Heinrich v. Master Craft Eng'g, Inc.

• Citation: 131 F.Supp.3d 1137
• Decision Date: 18 September 2015
• Docket Number: Civil Action No. 13-cv-01899-PAB-GPG
• Parties: Eric A. Heinrich, Plaintiff, v. Master Craft Engineering, Inc., a Michigan corporation, Auto Center Manufacturing Co., a Florida corporation, Autocraft Manufacturing Co., Inc., a Florida corporation, and Jeg's Automotive, Inc., an Ohio corporation, a/k/a Jeg's, Jegs, Jeg's High Performance and Jegs High Performance, Defendants.
• Court: U.S. District Court — District of Colorado

131 F.Supp.3d 1137

Eric A. Heinrich, Plaintiff,

v.Master Craft Engineering, Inc., a Michigan corporation, Auto Center Manufacturing Co., a Florida corporation, Autocraft Manufacturing Co., Inc., a Florida corporation, and Jeg's Automotive, Inc., an Ohio corporation, a/k/a Jeg's, Jegs, Jeg's High Performance and Jegs High Performance, Defendants.

Civil Action No. 13-cv-01899-PAB-GPG

United States District Court, D. Colorado.

Signed September 18, 2015

David A. Younger, Hoskin, Farina & Kampf, PC, Grand Junction, CO, for Plaintiff.

Randy Lane Sego, J. Scott Lasater, Lasater & Martin, P.C., Highlands Ranch, CO, Allison Joy Dodd, John R. Trigg, Michele On-Ja Choe, Wheeler Trigg O'Donnell, LLP, James M. Dieterich, White & Steele, P.C., Denver, CO, for Defendant.

ORDER

PHILIP A. BRIMMER, United States District Judge

This matter is before the Court on the Motion for Summary Judgment [Docket No. 101] filed by defendant Master Craft Engineering, Inc. ("Master Craft"), the Motion for Partial Summary Judgment Regarding Plaintiff's Pursuit of Exemplary Damages and Regarding Plaintiff's Negligence Claim [Docket No. 102] filed by defendant JEG's Automotive, Inc. ("Jeg's") and the Motion for Partial Summary Judgment [Docket No. 103] filed by plaintiff Eric Heinrich.

I. BACKGROUND¹

On July 30, 2011, plaintiff attended a drag race at the Western Colorado Dragway in Mesa County, Colorado (the "Dragway"). Docket No. 111-1 at 1, ¶ 2. Drag racing events at the Dragway are sanctioned by the National Hot Rod Association ("NHRA"). Docket No. 101 at 4, ¶ 2. That evening plaintiff was providing mechanic services and assistance to one of the drivers. Docket No. 111-4 at 1, ¶ 4. While standing near the drag race tracks, plaintiff was struck in the leg by a piece of metal from a nearby 1986 Chevrolet S10 race vehicle driven by Ethan Savoya. Docket No. 111-1 at 2, ¶¶ 7-14. He suffered severe injuries and was hospitalized as a result. Id. at 2, ¶¶ 9-12. Plaintiff alleges that the welds securing the balance weight to the flexplate (the "balance weight welds") were defective.

The piece of metal that struck plaintiff was a balance weight from an externally balanced flexplate (the "flexplate"). A flexplate is a steel disk, to which an outer ring gear has been welded, that mounts between the engine crankshaft and the automatic transmission converter. Docket No. 102 at 3, ¶¶ 2-3. Flexplates are designed to, among other things, connect the transmission torque converter and the engine as well as balance engine vibrations. Docket No. 101 at 1 n.1; Docket No. 111-5 at 4, p. 24:1-3; see, e.g. , Docket No. 101-5. Externally balanced flexplates have a balance weight welded on one side of the flexplate, Docket No. 101 at 1 n.1; see, e.g. Docket No. 101-5, whereas internally balanced flexplates do not.

The SFI Foundation ("SFI") is a testing body for the performance automobile industry. Docket No. 111-11 at 8, pp. 214:20-215:12; Docket No. 102 at 4, ¶ 4. SFI establishes quality standards and conducts tests on flexplates and other motor vehicle parts that are used in racing. Docket No. 111 at 5, ¶ 26. The SFI standard for flexplates used in race vehicles is SFI Spec 29.1. Docket No. 111-11 at 8, p. 215:13-23; Docket No. 101 at 2 n.2; Docket No. 102 at 4, ¶ 5. SFI does not test the integrity of balance weight welds. Docket No. 102 at 4, ¶ 6. Manufacturers submit representative samples of flexplates to SFI for testing and, if the flexplates pass SFI's tests, SFI issues decals to the manufacturer to affix to its flexplates. Docket No. 102 at 4, ¶¶ 6-7. Externally balanced flexplates make up approximately half of the flexplates used in drag racing. Docket No. 102 at 5, ¶ 11. The NHRA has adopted SFI standards and requires vehicles running in sanctioned drag racing events to undergo an inspection to ensure that certain parts, including flexplates, carry valid SFI certifications. Docket No. 101 at 4, ¶ 3. Inspectors examine the flexplates installed in each vehicle for an SFI certification sticker and a valid date stamp. Id. at 4, ¶ 5. All vehicles that race at the Dragway are required to undergo such an inspection. Id. at 4, ¶ 4. If a race vehicle does not have an SFI certification sticker on its flexplate, the car will not be permitted to race at the facility. Id. at 4, ¶ 6. Docket No. 101-3 at 2, p. 88:18-20.

