Grover Hill Grain Co. v. Baughman-Oster, Inc., Defendant-Third Party Champion Screw Company, Third Party

728 F.2d 784, 1984 U.S. App. LEXIS 24862
CourtCourt of Appeals for the Third Circuit
DecidedMarch 5, 1984
Docket81-3600
StatusPublished
Cited by82 cases

This text of 728 F.2d 784 (Grover Hill Grain Co. v. Baughman-Oster, Inc., Defendant-Third Party Champion Screw Company, Third Party) 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
Grover Hill Grain Co. v. Baughman-Oster, Inc., Defendant-Third Party Champion Screw Company, Third Party, 728 F.2d 784, 1984 U.S. App. LEXIS 24862 (3d Cir. 1984).

Opinion

*787 WILHOIT, District Judge.

On October 29, 1978, an enormous metal grain bin collapsed at the premises of plaintiff-appellant, Grover Hill Grain Co. of Grover Hill, Ohio. 1 Its collapse caused 90,000 bushels of shelled corn to spill out onto the ground. The bin in question was purchased in September, 1976, from its manufacturer, and designer, defendant-appellee, Baughman-Oster, Inc., of Taylorsville, Illinois. 2 It came to Grover Hill complete (including bolts) but unassembled. During the period of 1974-1977 appellant purchased eight Baughman bins and in each instance they were acquired through Baughman’s distributor and authorized dealer, William J. Ross, Jr. 3

Appellant contracted with Ross to erect the 1976 grain bin. It had a diameter of 48 feet and was designed to rise to a height of 22 rings (about 60 feet) with a capacity of approximately 90,000 bushels of shelled (dry) corn.

Baughman had delivered all prior bins purchased by appellant as a complete but unassembled package. This 90,000 bushel bin was the largest one ever delivered between 1974-1976. An erection manual had been supplied with each and every bin, except the 1976 bin in question. Each manual contained a bold print warning that bolts used in assembly should not be tightened to more than fifteen (15) pounds pressure. Baughman supplied Grade 2 bolts. 4

In 1977, a rather salient circumstance arose when Baughman delivered another 90,000 bushel bin to Grover Hill Grain to be assembled by Ross. In this instance the bolt pattern in the bottom four rings was re-designed to provide three times the number of bolts in the horizontal joint as compared to the bolt design of the 1976 bin. Moreover, the bolts supplied were Grade 8 (stronger) bolts. This bin was assembled and erected by Ross in the same manner as all other bins supplied by Baughman. As far as we know the 1977 bin has continued to stand beside the ruins of the 1976 bin and this circumstance is claimed by appellant as immutable evidence to its right to recovery.

In erecting the 1976 bin, as well as all others, Ross used an electric impact wrench and testified that he personally tightened 85% to 90% of the bolts where the electric wrench was used. 5 Notwithstanding the fact that an assembly manual was not supplied with the 1976 bin, with its warning to serve as a reminder that the bolts should not be “over-torqued,” Ross claimed that from past experience he was not unmindful of Baughman’s warning that the bolts were not to be tightened beyond 15 pounds pressure.

Apparently there was technology available to assist the assembler to accurately determine when a bolt has been sufficiently tightened. Many electric impact wrenches are equipped with a “torque brake” that can be mechanically pre-set by the operator to drive the bolt to the desired tightness.

Unfortunately, this was not the technology employed by Baughman’s dealer, Mr. Ross. Utilizing hand wrenches, all or nearly all, the bolts were “tested” as to 15 pounds torque. Armed with this, Ross was able to assure the trial court that none of the bolts in the 1976 bin had been “over-torqued.”

*788 The record discloses that the bin in question was filled to capacity with shelled corn in 1976; with wheat in 1977 and again with shelled corn in 1978. Several days before its collapse, several bolt heads were noticed on the ground about the bin. Ross and Baughman were immediately notified and frantic efforts to shore the bin with cables proved futile. Several vertical joints failed causing the eventual collapse and spillage before the bin could be emptied of its contents in a more orderly fashion.

Appellant filed suit in state court against Baughman alleging strict liability and breach of warranty. A diversity of citizenship was found to exist and the action was removed to United States District Court for the Northern District of Ohio. Baughman impleaded Ross and Champion Screw Company. 6 Ross was subsequently dismissed by agreement of all the parties.

This ease was tried by the Court without the intervention of a jury. The trial judge concluded that no warranty, express or implied, was applicable; that no design defect or deficiency in the bolts was established by the proof; and, finally, that Ross was an independent contractor and the bin’s collapse was due to the over-torquing of the bolts — an independent intervening force — a proximate cause in bringing about the failure of the bolts and subsequent failure of a significant number of vertical seams in the bin.

Grover-Hill, disappointed by the above findings and conclusions, prosecutes this appeal and lays before us the following propositions that would justify a reversal:

1) Appellee as manufacturer and supplier of the bin components should be held strictly liable for any failures in assembly by an erecting contractor-dealer.
2) The court below erred in not holding appellee liable for its failure to warn Ross, the contractor-dealer, of the dangers involved in over-torquing.
3) The district court failed to make necessary findings of fact whether Ross was acting as agent for appellee.
4) The district judge misapplied Ohio law in requiring expert proof to show a design defect.

I.

The trial judge found that the defect which caused the collapse of the bin was introduced after the unassembled bin left the appellee’s hands. Specifically, the District Court Judge concluded that the appel-lee’s distributor, Ross, overtorqued the bolts while constructing the grain bin, causing the eventual collapse.

However, appellant argues that the ap-pellee’s responsibility to market a non-defective product did not end until the bin was actually constructed. According to the appellant, the appellee was responsible for introducing the bin into the stream of commerce and derived a significant economic benefit from selling and eventually having assembled a grain bin carrying its trademark.

Citing Vandermark v. Ford Motor Co., 61 Cal.2d 256, 37 Cal.Rptr. 869, 871, 391 P.2d 168, 170 (1971), appellant states that any manufacturer, who markets a product in an uncompleted state and surrenders that product to a third-party, knowing or reasonably expecting that the final part of the manufacturing process will be completed by this third-party prior to its ultimate use by a consumer, is strictly liable for any injuries stemming from a defect introduced during the final construction of the product.

This same theory of strict products liability was considered by the Ohio Court of Appeals in Smith v. Ford Motor Co., 59 Ohio App.2d 41, 392 N.E.2d 1287 (1978). In Smith

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Bluebook (online)
728 F.2d 784, 1984 U.S. App. LEXIS 24862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grover-hill-grain-co-v-baughman-oster-inc-defendant-third-party-ca3-1984.