Duffy v. CBS Corp.
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Opinion
Greene, J.
In this case we must decide whether the statute of repose, presently codified as Section 5-108 of the Courts and Judicial Proceedings Article of the Maryland Code (1973, 2013 Repl. Vol.) ("CJP § 5-108" or "statute of repose"), bars the causes of action brought by James F. Piper ("Mr. Piper"), now deceased. After Mr. Piper's death, and while the case was pending in the intermediate appellate court, the Register of Wills appointed Petitioner, June Diane Duffy ("Ms. Duffy" or "the Estate"), Personal Representative of Mr. Piper's Estate, 1 and she was substituted in place of the decedent as a party to the litigation. 2 Ms. Duffy pursues, on behalf of the Estate, Mr. Piper's causes of action for personal injury and wrongful death resulting from his undisputed and unknowing exposure to asbestos that last occurred days before the statute of repose was first enacted in 1970 as Article 57, § 20 in the Maryland Code (1957, 1968 Repl. Vol., 1970 Cum. Supp.). The General Assembly enacted the statute of repose to provide a temporal limitation to the discovery rule's 3 applicability to causes of action for injuries "arising" from improvements to real property. Mr. Piper's causes of action stem from his exposure to asbestos, which led to the development of mesothelioma, a latent disease. 4 Due to the latent effects of asbestos exposure and, thus, the causes of action at issue, the penultimate question in the case before us is when do injuries from asbestos exposure "arise" for purposes of the statute of repose. The answer to that question resolves whether the statute of repose when it was first enacted, as 1970 Maryland Laws, Chapter 666 ("Ch. 666"), and originally codified as Art. 57, § 20, bars Petitioner's claim for injuries that arose prior to the enactment of the statute. To guide us, we rely on the tenets of statutory construction to determine what the drafters meant by the term "arise" within the meaning of the statute of repose.
Factual and Procedural Background
The undisputed facts are as follows. Respondent, CBS Corporation, is a Delaware corporation. It was formerly known as Viacom, Inc., a successor by merger to the CBS Corp. and also formerly known as Westinghouse Electric Corporation ("Westinghouse"). At the time of Mr. Piper's injuries, CBS Corp. was known as Westinghouse. In March 1970, Westinghouse contracted with Potomac Electric Power Company ("Pepco") to manufacture, supply, and deliver the components needed to build a Steam Turbine Generator ("Unit 1") at Pepco's Morgantown Generating Station ("Morgantown"). Westinghouse built the major components of the turbine offsite and constructed the turbine onsite at Morgantown. Included in the turbine specifications were insulating materials that contained asbestos. Walter E. Campbell Company ("WECCO") entered into a subcontract with Westinghouse to supply and install the insulating materials that Westinghouse specified for construction of the turbine generator. Westinghouse provided WECCO with the "Process Specification" for the "Application of Asbestos Compound by Spraying." These detailed instructions set forth the placement and method for applying insulation to the inside surfaces of the steam turbine enclosures.
Mr. Piper worked as a steamfitter at Morgantown. During the construction of the Unit 1 turbine, Mr. Piper worked on the steam piping that connected the Unit 1 turbine to another turbine. In his complaint, Mr. Piper alleged that at that time he was unknowingly exposed to asbestos as a result of WECCO's installation of the insulating material that contained asbestos. According to WECCO's payroll records, the insulation
was installed between May 3, 1970 and June 28, 1970, which made June 28, 1970 the last possible day of Mr. Piper's undisputed exposure to the asbestos containing insulation.
Mr. Piper was diagnosed with mesothelioma on or about December 26, 2013. On March 26, 2014, he filed suit in the Circuit Court for Baltimore City against thirty-three defendants, including Westinghouse.
