Adkinson v. International Harvester Co.

975 F.2d 208, 19 U.C.C. Rep. Serv. 2d (West) 126, 1992 U.S. App. LEXIS 26882, 1992 WL 247282
CourtCourt of Appeals for the Third Circuit
DecidedOctober 19, 1992
Docket91-1955
StatusPublished

This text of 975 F.2d 208 (Adkinson v. International Harvester Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adkinson v. International Harvester Co., 975 F.2d 208, 19 U.C.C. Rep. Serv. 2d (West) 126, 1992 U.S. App. LEXIS 26882, 1992 WL 247282 (3d Cir. 1992).

Opinion

975 F.2d 208

19 UCC Rep.Serv.2d 126

Michael Lewis ADKINSON, Plaintiff,
v.
INTERNATIONAL HARVESTER COMPANY, now known as Navistar
International, Defendant-Third Party Plaintiff-Appellee,
v.
HARLO PRODUCTS CORPORATION, Third Party Defendant-Appellant.

No. 91-1955.

United States Court of Appeals,
Fifth Circuit.

Oct. 19, 1992.

Michael O. Gwin, James A. Becker, Jr., Watkins & Eager, Jackson, Miss., for Harlo.

Keith Raulston, Heidelburg & Woodliff, Jackson, Miss., Michael M. Noonan, Margaret Diamond, McGlinchey, Stafford, Cellini & Lang, New Orleans, La., for Intern. Harvester Co.

Appeal from the United States District Court for the Southern District of Mississippi.

Before HILL, KING, and DAVIS, Circuit Judges.

KING, Circuit Judge:

This diversity case comes to us on certified interlocutory appeal, pursuant to (b), from an order denying Harlo Products Corporation's motion for summary judgment. In this appeal, we are asked one question: Would the Mississippi Supreme Court supplement the state's commercial code--particularly the provisions dealing with recovery for breach of the implied warranty of merchantability--with principles of contribution and indemnity? Because we conclude that in a case such as this the Mississippi court would supplement its commercial code and apply principles of contribution and indemnity, we reverse the district court's denial of summary judgment.

I. BACKGROUND

Over ten years ago, Michael Adkinson was severely injured when the mast assembly of a forklift manufactured by Navistar International ("Navistar"), formerly International Harvester Company, unexpectedly fell on him. Adkinson subsequently filed a products liability suit against Navistar, asserting three types of defects in the forklift. Adkinson claimed that the mast assembly component of the forklift was defectively manufactured, that the forklift was defectively designed because no safety device prevented the mast assembly from falling, and that the warnings accompanying the forklift were inadequate.

Navistar in turn filed a third party complaint against Harlo Products Corporation ("Harlo"), the component part manufacturer of the mast assembly. Navistar sought recovery from Harlo under theories of common law indemnity, breach of express warranty, and breach of the implied warranty of merchantability. In particular, Navistar demanded payment from Harlo for any judgment rendered against Navistar on the basis of a defect in the component part manufactured by Harlo. Navistar later withdrew its express warranty claim.

At the trial of Adkinson's claims against Navistar and Navistar's claims against Harlo, Adkinson's case was submitted to the jury only on the theory of strict products liability. The district court instructed jurors to return a verdict for Adkinson if they found, from a preponderance of the evidence, that the forklift was in a defective condition unreasonably dangerous when Navistar shipped the forklift and that the forklift's defective condition proximately caused Adkinson's injuries. The jury was further instructed to consider three possible defects in determining whether the forklift was in a "defective condition unreasonably dangerous." Jurors were instructed specifically to consider: (1) whether the mast assembly was defectively manufactured; (2) whether the forklift as a whole was defectively designed because it lacked a safety device that would have prevented the mast assembly from falling on someone; and (3) whether the forklift was accompanied with adequate warnings about the risk of the mast assembly free-falling. The jury returned a general verdict in favor of Adkinson and awarded him $750,000.

Following the jury's general verdict in favor of Adkinson, the district court considered Navistar's third party claims against Harlo. It directed a verdict in favor of Harlo on Navistar's implied warranty of merchantability claim, reasoning that Navistar had adduced no evidence on the claim. Navistar's common law indemnity claim, however, was submitted to the jury. The district court instructed jurors to return a verdict for Navistar if they found that there was a defect in the mast assembly, that this defect was the sole defect in the forklift, and that this defect was latent or not readily apparent. Ultimately, the jury returned a verdict for Harlo on Navistar's common law indemnity claim.

On appeal, this court affirmed the jury's verdict of $750,000 against Navistar, but reversed the directed verdict for Harlo on Navistar's breach of implied warranty of merchantability claim. In holding that the record was sufficient to justify submission of Navistar's implied warranty claim to the jury, we reasoned that "there was evidence adduced by Adkinson from which the jury could have inferred that Harlo's warranty of merchantability to Navistar was breached." The case was then remanded to the district court.

On remand, both Navistar and Harlo filed motions for summary judgment. Harlo contended in its motion that it was entitled to judgment as a matter of law because Navistar had failed to comply with the notice provision in Mississippi's version of the Uniform Commercial Code. See MISS.CODE.ANN. Sec. 75-2-607(3). Navistar claimed, in its motion for summary judgment, that because we had found sufficient evidence in the record to state a prima facie case on its breach of implied warranty claim, and because Harlo had no defense to the claim, it was entitled to judgment as a matter of law. The district court denied both motions, finding that although Navistar's notice was adequate, there was a question of fact concerning whether it was timely. Neither Navistar nor Harlo sought appellate review of this ruling.

Harlo then filed a second motion for summary judgment. In this motion, Harlo contended that common law principles of indemnity and contribution apply to a buyer's claim against the seller for breach of the implied warranty of merchantability. Harlo reasoned that because common law principles of indemnity and contribution supplement Mississippi's commercial code, Navistar's claim for breach of the implied warranty of merchantability was barred as a matter of law. The district court denied Harlo's second motion for summary judgment and concluded that Navistar's breach of implied warranty claim is not precluded under current Mississippi law.

Recognizing that Harlo had raised an issue of first impression under Mississippi law, the district court certified the present interlocutory appeal, sua sponte, to this court, under (b). In certifying the appeal, the district court reasoned that (1) the question raised by Harlo--namely, whether general rules of contribution and indemnity apply to a claim for breach of the implied warranty of merchantability--was a controlling question of law on which there were substantial grounds for differing opinions, and (2) an immediate appeal would materially advance the ultimate termination of the lawsuit. After Harlo filed a timely application for interlocutory appeal, we accepted certification.

II. ANALYSIS

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Related

Adkinson v. International Harvester Co.
975 F.2d 208 (Fifth Circuit, 1992)

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975 F.2d 208, 19 U.C.C. Rep. Serv. 2d (West) 126, 1992 U.S. App. LEXIS 26882, 1992 WL 247282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adkinson-v-international-harvester-co-ca3-1992.