Pulmosan Safety Equipment Corp. v. Lamb

273 S.W.3d 829, 2008 Tex. App. LEXIS 9132, 2008 WL 5132449
CourtCourt of Appeals of Texas
DecidedDecember 9, 2008
Docket14-08-00279-CV
StatusPublished
Cited by58 cases

This text of 273 S.W.3d 829 (Pulmosan Safety Equipment Corp. v. Lamb) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulmosan Safety Equipment Corp. v. Lamb, 273 S.W.3d 829, 2008 Tex. App. LEXIS 9132, 2008 WL 5132449 (Tex. Ct. App. 2008).

Opinion

OPINION

HEDGES, Chief Justice.

This interlocutory appeal contests the denial of a special appearance filed by appellant, Pulmosan Safety Equipment Co. (“Pulmosan”), in multi-district silica litigation. Pulmosan sought its dismissal from the litigation based on lack of personal jurisdiction. . Although declining to exercise general jurisdiction over Pulmosan, the trial court found that it could exercise specific jurisdiction. We affirm.

I. Background

Appellee, William Lamb (“Lamb”), is a Texas resident who, over the course of his forty-year career, worked as a painter, insulator, and sandblaster at a paper mill in Evadale, Texas. Lamb claims that, as a result of his sandblasting duties in Texas, he contracted silicosis.

Pulmosan was a New York corporation operating from 1926 until its voluntary dissolution under the New York dissolution statute in 1986. It manufactured personal protective equipment for use in the abrasive-blasting industry. Lamb alleges that he used the Pulmosan H-30 series sandblast hood from the late 1960’s to mid 1970’s while working in Evadale, Texas. The H-30 hood protected the user’s face, head, and shoulders from the ricochet of sandblasting. It was a non-airfed canvas hood, tannish brown in color, that draped over the user’s head and shoulders. The number of H-30 hoods manufactured per year during the relevant time frame of the 1960’s through 1975 is disputed. There is both evidence that production was in the “tens of thousands” and evidence that it was only one to two thousand per year. It is undisputed, however, that the hoods were manufactured by Pulmosan in New York.

The method of sale and distribution of the H-30 hood in Texas.

Pulmosan did not sell directly to end-users such as Lamb, or even to his employers. Instead, Pulmosan sold its products through distributors and what it called “original equipment manufacturers” (“OEMs”). Pulmosan described the distributors as “simply Pulmosan’s wholesale customers — the ‘accounts [Pulmosan was] selling to.’ ” OEMs were companies that *834 ultimately sold the equipment to employers and end-users, either under the Pulmo-san label or under a private label. Pulmo-san’s corporate representative, Howard Weiss, characterized the distributors and OEMs as independent third-parties who were not controlled or employed by Pul-mosan.

Pulmosan had several Texas distributors and OEMs selling its equipment in Texas during the time period Lamb claimed to have used the H-30 hoods. 1 One of the OEMs was a Houston-based company called Clemtex. Clemtex began selling H-80 hoods in Texas in 1955 and continued selling them until 1982. A Clemtex representative testified that Clemtex purchased 99.9 percent of the hoods directly from Pulmosan. Initially, the Pulmosan hoods Clemtex sold had a Pulmosan label, but eventually Clemtex furnished Pulmosan with Clemtex labels to be affixed to the hoods. Weiss referred to this practice as “private-labeling.” There is evidence that Clemtex sold safety equipment to Lamb’s employer during the relevant time period. There is no direct evidence, however, that Clemtex sold the H-30 hood that Lamb allegedly used.

Beginning in the late 1960’s or early 1970s, Pulmosan placed an employee in the Dallas-Fort Worth area. The employee’s job was to call on distributors and sell Pulmosan’s products. The employee’s territory encompassed three or four states, including Texas, Oklahoma, Louisiana, and possibly Arkansas. This employee later became a “manufacturer’s representative,” rather than a direct employee of Pulmo-san, and Pulmosan continued to have a manufacturer’s representative in Texas for the last fifteen or twenty years of its existence. The manufacturer’s representatives sold Pulmosan’s products on commission. During this time, Pulmosan had a Certificate of Authority on file with the State of Texas for the purpose of transacting business in the state.

Pulmosan also advertised its products throughout the United States in catalogs. Pulmosan normally sent the catalogs to anyone who was purchasing from them, “whether distributors, dealers, or OEM accounts.” The 1964 catalog identified five warehouses across the United States for Pulmosan products, including one in Houston, Texas. The warehouse was owned and operated by a Pulmosan manufacturer’s representative.

Instructions for product use were included in the product boxes and in the catalogs that Pulmosan sent to whoever bought equipment from Pulmosan. Pul-mosan relied on the employers to make sure the employee was properly instructed and the equipment properly maintained.

The evidence of use of the Pulmosan H-30 hood by Lamb.

During his deposition, Lamb testified that he used a grey hood that had a Clem-tex label on it and a brown hood that had no label on it. He said he did not know who manufactured the brown hood. After his deposition, Lamb submitted an affidavit stating that he used a Pulmosan H-30 hood, and he attached to the affidavit Pul-mosan catalog pictures identifying the hood. Pulmosan objected to this affidavit as conclusory and inconsistent with Lamb’s prior deposition testimony that he did not know who manufactured the hood. The trial court overruled Pulmosan’s objections. Although Pulmosan does not challenge the trial court’s rulings on these objections, it challenges the legal sufficiency of the affidavit.

*835 Pulmosan also submitted an expert witness affidavit by Robert Sheriff, the president of a consulting company providing industrial safety and hygiene services. Sheriff stated that, during the 1960’s and 1970’s there were multiple manufacturers of the abrasive blasting hoods and that the hoods were very similar in description and appearance. “Most non-air fed hoods that were sold in the 1960’s and 1970’s were so similar in appearance that they are indistinguishable without a label identifying the manufacturer.”

Lamb brought suit against numerous manufacturers and suppliers of sand and abrasive blasting equipment and protective gear. Lamb asserted claims for negligence, products liability (design and warning defect), and gross negligence. The suit was transferred to the silica multi-district litigation pending in Judge Tracy Christopher’s court.

Pulmosan filed a special appearance, plea to the jurisdiction, and answer. Before it heard Pulmosan’s special appearance, the trial court abated the proceedings so that certain plaintiffs in the multi-district litigation could proceed in a New York state court to obtain a ruling on the viability of their claims in light of Pulmo-san’s dissolution. The New York court ruled that the dissolution of Pulmosan was not effective as to those plaintiffs whose causes of action arose prior to the date of dissolution. Ford v. Pulmosan Safety Equip. Corp., 13 Misc.3d 1242(A), 831 N.Y.S.2d 353, 2006 WL 3437670, at *7 (Sup.Ct. Queens Co.2007). The New York court specified that a viable claim against Pulmosan would “depend upon when these plaintiffs were first exposed to silica dust or, more accurately, upon the initial use of Pulmosan’s defective safety equipment.” Id.

The trial court in this case denied Pul-mosan’s special appearance based on a finding that it could exercise specific jurisdiction over Pulmosan.

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Bluebook (online)
273 S.W.3d 829, 2008 Tex. App. LEXIS 9132, 2008 WL 5132449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pulmosan-safety-equipment-corp-v-lamb-texapp-2008.