United States v. Athlone Industries, Inc.

746 F.2d 977, 53 U.S.L.W. 2226
CourtCourt of Appeals for the Third Circuit
DecidedOctober 23, 1984
DocketNo. 83-5822
StatusPublished
Cited by95 cases

This text of 746 F.2d 977 (United States v. Athlone Industries, 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
United States v. Athlone Industries, Inc., 746 F.2d 977, 53 U.S.L.W. 2226 (3d Cir. 1984).

Opinion

OPINION OF THE COURT

A. LEON HIGGINBOTHAM, Jr., Circuit Judge.

In our semi-robot age, as a substitute for the batting practice pitcher, inanimate machines have been manufactured which con[979]*979front the player in the batter’s box. In this case, some of the machines were defective and more wild than an erratic pitcher. In fact some of the machinés were mysterious and unpredictable; even when disconnected from their power source, these machines retained such a high degree of tension in the spring and cable that with the slightest vibration, the pitching arm would unexpectedly swing forward and downward at great speed, striking any unsuspecting person within its range, allegedly causing injuries that were as serious as fractured skulls and loss of eye sight.

Since robots cannot be sued, but they can cause devastating damage, the defendant Athlone Industries, was twice sued as the ultimate responsible distributor for various violations of the Consumer Product Safety Act, 15 U.S.C. §§ 2051-2083 (1982). The first inning of litigation was what, one might call the “imminent hazard” suit. The second inning was the “civil penalty” suit. Now on appeal we are asked to determine whether the civil penalty action can be nullified because of what happened earlier in the imminent hazard suit.

Technically we are confronted with the issue of whether there is a “claim preclusive” effect of a district court judgment in a prior declaratory and injunctive imminent hazard suit brought by the United States Consumer Product Safety Commission pursuant to section 12 of the Consumer Product Safety Act, 15 U.S.C. § 2061(a). This subsequent civil penalty suit under sections 15 and 20 of the Act, 15 U.S.C. §§ 2064, 2069 was instituted on behalf of the Commission by the United States against the same party, Athlone Industries, that had been sued in the earlier imminent hazard suit.

We reverse the summary judgment in favor of the defendant, concluding that the district court erred in ruling that the civil penalty action was barred by res judicata. We therefore remand this matter for further proceedings — or in baseball parlance — for completion of the other innings.

I.

The United States appeals a final order of the United States District Court for the District of New Jersey granting summary judgment in favor of defendant Athlone Industries, Inc. (“Athlone”) in an action instituted on February 19, 1982 by the United States, on behalf of the United States Consumer Product Safety Commission (“the Commission”), seeking the assessment of a civil penalty against Athlone pursuant to sections 15 and 20 of the Consumer Product Safety Act, 15 U.S.C. §§ 2064, 2069.

This civil penalty action commenced with the filing of a complaint by the United States Department of Justice against Athlone, the primary distributor of automatic baseball pitching machines manufactured by Advance Machine Company, Inc. (“Advance Machine”) of Spring Park, Minnesota. The government’s complaint charged that Athlone and Dudley Sports Company (“Dudley”), a division of Athlone, failed to report to the Commission certain information regarding these machines, as required by the Act.

Athlone moved for summary judgment on the grounds that the civil penalty action was barred by res judicata, the applicable statute of limitations, and the Commission’s failure to determine the amount of penalty to be sought prior to commencing the action. The district court heard argument on Athlone’s motion on July 28, 1983 and ruled in an oral opinion that the Commission’s case was barred by res judicata, without reaching Athlone’s other claims. The district court concluded that the Commission had based its claim on the same underlying factual events and on the same wrong as had been involved in previous litigation between Athlone and the Commission in the United States District Court for the District of Columbia. By order of September 9, 1983, the district court dismissed this suit.

The undisputed facts are as follows.

A. The Prior Litigation — The “Imminent Hazard” Suit

Advance Machine and its wholly-owned subsidiary, Commercial Mechanisms, Inc., [980]*980manufactured the automatic baseball pitching machines bought by Athlone and distributed by Dudley. The Consumer Product Safety Commission conducted an inspection of Advance Machine in February of 1977 during the course of which, the Commission obtained information regarding a possible defect in the automatic pitching machine. After receiving injury data from Advance Machine and verifying the presence of a defect through an engineering analysis of the pitching machine, Joint Appendix (“J.A.”) at 49-54, the Commission, on June 29, 1977, inspected Dudley Sports Company. The Commission informed Athlone that it was investigating the baseball pitching machine and requested information concerning the defect.

On July 28, 1977, the Commission filed an action in the United States District Court for the District of Columbia; pursuant to section 12 of the Consumer Product Safety Act, 15 U.S.C. § 2061, against Athlone, Advance, Dudley and six other defendants, seeking an injunction and a declaration that the automatic baseball pitching machines they manufactured and distributed in interstate commerce were “imminently hazardous” consumer products causing numerous severe injuries. The suit also sought repair of all existing machines. The Commission alleged that the pitching machine, even when disconnected from its power source, retained such a high degree of tension in its spring and cable that at the slightest vibration, the pitching arm would unexpectedly swing forward and downward at great speed, striking any person within its range.

On May 8, 1978, the United States District Court for the District of Columbia approved a consent judgment which set forth a corrective plan to be undertaken by the defendants. During the consent decree negotiations, the Commission attempted to insert language which would have reserved its right to proceed against the defendants “to determine if there has been a failure to comply with reporting obligations under Section 15(b) of the Consumer Produces] [sic] Safety Act.” J.A. at 176. The defendants refused to agree to such a provision, and the final consent judgment contained no such reservation.

B. The Present Litigation — The “Civil Penalty” Suit

The civil penalty suit which is the subject of this appeal arises out of the Commission’s unsuccessful attempts to also impose civil penalties administratively upon the manufacturer and distributor of the hazardous baseball pitching machine.

On May 24, 1979, the Commission notified Athlone, Dudley, and Advance of its investigation into their failure to provide information as mandated by the reporting requirement of section 15(b) of the Consumer Product Safety Act, 15 U.S.C. § 2064(b).

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Bluebook (online)
746 F.2d 977, 53 U.S.L.W. 2226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-athlone-industries-inc-ca3-1984.