5
His four-count complaint against the various defendants alleged strict liability, breach of warranty, negligence, and "aiding and abetting and conspiracy," which stemmed from his work as a plumber and steamfitter from 1948 to 1990. Specifically, Mr. Piper alleged that in connection with his employment, he used, worked with, or was exposed to asbestos products that were manufactured, supplied, and/or installed by the defendants. His complaint further alleged that some of the defendants failed to warn users that asbestos products contained "harmful, deleterious, carcinogenic and inherently dangerous asbestos dust and fibers which unreasonably endangered the life and health of persons using, working with or working around the asbestos products," and failed to protect users against these dangers.
At the close of discovery on January 9, 2015, Westinghouse filed a motion for summary judgment, which Mr. Piper opposed. On March 3, 2015, the Circuit Court held a hearing on the open motions. Westinghouse argued that Mr. Piper's causes of action against the corporation were barred by CJP § 5-108. Specifically, counsel for Westinghouse emphasized that the facts in the instant case were no different than the facts of
Burns v. Bechtel Corp.
,
In contrast, Mr. Piper maintained that his injury arose at the time of his asbestos exposure around June 28, 1970. He asserted that
John Crane, Inc. v. Scribner
,
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Greene, J.
In this case we must decide whether the statute of repose, presently codified as Section 5-108 of the Courts and Judicial Proceedings Article of the Maryland Code (1973, 2013 Repl. Vol.) ("CJP § 5-108" or "statute of repose"), bars the causes of action brought by James F. Piper ("Mr. Piper"), now deceased. After Mr. Piper's death, and while the case was pending in the intermediate appellate court, the Register of Wills appointed Petitioner, June Diane Duffy ("Ms. Duffy" or "the Estate"), Personal Representative of Mr. Piper's Estate, 1 and she was substituted in place of the decedent as a party to the litigation. 2 Ms. Duffy pursues, on behalf of the Estate, Mr. Piper's causes of action for personal injury and wrongful death resulting from his undisputed and unknowing exposure to asbestos that last occurred days before the statute of repose was first enacted in 1970 as Article 57, § 20 in the Maryland Code (1957, 1968 Repl. Vol., 1970 Cum. Supp.). The General Assembly enacted the statute of repose to provide a temporal limitation to the discovery rule's 3 applicability to causes of action for injuries "arising" from improvements to real property. Mr. Piper's causes of action stem from his exposure to asbestos, which led to the development of mesothelioma, a latent disease. 4 Due to the latent effects of asbestos exposure and, thus, the causes of action at issue, the penultimate question in the case before us is when do injuries from asbestos exposure "arise" for purposes of the statute of repose. The answer to that question resolves whether the statute of repose when it was first enacted, as 1970 Maryland Laws, Chapter 666 ("Ch. 666"), and originally codified as Art. 57, § 20, bars Petitioner's claim for injuries that arose prior to the enactment of the statute. To guide us, we rely on the tenets of statutory construction to determine what the drafters meant by the term "arise" within the meaning of the statute of repose.
Factual and Procedural Background
The undisputed facts are as follows. Respondent, CBS Corporation, is a Delaware corporation. It was formerly known as Viacom, Inc., a successor by merger to the CBS Corp. and also formerly known as Westinghouse Electric Corporation ("Westinghouse"). At the time of Mr. Piper's injuries, CBS Corp. was known as Westinghouse. In March 1970, Westinghouse contracted with Potomac Electric Power Company ("Pepco") to manufacture, supply, and deliver the components needed to build a Steam Turbine Generator ("Unit 1") at Pepco's Morgantown Generating Station ("Morgantown"). Westinghouse built the major components of the turbine offsite and constructed the turbine onsite at Morgantown. Included in the turbine specifications were insulating materials that contained asbestos. Walter E. Campbell Company ("WECCO") entered into a subcontract with Westinghouse to supply and install the insulating materials that Westinghouse specified for construction of the turbine generator. Westinghouse provided WECCO with the "Process Specification" for the "Application of Asbestos Compound by Spraying." These detailed instructions set forth the placement and method for applying insulation to the inside surfaces of the steam turbine enclosures.
