Montgomery Ward & Co. v. Gregg

554 N.E.2d 1145, 1990 Ind. App. LEXIS 631, 1990 WL 74053
CourtIndiana Court of Appeals
DecidedMay 31, 1990
Docket41A01-8903-CV-63
StatusPublished
Cited by62 cases

This text of 554 N.E.2d 1145 (Montgomery Ward & Co. v. Gregg) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery Ward & Co. v. Gregg, 554 N.E.2d 1145, 1990 Ind. App. LEXIS 631, 1990 WL 74053 (Ind. Ct. App. 1990).

Opinion

ROBERTSON, Judge.

This case comes to us following a jury verdict in the sum of one million dollars plus costs for the plaintiff Robert Gregg who sustained injury on July 24, 1979 when the tire he was changing exploded. Defendant-appellants Firestone Tire & Rubber Co. and Montgomery Ward & Co. (collectively referred to as Wards), manufactured and sold the 16" diameter truck tire which is the subject of this litigation. We affirm.

Gregg proceeded against Wards solely upon the legal theory of strict product liability alleging that the design of the tire rendered it unreasonably dangerous when mismatched with and inflated upon a 16.5" rim. Gregg also alleged the tire was unreasonably dangerous because Wards failed to adequately warn that the tire could be mounted safely only on a 16" rim.

The defendants jointly appeal the verdict and judgment on multiple grounds but the errors alleged fall principly into three categories: error in the denial of Wards' motion for judgment on the evidence; error in the admission and exclusion of evidence; and, error in the giving and refusing of instructions.

I.

Motion for Judgment on the Evidence

In determining whether the trial court erred in denying Wards' motion for judgment on the evidence, we examine the evidence and all reasonable inferences most favorable to Gregg from a qualitative as well as quantitative perspective. A judgment on the evidence is proper only when there is a total absence of evidence in favor of the plaintiff upon the issues, the evidence is without conflict and susceptible of but one inference and that inference is in favor of the defendant, or the inference intended cannot logically be drawn from the proffered evidence, either because the inference cannot be drawn without undue speculation or because the witness is lacking in credibility. American Optical Co. v. Weidenhamer (1983), Ind., 457 N.E.2d 181, 183-184.

A. Open and Obvious Rule

The Indiana Supreme Court's recent decision in Koske v. Townsend Engineering Co. (1990), Ind., 551 N.E.2d 437 eliminates the need for discussion of Wards' first two arguments, that Gregg is barred from recovery by reason of the open and obvious rule as set forth in Bemis Co., Inc. *1151 v. Rubush (1981), Ind., 427 N.E.2d 1058, cert. denied, 459 U.S. 825, 103 S.Ct. 57, 74 L.Ed.2d 61 and its progeny, and that Wards had no duty to warn Gregg of the dangers arising as a consequence of mismatching as a matter of law, 1 as well as Gregg's argument on tendered instructions 10 and 11. Gregg's theory of strict liability, premised upon an incident occurring on July 24, 1979, is governed by the 1978 Product Liability Act. That legislation, which preempted the field of product strict liability in tort, excluded the open and obvious rule from its codification and restatement of the common law. Koske, 551 N.E.2d at 442. Hence, the open and obvious danger rule no longer applies to strict liability claims under the Indiana Product Liability Act. Id. The obviousness of the danger is still however an appropriate consideration in assessing a manufacturer's expectations regarding product use and in evaluating the actual state of mind of the product user when the affirmative defense of incurred risk is raised. Id. at 441.

B. Incurred Risk

Wards contends that its motion for judgment on the evidence should have been granted because certain undisputed facts establish Gregg incurred the risk of injury as a matter of law. Wards relies upon both the statutory defense, IND. CODE 38-1-1.5-4(b)(1) and Indiana's common law doctrine of incurred risk.

Again, the 1978 Product Liability Act expressly delineated the allowable affirmative defenses to a complaint sounding in strict liability. 1C. 88-1-1.5-4(b)(1), which incorporates a subjective standard and provides

(b) [wiith respect to any product liability action based on strict liability in tort:
(1) [it is a defense that the user or consumer discovered the defect and was aware of the danger and nevertheless proceeded unreasonably to make use of the product and was injured by it ...,

codified the common law doctrine of incurred risk. See, Koske, 551 N.E.2d at 442, n. 3; Corbin v. Coleco Indus., Inc. (7th Cir.1984), 748 F.2d 411 and cf., Moore v. Fed. Pacific Elec. Co. (1980), Ind.App., 402 N.E.2d 1291, 1293.

The jury found Wards' tire was unrea sonably dangerous either because, in the absence of an appropriate warning, it could easily be mismatched with a 16.5" rim, or because, if so mismatched, its bead bundle would break when subjected to less than normal operating pressure. That Gregg knew the tire was not sealing properly on the rim, knew how to use an air gauge, knew the normal operating pressure for a passenger tire and knew the pounds per square inch (psi) ordinarily necessary to seat a passenger tire does not establish as a matter of law that Gregg had actual knowledge and appreciated the danger of explosion at less than the normal operating pressure associated with mounting a 16" truck tire on a 16.5" rim. It is clear from the record that a 16.5" tire could not be discerned from a 16" tire when the tires are standing side by side. Neither Gregg nor Barnes discovered the mismatch and neither had reason to suspect the tire's failure to seal was due to a mismatched rim as both had shared the experience, common among tire mechanics, that tires with properly matched rims would refuse to seal for a variety of reasons.

C. Misuse

Wards argues that Gregg and Barnes', a garage employee, misuse of the tire by placing it on the wrong size rim is a complete defense to any strict liability it may have because it did not manufacture or design its 16" tire for use on a 16.5" rim and misuse of the tire in this manner could *1152 not be reasonably foreseen. 2 The evidence favorable to the jury's verdict established however that, to the extent it can be said Gregg and Barnes' unintentional use of the 16" tire was a misuse, such a use was reasonably foreseeable by Wards.

Industry documents evince 14"/14.5" nonvehicular tire mismatch explosions as early as 1971. Indeed, Firestone knew of bead breakage problems in its 16" tire, caused by forcing the smaller 5 degree bead onto a 16.5" rim with a 15 degree angle, in 1955, when it applied for a patent on the tire. Firestone manufactured the private brand Wards tire which injured Gregg in the last month of 1974. By that time it had already begun molding a warning on its 16" tire and attaching stickers to the tread advising users to mount the tire only on a 16" rim.

D. Status as a User or Consumer

Wards offers a three-pronged standing argument. First, it compares this case to Wingett v. Teledyne Indus., Inc. (1985), Ind., 479 N.E.2d 51 and argues that Gregg's "use" of the tire was not reasonably foreseeable and therefore, Gregg was not within the class of persons whom Wards might anticipate to be subject to harm.

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Cite This Page — Counsel Stack

Bluebook (online)
554 N.E.2d 1145, 1990 Ind. App. LEXIS 631, 1990 WL 74053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-ward-co-v-gregg-indctapp-1990.