Air & Liquid Systems Corp. v. DeVries

586 U.S. 446, 139 S. Ct. 986, 203 L. Ed. 2d 373, 2019 U.S. LEXIS 2087
CourtSupreme Court of the United States
DecidedMarch 19, 2019
Docket17-1104
StatusPublished
Cited by100 cases

This text of 586 U.S. 446 (Air & Liquid Systems Corp. v. DeVries) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air & Liquid Systems Corp. v. DeVries, 586 U.S. 446, 139 S. Ct. 986, 203 L. Ed. 2d 373, 2019 U.S. LEXIS 2087 (2019).

Opinion

Justice KAVANAUGH delivered the opinion of the Court.

*991 In maritime tort cases, we act as a common-law court, subject to any controlling statutes enacted by Congress. See Exxon Shipping Co. v. Baker , 554 U.S. 471 , 507-508, 128 S.Ct. 2605 , 171 L.Ed.2d 570 (2008). This maritime tort case raises a question about the scope of a manufacturer's duty to warn. The manufacturers here produced equipment such as pumps, blowers, and turbines for three Navy ships. The equipment required asbestos insulation or asbestos parts in order to function as intended. When used on the ships, the equipment released asbestos fibers into the air. Two Navy veterans who were exposed to asbestos on the ships developed cancer and later died. The veterans' families sued the equipment manufacturers, claiming that the manufacturers were negligent in failing to warn of the dangers of asbestos.

The plaintiffs contend that a manufacturer has a duty to warn when the manufacturer's product requires incorporation of a part (here, asbestos) that the manufacturer knows is likely to make the integrated product dangerous for its intended uses. The manufacturers respond that they had no duty to warn because they did not themselves incorporate the asbestos into their equipment; rather, the Navy added the asbestos to the equipment after the equipment was already on board the ships.

We agree with the plaintiffs. In the maritime tort context, a product manufacturer has a duty to warn when (i) its product requires incorporation of a part, (ii) the manufacturer knows or has reason to know that the integrated product is likely to be dangerous for its intended uses, and (iii) the manufacturer has no reason to believe that the product's users will realize that danger. The District Court did not apply that test when granting summary judgment to the defendant manufacturers. Although we do not agree with all of the reasoning of the U. S. Court of Appeals for the Third Circuit, we affirm its judgment requiring the District Court to reconsider its prior grants of summary judgment to the defendant manufacturers.

I

Kenneth McAfee served in the U. S. Navy for more than 20 years. As relevant here, McAfee worked on the U. S. S. Wanamassa from 1977 to 1980 and then on the U. S. S. Commodore from 1982 to 1986. John DeVries served in the U. S. Navy from 1957 to 1960. He worked on the U. S. S. Turner .

Those ships were outfitted with equipment such as pumps, blowers, and turbines. That equipment required asbestos insulation or asbestos parts in order to function as intended. When used as intended, that equipment can cause the release of asbestos fibers into the air. If inhaled or ingested, those fibers may cause various illnesses.

Five businesses-Air and Liquid Systems, CBS, Foster Wheeler, Ingersoll Rand, and General Electric-produced some of the equipment that was used on the ships. Al-though the equipment required asbestos insulation or asbestos parts in order to function as intended, those businesses did not always incorporate the asbestos into their products. Instead, the businesses delivered much of the equipment to the Navy without asbestos. The equipment was delivered in a condition known as "bare-metal." In those situations, the Navy later added the asbestos to the equipment. 1

*992 McAfee and DeVries allege that their exposure to the asbestos caused them to develop cancer. They and their wives sued the equipment manufacturers in Pennsylvania state court. (McAfee and DeVries later died during the course of the ongoing litigation.) The plaintiffs did not sue the Navy because they apparently believed the Navy was immune. See Feres v. United States , 340 U.S. 135 , 71 S.Ct. 153 , 95 L.Ed. 152 (1950). The plaintiffs also could not recover much from the manufacturers of the asbestos insulation and asbestos parts because those manufacturers had gone bankrupt. As to the manufacturers of the equipment-such as the pumps, blowers, and turbines-the plaintiffs claimed that those manufacturers negligently failed to warn them of the dangers of asbestos in the integrated products. If the manufacturers had provided warnings, the workers on the ships presumably could have worn respiratory masks and thereby avoided the danger.

Invoking federal maritime jurisdiction, the manufacturers removed the cases to federal court. The manufacturers then moved for summary judgment on the ground that manufacturers should not be liable for harms caused by later-added third-party parts. That defense is known as the "bare-metal defense."

The District Court granted the manufacturers' motions for summary judgment. The U. S. Court of Appeals for the Third Circuit vacated and remanded. In re Asbestos Prods. Liability Litigation , 873 F.3d 232 , 241 (2017). The Third Circuit held that "a manufacturer of a bare-metal product may be held liable for a plaintiff's injuries suffered from later-added asbestos-containing materials" if the manufacturer could foresee that the product would be used with the later-added asbestos-containing materials. Id. , at 240.

We granted certiorari to resolve a disagreement among the Courts of Appeals about the validity of the bare-metal defense under maritime law. 584 U. S. ----, 138 S.Ct. 1990 , 201 L.Ed.2d 246 (2018). Compare 873 F.3d 232 (case below), with Lindstrom v. A-C Prod. Liability Trust , 424 F.3d 488 (CA6 2005).

II

Article III of the Constitution grants the federal courts jurisdiction over maritime cases. Under 28 U. S. C.

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Bluebook (online)
586 U.S. 446, 139 S. Ct. 986, 203 L. Ed. 2d 373, 2019 U.S. LEXIS 2087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-liquid-systems-corp-v-devries-scotus-2019.