Johnson v. Cyklop Strapping Corp.

531 A.2d 1078, 220 N.J. Super. 250
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 6, 1987
StatusPublished
Cited by102 cases

This text of 531 A.2d 1078 (Johnson v. Cyklop Strapping Corp.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Cyklop Strapping Corp., 531 A.2d 1078, 220 N.J. Super. 250 (N.J. Ct. App. 1987).

Opinion

220 N.J. Super. 250 (1987)
531 A.2d 1078

WOODROW JOHNSON, JR., PLAINTIFF-RESPONDENT,
v.
CYKLOP STRAPPING CORP. AND FMC CORP., DEFENDANTS-RESPONDENTS, AND LEVINE INDUSTRIES, INC., DEFENDANT-APPELLANT, AND ACME CORP., JOHN DOE, JACK DOE, SAM DOE, JERRY DOE, AND PHIL DOE, DEFENDANTS.

Superior Court of New Jersey, Appellate Division.

Argued September 15, 1987.
Decided October 6, 1987.

*252 Before Judges PRESSLER, BILDER and MUIR, Jr.

Louis Pashman argued the cause for appellant (Cummins, Dunn & Pashman, attorneys; Louis Pashman, of counsel; Warren S. Robins, on the brief).

Roscoe L. Lamb argued the cause for respondent Johnson (Lamb & Kern, attorneys; Roscoe L. Lamb, on the brief).

Eugene M. Haring argued the cause for respondent FMC (McCarter & English, attorneys; Eugene M. Haring, of counsel; Rosalie Burrows, on the brief).

Leon B. Piechta argued the cause for respondent Cyklop (O'Donnell, Kennedy, Vespole & Piechta, attorneys; Leon B. Piechta, of counsel; Frances J. Panzini-Romeo, on the brief).

The opinion of the court was delivered by PRESSLER, P.J.A.D.

*253 The jury in this personal injury-products liability action returned a substantial verdict in favor of plaintiff Woodrow Johnson, Jr., against defendant Levine Industries, Inc. The trial had proceeded against Levine alone after the judge denied Levine's application for relief from summary judgments earlier entered which had dismissed all claims, including Levine's cross-claims for contribution and indemnity, against the other two defendants, Cyklop Strapping Corporation and FMC Corporation. Levine appeals, claiming not that there was any error in the trial itself but rather, in essence, that it was improperly denied its right to pursue its cross-claims. We agree with this contention. We are persuaded that Levine's motion for relief from the summary judgments in favor of Cyklop and FMC was incorrectly denied, the fundamental error of the trial judge lying in his mistaken application to interlocutory orders of the standards for relief from final dispositions prescribed by R. 4:50-1. Having concluded, moreover, that Cyklop and FMC were erroneously relieved prior to trial from all responsibility for plaintiff's injury, we further hold that the rectification of this error must be accomplished without affecting plaintiff's right to the benefit of his verdict against Levine.

This is how the important procedural issues involved in the appeal came about. Plaintiff Woodrow Johnson, Jr., had been employed as a foreman by Polyfilm, Inc., a manufacturer of, among other products, plastic bags. Plaintiff's duties included the task of loading the finished product on skids and then securing the skids with strapping material fastened by a buckle. On December 3, 1981, plaintiff, while performing this task, was tightening the strapping material when the strap broke, hurling the buckle into his left eye. As a result of the trauma, he permanently lost his vision in that eye. His ensuing complaint, which alleged a causative defect in the design and manufacture of the strapping material, joined a number of defendants identified as distributors or manufacturers of the strapping. By the time the critical procedural events took *254 place, however, the only actively participating and potentially liable defendants were Levine, Cyklop and FMC, each of whom, in addition to their perfunctory denials of the allegations of the complaint and their assertions of apparently frivolous affirmative defenses thereto, had also cross-claimed against the other two for contribution and indemnification.

After some discovery proceedings had been engaged in, both FMC and Cyklop moved for summary judgment dismissing all claims against it. While plaintiff opposed both motions, Levine, inexplicably, did not participate in either.[1] According both plaintiff and Levine the benefit of all favorable facts and inferences, the record on the jointly heard motions showed the following facts. Levine, although it manufactures some packaging goods, is only a distributor of the strapping material here in question. It sells this material in rolls in the same form in which it purchases it from the manufacturer without alteration or processing of any kind. Polyfilm was one of Levine's strapping customers, and plaintiff testified, both on deposition and at trial, that the strapping which broke had arrived in a shipment from Levine to Polyfilm on the very day of the accident. Levine's potential liability as a link in the distributive chain was thus established.

As to the liability of the other two defendants, the import of the deposition testimony of Alan Levine, Levine's manager of operations, was that Levine had originally purchased the strapping material only from FMC, which manufactured it. In November 1980 FMC sold its entire industrial packaging division, including its remaining inventory, to Cyklop, which appears to have been created as a subsidiary of its parent German company for the purpose, among others, of continuing the business of that FMC division. All FMC customers were appropriately *255 notified of this succession by Cyklop.[2] Thus, after November 6, 1980, Levine purchased strapping only from Cyklop. Mr. Levine further testified on deposition that during the 13-month period between the date of the transfer from FMC to Cyklop and the date of the plaintiff's accident, Levine made regular purchases from Cyklop, generally in three-month intervals, as well as regular sales to Polyfilm. Relying on Levine's average three-month turnover in inventory, Mr. Levine believed that the December 3, 1981 shipment to Polyfilm, which had contained the allegedly defective strapping, had most probably come from Cyklop. He could not, however, be certain that that shipment or part of it had not come to it from FMC prior to November 6, 1980, since Levine did not have a regular system of inventory management, the boxes of material were not labelled as to origin, and Mr. Levine was unable, despite his search therefor, to locate any conclusive inventory record.

Levine's inability to identify with certainty the manufacturer of the December 3, 1980 shipment to Polyfilm was the gravamen of FMC's and Cyklop's summary judgment motions. The motion judge, focusing on the question of the manufacturer of the goods rather than on the question of the identity of the party from whom Levine had purchased them, was of the view that plaintiff's failure conclusively to establish the manufacturer's identity was fatal to his claims against both FMC and Cyklop. He also concluded that the circumstances respecting these two defendants did not invoke the doctrine of Anderson v. Somberg, 67 N.J. 291 (1975), cert. den. 423 U.S. 929, 96 S.Ct. 279, 46 L.Ed.2d 258 (1975), under which plaintiff's burden of proving which of several defendants is actually culpable shifts to the burden of each defendant to exclude itself from culpability. And finally, the judge was of the view that the successor liability doctrine enunciated by Ramirez v. Amsted Industries, *256 Inc., 86 N.J. 332 (1981), was not applicable to Cyklop's acquisition from FMC since Cyklop had purchased only a division of FMC, leaving FMC itself intact as a viable, continuing and responsible entity.[3]

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Bluebook (online)
531 A.2d 1078, 220 N.J. Super. 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-cyklop-strapping-corp-njsuperctappdiv-1987.