Mr. Piper worked as a steamfitter at Morgantown. During the construction of the Unit 1 turbine, Mr. Piper worked on the steam piping that connected the Unit 1 turbine to another turbine. In his complaint, Mr. Piper alleged that at that time he was unknowingly exposed to asbestos as a result of WECCO's installation of the insulating material that contained asbestos. According to WECCO's payroll records, the insulation
was installed between May 3, 1970 and June 28, 1970, which made June 28, 1970 the last possible day of Mr. Piper's undisputed exposure to the asbestos containing insulation.
Mr. Piper was diagnosed with mesothelioma on or about December 26, 2013. On March 26, 2014, he filed suit in the Circuit Court for Baltimore City against thirty-three defendants, including Westinghouse.
5
His four-count complaint against the various defendants alleged strict liability, breach of warranty, negligence, and "aiding and abetting and conspiracy," which stemmed from his work as a plumber and steamfitter from 1948 to 1990. Specifically, Mr. Piper alleged that in connection with his employment, he used, worked with, or was exposed to asbestos products that were manufactured, supplied, and/or installed by the defendants. His complaint further alleged that some of the defendants failed to warn users that asbestos products contained "harmful, deleterious, carcinogenic and inherently dangerous asbestos dust and fibers which unreasonably endangered the life and health of persons using, working with or working around the asbestos products," and failed to protect users against these dangers.
At the close of discovery on January 9, 2015, Westinghouse filed a motion for summary judgment, which Mr. Piper opposed. On March 3, 2015, the Circuit Court held a hearing on the open motions. Westinghouse argued that Mr. Piper's causes of action against the corporation were barred by CJP § 5-108. Specifically, counsel for Westinghouse emphasized that the facts in the instant case were no different than the facts of
Burns v. Bechtel Corp.
,
In contrast, Mr. Piper maintained that his injury arose at the time of his asbestos exposure around June 28, 1970. He asserted that
John Crane, Inc. v. Scribner
,
Westinghouse, in response, contended that this Court's ruling in Scribner was a narrow holding that applied only to the statutory cap on noneconomic damages. Alternatively, counsel for Mr. Piper asserted that subsection (d)(2)(ii) of § 5-108 excluded Westinghouse on the basis that Westinghouse was a manufacturer 7 for purposes of the statute. Westinghouse responded that it was not a manufacturer of an asbestos-containing product for purposes of subsection (d)(2)(ii) of § 5-108, and, therefore, the exception did not apply.
At the close of the hearing, the Circuit Court granted Westinghouse's motion for summary judgment and entered an Order on May 14, 2015. Mr. Piper noted a timely appeal to the Court of Special Appeals. Pending the appeal, Mr. Piper passed away on June 2, 2016, and Ms. Duffy was appointed Personal Representative of Mr. Piper's Estate on June 17, 2016.
On May 31, 2017, in a reported opinion, the Court of Special Appeals affirmed the Circuit Court's ruling.
Duffy v. CBS Corp.
,
Next, the Court of Special Appeals considered Mr. Piper's argument that the uncodified Section 2 of Ch. 666 demonstrated that the statute did not apply to "actions arising on or before June 30, 1970."
Ms. Duffy petitioned this court for
certiorari
, which we granted.
Duffy v. CBS Corp.
,
Standard of Review
This appeal concerns the Circuit Court's grant of summary judgment. When we review a grant of summary judgment we first determine whether there is a genuine dispute of material fact.
Koste v. Town of Oxford
,
Discussion
Our determination of whether "the Court of Special Appeals err[ed] in holding that the term 'arising' [as] used in Section 2 of the original statute of repose actually means 'accruing' in contravention of this Court's holding in John Crane, Inc. v. Scribner " requires resolution of two issues. First, in Part I, we determine whether the statute of repose applies as a bar to recovery for the injuries that Mr. Piper suffered. Specifically, we determine whether the statute is ambiguous as it relates to when an injury and a cause of action "arise" within the meaning of the statute of repose. Second, in Part II, to settle any confusion created by the intermediate appellate court's interpretation of the statute, we take this opportunity to clarify when an asbestos related cause of action "arises" and "accrues". Specifically, we consider the applicability of the discovery rule in relation to the manifestation of a latent disease.
