Detroit Board of Education v. Celotex Corp.

493 N.W.2d 513, 196 Mich. App. 694
CourtMichigan Court of Appeals
DecidedNovember 17, 1992
DocketDocket 123187
StatusPublished
Cited by41 cases

This text of 493 N.W.2d 513 (Detroit Board of Education v. Celotex Corp.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit Board of Education v. Celotex Corp., 493 N.W.2d 513, 196 Mich. App. 694 (Mich. Ct. App. 1992).

Opinion

Wahls, J.

In this interlocutory appeal from the Wayne Circuit Court, the plaintiff class consists of several hundred public school districts and private schools in Michigan. Defendants are manufacturers, distributors, or installers of a variety of asbestos products that were used in plaintiffs’ school buildings. Plaintiffs have brought this action against defendants, alleging numerous theories of liability. Defendants moved for summary disposition against one of the representative plaintiffs, the Board of Education for the School District of Detroit ("the board”), pursuant to MCR 2.116(C)(7), (8), and (10). The trial court granted defendants’ motion in part and denied it in part. Several defendants sought leave to'appeal the trial court’s subsequent order that granted in part and denied in part the parties’ motions for reconsideration or clarification. This Court denied leave, but the case was subsequently remanded to us by our Supreme Court "for consideration as on leave granted.” 433 Mich 903 (1989). Numerous cross appeals have been filed. The facts before us center on the board’s claims, and issues on appeal have been limited by stipulation to the board’s (1) nuisance *699 claim, (2) concert of action claim, and (3) alternative liability claim, and the defendants’ statute of limitations defense. We affirm in part, reverse in part, and remand for further proceedings.

i

Some background facts are neatly set forth in the trial court’s opinion:

Between 1973 and 1978, the United States Environmental Protection Agency (epa) successively barred in buildings the use of various forms of asbestos-containing insulating and construction material. In 1978 and 1979, the epa developed a school asbestos program to inform school officials of the potential health hazards of exposure to friable asbestos products.[ 1 ] In conjunction with this program, booklets were published by the epa explaining the nature of the problem, how school officials could identify friable asbestos materials in their buildings, and various forms of corrective action that could be taken. School officials were also requested to complete a survey which would assist the epa.in determining contamination levels and the extent of the problem across the country.
[N]otice of the possible hazards of air borne [sic] asbestos fibers had reached plaintiff [the board] at least by February, 1979. At this time, plaintiff resolved to conduct a survey of its buildings to determine if any had asbestos products. Indeed by June 21, 1979, plaintiff was sent the epa publications on the subject. In July, 1979, a survey of possible problem areas in 48 buildings was conducted. Asbestos containing materials were found in 19 of the buildings. In the letter to Detroit’s Department of Health, dated August 20, 1979, from the State Bureau of Environmental and Oc *700 cupational Health accompanying the report of the laboratory tests for the survey, plaintiff was advised to inspect those areas where asbestos had been found to determine whether there was any reason to believe that it might become airborne. The letter also indicated that the Bureau could test for the presence of airborne asbestos fibers. However, the letter closed by indicating that there was no recommendation for removal of the material assuming it could be enclosed or covered up to eliminate the hazard. By early September, 1979, plaintiff was in possession of the survey results.
On September 26, 1979, plaintiff made inquiries of Armstrong Cork [Company], a manufacturer of ceiling tile whose products had been used in one of plaintiff’s buildings, to determine whether its products contained asbestos. Significantly, the letter indicates that plaintiff was aware of the epa’s recommendation that friable asbestos materials be removed.
As a result of an inspection done by plaintiff of the buildings found in the July, 1979 survey to have asbestos containing material in 19 buildings, it was recommended by one of plaintiff’s employees, in a Progress Report dated October 5, 1979, that the asbestos material be removed. Less drastic measures were recommended to treat the problem in the other buildings. By October 11, 1979, plaintiff began to explore how best to implement these recommendations.
By November, 1979, plaintiff had done a cost estimate of carrying out the above noted recommendations. On November 19, 1979, it submitted to the epa a funding proposal for the cost of asbestos abatement. The total cost was estimated at $490,000. Although plaintiff never received the funding that it had requested, the recommendations were ultimately carried out.

On January 17, 1983, a class action suit by schools across the country was filed in the United States District Court for the Eastern District of *701 Pennsylvania. The board and the other plaintiffs in this case opted out of the federal action and filed their own class action in the Wayne Circuit Court on October 12, 1984. Plaintiffs’ complaint alleged theories of strict liability, intentional tort, negligence and wanton misconduct, breach of express and implied warranties, fraud and misrepresentation, civil conspiracy, nuisance, concert of action, alternative liability, and restitution. Plaintiffs generally alleged that the presence of asbestos constituted a potential health hazard and that they had and would continue to expend money for asbestos detection and abatement. The trial court granted summary disposition to defendants of all plaintiffs’ claims except those for nuisance and the counts grounded upon nuisance as a substantive tort, i.e., concert of action and alternative liability. Summary disposition was also denied with regard to plaintiffs’ claim for restitution.

n

Before discussing the four issues stipulated for review, we are obliged to address our Supreme Court’s recent opinion in Neibarger v Universal Cooperatives, Inc, 439 Mich 512; 486 NW2d 612 (1992). 2 According to Neibarger, where a commercial plaintiff seeks to recover only "economic loss” caused by a defective product bought for commercial purposes, the plaintiff’s exclusive remedy is provided by the Uniform Commercial Code, MCL 440.1101 et seq.; MSA 19.1101 et seq. If the ucc provides the exclusive remedy in the present case, then plaintiffs’ tort claims would be barred, as likely would any contractual claims arising out of the sale of goods. Unlike the three-year statute of *702 limitations provided by the Revised Judicature Act for products liability actions, MCL 600.5805(9); MSA 27A.5805(9), the ucc’s four-year period of limitation does not excuse a purchaser’s lack of knowledge of a defect and runs from the time of delivery. MCL 440.2725(2); MSA 19.2725(2). Because it is likely that most, if not all, of the asbestos-containing materials were purchased by plaintiffs more than four years before their action was brought, their claims would probably be barred under the ucc.

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Bluebook (online)
493 N.W.2d 513, 196 Mich. App. 694, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-board-of-education-v-celotex-corp-michctapp-1992.