R.B. Hazard, Inc. v. Panco

397 S.E.2d 866, 240 Va. 438, 1990 Va. LEXIS 148
CourtSupreme Court of Virginia
DecidedNovember 9, 1990
DocketRecord 900056
StatusPublished
Cited by2 cases

This text of 397 S.E.2d 866 (R.B. Hazard, Inc. v. Panco) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.B. Hazard, Inc. v. Panco, 397 S.E.2d 866, 240 Va. 438, 1990 Va. LEXIS 148 (Va. 1990).

Opinion

JUSTICE LACY

delivered the opinion of the Court.

In this appeal we determine whether the trial court erred in submitting issues of federal contractor immunity and contractor negligence to the jury.

On the morning of October 11, 1985, John Panco, a non-commissioned officer in the Army, attempted to open a gate leading to a temporary storage facility for land air-cushioned vehicles, generally known as hovercraft, at Fort Story, Virginia. While he was moving the gate it fell on him, dislocating his toe. Because of this injury, Panco eventually was given a medical discharge from the Army.

Panco filed a motion for judgment against R.B. Hazard, Inc., and Thomas DeSantis, Jr., t/a Fence World, the general contractor and installer of the gate, respectively, seeking damages for his injury. Panco alleged that Hazard and DeSantis were negligent in improperly constructing and securing the gate and that they had breached the warranty of fitness.

The case was tried by a jury, which returned a verdict for Panco, against Hazard for $250,000 and exonerated DeSantis. The trial court denied Hazard’s motion to set aside the verdict and entered judgment on the verdict. We granted Hazard an appeal limited to its contentions that 1) the trial court erred in deny *440 ing its motions to strike and to set aside the verdict because it was entitled to immunity under the federal contractor defense doctrine, and 2) Panco had failed to establish any negligence or breach of warranty by Hazard which proximately caused Panco’s injuries. Under well-established principles, we consider the evidence in the light most favorable to Panco.

The United States Army employed an architectural firm to prepare plans and specifications for a temporary storage facility at Fort Story for the hovercraft. The plans included perimeter fencing and gates. The U.S. Army Corps of Engineers reviewed and approved the plans and, in January of 1984, awarded R.B. Hazard, Inc. several construction contracts based on the plans, including one for construction of the perimeter fencing and gates.

Hazard subcontracted with Central Fence of CNY, Inc. to manufacture and with Fence World to install the gate. Thomas DeSantis, Jr., Fence World’s representative, installed the gate under Hazard’s supervision.

Installation of the gate began in July 1985 and was completed on August 21, 1985. The gate was a single cantilever gate, 51 feet long, and weighed approximately 1,000 pounds. It was designed to open and close on rollers operating along a track with a tire on the end of the gate. Hazard’s employees poured the asphalt pad which was to serve as the surface across which the gate would roll. The plans called for the pad to incline to facilitate drainage. DeSantis testified that because the pad was uneven, the gate he installed would not remain closed and would roll open on its own. DeSantis told Jesse Page, the quality control supervisor for Hazard, that in order for the gate to hang correctly, the asphalt pad should be repoured. However, DeSantis was told to do the best he could with the existing pad. DeSantis then raised the end of the gate to prevent it from rolling. As a result, the entire weight of the gate rested on the gate post and one pulley. When the gate was in motion there was a gap between the top rail of the gate and the pulleys. Additionally, the tire and rollers on the bottom of the gate did not touch the ground. DeSantis testified that he did not think the gate would hold up.

A “pre-final” inspection of the temporary maintenance facility was held on August 19. Twelve people attended, including nine representatives of the Corps of Engineers and the Army. The gate was opened and closed successfully at this inspection. By letter *441 dated August 29, 1985, the Army notified Hazard that the facility, including the gate, was accepted as of August 19, 1985.

The gate was used daily. During the early morning hours of October 11, 1985, as the gate was opened, it fell, damaging a soldier’s car. The gate was placed upright and left partially open. Approximately two hours later, as Panco was opening the gate, it fell again, resulting in the injuries which are the subject of this suit.

Federal Contractor Defense

The issue of the federal contractor defense was submitted to the jury by the following instruction:

Contractors who are performing work for the United States government are immune from liability for negligent design or installation methods of equipment if it is established by a preponderance of the evidence that each of the following elements [is] present:
(1) The contractors were provided with reasonably precise drawings and specifications as they relate to design and installation method.
(2) The product produced by the contractors complied with the government’s drawings and specifications as they relate to design and installation method.
(3) The contractors informed appropriate government officials of any safety hazards they were aware of but the appropriate government officials were not aware of.
If you do not find by a preponderance of the evidence that each of these elements is present, immunity does not apply to the contractors.

Hazard contends that, while the instruction correctly reflects the criteria adopted in Boyle v. United Technologies Corp., 487 U.S. 500, 512 (1988), for establishing the federal contractor defense, submission of the issue to the jury was error. 1 The evidence, Haz *442 ard argues, showed that the criteria were met and, therefore, Hazard was entitled to judgment in its favor as a matter of law.

As the Court said in Boyle, “whether the facts establish the conditions for the defense is a question for the jury.” Boyle, at 514. Only if “no reasonable jury could find, ... on the basis of the evidence presented, that the Government contractor defense was inapplicable,” id., would Hazard be entitled to judgment as a matter of law.

A review of the record shows contradictory testimony on a number of matters relating to the Boyle criteria. For example, it is not clear whether the product complied with the government’s plans and specifications—the second prong of the Boyle test. The U.S. Army Corps of Engineers’ administrator for construction projects at Fort Story in 1985, and the Corps’ contract administrator for the project at issue here, both testified that the gate and pad were accepted and approved as tendered in conformance with the plans. However, their testimony also contained statements that the plans’ specifications were not met if the wheels did not touch the ground, if the grade of the pad caused the gate to open by itself and if the rail at the top of the gate was bent and not flush with the pulley.

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Related

Miller v. United Technologies Corp.
660 A.2d 810 (Supreme Court of Connecticut, 1995)
Daneshmand v. R.B. Hazard, Inc.
16 F.3d 409 (Third Circuit, 1994)

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Bluebook (online)
397 S.E.2d 866, 240 Va. 438, 1990 Va. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rb-hazard-inc-v-panco-va-1990.