Johns-Manville Corporation and Johns-Manville Sales Corporation v. The United States

855 F.2d 1556, 35 Cont. Cas. Fed. 75,541, 1988 U.S. App. LEXIS 11618, 1988 WL 87089
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 25, 1988
Docket87-1332
StatusPublished
Cited by189 cases

This text of 855 F.2d 1556 (Johns-Manville Corporation and Johns-Manville Sales Corporation v. The United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns-Manville Corporation and Johns-Manville Sales Corporation v. The United States, 855 F.2d 1556, 35 Cont. Cas. Fed. 75,541, 1988 U.S. App. LEXIS 11618, 1988 WL 87089 (Fed. Cir. 1988).

Opinions

PER CURIAM.

This is an appeal from an interlocutory order of the United States Claims Court (Nettesheim, J.), entered April 6, 1987, and reported as Keene v. United States, 12 Cl.Ct. 197 (1987). The Claims Court granted a motion by the United States to dismiss three suits, Nos. 465-83C, 688-83C, and 1-84C, brought by Johns-Manville Corporation and Johns-Manville Sales Corporation (Johns-Manville).1 The Claims Court certified the order for immediate appeal pursuant to 28 U.S.C. § 1292(d)(2) (1982). Johns-Manville’s petition for review was granted on May 6, 1987. We affirm.

BACKGROUND

The motion to dismiss was made in response to a sua sponte order, entered January 20, 1987. The order required the United States to state its position on the applicability of 28 U.S.C. § 1500 (1982). In its present form section 1500 states:

The United States Claims Court shall not have jurisdiction of any claim for or in respect to which the plaintiff or his assignee has pending in any other court any suit or process against the United States or any person who, at the time when the cause of action alleged in such suit or process arose, was, in respect thereto, acting or professing to act, directly or indirectly under the authority of the United States.

I. Cases Filed and Theories of Relief

The three cases dismissed by the order on appeal were filed in the Claims Court as test cases which were representative of thousands of separate claims. See Keene, 12 Cl.Ct. at 201. In each of the three cases Johns-Manville seeks indemnification from the United States for Johns-Manville’s liabilities to shipyard workers who were exposed to asbestos manufactured by Johns-Manville and sold to the United States. Each case covered a different time period. [1558]*1558In Johns-Manville Corp. v. United States, No. 465-83C (Cl.Ct. filed July 19, 1983), Johns-Manville seeks indemnification for its actual or potential liabilities for injuries to shipyard workers exposed to asbestos during World War II (WWII). The theories of relief are (1) breach of an implied warranty of specifications, (2) breach of a duty to reveal superior knowledge, (3) reformation of the contract due to mutual mistake of material facts, and (4) equitable adjustment.2

The second suit, Johns-Manville Corp. v. United States, No. 688-83C (Cl.Ct. filed Nov. 16, 1983), demands indemnification for actual or potential liabilities to workers injured by exposure to asbestos after 1963. Johns-Manville raises the same theories of relief raised in No. 465-83C and additionally raises (1) breach of warranty to use products safely arising from control by the United States of the specifications and conditions of use, (2) rights as an intended and third-party beneficiary of the supply contracts, and (3) breach of an additional implied-in-fact contract to indemnify, arising out of the government’s requirement of contract compliance and its control of the asbestos products. The third complaint, Johns-Manville Corp. v. United States, No. 1-84C (Cl.Ct. filed Jan. 3, 1984), seeks indemnification for Johns-Manville’s liabilities to workers injured by exposure to asbestos during unrestricted or overlapping time periods. The complaint repeats the theories raised in No. 465-83C and, additionally, alleges the implied contract to indemnify applies to later “rip-out” operations under the exclusive control of the United States.

Prior to filing in the Claims Court, Johns-Manville filed indemnification claims in district courts. Johns-Manville Sales Corp. v. United States, No. C81 4561 RFP (N.D.Cal. filed Dec. 7, 1981) (the Robinson case), seeks indemnification for amounts paid for defense and settlement of an action brought by John C. Robinson for injuries allegedly due to exposure to asbestos products sold to the United States by Johns-Manville.3 The complaint pleads jurisdiction and rights of recovery under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346(b), 2671-2680 (1976). The legal theories of relief raised are (1) negligence in discharge of the duties of the United States as a vessel owner in the use of asbestos products, (2) negligence in breach of implied warranties that Johns-Manville would not be liable for damages resulting from compliance with the specifications and that the products would be used in a safe manner, and (3) negligence in failing to reveal superior knowledge of the dangers of asbestos.

Prior to filing in the Claims Court, Johns-Manville also filed 59 third-party complaints in the Eastern District of Virginia.4 In those actions Johns-Manville and other asbestos manufacturers seek indemnification from the United States if the manufacturers are found liable for asbestos exposure injuries to the plaintiffs. Johns-Manville pleads (1) breach of war[1559]*1559ranties of safe use, merchantability, and fitness for a particular purpose and (2) breach of duty to maintain a safe work place and to enforce health standards.

II. Facts Pleaded

In the Robinson case, Johns-Manville alleges as facts that the United States (1) compelled Johns-Manville to enter the supply contracts, (2) controlled the products by requiring compliance with the government’s specifications, (3) controlled the conditions of use of the products, (4) controlled access to the shipyards, (5) did not enforce its established safety standards, (6) knew of the health risks caused by lack of enforcement of the safety standards, (7) knew or should have known of the potential liability to Johns-Manville caused by the failure of the United States to enforce safety standards, and (8) Robinson was exposed to excessive concentrations of asbestos.

The factual allegations in the Claims Court cases overlap the factual allegations in the Robinson case and the third-party complaints. They all allege (1) the United States compelled compliance with supply contracts and with the Navy’s specifications, (2) the United States had control of the shipyard working conditions, and (3) the United States established safety standards in the shipyards but did not follow them.

Issues on Appeal

Whether the trial court erred in holding:

1. a prior-filed district court suit presents the same “claim for or in respect to” an action filed in the Claims Court by the same plaintiff where each action is based on the same operative facts but different theories of relief.
2. a prior-filed, stayed suit is pending for purposes of barring jurisdiction in the Claims Court under 28 U.S.C. § 1500.

OPINION

This is a case of statutory construction. The disposition of the issues before this court requires determining the proper application of 28 U.S.C. § 1500, quoted above. Particularly in issue is the operation of the phrase “any claim for or in respect to which the plaintiff ...

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855 F.2d 1556, 35 Cont. Cas. Fed. 75,541, 1988 U.S. App. LEXIS 11618, 1988 WL 87089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-manville-corporation-and-johns-manville-sales-corporation-v-the-cafc-1988.