[d]etect CO in vicinity of operating generator” with a “CO
    sensor mounted on generator”; and (2) “[d]etect CO where occupants are located”
    with a “CO sensor in home with wireless connection to generator.” However, the
    report also alludes to remaining problems with the feasibility of such devices,
    referring to a need to “[a]ddress technical and human factors issues” with such
    burden is on the claimant to prove by a preponderance of the evidence that:
    (1) there was a safer alternative design; and
    (2) the defect was a producing cause of the personal injury, property
    damage, or death for which the claimant seeks recovery.
    (b) In this section, “safer alternative design” means a product design other than
    the one actually used that in reasonable probability:
    (1) would have prevented or significantly reduced the risk of the
    claimant’s personal injury, property damage, or death without
    substantially impairing the product’s utility; and
    (2) was economically and technologically feasible at the time the product
    left the control of the manufacturer or seller by the application of
    existing or reasonably achievable scientific knowledge.
    Tex. Civ. Prac. & Rem. Code § 82.005(a), (b).
    3
    “Proof of concept” refers to “evidence (usually deriving from an experiment or pilot
    project) demonstrating that a design concept, business idea, etc., is feasible[] [or] a piece of
    such evidence.” Oxford Eng. Dict. (Online), “proof of concept.”
    14
    Case: 11-20325       Document: 00511941735         Page: 15     Date Filed: 08/01/2012
    No. 11-20325
    devices, including issues involving “[s]ensor reliability and durability,”
    “[l]ocating in-home sensors in proper locations,” and the risk of creating a “[f]alse
    sense of security.”      Viewing this document in the light most favorable to
    plaintiffs, there is simply no indication that the CPSC staff’s standard for “proof
    of concept” aligns with the feasibility requirements of Texas products liability
    law. See Tex. Civ. Prac. & Rem. Code § 82.005. Moreover, the 2006 report
    postdates the 2005 manufacture of the engine at issue,4 and the report refers to
    auto shutoff devices “mounted on [a] generator,” indicating that the device at
    issue would, logically, be an additional component of a complete generator,
    rather than a sub-component of the generator’s component engine. Thus, the
    report does not raise a genuine issue of fact as to whether a component engine
    made in 2005 was defective without an automatic shutoff device.
    Accordingly, plaintiffs have not shown the existence of a material fact as
    to whether Fuji is subject to liability under the defective component exception
    to the component parts doctrine. See, e.g., Caterpillar, Inc. v. Shears, 
    911 S.W.2d 379
    , 384 (Tex. 1995) (“Because [plaintiff] offered no evidence of a safer design for
    a loader that could perform the same tasks as the Caterpillar model 920, we hold
    that this product is not defectively designed as a matter of law.”).
    Because the record does not contain evidence creating a genuine issue of
    fact regarding either of plaintiffs’ arguments that the component parts doctrine
    does not apply, the district court was correct to grant Fuji’s motion for summary
    judgment on that basis.
    CONCLUSION
    The summary judgment evidence, viewed in the light most favorable to
    plaintiffs, shows that there is no genuine issue as to any material fact and that
    4
    See Tex. Civ. Prac. & Rem. Code § 82.005(b)(2) (requiring an inquiry into feasibility
    of an alternative design “at the time the product left the control of the manufacturer”).
    15
    Case: 11-20325   Document: 00511941735   Page: 16   Date Filed: 08/01/2012
    No. 11-20325
    the movants are entitled to a judgment as a matter of law. Accordingly, the
    district court’s summary judgment in favor of the defendants is AFFIRMED.
    16
    

Document Info

Docket Number: 11-20325

Citation Numbers: 484 F. App'x 908

Judges: Garza, Dennis, Higginson

Filed Date: 8/1/2012

Precedential Status: Non-Precedential

Modified Date: 11/6/2024

Authorities (21)

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