Satterfield v. Crown Cork & Seal Co., Inc.

268 S.W.3d 190, 2008 WL 3984390
CourtCourt of Appeals of Texas
DecidedOctober 7, 2008
Docket03-04-00518-CV
StatusPublished
Cited by33 cases

This text of 268 S.W.3d 190 (Satterfield v. Crown Cork & Seal Co., Inc.) 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
Satterfield v. Crown Cork & Seal Co., Inc., 268 S.W.3d 190, 2008 WL 3984390 (Tex. Ct. App. 2008).

Opinions

OPINION

JAN P. PATTERSON, Justice.

The issue presented is whether a statute that extinguishes a litigant’s right to pursue an accrued and pending common law cause of action — without providing a grace period — transcends the legislature’s power. Within that context, does the presumption of a statute’s constitutionality [195]*195survive an express prohibition of the Texas Constitution? Appellant Rosemarie Sat-terfield, representative of the Estate of Jerrold Braley, seeks damages for injuries that Braley sustained by his exposure to asbestos-containing products. In this appeal, we review the judgment of the district court granting summary judgment to appellee Crown Cork & Seal Company, Inc., pursuant to a newly enacted statute that limits the asbestos-related liabilities of certain successor corporations. See Tex. Civ. Prac. & Rem.Code Ann. §§ 149.001-.006 (West 2005) (hereinafter “the Statute”).

After Braley sued Crown Cork and others for damages caused by his exposure to asbestos-containing products, the trial court granted partial summary judgment in Braley’s favor. Within days, the Texas Legislature enacted — and made immediately effective — the Statute, which effectively barred any recovery from Crown Cork.1 Crown Cork then filed a motion for summary judgment based on its new statutory affirmative defense under the Statute, arguing that, because it had already paid successor asbestos claims in excess of the liability limit under the Statute, it had no further liability in any asbestos case, including Braley’s. The district court granted the motion and severed Bra-ley’s claims against Crown Cork from those against the other defendants. This appeal followed.

In three issues, Satterfield contends that Crown Cork was not entitled to summary judgment because: (i) the Statute, which imposes certain limits on the liability of corporations that became successors to corporations that were involved in the asbestos-insulation business, violates the Texas Constitution’s prohibition on retroactive laws as applied because it deprives her of all remedy for an accrued and pending cause of action, thereby extinguishing a vested right; (ii) the Statute, on its face, violates the Texas Constitution’s prohibition on special laws because it grants special privileges to a particular class for the advancement of private, rather than public, interests; and (iii) Crown Cork failed to conclusively establish as a matter of law the elements of its newly created affirmative defense under the Statute and, therefore, is not entitled to summary judgment. Because the Legislature may not make a law that the Texas Constitution prohibits and the Constitution expressly forbids retroactive laws that impair vested rights, the question presented is whether an accrued and pending common law cause of action is a vested right and thus protected by the Texas Constitution. We conclude that it is a vested right and that therefore the Statute is unconstitutional as applied to Bra-ley’s claim because, in the absence of a grace period, the Statute is a retroactive law impairing his vested rights.2

Accordingly, we sustain Satterfield’s first issue, and we reverse the trial court’s summary judgment granted in favor of Crown Cork and remand for further proceedings.

BACKGROUND

The Parties

After receiving an honorable discharge from the United States Army in 1956, Jerrold Braley returned to his home in Wyoming but then moved his family to [196]*196Texas to work as an industrial laborer at an oil refinery near Monahans. Acquiring skills to become a pipefitter and welder’s helper, over the next several years Braley worked at refineries, chemical plants, gas plants, and at other industrial job sites in Texas, Wyoming, Oklahoma, Kansas, New Mexico, Florida, and Louisiana. These jobs involved working with pipes, boilers, compressors, and other machinery requiring insulation, which routinely involved asbestos insulation, including asbestos-containing insulation products manufactured by Crown Cork’s predecessor — Mundet Cork Corporation. Braley worked until he retired in 1996.

Crown Cork is a manufacturer and distributor of packaging products for consumer goods. In 1963, Crown Cork, then a New York corporation, was the nation’s largest producer and seller of metal bottle caps, known in the industry as “crowns.” Mundet was also a large producer and seller of crowns and consisted of two divisions: the “closure” division, which manufactured crowns, and the “thermal insulation” division, which manufactured, sold, and installed insulation products, some of which contained asbestos. Seeking to acquire the assets of Mundet, in November 1963, Crown Cork purchased the majority of Mundet stock. Approximately three months later, on February 8,1964, Mundet sold its insulation division to Baldwin-Eh-ret-Hill (“B-E-H”). It is undisputed in the summary judgment proof that B-E-H expressly agreed to assume only the liabilities of Mundet’s thermal insulation division arising after February 8, 1964. Mundet thus retained all liability arising from any exposure to its asbestos-containing products before the date of the asset sale. Crown Cork acquired the remainder of Mundet stock, and the remaining assets of Mundet were transferred to Crown Cork by merger in 1966. In 1989, Crown Cork merged into a new Pennsylvania corporation of the same name.

The Lawsuit

In July 2002, Braley was diagnosed with mesothelioma, a fatal form of cancer associated with exposure to asbestos. On October 1, 2002, Braley sued Crown Cork and others3 for damages caused by his exposure to asbestos-containing products. In his live pleading at the time — Plaintiffs’ Fourth Amended Petition and Jury Demand — Braley asserted common law causes of action for negligence and strict products liability. Braley’s petition also sought to impose liability against Crown Cork as successor to Mundet. In November, Braley moved for partial summary judgment to establish Crown Cork’s liability for Mundet’s asbestos-containing products as a result of Crown Cork’s acquisition and merger. Arguing that Pennsylvania law controls because it has the most significant relationship to the issue of whether Crown Cork should be liable for Mundet’s liabilities, Crown Cork asserted that Texas “has nothing but a tenuous relationship.” 4 Crown Cork did [197]*197not dispute that it was the successor by merger to Mundet and, therefore, liable for Mundet’s tortious conduct under Texas law,5 nor did it dispute that it was hable for actual and compensatory damages attributable to Braley’s exposure to Mundet’s products.6

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Cite This Page — Counsel Stack

Bluebook (online)
268 S.W.3d 190, 2008 WL 3984390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satterfield-v-crown-cork-seal-co-inc-texapp-2008.