Latham v. Technar, Inc.

390 F. Supp. 1031, 1974 U.S. Dist. LEXIS 6079
CourtDistrict Court, E.D. Tennessee
DecidedOctober 29, 1974
DocketCiv. 3-74-145
StatusPublished
Cited by31 cases

This text of 390 F. Supp. 1031 (Latham v. Technar, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latham v. Technar, Inc., 390 F. Supp. 1031, 1974 U.S. Dist. LEXIS 6079 (E.D. Tenn. 1974).

Opinion

*1033 MEMORANDUM

ROBERT L. TAYLOR, District Judge.

Defendant, Allied Chemical Corporation (Allied), in its post-trial motion, has moved the Court to set aside the verdict and judgment in this wrongful death ease. Alternatively, Allied has moved for a new trial and requests a remittitur of the jury verdict. Allied, prior to the trial of this case, moved for summary judgment on essentially the same grounds it presently urges. A verdict was returned by the jury in favor of plaintiff in the amount of $300,000.-00.

The nature of Allied’s motion requires the Court at this time to briefly set forth the background of the case.

Plaintiff is a resident of Tennessee and is the administrator of the estate of Brenda Sue Gaddis, who also was a resident of this state. Allied is a foreign corporation doing business in Tennessee and has its principal place of business outside this state. Allied acquired all of the stock of Jim Robbins Seat Belt Company (Jim Robbins), located in Knoxville, prior to July 1, 1973, the date of the accident. Jim Robbins manufacturers seat belts and, although its stock was owned by Allied, held its own separate Delaware charter on July 1, 1973. Among the various divisions of Allied is the Automotive Products Division, which, in turn, includes the air bag 1 operations and seat belt operations of Jim Robbins. It is this interface and commingling between the corporate entities of Allied and Jim Robbins that is the focus of Allied’s defense.

As a part of its air bag operation, Allied opened a factory in Knoxville essentially adjacent if not a part of the Jim Robbins plant, where it manufactured pressure switches, an integral component part of the finished automobile air bag system. The manufacturing of these switches consisted of a step-by-step process of assembly, testing and visual inspection of the pressure switch. The last step in the inspection process was conducted by hourly employees, such as Brenda Sue Gaddis in this particular instance.

In need of a specialized pressure chamber for testing the finished switches, Allied, in the Fall of 1972, had Technar, Inc. of California design such a device. Allied worked with Technar in the design of the chamber and with Strain Engineering Company, also of California, in the actual manufacture. In October 1972 the two finished chambers where shipped to Allied’s air bag operations in Knoxville. The first chambers (called Allied chambers) were cylindrical in shape, and consisted of two stainless steel pipes, sixteen inches long, three and one-half inches in diameter, with one end permanently sealed. The operator of the chamber would insert a tray of assembled switches in the open end of the cylinder, seal the opening by threading, first by hand then by wrench, an end plug until appropriately tight, and then pressurizing the sealed chamber with nitrogen to approximately 2500 pounds per square inch (p. s. i.). Subjecting the air bag switches to this pressurized environment enabled the operator to determine whether the finished product properly functioned.

In February 1973 Allied requested Technar to design a third chamber for the testing of Eaton switches. This chamber was essentially the same as the former Allied chamber but because the Eaton chamber was to be operated at greater pressures (3200 p. s. i.) than the Allied chamber, it was to be proportionately longer. This chamber was designed by Technar, manufactured by Strain and shipped to Knoxville in April or May 1973.

Because the Eaton, or second design, chamber was longer and built to be subjected to higher pressures than the Allied chamber, the Eaton end plug was *1034 likewise larger, both with respect to the length of the end plug and the size of the hexonal nut attached to the plug. Thus, the smaller Allied plug was designed to fit the smaller Allied chamber, and the larger Eaton plug was designed to fit the larger Eaton chamber. Moreover, the Allied plug could not be fully-threaded into the Eaton chamber.

On July 3, 1973, Mr. Randolph, who had been employed by Allied only three weeks before, replaced the usual Eaton chamber operator who was on vacation leave. As the replacement operator, Randolph had received only brief instructions a few days before on the operation of the Eaton test chamber. On one occasion during the day Randolph loaded the Eaton chamber with a tray of Eaton switches; however, instead of threading the Eaton end plug into the loaded chamber, he threaded the smaller Allied end plug. Upon pressurizing the Eaton chamber to 3300 p. s. i., the end plug was blown out of the chamber, resulting in the explosion which caused plaintiff’s death. 2 Randolph suffered a momentary loss of hearing and a torn shirt. He testified that he didn’t know the danger that the capsule could do as he was just getting started in industrial engineering.

Defendant Allied has persistently contended both before and during the course of this trial that, as a matter of law, 50 Tenn.Code Ann. 908 is plaintiff’s sole and exclusive judicial remedy for the wrongful death of Miss Gaddis. The Court has maintained that, under the limited circumstances of this case, Allied is not within the protective scope of Section 908. Section 908 must be read in light of Section 903, which provides :

“Every employer and employee subject to workmen’s compensation law shall, respectively, pay and accept compensation for personal injury or death by accident arising out of and in the course of employment without regard to fault as a cause of the injury or death.”

The “exclusivity” provision, Section 908, provides:

“The rights and remedies herein granted to an employee subject to the Workmen’s Compensation Law on account of personal injury or death by accident, including a minor whether lawfully or unlawfully employed, shall exclude all other rights and remedies of such employee, his personal representative, dependents, or next of kin, at common law or otherwise, on account of such injury or death.”

Allied contends, under a number of theories, that, in the final analysis, Allied was the employer of Brenda Sue Gaddis. That is to say, Allied was the employer of decedent within the meaning of Section 902:

“(a) ‘Employer’ shall include any individual, firm, association or corporation, or the receiver, or trustee of the same, or the legal representative of a deceased employer, using the services of not less than five (5) persons for pay, and in the case of an employer engaged in the mining and production of coal, one (1) employee for pay. If the employer is insured, it shall include his insurer, unless otherwise herein provided.”

In support of its position as the employer of Miss Gaddis, Allied presented to the Court and the jury the following facts:

1. The employment application of Brenda Sue Gaddis, dated 10-21-71, bearing both the names “Allied Chem *1035 ieal” and “Jim Robbins Seat Belt Co.” 3 (Exhibit 10)
2. Various work posters bearing the name Allied Chemical Corporation.

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Bluebook (online)
390 F. Supp. 1031, 1974 U.S. Dist. LEXIS 6079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/latham-v-technar-inc-tned-1974.