Clarke Industries, Inc. v. Home Indem. Co.
| Decision Date | 01 November 1991 |
| Citation | 591 So.2d 458 |
| Parties | CLARKE INDUSTRIES, INC. v. HOME INDEMNITY COMPANY. 1901095. |
| Court | Alabama Supreme Court |
John M. Laney, Jr. and Deborah Alley Smith of Rives & Peterson, Birmingham, for appellant.
C. William Gladden, Jr. and Andrew J. Sinor, Jr. of Balch & Bingham, Birmingham, for appellee.
Home Indemnity Company ("Home") insured Michael and Connie Hicklin's house against fire loss. After the Hicklins' house was destroyed by fire, Home paid them pursuant to the terms of their policy. Home then sued, among others, Clarke Industries, Inc. ("Clarke"), asserting claims based on negligent failure to warn, breach of warranty, and violation of the Alabama Extended Manufacturer's Liability Doctrine ("AEMLD"). The case was ultimately submitted to a jury on both the negligent failure to adequately warn claim and the AEMLD claim. The jury returned a general verdict in favor of Home and awarded damages in the amount of $100,000. Judgment was then entered in accordance with the verdict.
Subsequently, the trial court denied Clarke's motion for a judgment notwithstanding the verdict, as well as its motion for a new trial. The trial court also entered a judgment for Home in the amount of $18,591.48 in prejudgment interest.
Clarke then filed its notice of appeal, basically contending that the trial court erred in failing to grant its motion for directed verdict or j.n.o.v. because, Clarke says, Home failed to introduce substantial evidence to prove the elements of its AEMLD claim or its negligent-failure-to-warn claim.
The record, in pertinent part, shows as follows: Mr. Hicklin rented a model DU-8 floor sander manufactured by Clarke from Mullins Five Points Rental ("Mullins") to refinish the wood floors in his house. The only documents Mullins gave Mr. Hicklin when he rented the sander were a "do-it-yourself" pamphlet and the rental agreement. The pamphlet contained no warnings concerning the possibility of spontaneous combustion of the dust collection bag.
Mr. Hicklin and his father-in-law sanded the entire den area and part of the living room. After approximately 45 minutes of sanding, the men stopped working for the night. Mr. Hicklin checked the contents of the dust collection bag and found it to be about one-third full. He did not empty the bag. Later that night, a fire destroyed the Hicklins' home. A fire investigator for Investigations Bureau, Incorporated, opined that the fire resulted from spontaneous combustion of the contents of the dust collection bag on the sander.
The sander in question was manufactured by Clarke in 1959 and was sold to Mullins in 1975 by Clarke. The dust collection bags manufactured by Clarke for use with its sanders contained a fire hazard insignia, which stated:
However, the dust collection bag that was on the machine rented to Mr. Hicklin was not a Clarke bag. Rather, it was another brand that, according to Mr. Hicklin, contained no warnings. There was testimony that Clarke was aware that the bags that came with the sander would routinely wear out or sustain damage and that replacement bags would be required. Further, there was testimony that Clarke was aware that rental companies did not use Clarke bags because they were too expensive.
The sanding machine in question had no warning of fire hazards or of the potential for spontaneous combustion on the machine itself. It did have a placard affixed to the sander, but it only contained instructional information, which stated, among other things, "Always Empty Dust Bag When Half Full." Further, although some literature was provided to Mr. Hicklin, the literature contained no warnings. Further, Clarke did not provide any warnings of the possibility of spontaneous combustion to Mullins, and Mullins did not provide any such warnings to Mr. Hicklin.
The record also reveals that Hicklin carefully examined the sander and read everything that was given to him and that he followed all of the instructions that he was provided with. Mr. Hicklin testified that, pursuant to those instructions, he unplugged the machine after using it; he rolled up the cord and placed it by the machine; and he carefully examined the machine before and while using it. There was no evidence that Mr. Hicklin disregarded any of the information that he was provided with.
Dr. V. Morfopoulos, a safety engineer, testified as to the necessity for manufacturers to warn of the hazards of spontaneous combustion of sander dust. Further, he testified that manufacturers have known for more than 50 years of the danger and the need to warn users concerning the hazards associated with spontaneous combustion or ignition of dust in sander bags. He stated that, in his opinion, providing literature with warnings at the time of sale was not sufficient and that the warnings must be on the machine. He further stated that, in his opinion, warnings on sander bags were likewise not sufficient.
As noted above, Clarke contends that Home failed to prove all of the elements required to sustain an AEMLD action and a negligence action. Specifically, Clarke contends that there was not substantial evidence (1) that the alleged failure to adequately warn proximately caused the fire and the resulting damage, (2) that the product was in substantially the same condition at the time of the accident as it was when it was sold, and (3) that Clarke failed to give reasonable warnings regarding the hazards incident to the use of its product.
Under both the AEMLD and the negligence theories, Home has the burden of proving proximate causation. In order to establish liability under the AEMLD, a plaintiff must show the following:
Purvis v. PPG Industries, Inc., 502 So.2d. 714, 718 (Ala.1987), q...
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