Droz v. Hennessy Industries, LLC

Supreme Court of Delaware·Decided March 28, 2022·No. 211, 2021·Published

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

SHELLEY DROZ, individually and § as Executor for the Estate of Eric C. § Droz, deceased, § § No. 211, 2021

Plaintiff Below, § Appellant, § Court Below: Superior Court § of the State of Delaware v. § § C.A. No. N19C-06-024 HENNESSY INDUSTRIES, LLC, § §

Defendant Below, § Appellee. §

Submitted: January 19, 2022 Decided: March 28, 2022

Before SEITZ, Chief Justice; VALIHURA, VAUGHN, TRAYNOR, and MONTGOMERY-REEVES, Justices, constituting this Court en Banc.

Upon appeal from the Superior Court of the State of Delaware: REVERSED.

Michael C. Dalton, Esquire (argued), Bartholomew J. Dalton, Esquire, Ipek Kurul, Esquire, Andrew C. Dalton, Esquire, DALTON & ASSOCIATES, P.A., Wilmington, Delaware, Adam L. Balick, Esquire, Michael Collins Smith, Esquire, and Patrick J. Smith, Esquire, BALICK & BALICK, LLC, Wilmington, Delaware, for Plaintiff Below, Appellant Shelley Droz.

Brian D. Tome, Esquire, REILLY, MCDEVITT & HENRICH, P.C., Wilmington, Delaware, and Susan M. Valinis, Esquire (argued), REILLY, MCDEVITT & HENRICH, P.C., Philadelphia, Pennsylvania, for Defendant Below, Appellee Hennessy Industries, LLC.

SEITZ, Chief Justice:

In many asbestos cases, the plaintiff claims injury from exposure to a defendant’s asbestos-containing product. The facts in this appeal are a variation on that theme. Shelley Droz alleges that her husband, Eric Droz, used an arc grinding machine to resurface brake drum shoes that contained asbestos. She claims that the arc grinder manufacturer—Hennessy—knew that the grinding process generated asbestos dust, and Hennessy had a duty under Washington State law to warn Mr. Droz about the dangers of asbestos dust exposure. Mr. Droz died of mesothelioma, an asbestos-related disease, while the litigation was pending.

The Superior Court granted Hennessy’s summary judgment motion. It held that once Hennessy showed that the arc grinder could be used with asbestos- containing and asbestos-free brake drum shoes, the burden shifted to Ms. Droz to show that Mr. Droz used asbestos-containing brake drum shoes with the arc grinder. The court agreed with Hennessy that Mr. Droz did not offer sufficient evidence of exposure to brake drum shoe asbestos dust to counter Hennessy’s summary judgment motion.

The issues on appeal are whether the Superior Court misapplied Superior Court Rule 56’s burden-shifting framework and, once the burden shifted to the plaintiff to raise a genuine issue of material fact, whether Ms. Droz came forward with evidence demonstrating that Mr. Droz used asbestos-containing brake drum

shoes with the arc grinder. We find that the Superior Court properly allocated the summary judgment burdens. But after our review of the record, we reverse because Ms. Droz met her burden to raise a genuine issue of material fact whether Mr. Droz was exposed to asbestos dust from using the arc grinder with asbestos-containing brake drum shoes.

I.

According to the allegations of the complaint and the summary judgment record, while in high school between 1971–73, Mr. Droz was employed by a small, full-service auto shop called Larry’s Auto Repair. Mr. Droz serviced car brakes, and used a tool called an “arc grinder.” An arc grinder grinds a brake shoe’s outer surface for a proper fit of the brake shoe against the brake drum. Grinding an asbestos- containing brake shoe releases asbestos dust into the air.1 AMMCO, Hennessy’s predecessor-in-interest, manufactured the arc grinder used by Mr. Droz.

