Weston v. Globe Slicing Machine Co.

621 F.2d 344
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 12, 1980
DocketNo. 78-1529
StatusPublished
Cited by10 cases

This text of 621 F.2d 344 (Weston v. Globe Slicing Machine Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weston v. Globe Slicing Machine Co., 621 F.2d 344 (9th Cir. 1980).

Opinion

SKELTON, Senior Judge:

This appeal results from the denial of a cross claim seeking indemnification for attorney fees and costs filed by a defendant retail seller against a co-defendant manufacturer in a product liability lawsuit. The case in chief was instituted by the plaintiff John L. Weston (hereinafter referred to as plaintiff) for personal injuries he received while operating a meat chopping machine in 1974 while he was employed by Taco Bandido, Inc. in Twin Falls, Idaho. Plaintiff filed this lawsuit against his employer, Taco Ban-dido, Inc., and also against the following other defendants: Globe Slicing Machine Company, hereinafter referred to as Globe, the manufacturer of the meat chopping machine; E. L. Sly Company (hereinafter referred to as Sly), a distributor which purchased the machine from Globe; and Moore Supply Company (hereinafter referred to as Moore), the retail seller which purchased the machine from Sly and sold it to plaintiff’s employer, Taco Bandido Company. Plaintiff founded his lawsuit against Globe and Moore on the grounds of strict liability, negligence and breach of warranty.

Moore filed a cross claim against Globe seeking indemnification for its attorney fees and costs incurred in its defense against the claim plaintiff asserted against it in the case. Moore based its cross claim on the premise that the meat chopping machine was sold by Moore without any change in its condition by Moore, and that any defect in the machine that caused injury to the plaintiff was the fault of the manufacturer, Globe, and the responsibility for such injury would ultimately rest with Globe. Therefore, Moore contended that Globe should be required to reimburse Moore for its attorney fees and costs expended in the case.

The case was submitted to the jury only on the theory of strict liability. The jury returned a verdict in favor of the plaintiff in the sum of $30,147.26 against Globe attributing forty percent (40%) of the proximate cause of the plaintiff’s injury to Globe and sixty percent (60%) to the plaintiff and his employer on the theory of comparative negligence. The jury also found that the meat chopping machine was defective because of its design by Globe, and, further, that plaintiff’s strict liability claims against Moore and Sly had not been proven, thereby relieving Moore and Sly of any liability for plaintiff’s injury.

In its final judgment, the District Court ordered that Moore take nothing by its cross claim for attorney fees and costs and dismissed the cross claim with prejudice. Moore appeals from this dismissal, and, in addition to the relief sought in its cross claim, is seeking the costs and expenses of its appeal.

The primary issue in this case is whether a retail seller can recover its attorney fees and costs, which it incurred defending itself in a products liability action, from the manufacturer of the allegedly defective product on an indemnification theory, where only the manufacturer is required to pay damages and the retail seller is not found to be liable. Inasmuch as this is a diversity action with federal court jurisdiction based on 28 U.S.C. § 1332(a)(1), and the tort forming the basis of the lawsuit occurred in Idaho and the case was originally filed in that state, we are required to apply Idaho law in deciding this issue. See Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938); Guaranty Trust Co. v. York, 326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945); Wirth v. Clark Equipment Co., [346]*346457 F.2d 1262 (9 Cir. 1972), cert. denied, 409 U.S. 876, 93 S.Ct. 127, 34 L.Ed.2d 129 (1972). It appears, however, that the Idaho courts have not rendered a decision on this precise issue. Therefore, we must decide the case without the benefit of an Idaho court decision directly on the point.

We first consider the parties’ respective arguments. Moore contends that it is entitled to indemnification for its attorney fees and costs for two basic reasons. First, it says that defendant Globe is primarily liable for the injuries caused to plaintiff because of its defective design of the appliance and should be required to indemnify co-defendant Moore which is secondarily liable for those same injuries even though it is not guilty of any wrong-doing, but, nevertheless, is required to defend itself against the claim of the injured party. In support of this general indemnification principle, Moore cites May Trucking Co. v. International Harvester Co., 97 Idaho 319, 543 P.2d 1159 (1975), and Industrial Indemnity Co. v. Columbia Basin Steel & Iron, Inc., 93 Idaho 719, 471 P.2d 574 (1970). Second, Moore argues that the right to indemnification for attorney fees and costs does not depend upon a judgment having been entered against the indemnitee. Here, Moore relies on Pender v. Skillcraft Industries, Inc., 358 So.2d 45 (Fla.App. 1978), Addy v. Bolton, 257 S.C. 28, 183 S.E.2d 708 (1971) and St. Paul Fire & Marine Insurance Co. v. Crosetti Brothers, Inc., 256 Or. 576, 475 P.2d 69 (1970). Moore points out that if a judgment were required before a retail seller could recover its defense expenses on an indemnification theory from the manufacturer of a defective article in a products liability case, the retail seller would in effect, be penalized for successfully defending itself against the claim. Also, Moore adds that under Idaho’s doctrine of strict liability in products liability cases, Moore, as a retail seller of the defective product, is liable for the injuries caused the plaintiff and a judgment could have been entered against it in this case in favor of the plaintiff is supported by a jury verdict. Therefore, Moore concludes that Globe, as the manufacturer of the defective product, should indemnify Moore for Moore’s defense expenses since Globe’s product caused Moore to incur these expenses. In support of its argument that it is entitled to attorney fees, costs, and expenses of appeal, Moore relies on Kelly-Springfield Tire Co. v. Mobil Oil Corp., 551 P.2d 671 (Okl.Ct.App.1975).

Globe counters Moore’s contentions as follows: (1) Moore is not entitled to indemnification for attorney fees and costs because Moore’s liability to the plaintiff was not established by a jury verdict or judgment and Moore was not required to pay any damages to the plaintiff. Globe here cites May Trucking Co. v. International Harvester Co., supra, and Williams v. Johnston, 92 Idaho 292, 442 P.2d 178 (1968). (2) The plaintiff alleged that Moore was liable under theories of strict liability, breach of warranty and negligence. Globe points out that the record indicates that Moore may have been negligent and may have failed to properly warn the purchaser of the machine.

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