If a statute's language is clear and unambiguous, the Court ordinarily looks no further than the statute itself.
See
Watts v. State
,
I.
A Brief History of CJP § 5-108
We had occasion to discuss CJP § 5-108's legislative history in
Rose
, a case concerning § 5-108's applicability to a suit for
injuries that resulted from a latent defect in the construction of an in-ground swimming pool.
No action to recover damages for injury to property real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages incurred as a result of said injury or death, shall be brought more than twenty years after the said improvement was substantially completed. This limitation shall not apply to any action brought against the person who, at the time the injury was sustained, was in actual possession and control as owner, tenant, or otherwise of the said improvement. For purposes of this section, "substantially completed" shall mean when the entire improvement is first available for its intended use.
Four years later, however, the General Assembly amended Article 57, § 20, as part of the larger Code revision. The language was changed in CJP § 5-108(a) from "[n]o action ... shall be brought" in Art. 57, § 20, to "[e]xcept as provided by this section, no cause of action for damages accrues ...." The revision also added subsection (c), which is now subsection (e) in the presently codified version.
See
Rose
,
(a) Injury resulting from improvement to realty .-Except as provided by this section, no cause of action for damages accrues and a person may not seek contribution or indemnity for damages incurred when wrongful death, personal injury, or injury to real or personal property resulting from the defective and unsafe condition of an improvement to real property occurs more than 20 years after the date the entire improvement first becomes available for its intended use.
(b) Exception .-This section does not apply if the defendant was in actual possession and control of the property as owner, tenant, or otherwise when the injury occurred.
(c) When action accrues .-A cause of action for an injury described in this section accrues when the injury or damage occurs.
In 1979, the General Assembly added what is currently subsection (b), and amended the section a year later.
Parties' Contentions
The parties agree that the language of the statute of repose is clear and unambiguous. They rely, however, on different versions of the statute to advance their arguments. Westinghouse relies on the language in the presently codified version of CJP § 5-108. Specifically, Westinghouse asserts that pursuant to subsection (a) of CJP § 5-108, the Estate's claims are barred and its causes of action do not comport with any of the exceptions delineated in the statute. Westinghouse further argues that in light of the defined exceptions under subsection § 5-108(d)(2), the " no cause of action " language of subsection (a) should be interpreted as a blanket prohibition against all other suits that do not satisfy the exceptions.
The Estate, in contrast, relies on the language of Ch. 666, the session law that generated the initial statute of repose, Art. 57, § 20. In doing so, it contends that the Estate's causes of action "fall outside the temporal scope of the statute of repose" because the last possible day that Mr. Piper's undisputed asbestos exposure occurred was June 28, 1970, and Section 2 of Ch. 666 limits its applicability to injuries "arising" after June 30, 1970.
Statutory Construction of Art. 57, § 20
When originally enacted in 1970, the statute of repose provided:
No action to recover damages for injury to property real or personal, or for bodily injury or wrongful death, arising out of the defective and unsafe condition of an improvement to real property, nor any action for contribution or indemnity for damages incurred as a result of said injury or death, shall be brought more than twenty years after the said improvement was substantially completed. This limitation shall not apply to any action brought against the person who, at the time the injury was sustained, was in actual possession and control as owner, tenant, or otherwise of the said improvement. For purposes of this section, "substantially completed" shall mean when the entire improvement is first available for its intended use.
