Stanley Electric Co. v. Crawford Equipment & Engineering Co.

249 F.R.D. 267, 2008 U.S. Dist. LEXIS 15264, 2008 WL 554817
CourtDistrict Court, S.D. Ohio
DecidedFebruary 27, 2008
DocketNo. 2:03-cv-435
StatusPublished
Cited by2 cases

This text of 249 F.R.D. 267 (Stanley Electric Co. v. Crawford Equipment & Engineering Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanley Electric Co. v. Crawford Equipment & Engineering Co., 249 F.R.D. 267, 2008 U.S. Dist. LEXIS 15264, 2008 WL 554817 (S.D. Ohio 2008).

Opinion

MEMORANDUM OPINION & ORDER

JOHN D. HOLSCHUH, District Judge.

Plaintiff Stanley Electric Co., Inc. (“Plaintiff’) has brought numerous state law tort and contract claims against Defendants Crawford Equipment and Engineering Co., Crawford Industrial Group LLC, Des Champs Laboratories, Inc., and CASPE Systems Company (collectively, “Defendants”). Plaintiffs claims arose out of a fire that occurred at its manufacturing plant in London, Ohio. This matter is before the Court on Plaintiffs Motion to Drop Defendants Crawford Equipment and Engineering Company and Crawford Industrial Group, LLC as Parties (R. at 98.) For the following reasons, Plaintiffs Motion is DENIED, and this case is DISMISSED for lack of subject-matter jurisdiction.

I. Background1

Plaintiff is an Ohio corporation engaged in the manufacture and spray painting of auto[269]*269motive and motorcycle lighting components, such as headlights and taillights. (Compl. ¶ 1; Pl. Mem. Supp. p. 1, R. at 99.) Spray painting these lighting components involves the use of solvents known as volatile organic compounds (“VOCs”). Prior to 1997, Plaintiffs spray paint operations did not produce a large enough quantity of VOCs to require the use of emissions control equipment, and so Plaintiff simply emitted these VOCs into the atmosphere. (Des Champs. Mot. Summ. J. p. 2, R. at 58.) At some time prior to 1997, however, Plaintiff decided to expand its manufacturing and spray painting operations, resulting in increased VOC production. Consequently, government regulations forced Plaintiff to install an emissions control system to destroy the VOCs produced. This is commonly done by means of a thermal oxidizer. (Id.)

Plaintiff solicited bids to design this emissions control system from various companies, one of whom was Defendant CASPE Systems Co. (“CASPE”). (Dep. Brian Boldman p. 34-37, Pl. Mem. Opp’n Des Champs Mot. Summ. J. ex. A, R. at 61 (“Boldman Dep.”).) CASPE is a “systems integrator” according to Plaintiff, that is, “someone that can put an entire project together. They don’t sell you just the robot or the paint booth, they sell you the entire package.” (Boldman Dep. p. 36.) CASPE came to Plaintiffs facility to present their proposed emissions control system in late 1996 or early 1997. (Pl. Mem. Opp’n Des Champs Mot. Summ. J. p. 9-10, R. at 61.) At this meeting, CASPE was primarily responsible for designing the proposed system and had selected proposed subcontractors for different parts of the system, including Defendants Crawford Equipment and Engineering (“Crawford Equipment”)2 and Des Champs Laboratories, Inc. (“Des Champs”). Representatives from Crawford Equipment and Des Champs were present at this proposal meeting. Des Champs was not heavily involved with CASPE’s system design and did not contact Plaintiff directly during the design phase, but did work closely with Crawford Equipment. Later, Des Champs did work directly with Plaintiff. (Dep. Rex McClure p. 63, Pl. Mem. Opp’n Des Champs Mot. Summ. J. ex. C, R. at 61 (“McClure Dep.”).) Crawford Equipment, in turn, received the design specifications directly from CASPE, and worked directly with Plaintiff during the design phase in selecting and designing the thermal oxidizer. (Boldman Dep. p. 41-42.) Plaintiff was “very heavily involved in the selection process” and had the opportunity to object to the use of the various subcontractors. (Boldman Dep. p. 76, 78.)

