Chandler v. Northwest Engineering Co.

111 Misc. 2d 433, 444 N.Y.S.2d 398, 1981 N.Y. Misc. LEXIS 3292
CourtNew York Supreme Court
DecidedNovember 18, 1981
StatusPublished
Cited by8 cases

This text of 111 Misc. 2d 433 (Chandler v. Northwest Engineering Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chandler v. Northwest Engineering Co., 111 Misc. 2d 433, 444 N.Y.S.2d 398, 1981 N.Y. Misc. LEXIS 3292 (N.Y. Super. Ct. 1981).

Opinion

OPINION OF THE COURT

John A. K. Bradley, J.

In this action, plaintiff Helen Chandler brought suit against Northwest Engineering Co. (Northwest) and Hodge & Hammond, Inc. (H & H), who in turn impleaded the third-party defendant, John Arborio, Inc. (Arborio). Mrs. Chandler’s claim for the wrongful death of her husband, James, sounded in negligence and strict products liability.

On September 3, 1981, a jury found both Northwest and H & H liable on both causes of actions, and found Arborio liable over in the third-party action. Total damages were assessed at $600,000. In a Dole v Dow Chem. Co. (30 NY2d 143) apportionment, the jury found Northwest 90% liable and Hodge & Hammond 10% liable; on the third-party action, the jury found Arborio 50% liable for contribution.

Plaintiff’s intestate, James R. Chandler, an employee of Arborio, was killed in the course of employment on April 18,1972. At the time of his death, he had been working for several months for Arborio as a labor foreman engaged in the construction of a five-mile strip of New Jersey Highway Route 15 in Sparta, New Jersey. Mr. Chandler’s death resulted from an accident involving a model 80-D Northwest shovel, designed and manufactured by Northwest. Mr. Chandler’s employer Arborio ordered the shovel from [435]*435Northwest which shipped it directly to Arborio. The shovel was actually distributed by Hodge & Hammond, which had a leasing agreement and purchase option with Arborio as Northwest’s representative. The option was exercised and Arborio purchased the shovel from H & H.

The 80-D shovel was being used to dig a trench. Mr. Chandler released the “dog brake” on the shovel, which then started moving forward toward Chandler. Although he ran to escape, Chandler was overtaken by the shovel. He was killed instantly.

H & H has now moved to set aside the jury verdict based upon several grounds. For the reasons stated herein, the motion is denied.

1. CHOICE OF LAW

Preliminarily, mention should be made of the choice of law issue in this case. Third-party defendant Arborio has cross-moved for an order setting aside the verdict based, in part, upon the argument that New Jersey law, rather than New York law, governs the third-party action. New Jersey law would bar an action for contribution against an employer who, like Arborio, has been held obligated to pay, and has been paying, workers’ compensation benefits on the claim. (NJ Stats, Ann, § 34:15-8.) In New York, election of that remedy by the employee does not preclude an action by a third party for contribution against the employer.

In resolving the conflict as to which State’s law should apply to both the main action and the third-party action, this court looked to the seminal opinion in Babcock v Jackson (12 NY2d 473). The Court of Appeals in Babcock (p 481) abandoned the rigidity of the lex loci delecti doctrine in favor of the “center of gravity” or “grouping of contracts” principle which gives “controlling effect to the law of the jurisdiction which, because of its relationship or contact with the occurrence or the parties, has the greatest concern with the specific issue raised in the litigation.”

While courts in cases subsequent to Babcock (supra) have sometimes struggled with its doctrine, and at times have sought a more structured rule in its application (e.g., Neumeier v Kuehner, 31 NY2d 121), it is the opinion of this [436]*436court that its principle is still the law of this State. (See O’Connor v Lee-Hy Paving Corp., 579 F2d 194, cert den 439 US 1034, reh den 441 US 918.)

Pursuant to that doctrine, this court examined the relationship of New Jersey and of New York to the facts to determine which State’s interest predominates. In view of the fact that New Jersey’s major basis for applying its law was that it was the situs of the accident, the following New York contacts indicate that New York has the more significant interest in applying its law: the residence of plaintiff and of plaintiff’s decedent, the incorporation of Hodge & Hammond and of Arborio, the sale and delivery of the injury-causing instrumentality, and the base of operations for Arborio were all in New York. These contacts are particularly significant in choosing New York law as governing the third-party action, where the issue revolved around the potential for liability of a New York employer to a New York defendant, rather than around the facts surrounding the New Jersey accident itself.

New York has a compelling interest in protecting the rights of its citizens to seek reimbursement for wrongs committed by third parties. This interest becomes preeminent when both parties are New York citizens whose relationship arose in New York, and when a great deal of the conduct which forms the basis for apportionment of responsibility between the parties occurred in New York. The wrongful conduct of Arborio was divided between New York, where it failed to instruct its employees properly, and New Jersey, where it improperly operated the pull shovel; thus, even under a lex loci delecti analysis, it would not have been erroneous for this court to apply New York law. For these reasons, this court adheres to its original decision to apply New York law to find the third-party action for contribution not barred by election of New Jersey workers’ compensation benefits.

2. NEGLIGENCE

Movant’s first ground for setting aside the verdict asserts that “a sales agent [cannot] properly be held liable in negligence to an injured third party for nonfeasance, such as failure to inspect, test and/or warn.”

[437]*437The general rule is that although a seller with reason to know of a dangerous or potentially dangerous condition in a product he sells must take reasonable care to protect its user, he has no duty to ascertain unknown facts.1 The issue then becomes under what circumstances will a seller be deemed to have “reason to know” of a potential danger.

The reputation of the manufacturer, or source of supply (see Restatement, Torts 2d, § 402, comment e), is but one factor to consider in determining whether a seller has been put on notice which would require his taking protective measures. In Alfieri v Cabot Corp. (17 AD2d 455, affd 13 NY2d 1027) the Appellate Division found no obligation upon A & P supermarket to test charcoal briquets under all the circumstances present in that case: the briquets were part of a mass shipment which had arrived at A & P — and were sold by A & P — already packaged by the manufacturer; there was no dangerous potential inherent in proper use of the briquets known to A & P or the public; A & P could not have discovered the danger by mere physical inspection, and there was no showing that the ultimate purchaser relied upon A & P’s special knowledge or expertise. In Outwater v Miller (3 AD2d 670) the Second Department considered such factors as whether the vendor bought from a reputable source of supply and whether the ultimate purchaser bought the chattel by brand name. See, also, Pimm v Graybar Elec. Co.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bylsma v. R.C.WilleyHumanTouch
2017 UT 85 (Utah Supreme Court, 2017)
Durabla Manufacturing Co. v. Goodyear Tire & Rubber Co.
992 F. Supp. 657 (S.D. New York, 1998)
Brumbaugh v. CEJJ, Inc.
152 A.D.2d 69 (Appellate Division of the Supreme Court of New York, 1989)
Buley v. Rexnord Process Machinery Division
105 A.D.2d 965 (Appellate Division of the Supreme Court of New York, 1984)
Pennington v. Dye
456 So. 2d 507 (District Court of Appeal of Florida, 1984)
Erickson v. Monarch Industries, Inc.
347 N.W.2d 99 (Nebraska Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
111 Misc. 2d 433, 444 N.Y.S.2d 398, 1981 N.Y. Misc. LEXIS 3292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chandler-v-northwest-engineering-co-nysupct-1981.