LeJeune v. Bliss-Salem, Inc.

• Decision Date: 19 March 1996
• Docket Number: INC,No. 95-1741,BLISS-SALE,95-1741
• Citation: 85 F.3d 1069
• Parties: Prod.Liab.Rep. (CCH) P 14,630 Edward C. LeJEUNE; Deborah LeJeune, Appellants, v.; E.W. Bliss Company; General Electric Co., Appellees.
• Court: U.S. Court of Appeals — Third Circuit

Page 1069

85 F.3d 1069

Prod.Liab.Rep. (CCH) P 14,630

Edward C. LeJEUNE; Deborah LeJeune, Appellants, v. BLISS-SALEM, INC.; E.W. Bliss Company; General Electric Co., Appellees.

No. 95-1741.

United States Court of Appeals Third Circuit.

Argued March 19, 1996.

Decided June 10, l996.

Michael J. McCaney, Jr. (argued), Heller, Kapustin, Gershman & Vogel, Blue Bell, PA, for appellant.

Keith D. Heinold (argued), Craig S. Hudson, Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, PA, for appellee General Electric Co.

John R. McHaffie (argued), Frayne & Hatzell, Philadelphia, PA, for appellee Bliss-Salem, Inc.

Before: BECKER, McKEE and McKAY, ^* Circuit Judges.

OPINION OF THE COURT

McKAY, Circuit Judge.

Appellants Edward and Deborah LeJeune appeal from the district court's grant of summary judgment for the Appellees Bliss-Salem, Inc. and General Electric Co. ¹ The LeJeunes brought this negligence and strict products liability action against Appellees when Mr. LeJeune was injured while working on a piece of machinery Appellees had repaired. For the reasons that follow, we affirm the district court.

I.

Mr. LeJeune, a Pennsylvania resident, worked at a Delaware steel mill as an "oiler" or "lube man." As such, he was responsible for checking the oil and lubrication of various machines. Mr. LeJeune's accident occurred on a piece of machinery known as a "table." Tables consist of a frame which holds large steel cylinders weighing two to five tons each. The cylinders, powered by motors, are rotated in order to transport hot steel slabs from one processing machine to another. Gaps, approximately two inches in width, exist between cylinders. Mr. LeJeune, believing a certain table was deactivated, jumped on top of the cylinders in order to do his maintenance work. The cylinders were activated, and, as they began to roll, Mr. LeJeune was caught in the gap between them. His injuries were serious and extensive.

Appellees' involvement with the steel mill began when CitiSteel, the owner of the mill, hired Appellees in 1988 to refurbish the steel mill machinery. The mill had been shut down for two years and had deteriorated into a serious state of disrepair. General Electric employees were on-site for eight months repairing equipment. Some refurbishing work took place at a General Electric shop in Pennsylvania. Bliss-Salem performed most of its refurbishing work at its Ohio plant. Appellees finished their work at the steel mill approximately three years before Mr. LeJeune's accident occurred.

Basing their claim on tort theories of negligence and strict products liability, Appellants argue that the contracts between CitiSteel and Appellees created a duty requiring Appellees to redesign the steel mill equipment, eliminating any safety problems. They argue that this duty included a duty to warn of any hazards inherent in the machinery. Appellees argue that the contracts simply required them to put the mill machinery back into working order and that any duty on their part did not extend to reevaluating the safety aspects of the various machinery involved.

II.

Before we address the tort issues in this case, we must first decide which state's law applies. In choosing which law applies, a federal court sitting in diversity must apply the choice-of-law rules of the forum state. Klaxon v. Stentor Electric Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 1021-22, 85 L.Ed. 1477 (1941); Shuder v. McDonald's Corp., 859 F.2d 266, 269 (3d Cir.1988). Appellants brought this action in the United States District Court for the Eastern District of Pennsylvania. Thus, we must apply Pennsylvania's choice-of-law rules.

Pennsylvania choice-of-law analysis consists of two parts. First, the court must look to see whether a false conflict exists. Then, if there is no false conflict, the court determines which state has the greater interest in the application of its law. See Cipolla v. Shaposka, 439 Pa. 563, 565, 267 A.2d 854 (1970); Lacey v. Cessna Aircraft Co., 932 F.2d 170, 187 & n. 15 (3d Cir.1991) (applying Pennsylvania choice-of-law rules for purposes of forum non conveniens analysis). A false conflict exists where "only one jurisdiction's governmental interests would be impaired by the application of the other jurisdiction's law." Lacey, 932 F.2d at 187. Here, no false conflict exists. Pennsylvania law recognizes strict products liability to protect its citizens from defective products and to encourage manufacturers to produce safe products. Delaware law, however, does not recognize strict products liability based on the rationale that such claims are preempted by the Uniform Commercial Code. Cline v. Prowler Indus. of Maryland, Inc., 418 A.2d 968 (Del.1980). Applying Delaware law would impair Pennsylvania's interest in protecting its citizen, Mr. LeJeune.

