Loughridge v. Goodyear Tire & Rubber Co.

431 F.3d 1268, 2005 U.S. App. LEXIS 28090
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 20, 2005
Docket04-1261, 04-1263
StatusPublished
Cited by69 cases

This text of 431 F.3d 1268 (Loughridge v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loughridge v. Goodyear Tire & Rubber Co., 431 F.3d 1268, 2005 U.S. App. LEXIS 28090 (10th Cir. 2005).

Opinion

PAUL KELLY, JR., Circuit Judge.

This appeal and cross-appeal arise from a diversity action brought under Colorado state law by the owners of 36 Colorado homes (“Homeowners”) against Defendants Chiles Power Supply, Inc. d/b/a Heatway Radiant Floors and Snoyrmelting (“Heatway”) and Goodyear Tire and Rubber Company (“Goodyear”). After a jury trial and post-trial motions, many, but not all, of the Homeowners were awarded damages against Goodyear only. We affirm the district court’s amended judgment in part, reverse in part, and remand.

Background

In the 1980s, Heatway began selling parts for hydronic radiant heating systems. These systems use hose to circulate warm fluid under indoor flooring as an alternative to conventional heating systems, or under driveways and sidewalks to melt snow and ice. Heatway originally contracted with Dayco Rubber Products Company (“Dayco”) to produce the hose, “Entran,” used in Heatway’s radiant systems. In 1989, Heatway contracted with Goodyear to manufacture a new hose, “En-tran II.” By 1990, Heatway discontinued Dayco as a supplier and thereafter used Goodyear as its sole supplier of hose. Goodyear made Entran II until 1993 and supplied it exclusively to Heatway.

As early as 1991, some homeowners began noticing problems with their hydronic heating systems, including cracking, leaking and sediment build-up in their Entran II hose. In many cases, these problems required the removal and replacement of the hose in its entirety, as well as the replacement of most other parts of the hydronic heating system. By 1992, Heat-way began receiving complaints from homeowners about hardening of the En-tran II hose and leaks in the installed heating systems. Believing that the En-tran II hose was causing the leaks, Heat-way stopped paying Goodyear for hose shipments. As a result, Goodyear sued Heatway in 1997 in federal district court in Ohio (the “Ohio action”). Heatway filed a counterclaim alleging that the Entran II hose was defective. Goodyear had by this time manufactured 25,000,000 feet of En-tran II hose. The Ohio action went to trial on the issue of the merchantability of all 25,000,000 feet of Entran II hose. The jury returned a verdict for Goodyear, whereupon Heatway. declared bankruptcy.

Between 1998 and 2000 a number of suits were filed in Colorado state and fed *1273 eral courts by homeowners against Goodyear, Heatway, or both. Eight of these cases were consolidated. Homeowners sought recovery from Goodyear for sale of a defective product, negligence, negligent failure to warn, violation of the Colorado Consumer Protection Act (“CCPA”), and civil conspiracy. Homeowners claimed that Goodyear was liable for the costs of removing and replacing the Entran II hose installed in their homes, the diminution in value of their homes, and other costs and losses. Four homeowners — Rosemarie Glas, Robert Julian, Corey Bender Mind-lin, and Jane and Charles Upton (the “Heatway plaintiffs”) — also sought recovery against Heatway for violation of the CCPA and civil conspiracy. Goodyear and Heatway asserted cross-claims against one another for contribution or indemnification under Ohio law. Goodyear cross-claimed against Heatway for deceit (fraud), and Heatway cross-claimed against Goodyear for sale of a defective product.

After the close of evidence, Goodyear moved, pursuant to Fed.R.Civ.P. 50(a), for judgment as a matter of law as to the claims of three homeowners who sold their homes prior to trial: James and Nikki Holzwarth (the “Holzwarths”), Janet Sut-terley and Randy Kilgore (“Sutterley/Kil-gore”), and Ms. Glas. The district court denied Goodyear’s motion as to the claims of the Holzwarths and Sutterley/Kilgore. However, the district court granted the motion as to Ms. Glas, reasoning that her damages were too speculative. Ms. Glas filed a post-judgment motion asking the court to alter or amend the judgment in her favor and for a new trial concerning damages. The district court denied the motion.

With the exception of one homeowner, William Gorog, the jury returned verdicts in favor of all Homeowners and against Goodyear on three theories of recovery: sale of a defective product, negligence, and negligent failure to warn. The jury awarded Homeowners damages in the aggregate of $4,079,391.50. J.A. at 800-943. The jury found in favor of Goodyear and Heatway on all claims for violation of the CCPA and civil conspiracy. Neither Goodyear nor Heatway prevailed on its cross-claim against the other. The jury did, however, apportion fault evenly between Goodyear and Heatway as to all prevailing Homeowners.

With respect to the jury’s apportionment of fault to Heatway, Homeowners filed a post-trial motion for judgment as a matter of law or to alter or amend the judgment pursuant to Fed.R.Civ.P. 50(b) and 59(e) respectively. Homeowners argued that because the jury did not find Heatway liable on any of the Heatway plaintiffs’ claims or on Goodyear’s cross-claim, damages were not appropriately apportioned to it as a nonparty at fault. J.A. at 1146. The district court denied the motion.

As to the Holzwarths, the jury awarded them $243,072 in “reasonable repair and/or replacement costs.” The jury awarded Sutterley/Kilgore $240,071 in “other reasonable costs or losses.” After the district court entered judgment on the jury’s verdicts, Goodyear renewed its motion for judgment as a matter of law as to the claims of the Holzwarths and Sutter-ley/Kilgore, pursuant to Fed.R.Civ.P. 50(b). Goodyear argued that the Holz-warths and Sutterley/Kilgore presented evidence and were awarded damages for future repair costs that they had not incurred and would never incur because they had already sold their homes. J.A. at 1050-58. The district court construed the motion as a Fed.R.Civ.P. 59(e) motion and granted it. As such, the district court amended the judgment and reduced the Holzwarths’ jury award to $43,072 and Sutterley/Kilgore’s jury award to $44,000, *1274 thereby eliminating the portions of their awards which the district court interpreted as representing future repair costs.

With respect to Mr. Gorog, the only homeowner against whom Goodyear had asserted a statute of limitations defense, the jury found in favor of Goodyear on all claims. But the jury did not answer the questions on the verdict form about Goodyear’s statute of limitations defense. The district court entered judgment against Mr. Gorog. After entry of judgment, Mr. Gorog moved for judgment as a matter of law, to alter or amend the judgement or for a new trial. The district court denied the motion.

After trial, Homeowners moved for prejudgment interest. The district court held that Homeowners were entitled to prejudgment interest from the date on which the hydronic heating systems, containing Entran II, were originally installed in the Homeowners’ respective homes. The district court awarded prejudgment interest in the aggregate of $5,701,367.

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431 F.3d 1268, 2005 U.S. App. LEXIS 28090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loughridge-v-goodyear-tire-rubber-co-ca10-2005.