Todalen v. U.S. Chemical Co.
| Decision Date | 03 May 1988 |
| Docket Number | Nos. C0-87-1690,C4-87-2065,s. C0-87-1690 |
| Citation | 424 N.W.2d 73 |
| Parties | Prod.Liab.Rep. (CCH) P 11,784 Harvey R. TODALEN, Respondent (C0-87-1690), Appellant (C4-87-2065), v. UNITED STATES CHEMICAL COMPANY, Defendant and Third Party Plaintiff, Appellant (C0-87-1690), Respondent (C4-87-2065), v. GEO. A. HORMEL & COMPANY, Third Party Defendant, Respondent (C0-87-1690), Appellant (C4-87-2065). |
| Court | Minnesota Court of Appeals |
Syllabus by the Court
1. Where there was sufficient evidence to prove United States Chemical Company could have reasonably foreseen the misuse of its product the trial court correctly denied its motion for directed verdict and judgment notwithstanding the verdict.
2. Whether a product manufacturer is obligated to warn of hazards of which the purchaser has equal or superior knowledge is a factual issue to be submitted to the jury.
3. A party's right of contribution in an employer's subrogation action pursuant to Minn.Stat. Sec. 176.061 is to be based on 4. The trial court did not err in concluding as a matter of law in an employer's subrogation action the employer's negligence should not be aggregated with that of the employee for purposes of applying Minnesota's comparative fault law.
the total amount of workers' compensation that has been paid and is payable regardless of the execution of a Naig release or a jury's determination of damages.
5. The trial court did not err in refusing to allow certain taxable costs and disbursements incurred by the prevailing party.
Michael S. Kreidler, Minneapolis, for U.S. Chemical Co.
Gary E. Leonard, Donald K. Swanson, Austin, for respondents-appellants.
Heard, considered and decided by KALITOWSKI, P.J., and RANDALL and CRIPPEN, JJ.
This matter involves two appeals. The first is from the trial court's judgment holding United States Chemical Company (Chemical) liable to George A. Hormel and Company (Hormel) for contribution of workers' compensation benefits in an employer's subrogation action brought pursuant to the Minnesota Workers' Compensation Act, for recovery of benefits paid to Harvey Todalen, an employee of Hormel. See Minn.Stat. Sec. 176.061 (1986). The subrogation action arises from a claim of products liability, specifically failure to warn.
The second appeal is from the trial court's ruling disallowing certain taxable costs and disbursements to Hormel, as the prevailing party. We affirm.
The facts concerning this matter are generally agreed upon by the parties. This action arises out of work-related injuries sustained by Harvey Todalen at the Hormel plant in Austin, Minnesota, on October 3, 1980.
Harvey Todalen began working for Hormel in 1945. For the last six years of his employment, Todalen's job as a smokehouse operator was to prepare meat for smoking, bring it into the smokehouse and set the controls to allow the smoking process to begin.
The smoking process resulted in a buildup of creosote and other materials within the smokehouses which had to be cleaned out. Usually the smokehouses were cleaned by other employees working the night shift, but if the smokehouses were not cleaned when Todalen arrived he was required to clean them.
The product used by Hormel to clean the smokehouse was Caustic 234 which is manufactured by Chemical. The principal ingredient of Caustic 234 is sodium hydroxide, a highly corrosive material. Caustic 234 is shipped in a dry state and has the appearance of coarse salt.
The cleaning process employed by Hormel is extensive. The smokehouses are constructed with external tanks, in which the Caustic 234 is mixed with cold water and then channeled into another tank in which the whole mixture is heated. From this heated tank the mixture is delivered to the smokehouses through a series of pipes. Upon arrival, the solution is dispersed through the smokehouse from nozzles located therein. The obvious design and application of the process is to prevent the operators from coming in contact with the Caustic 234 solution.
All parties involved knew Caustic 234 was dangerous. Hormel employees were instructed to wear protective equipment whenever handling Caustic 234. However, Todalen stated the employees of Hormel rarely used the safety equipment when using Caustic 234 in the dry state. He claimed the safety equipment was only for protection when using Caustic 234 and water because of the possibility of splashing.