On the day of the incident, Mr. Savoya's vehicle was inspected to verify that he had an SFI certified flexplate as required for vehicles, such as Mr. Savoya's, attempting to run a quarter mile in 9.99 seconds or less. Docket No. 101 at 4-5, ¶¶ 8-9, 13; Docket No. 101-4 at 8, p. 62:10-18; id. at 4, p. 32:2-21.² The flexplate had an SFI certification sticker and Mr. Savoya's race vehicle otherwise passed inspection. Docket No. 101 at 5, ¶ 10.

A. Manufacture and Distribution

1. Master Craft and Autocraft

Master Craft manufactured flexplates for defendants Autocraft Manufacturing Company, Inc. and Autocraft Manufacturing Company (collectively, "Autocraft") from 1981 until 2014. Docket No. 111 at 6, ¶ 32; Docket No. 103 at 5, ¶ 5. Master Craft knew that Autocraft was a wholesaler of autoparts, but did not know who Autocraft's customers were. Docket No. 111 at 7, ¶ 35; Docket No. 122 at 6, ¶ 36. Model 3877 flexplates, the model at issue, were meant for installation and use in a Chevrolet 454 cubic inch, big block engine. Docket No. 111 at 4, ¶ 19; Docket No. 122 at 4, ¶ 19.³ In the eight years before June 2012, Master Craft manufactured 17,000 flexplates, 9000 of which were model 3877 flexplates. Id. ; Docket No. 122 at 5, ¶ 32. All of the flexplates Master Craft manufactured were sold to Autocraft, Docket No. 111 at 4, ¶ 21, and Master Craft was Autocraft's sole supplier of flexplates. Docket No. 103 at 5, ¶¶ 6-7.

In 1988, Master Craft advised Autocraft that it had not manufactured and would not manufacture parts for high performance or racing vehicles. Docket No. 101 at 4, ¶ 1; Docket No. 101-1. Since at least 1995, at Autocraft's direction, all flexplates Master Craft manufactured for Autocraft were stamped with the words "NON SFI" in the metal of the flexplate itself. Docket No. 111 at 5, ¶ 25; Docket No. 111-5 at 12, p. 147:7-20. Mr. Haswell testified that the purpose of such a stamp was to "let my customer know, Autocraft and anybody else who gets their hands on that flexplate, that it's not SFI foundation approved." Docket No. 111-5 at 12, p. 145:21-24; see also Docket No. 111 at 6, ¶ 28. He also testified that model 3877 flexplates were intended to be sold in the "muscle car market," which he defined as "an average avid mechanic building his car in the garage" to increase horsepower. Docket No. 111-5 at 23-24, pp. 276:21-277:6.

The parties do not dispute that Autocraft paid for tools and dies⁴ that Master Craft used to manufacturer externally balanced flexplates. Docket No. 103 at 5-6, ¶¶ 8-9. Plaintiff and Autocraft do not agree on the question of how much direction Autocraft provided Master Craft in the manufacture of model 3877 flexplates. Plaintiff asserts that Autocraft directed Mastercraft to reverse engineer a flexplate made by an original equipment manufacturer ("OEM") and that Autocraft directed to Master Craft to add additional features. Docket No. 103 at 6, ¶ 10. In an interrogatory response, Autocraft states that the flexplates it purchased from Master Craft were reverse engineered, and that the reverse engineering process is "refined often through verbal negotiations and discussions when samples are fabricated." Docket No. 103-9 at 3. Autocraft further states that it requested that Master Craft incorporate features in addition to the OEM specifications, including extra tack and spot welds on the balance weights, stamping the words NON SFI and "made in the USA" on the flexplate, zinc dichromate coating, and thicker metal as compared to an OEM flexplate. Id. It is, however, unclear when and on how many occasions Autocraft requested that Master Craft perform additional welding on the balance weights. Autocraft admits that, in October 2011, after the injury to plaintiff, it made such a request. Docket No. 103-9 at 9. And plaintiff cites a letter dated November 23, 1988 (the "November 1988 letter") from Master Craft to Autocraft that refers to "guidelines set forth by [Autocraft]," and states that the "[b]alancing weights are not only resistance welded but are also mig welded for better holding power of these weights." Docket No. 103-12.⁵ However, Mr. Haswell also testified that, between 2004 and October 2011, the balance weights were not spot welded. Docket No. 109-1 at 12-13, pp. 70:1-71:10. Mr. Haswell testified that Master Craft manufactured the flexplate according to specifications provided by Autocraft, including Autocraft's request that Master Craft to use thicker material for the flexplate, weld both sides of the ring gear, and use a different type of metal for the flexplate itself. Docket No. 103-6 at 6-7, pp. 52:18-53:1; Id. at 7, p. 56:9-12; Id. at 12, p. 124:2-5. Mr. Haswell testified that model 3877 flexplates were "heavy duty," meaning that, unlike standard flexplates, they were 20 thousandths of an inch thicker, welded on both sides, and plated. Docket No. 111-5 at 10, p. 106:16-19.

In response, Autocraft asserts that, although it provided Master Craft with a sample flexplate from which to reverse engineer the model 3877 flexplate and requested customized features or guidelines for the flexplate, it "did not provide technical ‘specifications' to Master Craft." Docket No. 109 at 4, ¶ 10; see also Docket No. 103-8 at 3, p. 25:15-22 (stating that Autocraft provided guidelines, but not specifications, for the flexplates it purchased). Rather, Master Craft's employees deduced the necessary technical specifications from the OEM flexplate. Docket No. 109 at 4, ¶ 10 (citing Docket No. 103-6 at 9, p. 88:2-4 ("Q. So how did you know the specifications of what to build? How did your company know that? A. We cop[ied] an OEM flywheel.")). Autocraft...