Schultz v. Ford Motor Co.

822 N.E.2d 645, 2005 Ind. App. LEXIS 220, 2005 WL 399609
CourtIndiana Court of Appeals
DecidedFebruary 21, 2005
Docket49A02-0309-CV-749
StatusPublished
Cited by6 cases

This text of 822 N.E.2d 645 (Schultz v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schultz v. Ford Motor Co., 822 N.E.2d 645, 2005 Ind. App. LEXIS 220, 2005 WL 399609 (Ind. Ct. App. 2005).

Opinion

OPINION

KIRSCH, Chief Judge.

Richard and Gail Schultz appeal the jury verdict in favor of Ford Motor Company ("Ford") on their product liability and negligence claims, contending that the trial court erred by using Final Instruction No. 23 ("Instruction 28"), which informed the jury that there was a rebuttable presumption that Ford was not negligent in its design of the Ford Explorer if it complied with Federal Motor Vehicle Safety Standard ("FMVSS") 216, concerning roof crush resistance. On appeal, the Schultzes raise the following consolidated and restated issue: whether the trial court erred in using Instruction 23 because the presumption at issue was not a proper subject for jury instruction. 1

We reverse and remand for a new trial.

FACTS AND PROCEDURAL HISTORY 2

On December 30, 1997, Richard Schultz, a resident of Terre Haute, was driving his Ford Explorer westbound on Indiana State Road 2. Near Lowell, Indiana, where the posted speed limit was 45 miles per hour ("mph"), Schultz noticed ice on the side of the road and slowed his vehicle to a speed between 35 and 40 mph. As he rounded a gradual curve in the road, the Explorer hit a patch of black ice, and Schultz lost control. Trying to avoid an accident, Schultz steered the vehicle to the left, crossed both lanes of traffic and, with the Explorer's right side leading, slid off the left side of the highway.

Upon leaving the roadway, the Explorer hit and traversed a ditch and smashed into an embankment. The Explorer then climbed the embankment and continued to slide sideways. Moving at a speed between 15 and 17 mph, the Explorer rolled over, hit the ground on the driver's side roof causing it to collapse one foot, and landed on its wheels. As a result of the accident, Schultz suffered a cervical cord injury and was rendered a quadriplegic.

The Schultzes originally brought suit on December 29, 1999, seeking compensatory *648 damages from Ford based on its negligence and defective design of the roof. On October 10, 2002, they amended their complaint to add a punitive damage claim based on Ford's reckless indifference to consumer safety in designing the Explorer roof. In response, Ford filed a motion for summary adjudication of the punitive damage claim, which the trial court denied on April 3, 2008.

Prior to the eight-week trial, the Schultzes filed a trial brief objecting to the giving of any jury instruction, similar to Instruction 28, that was derived from either IC 34-20-5-1 of the Indiana Product Liability Act ("IPLA") or Indiana Pattern Jury Instruction 7.05(D), both of which focus on the creation of a rebuttable presumption of Ford's non-negligence upon proof of compliance with a federal safety standard. During trial, the Schultzes again objected to such an instruction by filing a supplemental brief on the issue. The trial court ruled against the Schultzes and, over the Schultzes' continuing objection, read Instruction 23 to the jury at the end of trial.

On August 9, 2003, the jury returned its verdict in favor of Ford on both the claims for compensatory and punitive damages. The Schultzes now appeal.

BACKGROUND

FMVSS 216

The National Traffic and Motor Vehicle Safety Act of 1966 ("Safety Act") was enacted to "reduce traffic accidents and deaths and injuries resulting from traffic accidents." 49 U.S.C. § 30101. 3 The Safety Act defines "motor vehicle safety standard" as "a minimum standard for motor vehicle or motor vehicle equipment performance." 49 U.S.C. § 80102(a2)(Q).

The Senate Report accompanying the original Safety Act bill stated that "[the federal minimum safety standards need not be interpreted as restricting state common law standards of care. Compliance with such standards would thus not necessarily shield any person from product liability at common law." S.Rep. No. 1801, 89th Cong., 2d Sess., reprinted in 1996 U.S$.Code Cong. & Admin. News 2709, 2720. The House report stated that "[Congress] intended, and [the savings clause] specifically establishes, that compliance with safety standards is not to be a defense or otherwise to affect the rights of parties under common law, particularly those relating to ... tort liability." H.R.Rep. No. 1776, 89th Cong., 2d Sess. 24 (1966). "[The saving{s] clause reflects a congressional determination that occasional nonuniformity is a small price to pay for a system in which juries not only create, but also enforce, safety standards, while simultaneously providing necessary compensation to victims." Geter v. American Hondo Motor Co., Inc., 529 U.S. 861, 120 S.Ct. 1913, 1920, 146 L.Ed.2d 914 (2000).

Rogers ex rel. Rogers v. Cosco, Inc., 737 N.E.2d 1158, 1164-65 (Ind.Ct.App.2000), trams. denied.

FMVSS 216 is a safety standard pertaining to roof crush resistance. It was adopted by the National Highway Traffic Safety Administration in 1971 and had changed little by the time of the Schultzes' 1997 accident.

Product Liability

"In modern usage, the phrase (products liability' refers broadly to the decisional and statutory law permitting money damages to be levied against manufacturers and sellers of defective products that in *649 jure persons or property." 1 David G. Owen, M. Stuart Madden, Mary J. Davis, Madden & Owen on Products § 1.5 at 14-15 (8d ed.2000). Prior to passage of the IPLA, "Indiana recognized strict lability in tort as embodied in § 402A of the Restatement (Second) of Torts (1965), which imposes liability on manufacturers and sellers 'for injuries caused by unreasonably dangerous products." Reed v. Central Soya Co., Inc., 621 N.E.2d 1069, 1072 (Ind.1993), modified on other grounds by 644 N.E.2d 84 (Ind.1994) (citing Ayr-Way Stores, Inc. v. Chitwood, 261 Ind. 86, 93, 300 N.E.2d 335, 340 (1973)).

The IPLA was enacted in 1978. Progressive Ins. Co. v. General Motors Corp., 749 N.E.2d 484, 487 n. 2 (Ind.2001). As originally enacted, it covered claims in tort under theories of negligence and strict liability. Id. (citing IC 83-1-1.5-1 (1983) (now repealed)). In 1983, the IPLA was amended to apply to strict liability actions only. Pub.L. No. 297-1988, § 1. These strict liability claims merged the concept of implied warranty with the tort of negligence. In these suits, it was unnecessary to have direct privity between the seller and the defendant, and liability attached even if the manufacturer's quality control in producing the defective product was reasonable. 3 Mappzn & Owen on Products Liability, app. B, § 1 at 38.

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822 N.E.2d 645, 2005 Ind. App. LEXIS 220, 2005 WL 399609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-ford-motor-co-indctapp-2005.