While Mr. Droz used the arc grinder to grind many types of brake shoes, he identified only three specific brands—Bendix, Wagner, and Raybestos.2 All three companies sold brake drum shoes in the early 1970s that contained asbestos.3

1 The arc grinder had a bag attached to collect the dust, but it was not intended to collect all the dust from grinding a brake shoe. Hennessy described the bag as a “definite health hazard.” App. to Opening Br. at A411; A416. 2 Id. at A375–76. 3 Id. at A446–47; A451–53; A460.

Bendix released its first asbestos-free brake drum shoe in 1983, designed for one specific vehicle type. 4 It is unclear from the record when Bendix released asbestos-free brake drum shoes for passenger vehicles, but it was at least by 1987 when it released an aftermarket version.5 All of its brake shoes were asbestos-free by 1988.6 Wagner had a similar history. In an interrogatory response for a different lawsuit, Wagner stated that, until 1984 its brake products contained asbestos. 7 Another interrogatory asked if Wagner had researched or developed an asbestos-free product to replace its asbestos-containing products. Wagner responded that it was currently using asbestos-free materials in its brake products, but it had not determined that asbestos-free brake shoes were safe until 1978. 8 Raymark Industries, Inc., successor-in-interest to Raybestos, also stated in an interrogatory response that most of its brake products produced before 1983 contained asbestos.9 In December 2018, physicians diagnosed Mr. Droz with mesothelioma, an asbestos-related disease. He and his wife filed suit against Hennessy and alleged that Mr. Droz developed mesothelioma from exposure to asbestos dust while using

4 Id. at A446. 5 Id. at A447. 6 Id. at A447–48. Although Bendix sold an asbestos-free disc brake shoe in 1969, it was intended only for “heavy-duty applications like police and taxi usage on the fronts.” Id. at A445–46. 7 Id. at A451–53. 8 Id. at A453. 9 Id. at A457; A460.

the arc grinder. Mr. Droz passed away in 2020. Ms. Droz was substituted for Mr. Droz as executor of his estate.

As a preliminary matter, the Superior Court ruled that Washington State law applied to the substantive claims. Following discovery, Hennessy moved for summary judgment and raised among other defenses a product identification defense. Hennessy argued that Ms. Droz failed to satisfy her burden under Rule 56 as applied in Stigliano v. Westinghouse, a Superior Court decision addressing product identification in the summary judgment context.10 Hennessy asserted that the arc grinder could be used with asbestos-containing and asbestos-free drum brake shoes, and Ms. Droz had not offered sufficient evidence to show that Mr. Droz used the arc grinder with asbestos-containing brake drum shoes. Ms. Droz responded that the record showed that most of the brake drum shoes sold in the 1970s by the three manufacturers contained asbestos and, according to her expert, brake drum shoes almost universally contained asbestos in the 1970s. Thus, it was overwhelmingly likely that Mr. Droz used the arc grinder with asbestos-containing brake drum shoes from the three brake shoe manufacturers.

The Superior Court granted Hennessy’s summary judgment motion.11 The court held that because Hennessy’s arc grinder could be used with asbestos-

10 2006 WL 3026171 (Del. Super. Oct. 18, 2006).

11 In re Asbestos Litig. (Droz), 2021 WL 2349527, at *1–4 (Del. Super. Apr. 15, 2021).

containing and asbestos-free brake drum shoes, Stigliano shifted the burden to Ms. Droz to show that Mr. Droz was exposed to asbestos dust from asbestos-containing brake drum shoes while using the arc grinder.12 The court concluded that she failed to meet her burden:

Thus, although Plaintiff generally identified the manufacturers of brake shoes Mr. Droz encountered (including those [sic] Bendix, Wagner, and Raybestos), the record is devoid of any testimony linking his work to a particular manufacturer’s brake or even an asbestos containing brake.

This is fatal to Plaintiff’s ability to satisfy her burden under Stigliano.13

Ms. Droz timely appealed the decision of the Superior Court. We review the Superior Court’s grant of summary judgment de novo and examine the facts in a light most favorable to the non-moving party.14 II.

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Droz v. Hennessy Industries, LLC, (Del. 2022).

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