Colt Industries Operating Corp. v. Frank W. Murphy Manufacturer, Inc.

822 P.2d 925, 1991 Alas. LEXIS 144, 1991 WL 262463
CourtAlaska Supreme Court
DecidedDecember 13, 1991
DocketS-3839, S-3942
StatusPublished
Cited by21 cases

This text of 822 P.2d 925 (Colt Industries Operating Corp. v. Frank W. Murphy Manufacturer, Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colt Industries Operating Corp. v. Frank W. Murphy Manufacturer, Inc., 822 P.2d 925, 1991 Alas. LEXIS 144, 1991 WL 262463 (Ala. 1991).

Opinions

OPINION

MOORE, Justice.

This case stems from a wrongful death claim by the estate of Ralph Howard against Colt Industries Operating Corporation (Colt), a compressor manufacturer. Frank Murphy Manufacturer, Inc. (Murphy), which made a component used in Colt’s compressor, was a third party defendant in the underlying claim. Colt negotiated a settlement with the Howard estate which released Murphy, Craig Taylor, Colt’s distributor, and itself from liability. Colt then sought contribution from Murphy, arguing that Murphy was liable on manufacturing and design defect theories. Colt was unsuccessful in its attempt to establish Murphy’s liability; the superior court directed a verdict for Murphy on the issue of design defect, and the jury returned a verdict in favor of Murphy on the manufacturing defect claim. Colt appealed and Murphy cross-appealed. These appeals present four major issues: 1) whether the trial court erred in directing a verdict on Colt’s design defect claim; 2) what number of pro rata shares should be counted for purposes of a contribution action; 3) [927]*927whether a limitation imposed by the trial court upon Colt’s expert’s testimony constituted an abuse of discretion; and 4) whether the trial court abused its discretion by permitting Colt’s expert to rely on Murphy’s business records. We reverse the decision of the superior court as to the first three issues and affirm as to the fourth.

I. Facts and Proceedings

On March 15, 1983, Ralph Howard was killed while using a sandblaster. A compressor manufactured by Quincy Compressor Division of Colt powered the machine. The compressor also supplied breathing air to Howard, who wore a protective mask and hood when using the sandblaster. While Howard was sandblasting, a fire started in the Colt compressor. Carbon monoxide produced by the fire contaminated Howard’s air supply. He died of carbon monoxide poisoning.

Howard’s estate initiated a wrongful death action on December 27, 1983. The estate sought damages from multiple parties, including Colt and Craig Taylor, Colt’s distributor. On July 11, 1985, Colt filed a third-party complaint against Murphy, the manufacturer of a device known as a model 20-T temperature switch gauge which Colt had installed on the compressor during its manufacture. The function of the switch gauge was to automatically shut down the diesel engine that powered the compressor when the compressed air discharge temperature exceeded a certain level. Such devices are important components because compressors generate substantial heat during normal use, and can easily overheat if any abnormality occurs during operation.1

The Murphy switch gauge consists of a bulb attached by a copper capillary tube to a case assembly with a gauge face. It is installed at the hottest area of the compressor. The bulb acts as a sensor; the cavity within it is filled with methylene chloride. As the bulb heats, the methylene chloride boils and converts from liquid to gas, thereby creating pressure. The pressure is hydraulically transferred from the bulb through the. capillary to a copper diaphragm at the back of the case assembly. The increasing pressure causes the diaphragm to contract. This movement is conveyed through the case assembly and reflected in a temperature reading on the gauge face. When the temperature reaches the set level, the gauge activates a magnetic switch, cutting off the flow of fuel to the diesel engine and shutting down the machine.

Murphy manufactures the switch gauge by attaching the case assembly to the copper capillary tube which is inserted into one of two holes in the sensor bulb. The bulb is soldered in place with 40/60 (tin-lead) solder. The bulb, capillary tube, and diaphragm are then filled with liquid methylene chloride through the remaining hole in the bulb. When the device is filled to specifications, a brass pin is inserted into the hole in the bulb and sealed in place with 40/60 solder.

The switch gauge in the compressor used by Howard was set to shut the compressor down if the temperature within the compressor exceeded 225° F. It did not activate. The parties agree that the Murphy switch gauge was nonfunctional because the joints around the sensing bulb failed to contain the methylene chloride, but disagree as to whether the leak occurred before or during the compressor fire. Colt theorized that methylene chloride slowly leaked from small cracks in the soldered joints which were undetectable at the time of manufacture.2 In the opinion of Colt’s [928]*928experts, by the time of the accident, there was too little methylene chloride remaining in the bulb for the switch gauge to function. Thus, while Howard used the sandblaster, temperature in the compressor rose gradually, escalating unchecked due to the failure of the Murphy device, until the fire started and the carbon monoxide which Howard inhaled was produced.

Murphy contended that the switch gauge was operational until a spark ignited the oil in the compressor. According to its theory, the heat of the fire melted the solder seals, allowing vaporized methylene chloride to escape. Thus, Murphy concludes, there was not a causal link between the failure of the switch gauge and Howard’s death because the fire started before the gauge failed.

The parties were unable to definitively resolve this dispute because sometime after Howard’s death, William Kenton, who was then working on behalf of the Howard estate, removed the Murphy switch gauge from the compressor and took it to the Murphy manufacturing plant. There, with the assistance of Murphy’s production supervisor and quality control officer, Kenton tested the device. In the course of testing, the switch gauge was cut apart. Once the joints of the switch gauge had been severed, it was no longer possible to test the device to determine whether there had been a small leak in the bulb joint prior to the fire.

Colt eventually arranged a settlement with the Howard estate which extinguished its own liability as well as that of Craig Taylor and Murphy. Colt paid the sum of $1,620,018. The other defendants who settled independently paid $250,000 in the aggregate.

Colt then sought contribution from Murphy pursuant to former AS 09.16.010-.060. Colt and Murphy each filed motions for summary judgment directed to the number of tortfeasors to be counted for determining Murphy’s pro rata share of Colt’s settlement. The trial court held that, assuming Murphy was adjudicated a joint tort-feasor, there would be three pro rata shares: Colt, Craig Taylor, and Murphy.

In January 1990, a jury trial was held on the issue of Murphy’s liability as a joint tortfeasor. Colt argued that Murphy was liable for Howard’s death in strict products liability under both manufacturing and design defect theories. Murphy moved for directed verdict on Colt’s manufacturing and design defect theories. Its motion was granted as to the design defect claim. Subsequently, the jury concluded that the Murphy device did not have a manufacturing defect. Judgment was entered in favor of Murphy on February 7, 1990. This appeal followed.

II. Directed Verdict

A. Standard of Review

In City of Whittier v. Whittier Fuel & Marine Corp., 577 P.2d 216 (Alaska 1978), we defined the standard of review regarding a motion for directed verdict:

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Bluebook (online)
822 P.2d 925, 1991 Alas. LEXIS 144, 1991 WL 262463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colt-industries-operating-corp-v-frank-w-murphy-manufacturer-inc-alaska-1991.