On the date of the accident, Todalen discovered the floor drain in one of the smokehouses was clogged. He knew the procedure was to report the trouble to the maintenance department for repair. He testified he had reported the slow drain to the maintenance department a week earlier. He also knew other employees would sprinkle dry caustic on the floor to remove tough stains. He decided to put a small amount of Caustic 234 down the drain, hoping to solve the problem. He knew caustics were used in drain cleaners he used at home. He was in the process of pouring Caustic 234 down the drain when an exothermic reaction occurred, causing the chemical to flash back into his face. As a result of exposure to the chemical, Todalen suffered second and third degree burns to his face. Injuries sustained include loss of an ear, loss of sight in one eye, 50% loss of sight in his other eye, and significant cosmetic injuries.
Chemical and Hormel's chemists knew of the properties and propensities of Caustic 234. All knew Caustic 234 could cause severe burns and dissolve skin. More importantly, they knew it would cause an exothermic reaction when mixed with water, and could cause eruptions and violent splattering. The warning label placed on the drum of Chemical's Caustic 234 used by Todalen did not contain a caution regarding those particular properties or hazards. In addition, Hormel had a practice of ordering material safety data sheets on all of its hazardous chemicals. The data sheet provides vital information on the chemical formula, violent propensities of the formula and how to deal with accidents involving the chemical. The data sheet supplied by Chemical did not warn of risks of eruption or violent splattering.
Hormel, as a statutory subrogee of Todalen, commenced this action in Todalen's name. Todalen had asserted a claim against Chemical. However before an action was commenced by Todalen, a Naig settlement was reached between Todalen and the insurer for Chemical. Hormel's original complaint includes claims of negligence, strict liability and breach of warranty against Chemical. At the time of trial, Hormel elected to proceed on a negligence theory, specifically alleging that Chemical was negligent in failing to warn of risks connected with foreseeable use of Caustic 234.
Chemical impleaded Hormel, on the theory Hormel had not maintained a safe work place, and was therefore contributorily at fault for Todalen's injuries. Chemical further defended on the ground Todalen was contributorily at fault.
The jury found Todalen, Hormel and Chemical negligent and apportioned the negligence as follows: Todalen, 20%; Chemical, 40%; and Hormel, 40%. The trial court, based upon the jury's findings, ruled Chemical must pay Hormel a percentage of its subrogation interest. The trial court further ruled Hormel's total subrogation interest was equal to the workers' compensation benefits paid to Todalen which, by stipulation, were $336,813.92. The trial court ruled Chemical was responsible to Hormel for 40% of Hormel's subrogation interest, $134,725.57.
On appeal, Chemical claims: (1) there was not sufficient evidence to prove it could reasonably foresee the misuse to which its product was put by Hormel and its employee; (2) it has no legal duty to warn Hormel of the hazards incidental to the particular misuse to which its product was put by the employee in this case, inasmuch as Hormel had superior knowledge of this particular misuse and of the particular hazards incidental to such misuse; (3) its contribution claim against Hormel should have been based upon the total damages sustained by the employee, and this amount should be directly offset against Hormel's subrogation interest; (4) the employer's subrogation claim should not have included the permanent total disability benefits which it paid to the employee, including the present value of such future benefits, past the employee's retirement date, and (5) its fault should be compared to the aggregate fault of the employer and employee for purposes of the Minnesota Comparative Fault Act resulting in the aggregate fault of the employer and employee exceeding its fault, thus precluding recovery.
In its appeal, Hormel as the prevailing party claims the trial court erred in not awarding all of its claimed costs and disbursements.
1. Did the trial court err in denying Chemical's motions for directed verdict and for judgment notwithstanding the verdict?
2. Did the trial court err when it found as a matter of law Chemical had a duty to warn of hazards involved with its chemical, Caustic 234?
3. Did the trial court err when it found as a matter of law a defendant's right of contribution in an employer's subrogation action pursuant to Minn.Stat. Sec. 176.061 should be based on the total amount of workers' compensation awarded, notwithstanding the execution of a Naig release or a jury's determination of damages?
4. Did the trial court err when it found as a matter of law in an employer's subrogation action the employer's negligence should not be aggregated with the employee's negligence for purposes of applying Minnesota's comparative fault law?
5. Did the trial court err in refusing to allow as taxable costs and disbursements certain costs incurred by Hormel as the prevailing party?
Directed verdicts are appropriate only in exceptional cases. Walton v. Jones, 286 N.W.2d 710, 714 (Minn.1979). Garner v. Todd, 361 N.W.2d 459, 460 (Minn.Ct.App.1985). The supreme...
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