Art. 57, § 20. The plain language of the statute of repose provided that the statute will bar an action for injury or death "arising out of" the defective and unsafe condition of an improvement to real property twenty years after substantial completion of the improvement. Webster's Third New International Dictionary of the English Language (1961) defines the word "arise" as "to originate from a specified source ... to come into being ... to become operative esp. in such a way as to attract attention ... to appear above the horizon ... to come about: come up: take place." The plain meaning of the word "arise" suggests that the statute of repose would apply to causes of actions for injuries that originated or came into being as a result of a defective and unsafe condition of an improvement to real property. 13 The "Exposure Approach"
Section 2 of Ch. 666 plainly expressed that the statute did not apply retroactively to injuries when it provided that the act "shall not apply to any cause of action arising on or before June 30, 1970." In
Scribner
, we adopted the "exposure approach" for determining when a cause of action arises in the context of actions to recover damages for injuries related to asbestos exposure.
After considering three possible approaches for determining when a cause of action arises, this Court rested on the "exposure approach," which requires a trial court to look at the plaintiff's last day of exposure to the asbestos-containing product.
We apply
Scribner's
"exposure approach" with equal force to the facts of the present case. Accordingly, we hold that when determining whether a plaintiff's injury relating to asbestos exposure arose prior to the effective date of the statute of repose, the date of the plaintiff's last exposure to asbestos-containing products applies.
See
Scribner
,
In light of our application of the "exposure approach," we turn now to the effective date of the statute. Statutes of repose are defendant-focused statutes that insulate defendants from liability after a specified date.
Rose
,
In
Slate v. Zitomer
, we explained that there is a "general presumption [ ] that all statutes ... are intended to operate prospectively and the presumption is
found to have been rebutted only if there are
clear expressions in the statute
to the contrary."
Westinghouse argued that the statute of repose applied to bar Mr. Piper's causes of action because his causes of action "accrued"
14
in 2013, well after the effective date of the statute. We disagree with the conclusion that the statute of repose applies under the circumstances here. Before the statute went into effect, Westinghouse had already executed the contract for the installation of the asbestos-containing insulation, and Mr. Piper indisputably had already inhaled the asbestos fibers contained in the insulation materials installed by WECCO. The last possible day of Mr. Piper's exposure to asbestos-containing products occurred no later than June 28, 1970, and it was at that point when his injury and causes of action arose.
See
Ch. 666, Section 3 ("This Act shall take effect July 1, 1970."). By the time of the effective date of the statute of repose, Mr. Piper had already suffered an injury.
See
Scribner
,
It is the date of Mr. Piper's injury-not the date of discovery of his cause of action-that guides our analysis because "[i]f there is no injury, there is no cause of action."
Scribner
,
II.
We turn now to the opinion of the Court of Special Appeals. We acknowledge that the Court of Special Appeals arrived at a different result than the one we reach now. The Court of Special Appeals treated Mr. Piper's diagnosis of mesothelioma as his injury, rather than treating his exposure to asbestos as his injury.
See
Duffy
,
Operating from the premise that Mr. Piper's injury was his diagnosis of mesothelioma, the intermediate appellate court concluded that the statute of repose applied at the moment that Mr. Piper received his diagnosis.
Next, the Court of Special Appeals addressed Mr. Piper's contention that his "injury" was exposure to asbestos and, thus, arose on the date of his last exposure, as explained in
Scribner
.
The Court of Special Appeals disagreed and pointed to the word "accruing," which is contained in the paragraph stating
the statute's purpose
15
of Ch. 666, and the word "arising," which is contained in Section 2
16
of Ch. 666. The intermediate appellate court determined that the words must be construed as having the same meaning.
The rationale of the Court of Special Appeals is misguided for several reasons. First, the intermediate appellate court disregarded the entire evolution of CJP § 5-108.
Duffy
,
As we have already discussed, the statute underwent substantive changes in 1991 as a result of the
thousands
of personal injury and property damage actions against product manufacturers of asbestos containing products.
See
Eagle-Picher Indus., Inc. v. Balbos
,
With respect to the terms "arising" and "accruing," the Court of Special Appeals rationalized that "[t]o construe the term 'arising' in Section 2 to mean something different from 'accruing' in the preamble would create an ambiguity, if not an outright conflict[.]"
