STATE FARM MUT. AUTO. IN. v. Ford Motor Co.

925 So. 2d 1, 2005 La. App. LEXIS 2186, 2005 WL 2443861
CourtLouisiana Court of Appeal
DecidedJune 15, 2005
Docket2004 CA 1311
StatusPublished
Cited by6 cases

This text of 925 So. 2d 1 (STATE FARM MUT. AUTO. IN. v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE FARM MUT. AUTO. IN. v. Ford Motor Co., 925 So. 2d 1, 2005 La. App. LEXIS 2186, 2005 WL 2443861 (La. Ct. App. 2005).

Opinion

925 So.2d 1 (2005)

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
v.
FORD MOTOR COMPANY.

No. 2004 CA 1311.

Court of Appeal of Louisiana, First Circuit.

June 15, 2005.

*2 W. Ransom Pipes, Krystena L. Harper, Baton Rouge, Counsel for Plaintiff/Appellee State Farm Mutual Automobile Insurance Company.

Robert Maxwell, James C. Rather, Jr., Metairie, Counsel for Defendant/Appellant Ford Motor Company.

Before: PARRO, KUHN, and WELCH, JJ.

KUHN, J.

In this products liability case involving a fire-damaged vehicle, defendant, Ford Motor Company ("Ford"), appeals a judgment in favor of plaintiff, State Farm Mutual Automobile Insurance Company ("State Farm"). The trial court found that a defectively designed and manufactured *3 speed control deactivation switch, utilized in the vehicle's cruise control system, had caused the vehicle fire and resultant damage. We affirm on the basis that the switch was unreasonably dangerous in design.

I. FACTUAL AND PROCEDURAL BACKGROUND

During 1996, Emory R. Stephens purchased a used 1992 Lincoln Town Car with approximately 41,000 miles on its odometer from the Robinson Brothers Lincoln dealership in Baton Rouge, Louisiana. Over the next few years, Stephens brought his Town Car to the Robinson Brother's Baton Rouge dealership for routine maintenance. During September 1999, the Town Car's cruise control stopped working, and a brake light began intermittently illuminating on the dashboard. A few days after these problems developed, Stephens brought his Town Car to a local mechanic at an automobile repair shop near his home in Maringouin, Louisiana. Although the shop attendant advised Stephens that he did not think he would have the equipment in his shop needed to repair the vehicle, Stephens left the vehicle at the shop to be checked. Stephens and his wife went to a doctor's appointment, and upon their return about four hours later, an underhood fire had damaged the Town Car while it was parked in the repair shop parking lot. At the time of the fire, the Town Car's odometer registered approximately 91,000 miles.

Based on the expert testimony presented at trial, there were two possible causes of the fire: a defective speed control deactivation switch or an alarm system alleged by Ford to be an aftermarket product. Stephens testified that the Town Car was equipped with the alarm system when he purchased the car from the dealership. About two to three months after purchasing the Town Car, Stephens had someone disconnect the alarm system, explaining that he and his wife found it annoying. Although Stephens could not recall who had performed this service work, he testified that the alarm never sounded again and the dashboard light connected to the alarm system never illuminated again.

After the fire occurred, State Farm, Stephens' insurer, paid Stephens $9,840.66 for the damages sustained to the Town Car. Stephens' insurance deductible was $50.00. Pursuant to the State Farm policy, Stephens assigned his rights against Ford to State Farm, and State Farm filed suit against Ford. State Farm alleged the vehicle fire was caused by a defective speed control deactivation switch and that Ford, who designed, manufactured, assembled, and sold the Town Car, was liable for the resultant damages based on the Louisiana Products Liability Act, Louisiana Revised Statutes 9:2800.51 et seq. State Farm further alleged Ford was aware that the switch could develop a resistive short in the electrical circuit and cause an underhood fire and had issued a recall in May 1999 applicable to the Town Car for replacement of the switch.[1]

At the end of the trial after both parties had rested their cases, Ford filed a motion for involuntary dismissal.[2] The trial *4 court denied Ford's motion and signed a judgment in State Farm's favor and against Ford in the amount of $9,890.66, plus interest and costs. In its reasons for judgment, the trial court found that the switch in question was "defective in design and in manufacturing and that these defects caused the fire and damage to the vehicle." The trial court found: 1) Ford's "crimping procedure" in manufacturing the switch caused problems; 2) the speed control deactivation switch did not need to be continuously energized; and 3) State Farm established the requirement of an alternative design.

Ford appeals, seeking reversal of the trial court's judgment. Ford asserts the trial court erred by: 1) admitting evidence regarding Ford's response to the National Highway Traffic Safety Administration ("NHTSA") inquiry regarding engine compartment fires in certain Ford vehicles, Ford's service recall bulletin to its dealers addressing Safety Recall 99S15 (pertaining to the speed control deactivation switch used in 1992 Town Cars and other Ford vehicles), and Ford's safety recall notification to owners of the recalled vehicles; and 2) denying Ford's motion for involuntary dismissal on State Farm's design defect claim.[3]

II. ANALYSIS

A. Standards of Review

Louisiana Code of Civil Procedure article 1672 B provides, in pertinent part, "In an action tried by the court without a jury, after the plaintiff has completed the presentation of his evidence, any party... may move for a dismissal of the action as to him on the ground that upon the facts and law, the plaintiff has shown no right to relief." The applicable standard on a motion for involuntary dismissal is whether plaintiff has presented sufficient evidence to establish his case by a preponderance of the evidence. CB & I Constructors, Inc. v. City of Thibodaux, 04-1133, p. 3 (La.App. 1st Cir.12/17/04), 897 So.2d 724, 725. An appellate court may not reverse a ruling on a motion for involuntary dismissal unless it is manifestly erroneous or clearly wrong. Johnson v. EnviroBlast, 01-0200, p. 4 (La.App. 1st Cir.12/28/01), 804 So.2d 924, 926. Additionally, whether a product is unreasonably dangerous, and thereby defective, is a question of fact to be answered by the fact finder, subject to the manifest error standard of review. Hines v. Remington Arms Co., Inc., 94-0455, p. 6 (La.12/08/94), 648 So.2d 331, 335.

"[A] de novo review, without any deference to the fact finder, is only appropriate when there is legal error implicit in the fact finding process or when a mistake of law forecloses the fact-finding process, such as when the fact finder's decision has been tainted by an improper and prejudicial jury instruction or erroneously admitted prejudicial evidence." Levy v. Bayou Indus. Maintenance Services, Inc., 03-0037, p. 7 (La.App. 1st Cir.9/26/03), 855 So.2d 968, 974, writs denied, 03-3161, 03-3200 (La.2/6/04), 865 So.2d 724, 727, citing Clement v. Frey, 95-1119, p. 2 (La.1/16/96), 666 So.2d 607, 612 (Lemmon, J. concurring).

B. Products Liability Law

Louisiana Revised Statutes 9:2800.54 provides, in pertinent part:

*5 A. The manufacturer of a product shall be liable to a claimant for damage proximately caused by a characteristic of the product that renders the product unreasonably dangerous when such damage arose from a reasonably anticipated use of the product by the claimant or another person or entity.
B. A product is unreasonably dangerous if and only if:
(1) The product is unreasonably dangerous in construction or composition as provided in R.S. 9:2800.55;
(2) The product is unreasonably dangerous in design as provided in R.S. 9:2800.56; [or]

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Bluebook (online)
925 So. 2d 1, 2005 La. App. LEXIS 2186, 2005 WL 2443861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-mut-auto-in-v-ford-motor-co-lactapp-2005.