Speyer, Inc. v. Goodyear Tire & Rubber Co.

295 A.2d 143, 222 Pa. Super. 261, 11 U.C.C. Rep. Serv. (West) 749, 1972 Pa. Super. LEXIS 1273
CourtSupreme Court of Pennsylvania
DecidedSeptember 15, 1972
DocketAppeals, Nos. 164 and 165
StatusPublished
Cited by17 cases

This text of 295 A.2d 143 (Speyer, Inc. v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Speyer, Inc. v. Goodyear Tire & Rubber Co., 295 A.2d 143, 222 Pa. Super. 261, 11 U.C.C. Rep. Serv. (West) 749, 1972 Pa. Super. LEXIS 1273 (Pa. 1972).

Opinion

Opinion by

Jacobs, J.,

This case presents the issue of whether a trial court’s finding of fact which is not relied upon by an appellate court in affirming a judgment is conclusive against one of the parties who brings a subsequent suit against a nonparty, in which the fact is in issue.

The Court of Common Pleas of Erie County, Mc-Clelland, J., having by implication determined the question in the affirmative, issued summary judgment in favor of the defendant. We reverse.

On appeal from a summary judgment, the record should be examined in the light most favorable to the appellant, and his well-pleaded facts should be accepted as true. Toth v. Philadelphia, 213 Pa. Superior Ct. 282, 247 A.2d 629 (1968). On April 24, 1964, plaintiffs Speyer, Inc., and Yellow Cab Company of Erie [263]*263suffered injury to their property from an explosion and fire, resulting from a broken part in a gasoline pump. The break was caused by a defective hose manufactured and sold by defendant Goodyear. In a prior suit, in the Federal District Court for the Western District of Pennsylvania,1 based upon diversity of citizenship, plaintiffs sued the manufacturer/seller of the gasoline pump, to which the hose had been attached, for strict product liability in tort, negligence, and breach of warranty, and the lessor of the pump, for strict product liability and negligence.2 The trial court held for defendants on a number of grounds.

As to strict liability under §402A of the Restatement (Second) of Torts, the court exonerated the manufacturer/seller of the pump on the ground of an abnormal use of the product;3 it exonerated the pump lessor on alternative grounds of a lessor’s not being a seller and of an abnormal use of the product.4 As to negligence, the court exonerated both defendants on alternative grounds of absence of negligence and, under a unity of enterprise theory by which one plaintiff’s negligence was attributed to the other, contributory negligence.5 6Other determinations of the trial court are not essential to this opinion.

On plaintiff’s appeal, the United States Court of Appeals for the Third Circuit affirmed.® But in so af[264]*264firming, the court did not rely upon all of the findings of the trial court. It agreed that the manufacturer/seller of the pump was not strictly liable, but adopted its own premise that a substantial change in the product had taken place, passing over the trial court’s finding that an abnormal use had occurred;7 it agreed that the pump lessor was not strictly liable, but relied upon the finding that the lessor was not a seller, passing over the finding of abnormal use;8 it agreed that neither defendant was liable in negligence, but relied upon the finding of an absence of negligence, passing over the finding of contributory negligence.9

In the present Pennsylvania state action, plaintiffs sued the manufacturer and seller of the defective hose, Goodyear, for negligence, strict product liability, and breach of warranty. Contributory negligence is a defense, of course, in a negligence action. See Dougherty v. Philadelphia Nat’l Bank, 408 Pa. 342, 184 A.2d 288 (1962). Abnormal use is a defense in a strict liability action [see Bartkewich v. Billinger, 432 Pa. 351, 247 A.2d 603 (1968)] and may be one in a breach of warranty action [see 2 L. Frumer & M. Friedman, Products Liability § 19:08 (1970)]. If the trial court’s findings of contributory negligence and abnormal use survived [265]*265the circuit court’s affirmance on other grounds, so as to be res judicata as to the parties, and if a number of other legal questions, such as whether the requirement of mutuality of estoppel has been abandoned under the circumstances of the case, are decided favorably to the defendant, the summary judgment should be affirmed. We believe, however, that the findings in question did not survive the affirmance.

As to what law of res judicata and collateral estoppel should govern the case, it is clear that reference must be made to Pennsylvania rules. Although “federal court judgments are entitled to faith and credit in state courts” [47 Am. Jur. 2d Judgments § 1291 (1969)], and although it has been held that a federal court’s rule of res judicata must therefore be respected by a state court [Horne v. Woolever, 170 Ohio S. 178, 163 N.E.2d 378 (1959), cert. denied, 362 U.S. 951 (1960) ], the federal court in question, which was sitting as a Pennsylvania forum in a diversity case, would apply Pennsylvania law. Blum v. William Goldman Theatres, Inc., 174 F.2d 914 (3d Cir. 1949). Since both Pennsylvania and the Third Circuit would apply this state’s law, it is unnecessary to determine whether Pennsylvania could, under the circumstances of the case, apply its own law without reference to the Third Circuit’s.

As to the issue of estoppel on these facts, no Pennsylvania case directly on point has been found. But the weight of authority, the better rationale, and the case of Irwin Borough School District v. North Huntingdon Township School District, 374 Pa. 134, 97 A.2d 96 (1953), support a conclusion that the findings of a trial court which are not relied upon on appeal should not remain res judicata.

According to the Restatement of Judgments, “Where the trial court bases [a] judgment upon two alterna[266]*266live grounds, and an appellate court affirms the judgment solely on one of the grounds, the judgment is not conclusive in a subsequent action in which the other ground is in issue.” Section 68, comment n (1942). To the same effect is § 69, comment 6. See Scott, Collateral Estoppel by Judgment, 56 Harv. L. Rev. 1, 15 (1942). A similar rule would undoubtedly apply in the case of an appellate court’s affirmance of a decision on a ground suggested by itself, after passing over the trial court’s premise.

The view that an appeal creates a clean slate, so to speak, for purposes of res judicata, upon which the appellate court’s grounds of decision are inscribed, has been said to be supported by “the great weight of judicial and scholarly opinion.” Hannahville Indian Community v. United States, 180 Ct. Cl. 477, 485 (1967). See, e.g., International Refugee Org. v. Republic S.S. Corp., 189 F.2d 858 (4th Cir. 1951); Moran Towing & Transp. Co. v. Navigazione Libera Triestina, S.A., 92 F.2d 37 (2d Cir.), cert. denied, 302 U.S. 744 (1937); Reighley v. Continental Ill. Nat'l Bank & Trust Co., 323 Ill. App. 479, 56 N.E.2d 328 (1944) (supplemental opinion), aff'd, 390 Ill. 242, 61 N.E.2d 29 (1945); State ex rel. City of Trenton v.

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Bluebook (online)
295 A.2d 143, 222 Pa. Super. 261, 11 U.C.C. Rep. Serv. (West) 749, 1972 Pa. Super. LEXIS 1273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/speyer-inc-v-goodyear-tire-rubber-co-pa-1972.