Advance Brands LLC v. Alkar-Rapidpak Inc.

• Decision Date: 10 May 2011
• Docket Number: No. 08-CV-4057-LRR,08-CV-4057-LRR
• Court: United States District Courts. 8th Circuit. Northern District of Iowa
• Parties: ADVANCE BRANDS, LLC, Plaintiff, v. ALKAR-RAPIDPAK, INC., Defendant and Third-Party Plaintiff, v. GLEESON CONSTRUCTORS & ENGINEERS, LLC and PLAINS BOILER SERVICE, INC., Third-Party Defendants.

ADVANCE BRANDS, LLC, Plaintiff, v. ALKAR-RAPIDPAK, INC., Defendant and Third-Party Plaintiff, v. GLEESON CONSTRUCTORS &

ENGINEERS, LLC and PLAINS

BOILER SERVICE, INC., Third-Party Defendants.

No. 08-CV-4057-LRR

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF IOWA WESTERN DIVISION

DATED: May 10, 2011.

ORDER

TABLE OF CONTENTS

+--------------------------------------------------------------------+
                ¦I.  ¦INTRODUCTION                                                ¦3 ¦
                +----+------------------------------------------------------------+--¦
                ¦II. ¦RELEVANT PROCEDURAL HISTORY                                 ¦3 ¦
                +----+------------------------------------------------------------+--¦
                ¦III.¦SUBJECT MATTER JURISDICTION                                 ¦4 ¦
                +----+------------------------------------------------------------+--¦
                ¦IV. ¦SUMMARY JUDGMENT STANDARD                                   ¦5 ¦
                +----+------------------------------------------------------------+--¦
                ¦V.  ¦OBJECTIONS                                                  ¦5 ¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦A. Advance Brands's Objections to Alkar's Statement of Facts¦5 ¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦B. Alkar's Objections to Advance Brands's Statement of Facts¦6 ¦
                +----+------------------------------------------------------------+--¦
                ¦VI. ¦RELEVANT FACTUAL BACKGROUND                                 ¦9 ¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦A. Players                                                  ¦9 ¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦B. Advance Brands's Orange City Facility                    ¦9 ¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦C. Alkar Oven                                               ¦11¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦D. Alkar Oven Manual                                        ¦13¦
                +----+------------------------------------------------------------+--¦
                ¦    ¦E. Advance Brands's Lockout Policy                          ¦15¦
                +--------------------------------------------------------------------+
                

+-----------------------------------------------------------------------------+
                ¦    ¦F. The Incident                                                      ¦16¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦G. Post Incident Investigations                                      ¦19¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦H. Damages                                                           ¦20¦
                +----+---------------------------------------------------------------------+--¦
                ¦VII.¦ANALYSIS                                                             ¦20¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦A. Applicable State Law                                              ¦20¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦1. Section 145(2) contacts                                           ¦22¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦i. The place where the injury occurred                               ¦22¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦ii. The place where the conduct causing the injury occurred          ¦22¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦iii. The place of incorporation and place of business of the parties ¦23¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦iv. The place where the relationship between the parties is centered ¦24¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦v. Summary                                                           ¦25¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦2. Section 6 factors                                                 ¦26¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦i. The needs of the interstate and international systems             ¦26¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦ii. The relevant policies of the forum and other interested states   ¦26¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦iii. Ease of determination and application of the law                ¦27¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦iv. Other Section 6 factors                                          ¦27¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦B. Advance Brands's Products Liability Claims                        ¦28¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦1. Manufacturing defect claim                                        ¦28¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦2. Design defect claim                                               ¦29¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦i. Whether alleged defect was part of the Alkar oven                 ¦30¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦ii. Whether Advance Brands caused the fire                           ¦32¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦iii. Whether Advance Brands established a reasonable alternative     ¦35¦
                ¦    ¦design                                                               ¦  ¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦a. Products Restatement on defective design                          ¦35¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦b. Parties' arguments                                                ¦35¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦c. First alternative design                                          ¦36¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦d. Second alternative design                                         ¦38¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦3. Failure to warn claim                                             ¦39¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦C. Advance Brands's Implied Warranty Claims                          ¦42¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦1. Implied warranty of merchantability                               ¦42¦
                +----+---------------------------------------------------------------------+--¦
                ¦    ¦2. Implied warranty of fitness for a                                 ¦  ¦
                +-----------------------------------------------------------------------------+
                

+----------------------------------------------+
                ¦     ¦particular purpose                   ¦44¦
                +-----+-------------------------------------+--¦
                ¦     ¦D. Advance Brands's Negligence Claims¦45¦
                +-----+-------------------------------------+--¦
                ¦VIII.¦CONCLUSION                           ¦46¦
                +----------------------------------------------+
                

I. INTRODUCTION

The matter before the court is Defendant/Third-Party Plaintiff Alkar-Rapidpak, Inc.'s ("Alkar") "Motion for Summary Judgment" ("Motion") (docket no. 102).

II. RELEVANT PROCEDURAL HISTORY

On July 18, 2008, Plaintiff Advance Brands, LLC ("Advance Brands") filed a Complaint (docket no. 2) against Alkar. Count I alleges that Alkar negligently designed, manufactured and installed an oven ("Alkar oven") at an Advance Brands facility in Orange City, Iowa, and that Alkar's negligence proximately caused a fire and explosion at the facility. Count II sets forth a cause of action for products liability. Count III alleges that Alkar breached its implied warranties of fitness for a particular purpose and merchantability when it designed, manufactured and supplied the Alkar oven to Advance Brands. On September 18, 2008, Alkar filed an Answer (docket no. 12) to the Complaint.

On September 21, 2008, Alkar filed a Third-Party Complaint (docket no. 38) against Third-Party Defendants Gleeson Constructors & Engineers, L.L.C. ("Gleeson") and Plains Boiler Service, Inc. ("Plains Boiler"). Alkar alleges that Gleeson and Plains Boiler were responsible for the design and installation of the thermal piping system at Advance Brands, and that, "[i]n the event that liability were to be imposed on [Alkar],... Gleeson and Plains Boiler should be held liable in contribution or indemnity for their commensurate degree of fault in causing the alleged damages claimed by Advance Brands in this case." Third-Party Complaint at ¶ 29. On November 9, 2009, Gleeson filed an Answer (docket no. 48) to the Third-Party Complaint. On November 18, 2009, Plains Boiler filed an Answer (docket no. 49) to the Third-Party Complaint.

On March 1, 2011, Plains Boiler filed a "Motion for Partial Summary Judgment"(docket no. 101) on one issue. Specifically, Plains Boiler argued that Alkar failed to produce any evidence that Plains Boiler's failure to install temperature or pressure gauges on the supply and return thermal fluid piping lines to each zone of the Alkar oven constitutes negligence, as Alkar alleged in the Third-Party Complaint. On March 10, 2011, Gleeson filed a Joinder (docket no. 108) in the Motion for Partial Summary Judgment. On March 18, 2011, Alkar filed a Response (docket no. 109) to the Motion for Partial Summary Judgment, indicating that it did not resist. On March 31, 2011, the court granted the Motion for Partial...