Armstrong v. A.C. & S., Inc.

650 F. Supp. 69, 1986 U.S. Dist. LEXIS 16641
District Court, W.D. Washington·Decided December 11, 1986·No. No. C81-179M; No. C84-162M; No. C84-164M·Published·Cited by 3 cases

Opinion

ORDER GRANTING UNITED STATES’ MOTION TO LIFT THE STAY OF PROCEEDINGS AND DISMISSING EAGLÉ-PICHER’S SEVENTH CLAIM

McGOVERN, Chief Judge.

INTRODUCTION

This order addresses another issue presented by the third-party action of Eagle-Picher Industries, Inc. (E-P) against the United States for indemnity or contribution. This order will be entered in each of the three cases in which the motions relating to Claim Seven were brought and in which the Court made previous rulings concerning other claims. Previous action by the Court resulted in E-P’s claims one, through six being dismissed in Armstrong v. A. C. & S., et al.; No. C81-179M, Heinz v. A.C. & S., et al.; No. C84-164M; Attridge v. A. C. & S., et al., C84-162M based on this Court’s decision in Lopez v. A.C. & S., et al., C84-155M. In Lopez, the third-party claims for contribution/indemnity were dismissed because the Federal Employees’ Compensation Act (FECA), 5 U.S.C. §§ 8101-8193, precludes the United States from being a tortfeasor by removing its susceptibility to tort liability in return for paying benefits to injured government employees regardless of fault. E-P’s eighth and ninth claims raising issues of the Government’s knowledge rendering its acts and omissions wanton, willful, reckless, or intentional were also dismissed. E-P’s seventh claim wherein it seeks indemnity or contribution based upon the Government’s alleged breach of a post-employment duty to warn was stayed pending the Ninth Circuit’s decision on the issue of whether post-service duty to warn is barred by the discretionary function exception to the Federal Tort Claims Act in In re Consolidated United States Atmospheric Testing Litigation, No. 85-2842 (9th Cir.) and Broudy v. United States, No. 86-5553 (9th Cir.) (consolidated for purposes of appeal).

STAY OF PROCEEDINGS

The United States now seeks an order lifting the stay of proceedings and dismissing Claim Seven on the ground that EaglePicher has not, and cannot, state a claim under Washington law. The Government states that it wanted to raise this additional issue in its reply brief and discussed the matter with E-P’s counsel who insisted a new motion be filed fully briefing the issue.

The United States argues that without reaching the discretionary function issue, the Court may address the post-employment duty to warn issue under Washington law. E-P merely counters saying there is no need to lift the stay because the Ninth Circuit has not yet ruled in the Atmospheric Testing and Broudy cases.

Because the issue presented in this motion is distinctly different from the discretionary function issue in the cases before the Ninth Circuit, this Court may address the issue without concern for inconsistency with the Ninth Circuit.

The United States’ Motion to Lift the Stay of Proceedings is GRANTED.

POST-EMPLOYMENT DUTY TO WARN

Arguments of the Parties

The Government’s argument on the post-employment duty to warn issue proceeds from an analysis of the United States as employer under Washington law. Under the Federal Tort Claims Act, the liability of the United States, if it were a private person, is governed by the law of the place where the act or omission occurred. 28 U.S.C. § 1346(b). Under Washington law, there is no specific holding of a post-employment duty to warn, but there is a “continuing duty to warn” found in Lockwood v. A.C. & S., Inc., et al., 44 Wash.App. 330, 722 P.2d 826 (1986). Because a continuing duty to warn arises from the United States’ role as employer, however, any cause of action stemming from such a duty is barred [71]*71by the exclusivity provision of FECA, 5 U.S.C. § 8116(c). An employer who pays benefits to injured employees in return for being free from tort liability is precluded from being a tortfeasor as to post-employment alleged torts also.

E-P frames the issue as whether despite the FECA the United States owes a duty to a former employee, and, if so, whether a private employer under Washington law has such a duty. E-P argues that while no court has yet addressed the issue of whether the FECA exclusivity provision precludes a former federal employee from suing the United States for post-employment failure to warn, the analogous issue of whether the Feres doctrine (Feres v. United States, 340 U.S. 135, 71 S.Ct. 153, 95 L.Ed. 152 (1950) precludes such a lawsuit has been addressed. Feres held that “the Government is not liable for injuries to servicemen where the injuries arise out of or are in the course of activity incident to service.” Id. at 146. In Molsbergen v. United States, 757 F.2d 1016, 1019 (9th Cir.), cert. dismissed, — U.S. -, 106 S.Ct. 30, 87 L.Ed.2d 706 (1985), dismissed on remand sub nom. In re Consolidated United States Atmospheric Testing Litigation, 616 F.Supp. 759 (N.D.Cal.), appeal docketed, No. 85-2842 (9th Cir.1985), the Ninth Circuit held that the Feres doctrine would not bar a serviceman’s action for post-service failure to warn for injuries sustained as a result of his exposure to radiation whilé on active duty. The Court reasoned that although the Government’s decision to expose the veteran to radiation was barred by the Feres doctrine, the Feres doctrine would not bar an independent, post-service tort based on the Government’s failure to warn the veteran or monitor his condition. Thus, concludes the argument, former employees of Puget Sound Naval Shipyard (PSNS) are not precluded under the FECA exclusivity provision (which is identical to the Feres doctrine in its effect) from bringing suit against the Government for its failure to warn of, and monitor any injuries arising from, health hazards of asbestos exposure once the Government became aware of such hazards.

Once the FECA has been shown to be no hurdle, E-P next argues that the Washington Supreme Court has not addressed the issue of post-employment duty to warn and that this Court must make a reasonable determination of what the Washington Court would do. E-P first argues that Lockwood is inapposite in this context:

1. Thé issue of the effect of the FECA on the viability of a post-termination duty to warn cause of action is a matter of federal, not Washington, law, and “the question of an actionable duty is an inquiry separate from the application of the Feres doctrine.” Broudy v. United States, 722 F.2d 566, 570 (9th Cir.1983) (Broudy II).

2. The issue in Lockwood was not whether an employer has a post-termination duty to warn. The issue in Lockwood was whether a manufacturer has a duty to warn an end-user

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Armstrong v. A.C. & S., Inc., 650 F. Supp. 69, 1986 U.S. Dist. LEXIS 16641 (W.D. Wash. 1986).

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