Kirkendall v. Harbor Insurance

698 F. Supp. 768, 1988 U.S. Dist. LEXIS 12216, 1988 WL 116005
CourtDistrict Court, W.D. Arkansas
DecidedOctober 21, 1988
DocketCiv. 87-2033
StatusPublished
Cited by8 cases

This text of 698 F. Supp. 768 (Kirkendall v. Harbor Insurance) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirkendall v. Harbor Insurance, 698 F. Supp. 768, 1988 U.S. Dist. LEXIS 12216, 1988 WL 116005 (W.D. Ark. 1988).

Opinion

MEMORANDUM OPINION

H. FRANKLIN WATERS, Chief Judge.

I. Introduction

This action was initiated by plaintiffs, Dee Franklin Kirkendall and Ann Kirken-dall, against Blood Systems, Inc. (BSI) on February 26, 1987. Jurisdiction is founded upon diversity of citizenship.

Plaintiff alleged that BSI is a non-profit corporation engaged in the business of supplying blood to various medical and hospital entities. In Arkansas, BSI operates under the firm name and style of United Blood Services (UBS). Ark.Code Ann. § 28-79-210 (1987) (formerly Ark.Stat.Ann. §§ 66-3240 and 66-3241) authorize direct actions against the insurer of such nonprofit corporations and require those entities to disclose to injured persons the identity of the liability insurance carrier and the limits of liability. Because BSI allegedly failed and refused to disclose the identity and liability limits of its insurer, BSI was named as the party defendant.

As the basis of plaintiffs claims, plaintiffs originally contended that BSI supplied blood which was contaminated with AIDS virus to Sparks Regional Hospital (Sparks). Dee Kirkendall received the contaminated blood on March 28, 1985, in the course of a transfusion necessitated during surgery while he was hospitalized at Sparks. Plaintiffs alleged that the contaminated blood was a “product” supplied in a “defective condition” which rendered it “unreasonably dangerous” by reason of which BSI should be held strictly liable. Alternatively, plaintiff contended that BSI was negligent in the “screening” of its donors and in failing to test the blood for the presence of the AIDS virus.

Dee Kirkendall was subsequently diagnosed as suffering from AIDS for which he sought compensatory relief. Plaintiff, Ann Kirkendall, claimed damages for loss of consortium and infliction of mental distress. The apparent basis of her mental distress claim is her fear of having contracted AIDS through sexual intercourse with her husband.

By order dated July 8, 1987, this court found that BSI is a charitable institution immune from suit under Arkansas law, and directed that Harbor Insurance Company (Harbor) be substituted as the party defendant. Harbor issued and delivered to BSI liability insurance policy number HI177397 which was in effect during the relevant time period. This policy would be implicated, subject to certain limitations, upon a finding that BSI acted negligently in this case.

Dee Kirkendall died on April 23, 1987, as a result of having contracted the AIDS virus during the blood transfusion on March 28, 1985. On July 15, 1987, Ann Kirkendall filed an amended and substitut *770 ed complaint, individually and as personal representative of the Estate of Dee Kirken-dall, against Harbor Insurance Company, re-stating the allegations pertaining to strict liability and negligence, and asserting that Harbor Insurance Company had issued the aforementioned liability policy to BSI with coverage up to $10,000,000. A “self-insured retention” provision amounting to a $250,000 “deductible” was contained in the policy.

On March 14, 1988, defendant filed a motion for partial summary judgment, arguing that the supplying of blood is a “service” to which the implied warranties of the Uniform Commercial Code do not apply and further that blood is not a “product” for purposes of imposing strict product liability in tort. See Ark.Code Ann. §§ 4-86-102; 16-116-102(2); 4-2-316; 20-9-801, 802 (1987). By order dated April 13, 1988, this court granted defendant’s motion and dismissed plaintiff’s strict liability claims with prejudice.

Plaintiff subsequently withdrew her request for jury trial. Accordingly the matter was tried to the court without a jury on August 16-18, 1988. The following shall serve as the court’s findings of fact and conclusions of law required by Rule 52, of the Federal Rules of Civil Procedure.

Discussion

The court will not attempt to chronicle the history and development of the body of knowledge pertaining to the recognition of and research into the etiology of the illness commonly referred to as AIDS, except insofar as relevant to the issues in this case. An excellent synopsis of that history is contained in Kozup v. Georgetown University, 663 F.Supp. 1048, 1051-53 (D.D.C.1987) aff 'd, in part and vacated in part, 851 F.2d 437 (D.D.Cir.1988).

Briefly stated, by mid-1982 the medical community was aware of an unusual incidence of an acquired immuno deficiency among hemophiliacs, homosexual men, and intra venous drug users. Other than having unusual stresses to their respective immune systems, it was not known what factors were common among members of these groups. In December, 1982, an article in the Morbidity/Mortality Weekly Review suggested the possibility that AIDS was transmissible by blood. Notwithstanding this article, by January, 1983, although there was a consensus that a significant public health problem was posed by the increasing numbers of persons who had developed symptoms consistent with acquired immuno deficiency, there was no consensus as to the methods of transmission of such a disease.

Dr. Ernest R. Simon, M.D., Executive Vice President for Medical Affairs of United Blood Services, Inc., testified that it was recognized early in 1983 that homosexual men were at “high risk” for AIDS. Nonetheless, direct questioning of prospective blood donors as to their sexual preference was not utilized by UBS, BSI or other members of the blood banking community. In the March/April, 1983, issue of Transfusion Magazine, a joint statement on Acquired Immune Deficiency Syndrome related to transfusion appeared. 23 Transfusion, March-April 1983, at 87-88. The “joint statement” dated January 13, 1983, was developed by the American Association of Blood Banks (AABB), the Council of Community Blood Centers (CCBC), and the American Red Cross (ARC) with assistance from the American Blood Commission, National Gay Task Force, the National Hemophilia Foundation, and representatives from the American Blood Resources Association, the Center for Disease Control, and the Food and Drug Administration. The “joint statement” suggested that donor screening should include specific questions to detect possible AIDS or exposure to patients with AIDS and that all donors should be asked questions designed to elicit a history of night sweating, unexplained fevers, unexpected weight loss, lymphade-nopathy or Kaposi’s sarcoma. However, the “joint statement” unambiguously stated, “Direct or indirect questions about a donor’s sexual preference are inappropriate.” The “joint statement” did not advise routine implementation of any laboratory screening program or surrogate testing for AIDS by blood banks at this time. Transfusion at 87-88.

*771 Immediately after the MMWR article appeared, Kenneth R. Woods, Ph.D., President of the Council of Community Blood Centers, issued a newsletter noting the possibility that AIDS may be transmissible by transfusion but that:

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Bluebook (online)
698 F. Supp. 768, 1988 U.S. Dist. LEXIS 12216, 1988 WL 116005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirkendall-v-harbor-insurance-arwd-1988.