Denny v. Ford Motor Co.
| Decision Date | 06 December 1994 |
| Docket Number | No. 1671,D,1671 |
| Citation | 42 F.3d 106 |
| Parties | , 28 UCC Rep.Serv.2d 120, Prod.Liab.Rep. (CCH) P 14,098 Nancy DENNY and Robert Denny, Plaintiffs-Appellees, v. FORD MOTOR COMPANY, Defendant-Appellant. ocket 93-7815. Second Circuit |
| Court | U.S. Court of Appeals — Second Circuit |
Paul F. McAloon, New York City (John Scarzafava, Oneonta, NY, Russell L. Cook, Jr., Cook & Butler, L.L.P., Houston, TX, of counsel), for plaintiffs-appellees.
John H. Beisner, Washington, DC (Brian D. Boyle, O'Melveny & Myers, Washington, DC, Brian P. Crosby, Gibson, McAskill & Crosby, Buffalo, NY, of counsel), for defendant-appellant.
Before: VAN GRAAFEILAND and WINTER, Circuit Judges, and MISHLER, District Judge. *
This products liability action arose out of an accident in which Nancy Denny was severely injured when the Ford Bronco II that she was driving rolled over. Ford Motor Company appeals from Chief Judge McAvoy's denial of its post-trial motion for judgment as a matter of law or, in the alternative, for a new trial. These motions followed the entry of a judgment based on the jury's responses to special verdict questions awarding $1.2 million to the Dennys. The jury concluded that the Ford Bronco II was not "defective" and therefore that Ford was not liable on Denny's strict products liability claim. However, the jury found that Ford had nonetheless breached an implied warranty.
Ford objected to the submission of both the strict products liability claim and implied breach of warranty claim to the jury on the grounds that they were identical and that an inconsistent verdict might result. Because the jury came to different conclusions on each claim, Ford seeks either judgment in its favor or a new trial. The district court held that Ford had waived the objection by not requesting that the perceived inconsistencies be resubmitted to the jury for reconsideration. It held also that the jury's conclusions were reconcilable because the two claims were not identical. We conclude that Ford did not waive its objection and certify the
issues raised for a decision by the New York Court of Appeals.
On June 9, 1986, as Nancy Denny drove to work in her leased Ford Bronco II, a deer entered the road in front of her vehicle. She slammed on the brakes, and the vehicle rolled, resulting in severe damage to her hand. The Dennys sued Ford, asserting claims for negligence, strict products liability, and breach of implied warranty. The case went to trial in October 1992. At the close of the evidence, plaintiffs sought jury instructions on three claims: negligence, strict products liability, and breach of an implied warranty of merchantability. Ford specifically objected to the submission of both the strict products liability and the implied warranty claims, arguing that they were indistinguishable under New York law and that submission of both could lead to an inconsistent verdict. The district judge, however, decided that the
With respect to the strict products liability and implied warranty claims, the district court instructed the jury as follows:
Now, the plaintiffs' second theory is called strict products liability. A manufacturer who places a product on the market in a defective condition is liable for injury which results from use of the product when the product is used for its intended or reasonably foreseeable purpose. To prevail on this claim the plaintiffs must prove by a preponderance of the evidence that Ford Motor Company placed the Bronco II on the market in a defective condition.
A product is defective if it is not reasonably safe. I instruct you that if the Bronco II, at the time it left the seller's hands, was so likely to be harmful to people that a reasonable manufacturer or person who had actual knowledge of its potential for producing injury would conclude that it should not have been placed into the stream of commerce in that fashion.
It is not necessary for the plaintiffs to prove that the defendant knew or should have known of the products potential for causing injury to establish that the product was not reasonably safe. Rather, the plaintiffs must prove by a preponderance of the evidence that a reasonable person; that is, a person who knew of the product's potential for causing injury and the existence of available alternative designs, would have concluded that such a product should not have been marketed in that condition. Such a conclusion should be reached after balancing the risks involved in using the product against the products usefulness and its costs and against the risks, usefulness and costs of the alternative design as compared to the product defendant did market. The burden of proving that the product was defective and that the defect was a proximate cause of plaintiff's injury is on the plaintiff.
