Burden v. JOHNSON & JOHNSON MEDICAL

530 F.3d 389
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 9, 2008
Docket04-20777
StatusPublished

This text of 530 F.3d 389 (Burden v. JOHNSON & JOHNSON MEDICAL) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burden v. JOHNSON & JOHNSON MEDICAL, 530 F.3d 389 (5th Cir. 2008).

Opinion

530 F.3d 389 (2008)

Kathy N. BURDEN, et al., Plaintiffs,
v.
JOHNSON & JOHNSON MEDICAL, et al., Defendants, *390
Ansell Healthcare Products Inc., formerly known as Ansell Inc, formerly known as Ansell Perry Inc.; Becton Dickinson & Co., Defendants-Cross-Defendants-Appellees,
Owens & Minor Medical Inc.; Owens & Minor Inc., Defendants-Cross-Claimants-Appellants.

No. 04-20777.

United States Court of Appeals, Fifth Circuit.

June 9, 2008.

Richard Michael Duffy, Gardner, Carton & Douglas, Chicago, IL, Gene Francis Creely, II, Cozen O'Connor, Houston, TX, for Ansell Healthcare Products Inc.

Andrew William Schwartz (argued), Barry M. Epstein, Stuart M. Feinblatt, Sills, Cummis, Radin, Tischman, Epstein & Gross, Newark, NJ, William Clarence Dowdy, III, Strasburger & Price, Dallas, TX, for Becton Dickinson & Co.

Robert F. Redmond, Jr. (argued), William W. Belt, Williams Mullen, Richmond, VA, Michael Ray Walzel, Michael Kent Rose, Stevens, Baldo, Freeman & Lighty, *391 Beaumont, TX, for Owens & Minor Medical Inc. and Owens & Minor Inc.

Before HIGGINBOTHAM, WIENER, and DENNIS, Circuit Judges.

DENNIS, Circuit Judge:

In this products liability suit, we certified to the Texas Supreme Court a question regarding manufacturers' duties to defend and indemnify distributors. The Texas Supreme Court has now answered the question, and we resolve the remaining issues on appeal. For the following reasons, we AFFIRM in part, VACATE in part, and REMAND this case to the district court.

BACKGROUND

On January 21, 2000, Kathy Burden, a dental hygienist, and members of her family filed a products liability action in Texas state court, naming as defendants the present appellants, appellees, and over thirty other entities. The Plaintiffs alleged that Burden was injured by latex gloves manufactured and sold by the named defendants. Appellants Owens & Minor, Inc. and Owens & Minor Medical, Inc. (collectively, "Owens") were sued as distributors. Appellees Ansell Healthcare Products Inc. ("Ansell") and Becton, Dickinson, and Company ("BD") were sued as manufacturers of the allegedly defective gloves. On March 6, 2000, Owens sent letters to several of the defendant manufacturers requesting that those manufacturers indemnify Owens pursuant to Texas Civil Practice and Remedies § 82.002, which requires a manufacturer to "indemnify and hold harmless a seller against loss arising out of a products liability action" excepting losses proven to have been caused by the seller. For reasons that are disputed by the parties, Owens was ultimately defended by its own outside counsel.

The case was removed to the United States District Court for the Southern District of Texas on May 3, 2000. It was subsequently transferred to the United States District Court for the Eastern District of Pennsylvania as part of the multidistrict litigation entitled, In re: Latex Glove Products Liability Litigation. At some point during the proceedings, Owens filed cross-claims for indemnity against several manufacturers in the case. Eventually, the Plaintiffs voluntarily dismissed their claims against Owens because they were unable to show that Owens had sold any of the latex gloves that allegedly injured Burden. All other defendants were dismissed for the same or similar reasons. There was never a finding that any party was negligent or caused the Plaintiffs' alleged injuries. However, once the multidistrict litigation proceedings were complete and the instant case was remanded to the Southern District of Texas, Owens pursued the cross-claims for indemnity that it had brought against four of the manufacturers, seeking to recover the costs it had incurred in Burden. Owens subsequently settled with two of the manufacturers, leaving claims for indemnity against only Ansell and BD.

