Keogh v. W.R. Grasle, Inc.

816 P.2d 1343, 1991 Alas. LEXIS 103, 1991 WL 166197
CourtAlaska Supreme Court
DecidedAugust 30, 1991
DocketS-3217, S-3236
StatusPublished
Cited by7 cases

This text of 816 P.2d 1343 (Keogh v. W.R. Grasle, Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keogh v. W.R. Grasle, Inc., 816 P.2d 1343, 1991 Alas. LEXIS 103, 1991 WL 166197 (Ala. 1991).

Opinion

RABINOWITZ, Chief Justice.

FACTS AND PROCEEDINGS

In the late 1970s and early 1980s, the village of Ruby became interested in upgrading its electrical distribution system to alleviate voltage drop problems. In 1980, Ruby contracted with W.R. Grasle Company (“Grasle”) for construction of a primary electrical distribution system. Ruby executed a letter authorizing Grasle to purchase equipment and supplies to upgrade most of Ruby’s 480 volt lines to 7200 volts. One purpose of the upgrade was to permit ultimate expansion of the power system to the school and the airport.

Under their one page contract, Ruby retained Grasle to construct the primary distribution line on a time and materials basis. Ruby agreed to supply substantia] materials and some support labor. In a subsequent contract, the parties further agreed that Grasle would build the additional overhead distribution lines, also on a time and material basis.

Grasle specifically designed and constructed the custom 7200 volt upgrade for Ruby’s pre-existing system using a collection of off-the-shelf component parts. Gra-sle did not manufacture any of these components.

After construction had been completed, Claude Keogh started working for Ruby Electric under the supervision of Larry Bryant. None of the personnel of Ruby Electric had any formal training in main- *1345 taming electrical systems, and Grasle employees did not inquire whether the Ruby personnel were qualified to work on the high-voltage system.

Tommy Meeks, Grasle’s line superintendent in charge of building the Ruby line, knew there was no training program for the Ruby Electric personnel. However, Meeks believed that his company was not employed to maintain the system or to consider how the unskilled Ruby personnel would maintain it; rather, Grasle was “there to build them a line and that was it.” Under the contract, Grasle did not assume responsibility for operation or maintenance of the system. In rural Alaska, village personnel commonly maintain their own electric systems. Meeks testified that he warned the Ruby personnel to turn the power off before working on the system, saying “[k]ill it before it kills you.”

In 1985, Keogh was shocked and severely injured on the 7200 volt system. The accident occurred when Keogh went up a pole to visually inspect a transformer site while the line was energized. Bryant offered to turn off the power, but Keogh refused since he was only going up the pole for visual inspection and did not intend to do any work. Richard Wright, the village safety officer, accompanied Keogh and Bryant to the site. Wright also told Keogh to come down until the power was off. Keogh refused, and in the process of resetting his safety belt he hit a hot bushing on the other side of the pole. Due to the charring of tissue that occurred when the high voltage passed through Keogh’s body, both of his arms had to be amputated near the shoulders. Expert testimony indicated that the extent of Keogh’s injuries was directly related to the intensity of the electrical current of the 7200 volt lines.

Keogh proceeded with both negligence and product liability theories. The superior court granted summary judgment holding that the upgraded electrical system should be considered a product for purposes of strict liability. After receiving this favorable ruling, Keogh dismissed his negligence claim against Grasle, and the trial proceeded on the strict product liability claim.

At the close of the evidence, Keogh moved for directed verdicts on several issues relating to his product liability claim. The superior court denied each of Keogh’s motions for directed verdict. The jury returned a unanimous verdict for Grasle on the ground that the electrical system was not defective.

Keogh appeals the superior court’s denial of his motions for directed verdicts, several of the court’s evidentiary rulings, and certain jury instructions. Grasle cross-appeals the superior court’s ruling that the electrical system was a product for purposes of product liability law.

1. DID THE SUPERIOR COURT ERR IN DENYING KEOGH’S DIRECTED VERDICT MOTIONS AS TO DESIGN DEFECT, EXCESSIVE PREVENTABLE DANGER, AND FAILURE TO WARN?

For purposes of resolving the issues raised in the direct appeal in this case, we assume, without deciding, that the electrical system installed by Grasle was a product for purposes of product liability law.

(i) Design Defect.

At the close of the evidence, Keogh moved for a directed verdict on the issue of whether the 7200 volt design 1 of the upgrade system constituted a design defect, inasmuch as the system was to be maintained by unskilled workers. The superior court denied the motion. 2

*1346 In Caterpillar Tractor Co. v. Beck, we adopted the two alternative tests for product defect articulated by the Supreme Court of California in Barker v. Lull Engineering Co., 20 Cal.3d 413, 143 Cal.Rptr. 225, 234, 573 P.2d 443, 452 (1978). 593 P.2d 871, 886 (Alaska 1979). The Barker court held:

a trial judge may properly instruct the jury that a product is defective in design (1) if the plaintiff demonstrates that the product failed to perform as safely as an ordinary consumer would expect when used in an intended or reasonably foreseeable manner, or (2) if the plaintiff proves that the product’s design proximately caused his injury and the defendant fails to prove ... that on balance the benefits of the challenged design outweighed the risk of danger inherent in such design.

Barker, 573 P.2d at 457-58 (quoted in Beck, 593 P.2d at 884). In Beck, we further explained the first prong of Barker as follows: “Under the [first] Barker test, the plaintiff need only show, for strict liability to apply, that he used the product in an intended or reasonably foreseeable fashion and that the product failed to perform in that capacity as safely as expected.” 593 P.2d at 885. 3

Keogh contends that his motion for directed verdict should have been granted as to this issue because (1) Grasle admitted knowing that Ruby’s untrained personnel would maintain the system, and (2) the product failed to perform as safely as expected because “their expectations were that they would be able to safely work on the high-voltage system.”

Grasle argues that the evidence raised a jury question with respect to Ruby’s expectations; i.e., did the personnel of Ruby Electric expect that they could safely work on the energized high voltage system. In demonstrating “room for diversity of opinion” as to this issue, Grasle cites to two transcript excerpts. First, Grasle’s line superintendent in charge of building the Ruby upgrade, testified that “it was my understanding from talking to Larry Bryant, that they were not going to do any hot work.

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Bluebook (online)
816 P.2d 1343, 1991 Alas. LEXIS 103, 1991 WL 166197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keogh-v-wr-grasle-inc-alaska-1991.