Satcher v. Honda Motor Co.

52 F.3d 1311, 32 Fed. R. Serv. 3d 510, 42 Fed. R. Serv. 177, 1995 U.S. App. LEXIS 12959
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 30, 1995
Docket94-60492
StatusPublished
Cited by48 cases

This text of 52 F.3d 1311 (Satcher v. Honda Motor Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Satcher v. Honda Motor Co., 52 F.3d 1311, 32 Fed. R. Serv. 3d 510, 42 Fed. R. Serv. 177, 1995 U.S. App. LEXIS 12959 (5th Cir. 1995).

Opinions

REAVLEY, Circuit Judge:

The manufacturer and seller of Honda motorcycles appeal for the second time1 a judgment in favor of a rider who lost his leg in a collision between his motorcycle and an automobile. His vehicle had no leg guards, an omission that plaintiff Satcher claims made the product defective and unreasonably dangerous in a crash. The district court’s judgment enforces a jury verdict. We vacate the award of punitive damages and otherwise affirm.

BACKGROUND

Satcher sued three Honda companies (collectively Honda) and obtained a favorable jury verdict awarding him approximately $1 million in actual damages and $2 million in punitive damages. In the first appeal we held that under Mississippi law the recovery was barred because the alleged defect, the lack of leg guards, was open and obvious to the ordinary consumer. We reversed and rendered, reasoning that the case should have never gone to the jury and that the district court should have granted defendants’ motion for summary judgment.

A few months after our first opinion, however, the Mississippi Supreme Court made clear that the Fifth Circuit’s rule, that an open and obvious product defect could not be a ground for liability, was not Mississippi law. The Mississippi Legislature also enacted a new statute bearing on product liability. On rehearing, we vacated the. prior opinion and remanded the case to the district court to address these new developments in Mississippi law.

The Mississippi case in question is Sperry-New Holland v. Prestage, 617 So.2d 248 (Miss.1993). The court there approved a risk-utility analysis in products cases, and held that the trial court had not erred in applying that analysis rather than a consumer expectations analysis. The critical distinction for our purposes is that even if the dangerousness of the product is obvious to a reasonable consumer, the plaintiff can still recover in some cases:

In a “risk-utility” analysis, a product is “unreasonably dangerous” if a reasonable person would conclude that the danger-in-fact, whether foreseeable or not, outweighs the utility of the product. Thus, even if a plaintiff appreciates the danger of a product, he can still recover for any injury resulting from that danger provided that the utility of the product is outweighed by the danger that the product creates. Under the “risk-utility” test, either the judge or the jury can balance the utility and danger-in-fact, or risk, of the product.

Id. at 254. The court further made clear that the “patent danger” or “open and obvious” bar to recovery in products cases is not to be followed in Mississippi:

Under the “patent danger” rule, “a product that has an open and obvious danger is not more dangerous than contemplated by the consumer, and hence cannot, under the consumer expectation test applied in Mississippi, be unreasonably dangerous.” Toney [v. Kawasaki Heavy Industries, Ltd.] 975 F.2d [162] at 165 [(5th Cir.1992) ] (quoting Melton, 887 F.2d at 1243).
Having here reiterated this Court’s adoption of a “risk-utility” analysis for products liability cases, we hold, necessarily, that the “patent danger” bar is no longer applicable in Mississippi. Under a “risk-utility” analysis, the “patent danger” rule does not apply. In “risk-utility,” the openness and obviousness of a product’s design is simply a factor to consider in determining whether a product is unreasonably dangerous.

Id. at 256 n. 4. The court further held that Fifth Circuit cases applying the consumer [1314]*1314expectations test had incorrectly applied Mississippi law. Id. at 256.2

The district court subsequently responded with a carefully written Memorandum Opinion and Order on Remand. The court pointed out that the new statute, Miss.Code ANN. § 11-1-63, § 11-1-65, did not become effective until July 1, 1993 (procedural) and July 1, 1994 (substantive), too late to have any effect on the 1991 trial of the Satcher case. Moving to Prestage, the district court read that decision to fault the Fifth Circuit’s view of Mississippi law but not to fault the trial court’s submission in this case. While a risk-utility analysis would have been appropriate under Prestage, the defendant here requested the consumer expectations instruction that was given and the jury returned a verdict of unreasonable dangerousness. There being no error and no manifest injustice, the judgment was again entered on the verdict.

DISCUSSION

A. The Impact of Prestage.

Honda argues that Prestage altered the analysis used in products cases, changing the focus away from consumer expectations for the product to whether the danger outweighs the utility of the product. Honda contends that the open and obvious nature of the danger is only one factor to consider, and that because the analysis now required is fundamentally different, Honda is entitled to a new trial. In effect, Honda argues that Prestage announced a new common law rule, and that new rule should be applied retroactively so as to afford Honda a right to a new trial.

Both the Mississippi Supreme Court and this court have held that Prestage did not change the law. Prestage concluded that in prior decisions the Mississippi Supreme Court “has clearly moved away from a ‘consumer expectations’ analysis and has moved towards ‘risk-utility.’ ” 617 So.2d at 253. It purported to apply a risk-utility analysis adopted in earlier decisions. Id. at 253. On rehearing the first appeal in our case, we explained that Prestage held that “contrary to prior Fifth Circuit opinions and this panel’s opinion in the instant ease, Mississippi applies a ‘risk-utility’ analysis in products liability cases and has done so since 1987.” 993 F.2d at 57. We are not in a position to contradict the Mississippi Supreme Court’s own conclusion, as well as that of our own panel, that Prestage did not change Mississippi law. It is true, however, that from the perspective of the parties in this case Pres-tage has changed the Fifth Circuit’s reading of Mississippi law in that the patent danger of a product is not a bar to recovery. That change is not in Honda’s favor, nor does it mean that Honda was prejudiced by the law under which this case was tried.

The Mississippi court has explained to us in Prestage that the risk-utility analysis of the danger of a product is the analysis to be used, rather than that of only consumer expectations. Again, this modification of our understanding of Mississippi law does not help Honda in this case, and it will not justify affording Honda a new trial. The modification adds strings to the bow of the plaintiff, not the defendant. In the words of the Prestage court:

[E]ven if a plaintiff appreciates the danger of a product, he can still recover for any injury resulting from that danger provided that the utility of the product is outweighed by the danger that the product creates.

617 So.2d at 254.

In the trial of this ease the jury was instructed that Satcher’s product liability claim depended upon his proving that “the product was in a defective condition making it unrea[1315]*1315sonably dangerous to the user.” It was then explained to the jury:

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Cite This Page — Counsel Stack

Bluebook (online)
52 F.3d 1311, 32 Fed. R. Serv. 3d 510, 42 Fed. R. Serv. 177, 1995 U.S. App. LEXIS 12959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satcher-v-honda-motor-co-ca5-1995.