Plaintiff eventually accepted CASPE’s bid and entered into a contract with CASPE. (Id. p. 50.) Plaintiff did not contract directly at this time with any of CASPE’s subcontractors. The system CASPE designed consisted of two automated high-speed paint lines with an attached filtration and emissions control system. (Pl. Mem. Opp’n Des Champs Mot. Summ. J. p. 10, R. at 61.) Paint would be applied to a headlight in a paint booth by robotic paint sprayers. This paint consisted of solvents, i.e. the VOCs, that kept the solid paint in a liquid state. When sprayed, the paint would atomize. The VOCs would be released into the air, and approximately 25 to 30% of the solid paint would be applied to the headlight. The remaining 70 to 75% of the paint, referred to as “particulate,” would be released into the air along with the VOCs. (Boldman Dep. p. 29-30.) A fan located in the back of the paint booth was designed to pull the VOC and particulate-laden air out of [270]*270the paint booth and into ductwork. (Id. p. 57.) Two filters, designed specifically by CASPE, were installed to capture the particulate. After passing through the filters, the air would then travel through ductwork to a heat exchanger designed and installed by Des Champs. The heat exchanger preheated the VOC-laden air to prepare the VOCs for destruction. When the air exited the heat exchanger, it traveled through more duct-work to the thermal oxidizer. There, it was exposed to an open flame that oxidized the VOCs. (Id.) From there the air, now free of VOCs, would travel through more ductwork back into the heat exchanger, where it was cooled and then vented into the atmosphere.

Representatives from both Crawford Equipment and Des Champs came to Plaintiffs facility to install the thermal oxidizer and heat exchanger, and to provide training for Plaintiffs employees. (Pl. Mem. Opp’n Crawford Mot. Summ. J. p. 5-6, R. at 62; Boldman Dep. p. 175-76.) Soon after the system was installed, Plaintiff detected problems with its performance. Solid paint particulate from the spray painting booths passed through the filters at an unacceptable level and started to accumulate on the Des Champs heat exchanger. Plaintiff attempted to remedy this situation by modifying and eventually replacing the filters used in the system, and by purchasing a different type of heat exchanger to replace the Des Champs heat exchanger. The new heat exchanger was not designed to Plaintiffs specifications, however, and Plaintiff soon contracted directly with Des Champs for a replacement heat exchanger identical to the first. (Pl. Mem. Supp. Mot. Drop p. 2-3, R. at 99.) Plaintiff continued to attempt to address the particulate accumulation problem through maintenance and cleaning, but the particulate continued to accumulate.

On July 24, 2002, a power failure at Plaintiffs facility shut down the emissions control unit. (Pl. Mem. Opp’n Des. Champs Mot. Summ. J. p. 26, R. at 61.) After power was restored, Plaintiff repeatedly attempted to restart the thermal oxidizer. (Des Champs. Mot. Summ. J. p. 10, R. at 58.) On the final attempt, the heat exchanger caught fire. (Boldman Dep. p. 101.) Both the heat exchanger and the thermal oxidizer were destroyed by the fire. (Id. p. 286.) Plaintiff alleges that excess particulate in the heat exchanger ignited, causing the fire. (Pl. Mem. Opp’n Des Champs Mot. Summ. J. p. 4, R. at 61.)

Plaintiff filed its Complaint in this matter on May 14, 2003. (R. at 1.) Plaintiff brought tort law claims against all Defendants for strict liability design defect; strict liability failure to warn; negligent failure to warn; and breach of implied warranty. Additionally, Plaintiff brought contract law claims against all Defendants for breach of contract; breach of implied warranty of fitness for a particular purpose; and breach of implied warranty of merchantability. Plaintiffs contract law claims against Crawford Equipment and Des Champs were based on allegations that Crawford Equipment and Des Champs were in privity of contract with Plaintiff.

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Bluebook (online)
249 F.R.D. 267, 2008 U.S. Dist. LEXIS 15264, 2008 WL 554817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanley-electric-co-v-crawford-equipment-engineering-co-ohsd-2008.