On the other hand, Delaware's interests would be impaired if Pennsylvania law were applied. Delaware has an interest in prescribing the rules governing torts occurring nonfortuitously within its borders. Under Pennsylvania choice of law analysis, a false conflict exists "where the accident is fortuitous and the state where the accident occurred has no interest in the regulatory standard at issue." Reyno v. Piper Aircraft Co., 630 F.2d 149, 170 (3d Cir.1980), rev'd on other grounds, 454 U.S. 235, 102 S.Ct. 252, 70 L.Ed.2d 419 (1981); accord Kuchinic v McCrory, 422 Pa. 620, 624, 222 A.2d 897 (1966) (holding that false conflict existed because Georgia had no recognizable interest when accident's occurrence in that state was wholly fortuitous).

Here the occurrence of the accident in Delaware was not fortuitous. Delaware was the site of the accident (as well as the place where much of the alleged negligent conduct took place) because of the steel mill's fixed location in that state. If Pennsylvania law were applied, Delaware's interest in regulating purposeful economic activity within its borders would be impaired. We cannot agree with Appellants' assertion that Delaware has no interest in this case simply because Appellees have limited contacts with that state. A state's interest in enforcing its tort law is not constrained to protecting residents from harm or suit. See Schmidt v. Duo-Fast, Inc., No. 94-6541, 1995 WL 422681, at * 1-2 (E.D.Pa. July 11, 1995) (holding that New Jersey law applied when New Jersey was the nonfortuitous site of accident even though defendant, which benefited from New Jersey law, was Illinois corporation). A state could have a host of reasons for limiting liability, including encouraging economic activity in the state (such as the rebuilding of the steel mill), and lowering costs to consumers (such as CitiSteel). Also without merit is Appellants' argument that, because Delaware's rejection of strict liability is based on its minority view that the Uniform Commercial Code preempts such a claim, its rejection of strict liability reflects no policy choice by the state. Delaware's decision to adopt and maintain the Uniform Commercial Code in light of this interpretation is obviously a policy choice. Thus, a false conflict does not exist in this case.

We must next examine which state has a greater interest in having its law applied. In making this determination, we look

to see what contacts each state has with the accident, the contacts being relevant only if they relate to the "policies and interest underlying the particular issue before the court." When doing this it must be remembered that a mere counting of contacts is not what is involved. The weight of a particular state's contacts must be measured on a qualitative rather than quantitative scale.

Cipolla v. Shaposka, 439 Pa. 563, 566, 267 A.2d 854 (1970) (citations omitted). In this case, Pennsylvania's only contact with the accident is the fact that Mr. LeJeune is a Pennsylvania resident and that a small portion of General Electric's work took place at a shop in Pennsylvania. The Delaware contacts, however, are more substantial. The accident occurred in Delaware, and most of the alleged negligent conduct took place there as well. Additionally, as pointed out before, the accident's occurrence in Delaware was not fortuitous. Where the site of an accident is not fortuitous, "the place of injury assumes much greater importance, and in some instances may be determinative." Shields v. Consolidated Rail Corp., 810 F.2d 397, 401 (3d Cir.1987); Shuder v. McDonald's Corp., 859 F.2d 266, 272 (3d Cir.1988). Looking at these contacts qualitatively, we believe that Delaware has the greater interest in having its law applied. Delaware's contacts with the accident relate to substantive aspects of the case such as how and why certain conduct occurred. Pennsylvania's contact arises not from substantive matters in the litigation but rather from Mr. LeJeune's residence. Thus, we hold that Delaware law applies to this case.

III.

Applying Delaware law, we can immediately dispose of Appellants' product liability claim. Appellants' claim fails because Delaware does not recognize strict products liability. Cline v. Prowler Indus. of Maryland, Inc., 418 A.2d 968 (Del.1980). Thus, we proceed to consider Appellants' remaining claim of negligence. Essentially, the parties dispute whether Appellees owed any duty to Mr. LeJeune. Appellants propose several theories under which a duty would arise in this case. They argue that a duty was created by the contracts between the steel mill owner and Appellees, by...