Matter of Federal Press Co.

116 B.R. 650, 1989 Bankr. LEXIS 2655, 1989 WL 223067
CourtUnited States Bankruptcy Court, N.D. Indiana
DecidedAugust 8, 1989
Docket14-20183
StatusPublished
Cited by9 cases

This text of 116 B.R. 650 (Matter of Federal Press Co.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Federal Press Co., 116 B.R. 650, 1989 Bankr. LEXIS 2655, 1989 WL 223067 (Ind. 1989).

Opinion

ORDER

ROBERT K. RODIBAUGH, Senior Bankruptcy Judge.

On March 16, 1987, the court held a hearing for the purpose of estimating the tort claim of Donald Baker. Mr. Baker is one of many persons who have filed personal injury tort claims against the debtor, Federal Press Company (“Federal Press”). Federal Press previously objected to all of the personal injury claims and applied to have the court estimate the claims for purposes of confirmation of its plan of reorganization. Following the hearing on Mr. Baker’s claim, the court took the matter under advisement on December 13, 1988, following the time for submitting briefs.

Background

Donald Baker was injured on December 5, 1984, while operating a press (manufactured by Federal Press) at the plant of his employer, All-State Stamping, Inc. (“All-State”), in New York. Mr. Baker was 26 years old and earned approximately $360.00 per week at the time of the accident. The day of Mr. Baker’s injury was his first day of employment at All-State although Mr. Baker had worked with presses similar to the one involved in his accident for eight years prior to working for All-State. Mr. Baker asserts that on the day of the accident he had been operating the press by use of a foot pedal for about forty-five minutes when a part became stuck in the die area of the press. Mr. Baker contends that when he reached into the die area of the press to retrieve the part, the ram of the press unexpectedly triggered downward crushing the fingers of his right hand.

Mr. Baker alleges that Federal Press is liable for his injuries because Federal Press manufactured the press in such a way as to allow the machine to operate without a guard in place and failed to warn potential operators of the danger of the machine. Mr. Baker bases his claim on theories of strict liability and negligence. He values *652 his claim at $2,208,481.53 and indicates that this amount includes $2,105,028.00 for physical pain and suffering, emotional trauma, impact on social life, physical impairment, disfigurement and deformity; 1 $42,-120.00 for lost earnings of $18,720.00 per year for 2.25 years; $11,333.53 for medical bills; $25,000.00 for future medical bills and lost earnings; and $25,000.00 for prosthesis devices which might be used throughout Mr. Baker’s lifetime. In support of his claim Mr. Baker presented to the court his medical records, reports from several doctors, and workers’ compensation records. These records indicate that Mr. Baker suffered the amputation of four fingers of his right hand through the proximal metacarpals. Although Mr. Baker has obtained no official impairment rating by a physician, his doctors’ reports note that he will require the use of a prosthesis or eventual biologic reconstruction (toe to hand transfer) in order to regain manipulation capacities in the right hand. Mr. Baker still suffers pain in his hand and asserts that he needs continued therapy and rehabilitation to overcome his feelings of depression and hopelessness and to enable him to function on a normal level.

Federal Press argues that it is not responsible for Mr. Baker’s injuries and that the court should estimate Mr. Baker’s claim at zero. Federal Press asserts that as it placed the press into the stream of commerce in 1942, 42 years before the accident, it should not be held liable for Mr. Baker’s injuries. Federal Press further argues that Mr. Baker has failed to submit evidence concerning the existence or nonexistence of warnings on the press or case law imposing upon Federal Press a duty to warn in this situation in order to support his claim that Federal Press breached its duty to warn of the dangers of using the press. Federal Press argues that Mr. Baker has failed to show that Federal Press’ actions or inactions were a proximate cause of his injuries and thus asserts that Mr. Baker may not recover on his claim for breach of the duty to warn. Federal Press contends that as the dangers of the press were open and obvious and quite well known to Mr. Baker, the doctrine of strict products liability is inapplicable.

In addition, Federal Press asserts that it should not be held liable for Mr. Baker’s injury because it was not responsible for the complete assembly of the press. Federal Press explains that power presses are built as multi-dimensional and multi-pur-pose machines to be used in an unlimited variety of applications by companies who customize the presses according to the type of product they wish to produce. As new products are invented all the time, the press is a flexible tool which can be modified to fit new applications. Companies add the die, set up a method of feeding raw materials into the machine and of removing parts and scrap pieces, and add appropriate safety features. Federal Press accordingly asserts that the unfinished and modifiable nature of the press itself in effect shifts the responsibility for installing safety devices to employers. Federal Press bolsters its argument by citing OSHA regulations which state that the employer is responsible for the point of operation — where dies are inserted — on mechanical power presses. The federal regulations require the employer to periodically check safety devices on mechanical power presses.

Discussion and Decision

Title 11 U.S.C. § 502(c) provides:

There shall be estimated for purpose of allowance under this section—
(1) any contingent or unliquidated claim, the fixing or liquidation of which, as the case may be, would unduly delay the administration of the case....

11 U.S.C.A. § 502(c) (West Supp.1989). Title 28 U.S.C. § 157 grants the court broad authority to hear and determine all cases under the Bankruptcy Code and all core proceedings arising in a case under the *653 Code, including those matters which involve:

allowance or disallowance of claims against the estate or exemptions from property of the estate, and estimation of claims or interests for the purposes of confirming a plan under chapter 11, 12, or 13 of title 11 but not the liquidation or estimation of contingent or unliquidated personal injury tort or wrongful death claims against the estate for purposes of distribution in a case under title 11....

28 U.S.C. § 157(b)(2)(B) (West 1988). Consistent with this provision is N.D. Ind. Local Dist.R. 45(b)(2) (1987), which states that the bankruptcy court is to dispose of all pretrial motions concerning personal injury tort claims and administer the debtor’s efforts to reorganize until the personal injury matter is ready for the final pretrial conference. At that time the matter is to be transferred to the district court. Bankr.R. 3018 further provides that “[notwithstanding objection to a claim or interest, the court after notice and hearing may temporarily allow the claim or interest in an amount which the court deems proper for purposes of accepting or rejecting a plan.” Bankr.R. 3018 (West 1988).

The court concludes that 28 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
116 B.R. 650, 1989 Bankr. LEXIS 2655, 1989 WL 223067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-federal-press-co-innb-1989.