Therefore, the first question that you must answer is whether the defendant's vehicle was defective. The plaintiffs claim that this vehicle was defective because of its propensity to rollover and lack of adequate warnings to the consumer of this propensity. The defendant denies this and contends the vehicle was designed in a reasonably safe manner and was, therefore, not defective.
* * * * * *
So, to summarize the second claim, in order for the plaintiffs to prevail they must prove by a preponderance of the evidence that the Bronco II was defective and that the defect proximately caused the damages sustained.
Now, the third claim is the breach of warranty claim. The law implies a warranty by a manufacturer which places its product on the market that the product is reasonably fit for the ordinary purpose for which it was intended. If it is, in fact, defective and not reasonably fit to be used for its intended purpose, the warranty is breached.
The plaintiffs' claim that the Bronco II was not fit for its ordinary purpose because The jury was given no definition of the word "defective" other than the one provided in the strict products liability charge. Apart from Ford's objection to the submission of both the strict liability and implied warranty claims to the jury, neither party objected to the content of the instructions, and neither claims on appeal that there was error in either charge.
of its alleged propensity to rollover and lack of warnings to the consumer of this propensity. If you find that the vehicle was not defective and was fit for its ordinary purpose, you will find that there was no breach of warranty and your verdict will be for the defendant. However, if you find from a preponderance of the evidence that the Bronco II was defective and was not fit for its ordinary purpose, you will find that the defendant breached its implied warranty. And like the negligence and strict products liability claims, in order to prevail on this claim the plaintiff must also prove by a preponderance of the evidence that any breach of warranty was a proximate cause of the plaintiffs' damages.
A three-page verdict form was provided to the jury. Neither party objected to the content of the verdict form's questions, although Ford's objection to the submission of both the strict liability and implied warranty claims obviously carried over to that verdict form.
The verdict form's questions and the jury's answers are set out in the margin. 1 The jury Based on the jury's answers, the district court entered judgment for the Dennys on their breach of implied warranty claim in the amount of $1,200,000 (40% of $3,000,000). Following entry of judgment, Ford moved pursuant to Fed.R.Civ.P. 50(b) for judgment as a matter of law, or in the alternative, for a new trial under Fed.R.Civ.P. 59(a), based on, among other grounds, the claimed inconsistency of the jury's responses to the special verdict questions. The Dennys moved for judgment as a matter of law on the grounds that the evidence did not support the finding that Nancy Denny was 60% comparatively negligent.
first found that Ford was negligent in "designing, testing and marketing the Bronco II," but that this negligence was not the proximate cause of Nancy Denny's injuries. The jury next found that Ford was not negligent in failing to provide appropriate warnings with respect to the Bronco II. To Question II(a), the jury answered that the Bronco II was not "defective." Because defectiveness was an essential element of the strict liability claim, the negative answer disposed of that claim. The jury then proceeded to find in its answer to Question III(a) that Ford had breached its implied warranty, and that this breach was the proximate cause of Nancy Denny's injuries. The jury, however, also found that Nancy Denny's negligence was 60% responsible for her injuries. The jury then fixed the Dennys' damages at $3,000,000 but refused to award punitive damages. When the verdict was returned, Ford did not request clarification or resubmission of any aspect of the verdict
The district court denied both parties' motions. With regard to Ford's motions for judgment or for a new trial, it ruled that the verdict form used was a general verdict accompanied by answers to interrogatories under Fed.R.Civ.P. 49(b), that Ford had waived its objection to the inconsistency of the answers by not objecting and asking for resubmission when the jury announced its verdict, and that, in any event, the jury's answers were reconcilable. Ford appealed. 2
Ford argues that, with regard to waiver, our cases distinguish sharply between those involving a special verdict under Rule 49(a) and those involving a general verdict accompanied by written answers to interrogatories under Rule 49(b). Ford states that we have squarely held that parties complaining of...
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