Radziul v. Hooper, Inc.

125 Misc. 2d 362, 479 N.Y.S.2d 324, 1984 N.Y. Misc. LEXIS 3415
CourtNew York Supreme Court
DecidedAugust 10, 1984
StatusPublished
Cited by10 cases

This text of 125 Misc. 2d 362 (Radziul v. Hooper, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Radziul v. Hooper, Inc., 125 Misc. 2d 362, 479 N.Y.S.2d 324, 1984 N.Y. Misc. LEXIS 3415 (N.Y. Super. Ct. 1984).

Opinion

OPINION OF THE COURT

David 0. Boehm, J.

Plaintiff, an employee of Conti Packaging Company, sustained injuries when his arm was caught in a meat packaging machine in his employer’s plant. He brought this action against the three defendants, Hooper, Inc., a corporation which had purchased assets of the machine’s manufacturer, Cryovac Division of W. R. Grace & Co., the distributor of the machine, and John A. DeSantis, an employee of Cryovac who was responsible for plaintiff’s training on the machine and for its maintenance and repair.

Plaintiff was injured on July 14, 1979, a Saturday. He had come in to clean, maintain and lubricate the machine, known as a Hooper 1000, which was used by Conti in its [363]*363sausage making operation. After completing the cleaning and maintenance, plaintiff proceeded to thread packaging laminate through the machine, and as he was doing so, a pneumatic piston activated and trapped his hand between a heating plate and the forming assembly.

The Hooper 1000 machine was manufactured by John Morrell and Company through its Hooper Engineering Division and sold through Cryovac to Conti on or about March, 1974. By an agreement entered into October 30, 1973, Cryovac acted as exclusive distributing agent of the products manufactured by Morrell’s Hooper Division.

About a year and a half later, on August 19, 1975, defendant Hooper, Inc., was incorporated and thereafter, on October 24, 1975, it purchased some of the assets of Morrell’s Hooper Engineering Division and continued the manufacture of the Hooper 1000, together with other equipment and machinery.

By written agreement on October 24, 1975, Hooper entered into a similar distributor’s arrangement with Cryovac whereby Cryovac became the exclusive distributing agent for Hooper’s vacuum packaging machines and parts. Although the agreement did not prohibit Hooper from entering into service contracts with existing owners of its machines or of otherwise servicing previously sold machines, Cryovac had as a matter of practice exclusive direct contact with the purchasers of the Hooper 1000, including Conti, and Cryovac performed all the necessary service work as well as taking orders for machines, equipment and parts. Such orders were submitted by Cryovac to Hooper, which in turn processed and filled them by shipment to Cryovac. Hooper, however, retained a “running list” of all customers.

Representatives of Hooper met with representatives of Cryovac annually, sometimes biannually, and the “general machine was gone over as far as esthetics, mechanical functions, safety features, everything.” In 1977, in a joint effort between Cryovac and Hooper, a list of safety modifications was formulated to improve the safety of the operation of the Hooper 1000. This resulted in the development of a “Safety Kit” for the Hooper 1000 and a bulletin was [364]*364published by Cryovac, dated June 8, 1977, which stated in part:

“subject: hooper model 1000 safety kit

“Hooper Engineering has requested that we make known to all customers having a Model 1000 the availability of a safety kit for this machine. The items included in the kit are listed and priced individually but can be purchased complete as a kit.

“It is recommended that each of your customers with a Hooper Model 1000 be contacted and informed of the availability of this kit and that the purchase of the kit would be advisable in the interest of maximum safety of operation. The complete kit may be ordered as the Model 1000 Safety Kit.”

At a meeting between representatives of Cryovac and Hooper it was agreed that the safety bulletin would be forwarded to Cryovac’s sales and service representatives, including DeSantis who dealt with Conti. They in turn were to distribute it to the customers to whom they were assigned. A copy of the bulletin was sent to Hooper for its files. It is undisputed that the bulletin was never sent to Conti.

The safety modifications included “Item M”, a rear cover interlock which, when lifted, cut the power to the machine. It is conceded that such an interlocking system would make the machine safer to use because once power was cut, the machine would not operate. It is undisputed that item M was not developed to enhance the efficient operation of the Hooper 1000, but was strictly a safety feature.

Hooper did not review the bulletin before it was distributed by Cryovac, nor did Hooper make any effort to find out whether the safety bulletin was sent to existing owners of the Hooper 1000. The reason given is that it had been the practice and was the arrangement for Cryovac to take care of all correspondence and information to customers, including bulletins, and Hooper relied on Cryovac to disseminate the bulletin.

This motion is now brought by Hooper for summary judgment dismissing the plaintiff’s action against it for [365]*365negligent failure to warn Conti of the defect in the Hooper 1000. In the alternative, it is brought to compel discovery pursuant to demands for discovery and inspection previously served upon Cryovac and DeSantis.

This is the second motion for summary judgment brought by Hooper. The first motion was brought one year ago to dismiss plaintiff’s actions against it for breach of warranty and product liability. Because Hooper was not responsible under successor corporation liability (see Schumacher v Richards Shear Co., 59 NY2d 239), that motion was granted. However, it was denied with respect to plaintiff’s negligence cause of action in order to provide an opportunity for further discovery as to Hooper’s possible liability for negligent failure to warn (see Schumacher v Richards Shear Co., supra).

Although a successor corporation may have an independent duty to warn customers of its predecessor, such duty arises only when there is a special relationship between the successor corporation and such customers. Hooper’s position is that, as a matter of law, no such relationship can be held to exist between Hooper and Conti because the only contact was between Conti and Cryovac. Hooper further argues that even if there were a duty to warn, it took every reasonable step to fulfill that duty and should not be held liable for Cryovac’s failure to advise Conti of the new, available safety feature.

It is now clear that a successor corporation does not assume liability for the torts of its predecessor unless the four factors enunciated in Hartford Acc. & Ind. Co. v Canron, Inc. (43 NY2d 823, 825) exist. Although successor liability has been extended in other jurisdictions upon the theories of “continuity of enterprise” (Turner v Bituminous Cas. Co., 397 Mich 406) or “product line” (Ray v Alad Corp., 19 Cal 3d 22; Ramirez v Amsted Inds., 86 NJ 332), our Court of Appeals has refused to adopt either rule (Schumacher v Richards Shear Co., supra, p 245). In so doing, it would appear to have aligned New York with the majority of other jurisdictions which have considered the question (Tucker v Paxson Mach. Co., 645 F2d 620; Rhynes v Branick Mfg. Corp., 629 F2d 409; Travis v Harris Corp., 565 F2d 443; Leannais v Cincinnati, Inc., 565 F2d 437, on [366]*366remand 480 F Supp 286; Shane v Hobam, Inc., 332 F Supp 526; Hernandez v Johnson Press Corp., 70 Ill App 3d 664).

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Bluebook (online)
125 Misc. 2d 362, 479 N.Y.S.2d 324, 1984 N.Y. Misc. LEXIS 3415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/radziul-v-hooper-inc-nysupct-1984.