Duffy
,
In reaching this conclusion, the Court of Special Appeals looked beyond the plain language of Art. 57, § 20, in contravention to well-established principles of statutory construction.
See
Duffy
,
The intermediate appellate court's analysis is problematic for another reason. The Court of Special Appeals maintained the premise that an injury occurs at the same time as its corresponding cause of action.
Duffy
,
Asbestos fibers lie dormant in the human body over a period of time.
See
Discovery Rule
The Court of Special Appeals did not address the applicability of the discovery rule, or its relation to the statute of limitations in a civil action. We conclude that the discovery rule applies in the context of asbestos-related cases. Further, we conclude that Mr. Piper filed his complaint well within the three-year statute of limitations once he discovered that he had a cause of action.
This Court first recognized the import of the discovery rule over a century ago, in
Hahn v. Claybrook
,
We applied the discovery rule in a products liability action involving an employee of Johns-Manville Products Corporation ("Johns-Manville"), a business that fabricated and warehoused products containing asbestos.
Harig v. Johns-Manville Prods. Corp.
,
In
Georgia-Pacific Corp.
, we confronted whether the discovery rule applied to toll the limitations period for filing wrongful death and survival actions relating to the decedent's death from mesothelioma.
In a nearly identical fashion as Respondent in the case
sub judice
, the defendant-asbestos manufacturers in
Georgia-Pacific Corp.
argued that under the wrongful death statute, "the three-year limitations period is triggered when death is discovered and not when the claimant discovers that the underlying cause of decedent's death was an occupational disease,
i.e.
, asbestos exposure."
Id.
at 77,
In
Scribner
, rather than consider when a cause of action accrues for purposes of the statute of limitations, we considered when a cause of action involving a latent disease
arises
for purposes of the applicability of the statutory cap on noneconomic damages related to personal injury or wrongful death, CJP § 11-108.
Scribner
,
Both
Harig
and
Georgia-Pacific Corp.
addressed the discovery rule in the context of asbestos cases, whereas
Scribner
addressed the meaning of the word "arise" in the context of asbestos cases. In
Scribner
, we concluded that causes of action flowing from asbestos exposure
arise
at the
time of the injury,
i.e.
, at the time of the exposure to asbestos.
See
Scribner
,
Although our review of the asbestos-related case law is a perspective available only in hindsight, the General Assembly is presumed to have enacted the 1970 statute of repose with knowledge of our discussion of the accrual of causes of actions in
Mattingly
, which was issued in 1969.
See
Allen v. State
,
We discern that when the General Assembly enacted Ch. 666 it intentionally used "arise" in Section 2 and "accrue" elsewhere. When enacted in 1970, Art. 57, § 20 applied prospectively and not retroactively. Both the stated purpose and Section 2 of Ch. 666 confirm our construction of the statute. The statute does not bar causes of action that have accrued, and by necessity had to have arisen, prior to July 1, 1970. See Ch. 666, ("A[n] A[ct] to ... prohibit the bringing of actions based on injuries arising out of defective conditions or improvements to real property ... [and] the provision of the Act shall not apply to actions accruing prior to its effective date.") (emphasis added). The statute also does not bar causes of action that have arisen prior to July 1, 1970, but have yet to accrue.
Conclusion
Consistent with our holdings in Harig , Scribner , and Georgia-Pacific Corp. , we hold that for purposes of asbestos-related causes of actions, an injury arises at the time of last exposure to the asbestos-laden product. Because the statute of repose was enacted after the date of Mr. Piper's injuries, as a matter of law, the statute does not bar Mr. Piper's causes of actions. Therefore, the Circuit Court erred when it granted summary judgment in favor of Westinghouse.
JUDGMENT OF THE COURT OF SPECIAL APPEALS REVERSED; CASE REMANDED TO THAT COURT WITH DIRECTIONS TO REVERSE THE JUDGMENT OF THE CIRCUIT COURT FOR BALTIMORE CITY. COSTS TO BE PAID BY RESPONDENT.
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