Crown Cork & Seal Company, Inc. v. Morton Pharmaceuticals, Inc.

417 F.2d 921, 1969 U.S. App. LEXIS 10620
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 30, 1969
Docket18687
StatusPublished
Cited by19 cases

This text of 417 F.2d 921 (Crown Cork & Seal Company, Inc. v. Morton Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crown Cork & Seal Company, Inc. v. Morton Pharmaceuticals, Inc., 417 F.2d 921, 1969 U.S. App. LEXIS 10620 (6th Cir. 1969).

Opinion

JOHN W. PECK, Circuit Judge.

The plaintiff-appellant, Crown Cork & Seal Company, Inc. (hereinafter referred to as Crown) originally filed suit in the District Court for the price of goods sold to the defendant-appellee, Morton Pharmaceuticals, Inc. (hereinafter referred to as Morton). Morton counterclaimed for damages, alleging that some 36,000 aerosol cans previously purchased by it from Crown were defective. The District Court granted Crown’s motion for summary judgment on its claim; the issues arising out of the counterclaim were tried to a jury. This appeal is from the judgment of the District Court entered on the jury verdict in Morton’s favor on the counterclaim.

As its name implies, Morton, a Tennessee corporation, is in the business of manufacturing and distributing various pharmaceutical products including aerosol spray products. Crown, a New York corporation, is the world’s largest manufacturer of aerosol cans.

*923 In October, 1962, Morton received an order from Globe Laboratories, Inc., of Fort Worth, Texas, to prepare 36,000 cans of an aerosol spray called “Kleen Sheen,” a pet grooming aid. For many years Morton had been purchasing empty aerosol cans from Crown, and therefore it ordered 36,000 empty, pre-lithographed aerosol cans from Crown. Upon receipt of the empty cans from Crown, Morton filled them, inserted the valve assembly and shipped the filled cans to Globe. Shortly after Globe received the shipment, cans began leaking. At that time Globe sent approximately 144 cans back to Morton. Morton immediately notified Crown of the problem, and Crown sent a representative to Morton’s plant to investigate.

While the results of this investigation and the cause of the original leakage are in dispute, it is undisputed that at the time of the first investigation, the parties believed that all of the cans that were going to leak had leaked, and therefore the parties advised Globe that it could go ahead and distribute the rest of the “Kleen Sheen” cans. However, shortly after distribution by Globe, many more “Kleen Sheen” cans began to leak and Globe recalled all of the “Kleen Sheen” cans.

The theory of Morton’s counterclaim was that the cans were defective because negligently manufactured and that the defects violated the statutorily implied warranties of merchantability and fitness for the purpose intended. 1

It should be noted at the outset that there is no dispute that approximately three thousand of the 36,000 cans did in fact leak. Nor is there any dispute that leakage in aerosol cans is not necessarily due to manufacturing defects in the cans since improper filling or insertion of the valve assembly can also cause can leakage. Thus the primary issue in the trial court was whether the admitted can leakage was caused by defects in the cans, and the primary issue here is whether sufficient evidence was presented in the trial court that the leakage was caused by can defects, as the jury necessarily found.

It is Crown’s contention here that there was no substantial evidence that the leakage was caused by defects in the cans, and that therefore the District Court erred in refusing to grant Crown’s motions for a directed verdict made at the close of the plaintiff’s evidence and renewed at the close of all the evidence. In the alternative, Crown contends that the District Court abused its discretion by denying its motion for a new trial on the ground that the verdict was against the weight of the evidence. We cannot agree with these contentions.

Mr. Gordon Chissom, a former employee of Crown, testified with respect to his examination of the first group of 144 cans which were returned to Morton by Globe as follows:

«Q. * * * [H]ow would you classify the cans on questionable manufacturing ?
A. The cans that I examined I said had a questionable seam. In terminology we call them a tight seam, or semi-tight or loose seam. This is a bottom seam.
Q. If you characterize one as having a loose seam is it likely to leak?
A. It could or it could not.
Q. Did you find loose seams in these cans?
*924 A. I did. Loose bottom seams. Let’s qualify it.”

Mr. Wayne Speer, a former employee of Morton, testified that he and Gordon Chissom jointly examined leaking cans out of the first group of 144 cans returned to Morton by Globe. Speer testified that Chissom told him that he had found a number of difficulties in the cans in the soldering of the side seams of the cans, at the “crossovers” where there are two layers of metal on the cans, and that the openings or “beads” of the cans were elliptical or “cracked” rather than round. 2

Crown vigorously stresses that both of the above items of testimony relate to the first group of cans which Morton received back from Globe. At the time, both Crown and Morton believed that the defects which caused the leakage in the first group of returned cans were due to normal manufacturing defects, and that when the leaking cans were removed from the entire shipment there would be no further leakage problem. However, as recited above, a much more serious leakage problem developed in the “Kleen Sheen” cans after Globe distributed the cans to its customers for retail sale. Crown contends that none of this later leakage was related to any manufacturing defects which may have been found in the 144 cans which were originally returned to Morton.

However, Speer also testified that the second group of cans, the entire shipment which Globe returned to Morton, contained cans which were leaking at the side seams, around the opening at the top, and at the bottom seams. While the terminology of the witness was that of “leakage” rather than “defects” in the cans, the witness was describing the same general type of problem with the second group of returned cans as was found with the first group of 144 cans. The jury could reasonably infer that the leakage described with respect to the second group of cans was a result of the defects attributed to the first group.

In addition, Speer testified that Gordon Chissom informed him that the results of tests performed by Crown in their own laboratory showed that at least some of the leakage was attributable to a deficiency in the compounding of the valve cup inserted by Morton into the empty cans purchased from Crown. Morton purchased the valve cups from the Precision Valve Corporation, but Speer testified that Chissom informed him that Morton did not have to include Precision Valve Corporation in the can leakage claim because Crown manufactured a very large percentage of the valve cups for the Precision Valve Corporation. 3 Chissom corroborated Speer’s testimony on this point.

*925

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Bluebook (online)
417 F.2d 921, 1969 U.S. App. LEXIS 10620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-cork-seal-company-inc-v-morton-pharmaceuticals-inc-ca6-1969.