Morgan v. Almars Outboards, Inc.

316 F. Supp. 3d 828
CourtDistrict Court, D. Delaware
DecidedJune 13, 2018
DocketCIVIL ACTION No. 17–1013
StatusPublished
Cited by13 cases

This text of 316 F. Supp. 3d 828 (Morgan v. Almars Outboards, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Almars Outboards, Inc., 316 F. Supp. 3d 828 (D. Del. 2018).

Opinion

Gerald Austin McHugh, United States District Judge

This is a product liability case raising an important question of general maritime law: can an injured passenger recover punitive damages, and her spouse damages for loss of consortium, for non-fatal injuries suffered in coastal waters? Because of how maritime law has developed, partly by common law and partly by statute, the answers to these questions require close analysis. But in the wake of Atlantic Sounding Co., Inc. v. Townsend , 557 U.S. 404, 129 S.Ct. 2561, 174 L.Ed.2d 382 (2009), I am persuaded that such remedies are available to Plaintiffs. This is so because the claims they assert and the relief they seek are well established in general maritime law, and no act of Congress, including the Jones Act, eliminates their availability. Townsend held that when a common law cause of action and remedy predate a statute, courts need not ratchet down common law relief to match statutory relief, unless Congress has explicitly legislated otherwise. Consequently, I hold that such damages are recoverable by Plaintiffs in this case.

I. Factual Background

During a July 2014 outing on the water, Plaintiff Lisa Morgan's right pinkie and ring fingers were traumatically amputated in a boating accident. She was entering the water from the surface of a 2006 Bentley *832Pontoon Boat when her hand caught in the boat's gate. The only dispute as to how the accident happened is over whether Ms. Morgan was jumping, stepping, or lowering herself into the water. Ms. Morgan's spouse, Edward Morgan, was on a nearby boat at the time, and rushed to her aid.

The relevant evidence in this case reaches back more than a decade to the original manufacture, sale, and recalls of the boat in question. The Bentley Pontoon boat on which Ms. Morgan was injured was owned by the Morgans' friend, Richard Spence. Spence bought the boat new in Delaware in early 2006 from Defendant Almars Outboards, Inc., an authorized dealer for Bentley, the boat's now-defunct manufacturer. There is no evidence in the record that Spence knew he was purchasing a boat with a dangerous design that had already been the subject of a safety recall and would soon be recalled again. Bentley designed its pontoon boats to have metal railings that curved down to the hinges where the railings met the gate. Bentley soon learned that this design created a "pinch point" where the curved corners of the gate and railing came together, allowing a passenger's fingers to become ensnared. On March 1, 2004, Bentley sent a Safety Recall notice to its dealers. It began:

We have identified a safety risk associated with the design of our railings and gates. It is possible for a person's finger(s) to lodge between the points where a railing and gates meet on all of our models. The probability of this occurring seems greatest when entering into or exiting from the water. Possible injuries can range from laceration to dismemberment.

Pls.' Ex. G, ECF No. 47-1, at 36-38. In an effort to eliminate this hazard, Bentley developed a spherical guard that could be installed at the pinch point [hereinafter a "ball guard"]. Boat owners could choose to install the guards themselves or have a Bentley dealer do it, free of charge, with Bentley reimbursing dealers for their labor.

Unfortunately, these ball guards did not fix the problem, and the pinch point on Bentley boats continued to injure passengers. On January 1, 2007, Bentley issued a second Safety Recall letter to its dealers. This second notice was much like the first, but added that the ball guards, in addition to the railings, were unsafe. The notice urged dealers to immediately install new "gate replacement corner flat kits" [hereinafter "block guards"] and to encourage customers to have the guards installed "before the next use of their boat." The letter warned: "This is very important and we do not want any further injures. Act Immediately." Pls.' Ex. L, at 93. In addition to these notices, there were several well-documented instances of finger injury and amputation on Bentley boats, and there is evidence that at least one Bentley dealer notified its customers of the danger and provided an effective guard well before either recall notice.

Almars contends that it had no knowledge of the safety hazard that Bentley's gates or ball guards posed until it learned of Ms. Morgan's injury. The owner of Almars, Albert Marinelli, testified that Almars sold Bentley boats for about two years, from 2004 to September 2006. He testified that, despite Almars's status as an authorized Bentley dealer that performed repairs under Bentley's warranty, Almars never received the 2004 or 2007 safety recall notices, and never heard of any customer or anyone else being injured by the gate. Marinelli took this position in spite of his testimony that a Bentley sales representative (Ed Butcher) regularly visited Almars, and that, on one occasion, Butcher "dropped a bunch of those balls on our desk and said if any boats come in without *833these, put them on." Marinelli Dep. 116:17-23, Pls.' Ex. I, at 45. But the boats Almars bought from Bentley came equipped with the ball guards already, so Marinelli never used the guards and "never really paid much attention" to them. Id. at 117:17-23. The boat Spence bought from Almars in January 2006 arrived from Bentley to Almars equipped with these (ineffective) ball guards, which were in place at the time of Ms. Morgan's accident.

II. Procedural Posture

Based on these events, Plaintiffs filed this products liability lawsuit, which the parties agree is governed by general maritime law.1 Plaintiffs sued only Almars as the retail supplier of the product. Ms. Morgan makes claims based in negligence and two theories of strict liability-sale of a defective product and failure to warn-seeking punitive damages and other remedies. Compl. ¶¶ 22-29, ECF No. 1. Mr. Morgan asserts a derivative claim of loss of consortium based on the injuries Ms. Morgan suffered, and an independent claim for negligent infliction of emotional distress (NIED) based on his proximity to the accident. Compl. ¶¶ 18-21.

The parties have filed cross motions for partial summary judgment. Pls.' Mot. Summ. J., ECF No. 47 [hereinafter "Pls.' Mot."]; Def.'s Mot. Partial Summ. J., ECF No. 49 [hereinafter "Def.'s Mot."]. Plaintiffs seek summary judgment against Almars on both of their theories of strict product liability. Pl.'s Mot. 12-19. Defendant seeks dismissal on the merits of the Morgans' negligence and NIED causes of action, and asserts that their claims for punitive damages and loss of consortium must be dismissed as unavailable under general maritime law. Def.'s Mot. 10-18. Alternatively, Almars seeks dismissal of the punitive damages claim on the merits. Id. at 16.

For the reasons that follow, and as set forth in my Order of May 4, 2018, both Motions are granted in part and denied in part. ECF No. 58.

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