In response to Owens's cross-claim, BD and Ansell both moved for summary judgment on the adequacy of their offers to indemnify Owens. BD argued that it had properly offered to defend and indemnify Owens for claims arising out of the sale of BD latex gloves. Likewise, Ansell maintained that it had appropriately offered to defend and indemnify Owens for claims related to Owens's alleged sale of Ansell latex gloves. Owens claimed that the offers made by Ansell and BD were for a "partial limited defense" with conditions, *392 rather than the sort of full defense and indemnity allegedly required by § 82.002. The District Court rejected many of the arguments presented by the manufacturers, yet ultimately granted BD's and Ansell's motions for summary judgment, holding that both manufacturers had offered to defend and indemnify Owens to the satisfaction of their duties under § 82.002. In so doing, the District Court terminated the entire case.

Owens brings this appeal, arguing that the District Court erroneously granted summary judgement in favor of Ansell and BD. According to Owens, the District Court improperly concluded that a limited defense was all that was required under § 82.002 and that by defending themselves the manufacturers had adequately defended Owens. Owens requested that the question on this issue be certified to the Texas Supreme Court. Owens also argued that the District Court erred in construing in favor of Ansell and BD allegedly disputed facts regarding the letters exchanged between the parties. Ansell and BD respond that Owens has misinterpreted the District Court's ruling. According to Ansell and BD, the District Court correctly held that Ansell and BD fulfilled their indemnification obligation because § 82.002 only requires a manufacturer to indemnify a distributor for claims related to the sale of that manufacturer's product. Further, Ansell and BD claim that the District Court did not impermissibly grant summary judgment based upon disputed facts, but rather correctly drew conclusions of law based upon the undisputed facts presented in the letters. The parties have stipulated that Owens is an innocent seller and that BD and Ansell are manufacturers of the latex gloves at issue in this appeal.

In our previous opinion in this case, Burden v. Johnson & Johnson Medical, we agreed with Owens on the first issue and decided to certify the following question to the Texas Supreme Court:

When a distributor sued in a products liability action seeks indemnification from less than all of the manufacturers implicated in the case, does a manufacturer fulfill its obligation under Texas Civil Practice and Remedies § 82.002 by offering indemnification and defense for only the portion of the distributor's defense concerning the sale or alleged sale of that specific manufacturer's product, or must the manufacturer indemnify and defend the distributor against all claims and then seek contribution from the remaining manufacturers.

447 F.3d 371, 375 (5th Cir.2006). On March 28, 2008, the Texas Supreme Court answered the certified question in Owens & Minor v. Ansell Healthcare Prods., Inc., 251 S.W.3d 481 (Tex.2008) (published). The Texas Supreme Court concluded that "the product manufacturers satisfy their statutory duty [under section 82.002] to the seller by offering to indemnify and defend it only for any costs associated with their own products." Id. at 489.

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Related

Harris v. Mickel
15 F.3d 428 (Fifth Circuit, 1994)
Jenkins v. Cleco Power, LLC
487 F.3d 309 (Fifth Circuit, 2007)
Owens & Minor, Inc. v. Ansell Healthcare Products, Inc.
251 S.W.3d 481 (Texas Supreme Court, 2008)
Forbau Ex Rel. Miller v. Aetna Life Insurance Co.
876 S.W.2d 132 (Texas Supreme Court, 1994)
Burden v. Johnson & Johnson Medical
447 F.3d 371 (Fifth Circuit, 2006)
Burden v. Johnson & Johnson Medical
530 F.3d 389 (Fifth Circuit, 2008)

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Bluebook (online)
530 F.3d 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burden-v-johnson-johnson-medical-ca5-2008.