Jack Frost, Inc. v. Engineered Building Components Co.

304 N.W.2d 346, 1981 Minn. LEXIS 1251
CourtSupreme Court of Minnesota
DecidedApril 10, 1981
Docket49416
StatusPublished
Cited by66 cases

This text of 304 N.W.2d 346 (Jack Frost, Inc. v. Engineered Building Components Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jack Frost, Inc. v. Engineered Building Components Co., 304 N.W.2d 346, 1981 Minn. LEXIS 1251 (Mich. 1981).

Opinion

PETERSON, Justice.

Plaintiff, Jack Frost, Inc. (Jack Frost), brought this products liability action against defendants Foley Fuel and Lumber Co., Inc. (Foley) and Engineered Building Components, Inc. (EBCO), the retailer and manufacturer of the allegedly defective product. Foley and EBCO impleaded Hydro-Air Engineering, Inc. (Hydro-Air), the designer of the product. Hydro-Air appeals from the trial court’s denial of its post-trial motion for judgment notwithstanding the verdict, a new trial, or a reduction of the amount of the judgment entered against it. EBCO seeks review of the trial court’s order allowing Foley to recover attorneys fees from EBCO. We affirm in part and reverse in part.

This lawsuit arose out of the collapse of a chicken barn. Jack Frost is a Minnesota corporation engaged in the production and sale of chicken eggs. In furtherance of its business Jack Frost enters into contracts with persons acting as egg producers whereby the egg producers agree to furnish land, buildings, and equipment and to care for the birds and eggs, and Jack Frost agrees to provide the egg producers with birds, feed, and supplies and to pay the egg producers a monthly sum for their services.

When necessary, Jack Frost arranges for the construction of chicken barns on its egg producers’ premises. Five such chicken barns are involved in this lawsuit. They were constructed in 1974 by Norman Ro-shau, a general contractor. Roshau obtained his building supplies from Foley, a retailer of lumber and building supplies doing business in Foley, Minnesota. Roshau provided Foley with specifications for the chicken barns, including the points at which chicken cages were to be hung from the bottom chord of each roof truss. Roshau told Foley’s representative that at each of these points the roof truss should be capable of supporting a 600-pound load. Foley ordered the roof trusses from EBCO, a *349 manufacturer of building components. EBCO manufactured the roof trusses at its Hopkins, Minnesota, plant, using a design supplied by Hydro-Air, and delivered the roof trusses to the construction sites.

On January 29, 1975, the roof trusses of one of the chicken barns collapsed, bringing down the chicken cages and other equipment hung from the roof trusses. To repair the barn, Roshau had to replace the roof trusses and parts of the walls, install a new ceiling, and reinsulate the entire structure. Roshau inspected the four other barns, found in each roof trusses in danger of giving way, and repaired them.

In May 1976, Jack Frost commenced this action against Foley and EBCO. 1 In its complaint Jack Frost alleged that EBCO had been negligent in manufacturing the roof trusses, that Foley had been negligent in selling the roof trusses, that both defendants had breached express and implied warranties of merchantability and of fitness of the goods for the purpose intended, and that both were strictly liable in tort because the roof trusses were defective and unsafe when sold. Foley and EBCO, as third-party plaintiffs, impleaded Hydro-Air as third-party defendant. They demanded indemnity or contribution from Hydro-Air on the ground that their liability to Jack Frost, if any, arose out of Hydro-Air’s breach of warranty, negligence, or sale of a defective product. 2 In addition, Foley filed a cross-claim against EBCO for indemnity or contribution.

At the conclusion of an 8-day jury trial, the trial court ruled as a matter of law that (1) Foley was not negligent, (2) EBCO and Jack Frost were negligent, (3) the roof trusses were sold by EBCO and Foley in a defective condition, and (4) in selling the roof trusses Foley and EBCO breached implied warranties of fitness of the goods for the purpose intended. The remaining issues of fact were submitted to the jury pursuant to special interrogatories. The jury found that Hydro-Air was negligent in designing the roof truss and that Jack Frost’s loss was caused by its own negligence and that of EBCO and Hydro-Air. The jury apportioned 30% of the causal negligence to Jack Frost, 15% to EBCO, and 55% to Hydro-Air. It further found that Hydro-Air’s design for the roof trusses was defective and, as such, a direct cause of Jack Frost’s loss. Compensatory damages in the amount of $78,000 were assessed.

The trial court ordered that Jack Frost was entitled to recover from Foley and Hydro-Air the sum of $54,600, representing 70% of the damages assessed by the jury. The trial court further ordered Foley and EBCO entitled to indemnity from Hydro-Air and accordingly held Hydro-Air liable for the entire amount due Jack Frost.

The trial court granted Jack Frost’s post-trial motion to have Hydro-Air made a direct party defendant and denied Hydro-Air’s motion for judgment notwithstanding the verdict, a new trial, or a reduction in the amount of the damages recoverable by Jack Frost. It allowed Foley to recover attorneys fees and costs of $6,500 from EBCO.

Hydro-Air’s appeal presents us with the following questions: (1) whether the trial court was correct in granting Jack Frost’s post-trial motion to amend its complaint to make Hydro-Air a direct party defendant; (2) whether the evidence adduced at trial was sufficient to support the jury’s findings that Hydro-Air was negligent in designing the roof truss, that the design it produced was defective, and that its negligence caused 55% of Jack Frost’s loss; (3) whether the trial court was correct in holding Hydro-Air liable to Jack Frost for 70% of the damages assessed by the jury; and (4) whether a new trial is necessary because of the misconduct of counsel for EBCO.

*350 1. The trial court did not err in granting Jack Frost’s post-trial motion to amend its complaint to make Hydro-Air a direct party defendant. Under Minn.R. Civ.P. 14.01, a plaintiff is permitted to “assert any claim against the third-party defendant arising out of the transaction or occurrence that is the subject matter of the plaintiff’s claim against the third-party plaintiff.”

Rule 15.02 provides:

When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be treated in all respects as if they had been raised in the pleadings. Such amendment of the pleadings as may be necessary to cause them to conform to the evidence and to raise these issues may be made upon motion of any party at any time, even after judgment; but failure so to amend does not affect the result of the trial of these issues.

The issue of Hydro-Air’s liability to Jack Frost on grounds of negligence and strict liability was not raised by Jack Frost’s original complaint. Those same grounds, however, provided the basis for Foley’s and EBCO’s third-party complaints against Hydro-Air for indemnity or contribution. Hydro-Air thus had notice that it would be called to account for negligence and defects in th’e design that allegedly caused Jack Frost’s loss. The allegations made against Hydro-Air in Foley’s and EBCO’s third-party complaints required the same proof as they would have required if they had been made by Jack Frost in its original complaint. The record shows that Hydro-Air litigated the questions of its negligence and strict liability and during the trial was treated by the trial judge and counsel as a defendant subject to direct liability.

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Bluebook (online)
304 N.W.2d 346, 1981 Minn. LEXIS 1251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jack-frost-inc-v-engineered-building-components-co-minn-1981.