Steven Papp v. Fore-Kast Sales Co Inc

CourtCourt of Appeals for the Third Circuit
DecidedNovember 22, 2016
Docket15-2851
StatusPublished

This text of Steven Papp v. Fore-Kast Sales Co Inc (Steven Papp v. Fore-Kast Sales Co Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steven Papp v. Fore-Kast Sales Co Inc, (3d Cir. 2016).

Opinion

PRECEDENTIAL UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _____________

No. 15-2851 _____________

STEVEN PAPP, individually and as Executor and Executor as Prosequendum of the Estate of MARY SUE PAPP

v.

FORE-KAST SALES CO., INC.; HONEYWELL INTERNATIONAL, INC., f/k/a Allied Signal, Inc., as successor-in-interest to the Bendix Corporation; NEW BRUNSWICK PLATING CO., f/k/a New Brunswick Nickel and Chrome Plating; UNION CARBIDE CORPORATION; JOHN DOE CORPORATIONS 1-50; JOHN DOE CORPORATIONS 51-100; GOODRICH CORP., f/k/a B.F. Goodrich Co.; THE GOODYEAR TIRE & RUBBER CO.; THE BOEING COMPANY, individually and as successor by merger to the McDonnell Douglas Corporation

The Boeing Company, Appellant _______________ On Appeal from the United States District Court for the District of New Jersey (D.C. No. 3-13-cv-5940) District Judge: Honorable Peter G. Sheridan _______________

Argued September 9, 2016

Before: JORDAN, VANASKIE, and KRAUSE, Circuit Judges.

(Filed: November 22, 2016) _______________

Amaryah K. Bocchino Jason A. Cincilla Bryan P. Smith Manion Gaynor & Manning 1007 N. Orange Street Tenth Floor Wilmington, DE 19801

Martin F. Gaynor, III [ARGUED] Nicholas D. Stellakis Manion Gaynor & Manning 125 High Street Boston, MA 02110

2 Brian D. Gross Manion Gaynor & Manning One Citizens Plaza Suite 620 Providence, RI 02903

Marc S. Gaffrey Hoagland Longo Moran Dunst & Doukas 40 Paterson Street P.O. Box 480, Room 301 New Brunswick, NJ 08903

Counsel for Appellant, Boeing Co.

Jeffrey P. Blumstein [ARGUED] Robert E. Lytle Robert G. Stevens, Jr. Szaferman Lakind Blumstein & Blader 101 Grovers Mill Road, Suite 200 Lawrenceville, NJ 08649

Joseph J. Mandia Levy Konigsberg 800 Third Avenue 13th Floor New York, NY 10022 Counsel for Appellee _______________

OPINION OF THE COURT _______________

3 JORDAN, Circuit Judge.

Steven Papp filed this failure-to-warn product liability suit against The Boeing Company in the Superior Court of New Jersey, alleging that his late wife, Mary, 1 was made ill by exposure to asbestos from a Boeing aircraft. Boeing removed Papp’s failure-to-warn suit to the United States District Court for the District of New Jersey on the basis of the federal officer removal statute, 28 U.S.C. § 1442(a)(1). According to Boeing, it was acting as a government contractor when it engaged in the allegedly tortious conduct. After removal, Papp filed a motion to remand the case to state court, which the District Court granted. The District Court ruled that Boeing had failed to meet a “special burden” of establishing that a federal officer or agency affirmatively prohibited Boeing from warning third parties of the dangers of asbestos found in planes manufactured in the mid- twentieth century. Because we conclude that the federal officer removal statute extends to contractors who possess a colorable federal defense, and that Boeing made a sufficient showing of such a defense at the time of removal, we will reverse.

I. BACKGROUND

Papp, individually and on behalf of Mary’s estate, alleges that Mary suffered secondary “take home” asbestos exposure while washing the work clothes of her first husband, Robert Keck. Keck had several jobs that exposed him to

1 For clarity, and intending no disrespect by undue familiarity of address, throughout this opinion we refer to Mary Papp as “Mary” and to Steven Papp as “Papp.”

4 asbestos, including one for the New Brunswick Plating Co. (“New Brunswick”) in the late 1970s. While working for New Brunswick, Keck sandblasted the landing gear of World War II military cargo planes to prepare the gear for repairs. Papp contends that that process resulted in Keck having airborne asbestos fibers adhere to his clothing so that Mary, who handled the clothes, inhaled the asbestos.

On August 12, 2013, Papp sued a host of companies in New Jersey, alleging injuries to Mary from exposure to asbestos. He filed his First Amended Complaint (the “Complaint”) on August 16, 2013, adding Boeing as a defendant, both individually and as successor-by-merger to the McDonnell Douglas Corporation. The Complaint did not indicate which Boeing or Douglas aircraft was claimed to have been the source of Mary’s asbestos exposure. At her deposition taken on September 5, 2013, however, Mary specified that the landing gear Keck sandblasted was for a military cargo plane called the C-47. The C-47 was built by the Douglas Aircraft Company, a predecessor company to Boeing,2 for the United States Navy and Air Force during World War II. Once Boeing learned the identity of the aircraft, it promptly removed the case to federal court pursuant to the federal officer removal statute, 28 U.S.C. § 1442(a)(1). That statute permits a defendant to remove a case to federal court from the state court where suit was originally filed, provided the allegedly culpable behavior took

2 For ease of reference, and as the District Court did, we refer to the Douglas Aircraft Company, McDonnell Douglas Corporation, and The Boeing Company collectively as “Boeing,” unless otherwise specified.

5 place while the defendant was acting under the direction of a federal officer or agency. 28 U.S.C. § 1442(a)(1).

The federal officer removal statute requires that the defendant possess a colorable federal defense. In re Commonwealth’s Motion to Appoint Counsel Against or Directed to Def. Ass’n of Phila., 790 F.3d 457, 466 (3d Cir. 2015) (“Defender Ass’n”), cert. denied 136 S. Ct. 980 & 994 (2016). Boeing asserted that it was entitled to the federal defense of government contractor immunity because the C-47 was produced for, and under the specific supervision of, the United States military. More specifically, Boeing argued that the government’s oversight extended to labels and warnings for all parts of the aircraft, including those parts laden with the asbestos to which Keck, and in turn Mary, would later be exposed. Boeing also states that, to the extent that the dangers of asbestos were known at the time, the government’s knowledge of those dangers was superior to that of Boeing. As part of its notice of removal, Boeing included the declaration of Larry Fogg (the “Fogg Declaration”). Fogg was a longtime employee of Douglas, who attested, based on his experience and review of the company’s contracts and records, to the factual underpinnings of Boeing’s legal position.

Papp moved to remand the case back to state court, and, of course, Boeing opposed remand. The District Court granted the motion. It held that, because Boeing was a contractor and not a federal officer, it had a “special burden” to demonstrate that it was acting under the control of the federal government. (App. at 6.) The Court said that, to prove removal jurisdiction, Boeing was required to show that it performed “the complained-of activity at the direction of

6 official federal authority.” (App. at 8 (quotation marks and citation omitted)). Because the allegedly wrongful behavior was the failure to warn third parties of asbestos, the Court concluded that Boeing must show “that a federal officer or agency directly prohibited Boeing from issuing, or otherwise providing, warnings as to the risks associated with exposure to asbestos contained in products on which third-parties … worked or otherwise provided services.” (App. at 11.) Using that standard, the Court decided that Boeing did not meet its special burden and that remand to state court was proper. Boeing timely appealed.

II. DISCUSSION3

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Steven Papp v. Fore-Kast Sales Co Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-papp-v-fore-kast-sales-co-inc-ca3-2016.