Puppe Ex Rel. Puppe v. A.C. & S., Inc.

733 F. Supp. 1355, 1990 U.S. Dist. LEXIS 3418, 1990 WL 34740
CourtDistrict Court, D. North Dakota
DecidedMarch 28, 1990
DocketCiv. A2-86-78
StatusPublished
Cited by2 cases

This text of 733 F. Supp. 1355 (Puppe Ex Rel. Puppe v. A.C. & S., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puppe Ex Rel. Puppe v. A.C. & S., Inc., 733 F. Supp. 1355, 1990 U.S. Dist. LEXIS 3418, 1990 WL 34740 (D.N.D. 1990).

Opinion

MEMORANDUM AND ORDER

VAN SICKLE, District Judge.

INTRODUCTION

On March 15, 1990 defendants GAF Corporation; National Gypsum Company; Pfizer, Inc.; Union Carbide Corporation; and United States Gypsum Company filed a motion with this Court. Defendants requested that this Court “exclude any potential claim made by plaintiffs for punitive damages.... ” Several letters have been filed by defendants American Hoist and Derrick Company (now Amdura); and Clark Equipment Company. In their letters, these defendants ask to join in the motion to exclude “any potential claim by plaintiff for punitive damages.” At the pretrial conference for this case held in Fargo, North Dakota on March 15, 1990 several other defendants expressed similar concerns. On March 23, 1990 the defendants who originally mentioned concerns with North Dakota’s policy on punitive damages informed the Court they had settled. The case was removed from state court pursuant to 28 U.S.C. § 1441 on May 20, 1986 because of complete diversity to 28 U.S.C. § 1332. The case was assigned to this Court by Judge Webb on October 5, 1989.

FACTS

This case is a wrongful death action brought by the survivors of decedent Vernon Puppe. Puppe died of mesothelioma' on April 26, 1984. Mesothelioma is a soft tissue cancer of the chest and abdomen, and has been attributed in causal terms to a victim’s exposure to asbestos fibers. Mesothelioma is always fatal.

Plaintiffs claim that Puppe was employed as an asbestos insulation helper and handler by the C.W. Schmidt Plumbing and Heating Co. during 1959. He worked at a large insulation project in a heating plant at the Minot Air Force Base in Minot, North Dakota. Puppe’s duties included the cutting of asbestos-containing block and pipe covering, the spraying of asbestos tex-turing compounds, and the mixing of powdered asbestos cements. Puppe’s survivors claim that in the course of his employ *1357 ment, he inhaled and ingested asbestos fibers from the insulation products which he and his nearby co-workers were installing.

Also, Puppe was later employed as a crane operator by the Swingen Construction Co. of Grand Forks, North Dakota from 1966 through 1981. The cranes Puppe worked with employed friction clutches and brakes. The friction clutches and brakes used asbestos clutch linings, asbestos clutch facings, asbestos brake linings, and asbestos brake drums. Puppe’s survivors claim that during the operation of these cranes, dust grindings from the brake linings would fill the cab of the vehicle, causing the operator’s area to be heavily contaminated by asbestos fibers. Plaintiffs claim that as operator of the crane, Puppe inhaled and ingested these asbestos fibers.

Puppe had been dead for almost two years when this case was filed. His survivors have filed suit claiming the wrongful death was caused by the acts and omissions of the defendants. Plaintiffs claim compensatory damages for the wrongful death, medical and funeral expenses, punitive, and exemplary damages from the defendants. Defendant’s motion requests the exclusion of any potential claim made by plaintiffs for punitive damages. Defendants claim that North Dakota law does not allow such a claim.

This is a diversity case. In diversity cases a federal court must apply the law of the state where the United States District Court is located. Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938). N.D.C.C. § 32-21-01 provides a cause of action for wrongful death. N.D.C.C. § 32-21-02, in determining the measure of recovery, provides:

In an action brought under the provisions of this chapter, the jury shall give such damages as it finds proportionate to the injury resulting from the death to persons entitled to recovery.

This Court must interpret this statute to give it the same effect as would a North Dakota court.

ISSUES

I. Whether North Dakota Law Allows Punitive Damages to Flow from a Claim for Wrongful Death.

II. Due Process Considerations.

A. Fairness to the Defendants of Multiple Punitive Verdicts.

B. Heightened Standard of Proof.

C. Interests of Future Plaintiffs.

III. Procedure for Trial.

DISCUSSION

I. Whether North Dakota Law Allows Punitive Damages to Flow from a Claim for Wrongful Death.

Punitive damages have been defined as appropriate “when the defendant has been guilty of oppression, fraud or malice, actual or presumed_” See N.D.C.C. § 32-03.2-11 (1987). 1 Punitive damages are given “in addition to the actual damages ... for the sake of example and by way of punishing the defendant.” Id. Proponents of punitive damages believe that, by giving plaintiffs damages over and above the full compensation for their injuries, defendants are punished, taught not to repeat culpable behavior, and others are deterred from following defendant’s dubious example. W. Prosser, The Law of Torts § 2, p. 9 (4th Ed.1971).

Defendants in the present case maintain that punitive damages are not available to the plaintiffs. In support of this assertion, they cite Johnson v. International Harvester Co., 487 F.Supp. 1176 (D.N.D.1980). In Johnson, Judge Benson made three findings:

1) That punitive damages could not be recovered under the North Dakota wrongful death statute,
2) That no common law action for wrongful death can exist in North Dakota, and
3) That the North Dakota wrongful death statute does not discriminate against wrongful death claimants in fa *1358 vor of personal injury and property damage plaintiffs, thereby foreclosing an equal protection argument.

Id. at 1177-80. Judge Benson reached a similar decision in Johnson v. American Aviation Corp., 64 F.R.D. 435 (D.N.D.1974).

In reaching his conclusions, Judge Benson carefully examined North Dakota statutes and caselaw to determine what the North Dakota Supreme Court would do if faced with a similar problem. Judge Benson’s most recent examination of the status of the wrongful death statute of North Dakota was in 1980. The decade since Johnson has seen the North Dakota Supreme Court make radical changes in the way it interprets recovery under its wrongful death statute. A fresh examination is necessary to determine whether it would allow recovery for punitive damages today.

Wrongful death statutes have had a peculiar and tortured history. See Hopkins v. McBane,

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733 F. Supp. 1355, 1990 U.S. Dist. LEXIS 3418, 1990 WL 34740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puppe-ex-rel-puppe-v-ac-s-inc-ndd-1990.