Danfield v. Johns-Manville Sales Corp.

829 F.2d 1233
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 22, 1987
DocketNos. 86-5236, 86-5237 and 86-5370
StatusPublished
Cited by3 cases

This text of 829 F.2d 1233 (Danfield v. Johns-Manville Sales Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Danfield v. Johns-Manville Sales Corp., 829 F.2d 1233 (3d Cir. 1987).

Opinions

OPINION OF THE COURT

WEIS, Circuit Judge.

The district court has certified to us the question whether decisions of the New Jersey Supreme Court violate the Equal Protection Clause in abolishing the state-of-the-art defense in asbestos personal injury cases. We determine that a common law precedent announced by a state’s highest court is “law” within the meaning of the Equal Protection Clause. Using the rational basis standard, we conclude that the state court rulings survive the constitutional challenge.

The district court of New Jersey consolidated all of its pending asbestos cases for argument and disposition of the defendants’ attack on the state supreme court’s bar against “state-of-the-art” evidence in those personal injury cases. Sitting in banc, the district court rejected the defendants’ contention that they were denied equal protection and certified the question to us under 28 U.S.C. § 1292(b). We accepted the interlocutory appeal.

Asbestos litigation poses a serious problem for American tort law, which traditionally has provided for a “one-on-one” adjudication of claims.1 The formidable number of asbestos suits has prompted efforts to adapt the procedural framework of the existing tort system with its inefficiencies, high costs, and inconsistent judgments to the pressing demands of this massive litigation. See In re School Asbestos Litigation, 789 F.2d 996, 1000-01 (3d Cir.1986).

More than 30,000 asbestos personal injury claims were filed nationwide by 1986, and an additional 180,000 claims are projected to be on court dockets by the year 2010. Id. at 1000. Because no federal statute governs the substantive law applicable to these claims, they are controlled by the tort laws of the various states under theories of negligence, warranty, or strict liability. The courts in New Jersey, both state and federal, have been confronted by a particularly heavy concentration of these cases.

New Jersey common law recognizes the doctrine of strict liability in products liability claims. The supreme court of the state first adopted that theory in Henningsen v. Bloomfield Motors, 32 N.J. 358, 161 A.2d 69 (1960), and later decisions expanded its scope. See Restatement (Second) of Torts § 402A. Freund v. Cellofilm Properties, Inc., 87 N.J. 229, 432 A.2d 925 (1981); Suter v. San Angelo Foundry & Machine Co., 81 N.J. 150, 406 A.2d 140 (1979); San-tor v. A & M Karagheusian, 44 N.J. 52, 207 A.2d 305 (1965).

In 1982, the Supreme Court of New Jersey issued a controversial decision in Beshada v. Johns-Manville Products Corp., 90 N.J. 191, 447 A.2d 539 (1982). The plaintiffs there claimed damages based on the defendants’ failure to warn of the dangers of asbestos. In response, the defendants asserted the “state-of-the-art” defense — that at the relevant times they did not know, nor could have known, of the danger of their products.

The state supreme court ruled that “culpability is irrelevant” in products liability cases because “[sjtrict liability focuses on the product, not the fault of the manufacturer.” Id. 447 A.2d at 546. Accordingly, [1236]*1236a rule excluding the state-of-the-art defense would be consistent with the underlying policies of strict liability and would further its goals of risk spreading, accident avoidance, and simplification of the fact-finding process. The court reasoned that if the expenses arising from these claims were allocated to the costs of production, the manufacturers would be encouraged to improve product safety. Elimination of the defense would also ease the costly and time-consuming burden of proving “scientific knowability” and avert juror confusion about the differences between negligence and strict liability. Id. Ail A.2d at 547-49. The Beshada opinion was not limited to asbestos cases, but applied to all products liability suits.

Two years later, the same court allowed drug manufacturers to assert the state-of-the-art defense, concluding that producers of pharmaceuticals have a duty to warn about dangers of which they know or should know based on reasonably obtainable or available knowledge. Feldman v. Lederle Laboratories, 97 N.J. 429, 452, 479 A.2d 374, 386 (1984). Despite this shift in position, however, Feldman did not overrule Beshada; the court chose instead to explicitly restrict the earlier case to “the circumstances giving rise to its holding.” Id.

One month later, a defendant asbestos manufacturer relied on Feldman and sought permission to introduce state-of-the-art evidence in a suit then pending in the state court. The trial court denied the motion on the ground that New Jersey law prohibited asbestos manufacturers from asserting the defense. In the Matter of Asbestos Litigation Venued in Middlesex County, No. L-52237-81 (NJ.Super.Ct., Law Div.), affd, 99 N.J. 201, 491 A.2d 700 (1984). The state supreme court summarily affirmed, stating: “[h]aving recognized that Beshada [citation omitted] applies to all pending asbestos cases, the ... Order of the Superior Court ... is summarily affirmed.” In the Matter of Asbestos Litigation Venued in Middlesex County, 99 N.J. 201, 491 A.2d 700 (1984).

The present appeal arises out of this unsettled background. In various personal injury cases brought in the district court, defendant asbestos manufacturers attempted to introduce evidence on the state-of-the-art defense. They alleged that Beshada's preclusion of that defense had the effect of treating them discriminatorily and less favorably than all other manufacturers. To avoid inconsistent rulings, the district court considered the matter in banc and entered an order applicable to all of its pending asbestos cases. In re Asbestos Litigation, 628 F.Supp. 774 (D.N.J.1986).

A majority of the district judges decided that the defendants’ request should be denied. In their view, legitimate concerns of case management, economics, as well as social welfare policy affecting exposed plaintiffs justified preclusion of the state-of-the-art defense. Id. at 779. Noting that strict liability in workmen’s compensation had withstood similar equal protection attacks, id. at 779 n. 3, and finding a rational relationship between the Beshada ruling and its goals, the judges rejected the constitutional challenge.

A minority of the judges dissented on the grounds that the state supreme court had neither clearly articulated its rationale for eliminating the defense nor substantiated its expectations that the anticipated benefits would result.2

On appeal to this court, defendants contend that the New Jersey Supreme Court’s decisions unconstitutionally discriminate among categories of civil litigants because no rational basis for the classification can be posited. Defendants also maintain that by failing to give adequate reason for its action, the state court violated the Due Process Clause of the Fourteenth Amendment.

Plaintiffs assert that the rational basis test is the appropriate standard for reviewing this equal protection challenge and that [1237]*1237the wisdom of the state common law rule is not at issue.

First, we observe the somewhat unusual posture in which this case reaches us.

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