General Electric Company v. Process Control Company

IN THE SUPREME COURT OF TENNESSEE
AT NASHVILLE
FILED
June 8, 1998
Cecil W. Crowson
Appellate Court Clerk
FOR PUBLICATION
Filed: June 8, 1998
GENERAL ELECTRIC COMPANY, ) United States District Court
) Western District of Tennessee
PLAINTIFF/RESPONDENT, ) Eastern Division
) No. 1-96-1172
v. )
) Hon. James D. Todd
PROCESS CONTROL COMPANY, ) United States District Judge
)
DEFENDANT/PETITIONER. ) No. 01S01-9707-FD-00148
FOR PLAINTIFF-RESPONDENT: FOR DEFENDANT-PETITIONER:
J. Randolph Bibb, Jr. Clinton V. Butler, Jr.
Nashville Jerry D. Kizer, Jr.
Dale Conder, Jr.
Thomas G. Cooper Jackson
Boston, Massachusetts
HOLDER, J.
OPINION
This case comes to us on a certified question of law. The plaintiff,
General Electric Company ("G.E."), filed this action for contribution against
Process Control Company ("Process Control"). Process Control filed a motion to
dismiss and/or motion for summary judgment arguing that Tennessee law does
not permit a right of contribution in this case. The district court entered an order
requesting this Court to address the following certified question of law:
In actions that accrue after the decision in McIntyre v. Balentine,
under what circumstances is a claim for contribution appropriate
under Tennessee Law?
We accepted certification of the question. We hold that under the facts as
certified an action for contribution may be viable.
BACKGROUND
Douglas Huskey, a Wisconsin resident, was employed by A.O. Smith
Corporation ("A.O. Smith") as an electrical engineer. In January of 1994, Huskey
was calibrating meters on a switchboard at A.O. Smith's facility in Milan,
Tennessee. The switchboard was manufactured by the plaintiff, G.E. An
electrical arcing occurred on the switchboard while Huskey was calibrating
meters on the switchboard. The electrical arcing caused severe burns and other
injuries to Huskey. The defendant, Process Control, allegedly made negligent
modifications to the switchboard prior to Huskey's accident.
Huskey and his wife filed a products liability claim against G.E. in
Wisconsin. Their claims were predicated upon theories of negligence and strict
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liability. G.E.'s counsel was of the opinion that Process Control would not be
subject to personal jurisdiction in the Wisconsin state court action. G.E.,
therefore, did not attempt to join Process Control as a party. G.E. argued during
trial, however, that Process Control made negligent modifications to the
switchboard which caused Huskey's injuries.
The case was decided by a jury under Wisconsin law. The jury rejected
the strict liability claim but returned a verdict in favor of Huskey on a theory of a
negligence. Fault was apportioned by the jury as follows: 25 percent to Huskey,
32 percent to G.E. and 43 percent to A.O. Smith. The jury was not asked to
assess fault against Process Control. G.E. satisfied the Wisconsin judgment by
paying the Huskeys approximately 2.6 million dollars.
G.E. subsequently filed the present contribution suit against Process
Control, a Tennessee corporation, in the United States District Court for the
Western District of Tennessee. G.E. seeks contribution from Process Control for
that portion of Huskey's damages attributable to Process Control under
Tennessee principles of comparative fault. G.E. alleges that Huskey's injuries
were caused in substantial part by a negligent modification of the switchboard
performed by Process Control's employees.
Process Control filed a motion to dismiss and argued that Tennessee no
longer recognizes contribution as a viable cause of action. G.E. responds that
Tennessee does permit a contribution claim "in an appropriate case." G.E.
argues that this is an "appropriate case" and seeks to have fault assessed in
accordance with the principles set forth in McIntyre v. Balentine, 833 S.W.2d 52(Tenn. 1992).
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ANALYSIS
McIntyre v. Balentine, 833 S.W.2d 52 (Tenn. 1992), did not "completely
abolish the remedy of contribution." Bervoets v. Harde Ralls Pontiac-Olds, Inc.,
891 S.W.2d 905, 907 (Tenn. 1994). Contribution may still be viable in the
following limited circumstances:
1. cases in which prior to McIntyre the cause of action arose, the
suit was filed and the parties had made irrevocable litigation
decisions based on pre-McIntyre law, see Owens v. Truckstops of
America, 915 S.W.2d 420 (Tenn. 1996); Bervoets v. Harde Ralls
Pontiac-Olds, Inc., 891 S.W.2d 905 (Tenn. 1994);
2. cases in which joint and several liability continues to apply under
doctrines such as the family purpose doctrine, cases in which
torfeasors act in concert or collectively with one another, cases in
which the doctrine of respondeat superior permits vicarious liability
due to an agency-type relationship, or in the "appropriate" products
liability case, see Resolution Trust Corp. v. Block, 924 S.W.2d 354(Tenn. 1996); Camper v. Minor, 915 S.W.2d 437 (Tenn. 1996);
Owens v. Truckstops of Amer., 915 S.W.2d 420 (Tenn. 1996), or
3. in the "appropriate case" in which "fairness demands," see
Owens, 915 S.W.2d at 430 (allowing contribution when "fairness
demands"); Bervoets, 891 S.W.2d at 907 (recognizing contribution
in the "appropriate case").
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The third circumstance, however, is not a broad "catch-all" provision that defeats
the fundamental concepts of our comparative fault law. The circumstance under
which "fairness demands" should be applicable only when failure to allow
contribution would impose an injustice.
The case now before us was brought by the Huskeys and litigated in
Wisconsin. Pursuant to Wisconsin law in effect at the time of the Huskeys' suit,
contributory negligence did not bar a plaintiff's recovery unless a plaintiff's
negligence was greater than that of the defendant. Wis. Stat. § 895.045 (1994).
Under Wisconsin Law, a plaintiff's negligence was compared to each defendant's
negligence separately, and the primary liability of the defendants was joint and
several. See Wisconsin Natural Gas Co. v. Ford, Bacon & Davis Constr. Corp.,
291 N.W.2d 825 (Wis. 1980). Contribution among defendants, however, was
based on comparative negligence principles. See Brandner v. Allstate Ins. Co.,
512 N.W.2d 753 (W is. 1994).
Process Control was apparently not subject to personal jurisdiction in the
Huskeys' Wisconsin suit. The Wisconsin jury assessed fault against the
defendants pursuant to Wisconsin's law of comparative fault. Process Control
was not a party before the Wisconsin jury and, therefore, did not have fault
assessed against it. We decline to speculate whether G.E. should or could have
removed the Huskeys' personal injury suit to a Wisconsin federal court and then
attempt to have the case transferred to a federal court in Tennessee. We
believe that fairness demands an action for contribution based upon the
following factors: (1) the Huskeys' claim was litigated pursuant to Wisconsin
law; (2) Process Control may have been a tortfeasor contributing to Huskey's
injuries but was not subject to personal jurisdiction in the Huskeys' suit; and (3)
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G.E. was jointly and severally liable under Wisconsin law to the Huskeys for any
damages or fault assigned by the jury to other tortfeasors.
CONCLUSION
Based on the limited facts certified to this Court, we hold that a suit for
contribution may be permissible in this case. The clerk will transmit a copy of
this opinion in accordance with Tenn. R. Sup. Ct., Rule 23(8). The costs in this
court will be taxed to the defendant.
JANICE M. HOLDER, JUSTICE
Concurring:
Anderson, C.J.
Drowota and Birch, J.J.
Reid, J., Not Participating
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