Benson Tower Condominium Owners Ass'n v. Victaulic Co.

702 F. App'x 537
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 25, 2017
Docket15-35119
StatusUnpublished
Cited by3 cases

This text of 702 F. App'x 537 (Benson Tower Condominium Owners Ass'n v. Victaulic Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benson Tower Condominium Owners Ass'n v. Victaulic Co., 702 F. App'x 537 (9th Cir. 2017).

Opinion

MEMORANDUM *

Defendant-Appellant Victaulic Co. (Vic-taulic) appeals from the district court’s denial of its renewed motion for judgment as a matter of law and its motion for a new trial. We affirm.

1. A jury verdict may be reversed for lack of substantial evidence only if the evidence “permits only one reasonable conclusion, and that conclusion is contrary to the jury’s verdict.” Pavao v. Pagay, 307 F.3d 915, 918 (9th Cir. 2002). Here, substantial evidence supported the jury’s determination that Victaulic’s defective products caused damage to Benson Tower Condominium Owners Association’s (Benson) potable water supply, which is property separate from the defective valves and couplings.

Under Oregon law, a seller is liable for “damage to property” caused by a product sold “in a defective condition unreasonably dangerous to the user ... or to the property of the user.” Or. Rev. Stat. § 30.920. Benson provided substantial evidence showing that Victaulic’s plumbing products caused damage to its potable water supply. Residents of Benson Tower and contractors and staff testified to the presence of black particles throughout the building, from the hot water storage tanks to the kitchen sinks and dishwashers inside the condominium units. Various witnesses noted the similarities between the black, rubbery particles and Victaulic’s corroded valves and couplings. Multiple experts opined that the black particles were ethylene propylene diene monomer (EPDM) from Victaulic’s valves and couplings that had prematurely degraded after contact with chloramine, a chemical commonly added to municipal water supplies. Victaulic’s EPDM was “improperly formulated” and “significantly poorer” than the materials of competitors. The degraded byproduct of chloramine and EPDM likely included “carbon black,” which several experts noted was a potential carcinogen.

Oregon case law does not require “significant damage” to state a colorable claim under Oregon products liability law. The text of the statute refers simply to “damage to property.” Or. Rev. Stat. § 30.920. Russell v. Deere & Co., 186 Or. App. 78, 61 P.3d 955 (2003), does not hold to the contrary. Although that case alluded to “significant physical injury” to a product as *540 sufficient for a products liability claim, the issue before the court there was whether the defective combine harvester in question was unreasonably dangerous under the statute. 1 Id. at 84-85, 61 P.3d 955. Other Oregon cases interpreting the products liability statute make no mention of any requirpment that the damage caused by an unreasonably dangerous product be “significant.” See Harris v. Suniga, 209 Or. App. 410, 421, 149 P.3d 224 (2006); Gladhart v. Or. Vineyard Supply Co., 164 Or. App. 438, 450-54, 994 P.2d 134 (1999).

Victaulic’s attempt to re-cast the damaged property—the potable water system and the water flowing through it—as part of an integrated “plumbing system” that includes the defective valves and couplings is no more successful. Here the “other property” damaged is the water supply. See City of Pomona v. SQM N. Am. Corp., 750 F.3d 1036, 1050 (9th Cir. 2014) (contamination of groundwater supply is damage to property). Describing everything involved in the delivery of water to Benson residents at a high level of generality as a “system” does not make the water supply itself—the damaged property—the same product as Benson’s defective valves and couplings. The evidence at trial supports the finding that Victaulic’s parts damaged “other property,” namely the potable water at Benson Tower. 2

The jury heard substantial evidence showing that the defective plumbing components degraded prematurely and leached possible carcinogens into Benson’s potable wafer supply. This evidence is sufficient to support the verdict.

2. Victaulic waived the argument that the district court abused its discretion in admitting evidence concerning possible health issues relating to the degradation of the synthetic rubber in Vietaulic’s products. When Benson at trial adduced testimony or argued that “carbon black,” a byproduct of degraded EPDM, is a possible carcinogen, Victaulic failed to object on the basis of undue prejudice. Victaulic’s pre-trial motions for exclusion of this evidence were insufficient to preserve the objection. Absent contemporaneous objection, a party may rest on its pre-trial motion to preserve an evidentiary objection only if the court makes a “thorough examination of the objection,” followed by an “explicit and definitive” ruling on it. United States v. Archdale, 229 F.3d 861, 864-65 (9th Cir. 2000). Here, far from being explicit or definitive, the district court ruled that it would allow “appropriate expert testimony” on health concerns relating to the black particles but would “consider any additional specific objections at trial.” Lacking an “explicit and definitive” ruling on its objection, Victaulic failed to preserve it at trial. See McCollough v. Johnson, Rodenburg & Lauinger, LLC, 637 F.3d 939, 954 (9th Cir. 2011) (trial court’s denial of a motion “with leave to renew any objections at trial” was not an explicit and definitive ruling and did not preserve the defendant’s evidentiary objection).

Alternatively, even if the objection had not been waived, there was no abuse of discretion in admitting the evidence. Expert testimony about the health risks of carbon black was pertinent to establishing *541 that Victaulic’s products contaminated Benson’s potable water system and thus damaged its property. The health-related evidence thus “logically advance[d] a material aspect” of Benson’s case and met the “low” bar for relevance. Messick v. Novartis Pharm. Corp., 747 F.3d 1193, 1196 (9th Cir. 2014) (citing Daubert v. Merrell Dow Pharm., Inc., 43 F.3d 1311, 1315 (9th Cir. 1995)).

Victaulic’s undue prejudice arguments, if not waived, do not succeed. Given the relevance of the health-related evidence, the district court did not abuse its discretion in finding that its probative value was not substantially outweighed by the danger of unfair prejudice. See Fed. R. Evid.

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702 F. App'x 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benson-tower-condominium-owners-assn-v-victaulic-co-ca9-2017.