NBIS Construction & Transport Insurance Services v. Liebherr-America, Inc.

93 F.4th 1304
Court of Appeals for the Eleventh Circuit·Decided February 29, 2024·No. 22-14104·Published

Opinion

[PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 22-14104

NBIS CONSTRUCTION & TRANSPORT INSURANCE SERVICES, INC., other Sims Crane & Equipment Company, Plaintiff-Appellee,

versus LIEBHERR-AMERICA, INC., d.b.a. Liebherr USA Co., LIEBHERR CRANES, INC.,

Defendants-Appellants.

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2 Opinion of the Court 22-14104

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 8:19-cv-02777-AAS

Before WILSON, GRANT, and LAGOA, Circuit Judges. LAGOA, Circuit Judge:

This appeal requires the application of Florida tort law to a dispute resulting from the collapse of a crane boom. Below, NBIS Construction & Transport Insurance Services, Inc. (“NBIS”), the third-party administrator and managing general agent of the insurer of the crane’s owner, recovered over $1.7 million—the cost of the damage to the crane itself—in a negligence suit against Liebherr-America, Inc., a distributor and servicer of the type of crane at issue. Central to this appeal, the magistrate judge, 1 after a five-day bench trial, rejected Liebherr-America’s argument that Florida’s economic loss rule shielded it from liability. For the following reasons, we find Florida law unclear on this issue, and thus certify a question to the final arbiter of Florida law, the Florida Supreme Court.

1 The parties consented to trial before the magistrate judge pursuant to 28

U.S.C. § 636(c) and Federal Rule of Civil Procedure 73.

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22-14104 Opinion of the Court 3

I. FACTUAL AND PROCEDURAL BACKGROUND2 In 2016, Sims Crane & Equipment Company (“Sims”) purchased a crane, manufactured by Liebherr Werk Ehingen GMbH (“Liebherr-Germany”), from a non-party crane broker. The crane has two configurations: a fifty-meter boom and an eighty-four-meter boom. The eighty-four-meter boom has six locking pins: T1 through T6. The T3 and T4 pins are located next to each other and look similar. To install the longer, eighty-four-meter boom, the T3 pin must be adjusted to a specific position. The T4 pin, on the other hand, should never be adjusted—if it is and the adjustment is not remedied, the boom can collapse. But the crane’s operating manual, published by Liebherr-Germany and provided to Sims before it received the crane, did not include warnings about the T4 pin.

Under Sims’s sales contract, a “Liebherr [f]actory trained technician” was “to be provided on site to commission [the crane] and train [Sims’s] personnel at [n]o [c]harge.” The purpose of this training, Liebherr-America’s corporate representative agreed, was to provide “comprehensive knowledge” to crane operators on how to properly and safely operate the crane.3

2 The majority of the facts in section are taken from the magistrate judge’s

factual findings in its final order. 3 The basis of the training, according to Liebherr-America’s training docu-

ments, was the crane’s operating manual.

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4 Opinion of the Court 22-14104

When two Sims crane operators—Jason D’Angelo and Andrew Farris—picked up the crane at a port in Jacksonville in January 2017, a Liebherr-America employee and trainer named Henry Ward instructed the two operators and other Sims employees while they were loading the crane to transport it Tampa. The training continued in Tampa from January 30, 2017, to February 4, 2017. Even though Liebherr-America normally provides around eighty hours of training to new customers, and Ward knew Sims was a first-time owner of the crane, Ward provided D’Angelo and Farris with only forty hours of training.

While Ward’s training involved swapping out the fifty-meter and eighty-four-meter booms, he skipped training on multiple issues. Further, both Farris and D’Angelo testified that Ward did not train Sims’s employees on the proper placement of specific pins, including the T3 and T4 pins. For example, while the T3 pin needed to be adjusted to a specific position, Ward only instructed Farris and D’Angelo to adjust it “to where it stops,” but not to “over-torque” it, and to “back it out until it stops.” Liebherr-America ’s corporate representative also testified that Ward did not inform Sims of the risks with respect to the T4 pin, even though Liebherr-America knew about the safety risks associated with manipulating the T4 pin at the time of the training. 4

4 While Ward testified that he warned Farris and D’Angelo more than “two or

three times” about the dangers related to manipulating the T4 pin, the magistrate judge found this testimony “not credible” in light of the contradictory

22-14104 Opinion of the Court 5

On February 16, 2018, Farris supervised apprentice Shane Burrows during the installation of the eighty-four-meter boom for a construction project. When Farris instructed Burrows to lock the T3 pin, Burrows mistakenly manipulated the T4 pin instead, thinking it was the T3 pin. After Burrows notified Farris that the pin was unlocking rather than locking, Farris discovered that Burrows manipulated the T4 pin and adjusted the T4 pin back to where he thought it was originally. Farris then installed the eighty-four-meter boom and locked the T3 pin.

A few days later, when Farris started to extend out the boom, it would not fully extend, even though the crane’s computer system read no errors. Farris contacted his supervisor, who dispatched a crane technician to the jobsite. Farris also contacted a senior crane operator, who advised him that he would have to place the crane in manual mode to extend the boom. However, when Farris took the crane out of computer control mode and proceeded to manually extend the boom, it collapsed in on itself, causing both a fatality and damage to the crane.

Prior to this collapse in May 2017 another collapse due to the improper manipulation of the T4 pin had occurred in Japan. This led Liebherr-Germany to publish, three months before the accident in this case, updated product safety information concerning the risks involved with manipulating the T4 pin. This information included a product safety bulletin, a cover plate that covers both the

testimony from Farris, D’Angelo, and Liebherr-America’s corporate representative .

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6 Opinion of the Court 22-14104

T3 and T4 pins, warning stickers, and an insert for the operating manual. The top of the safety bulletin provided that the failure to follow the instructions contained therein “could result in the uncontrolled retraction of the telescopic boom during operation resulting in serious injury or death.” The bulletin then proceeded to warn that manipulating the wrong screw, or pin, can lead to such retractions.

The cover plate is a different color than the crane, and the warning stickers for the T4 pin, placed on and around the cover plate, had a red “X” drawn on them. 5 The new provision for the operating manual includes a warning stating “[d]o not unlock the telescopic boom locking pin.” And it goes on to provide that unlocking the T4 pin can cause a retraction of the boom “in an uncontrolled manner,” which could lead to “[d]eath, severe bodily injuries , [and] property damage.”

Liebherr-America disseminates Liebherr-Germany’s product safety updates to American owners, and from October 2017 to March 2018, disseminated over 700 product safety update campaigns . Once Liebherr-America is on notice that a crane has been sold to a subsequent purchaser, it sends these updates to that purchaser . And Liebherr-America also typically updates its internal database to ensure that it matches the correct ownership information.

5 Liebherr-Germany provided stickers for the T3 pin too. Those did not have

an “X” drawn on them.

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Free access — add to your briefcase to read the full text and ask questions with AI

NBIS Construction & Transport Insurance Services v. Liebherr-America, Inc., 93 F.4th 1304 (11th Cir. 2024).

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