(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
GERARDO ZAZA, ET AL. V. MARQUESS AND NELL, INC., ET AL. (A-63)
Argued January 3, 1996 -- Decided May 9, 1996
GARIBALDI, J., writing for a majority of the Court.
The issue on appeal is whether under the Products Liability Act (PLA) a component part fabricator
that builds a system component in accordance with the specifications of the owner, which component is not
dangerous until it is integrated into the larger system, can be held strictly liable to an injured employee for
the failure of the owner, installer-assembler, and training consultant to install safety devices and provide
warnings.
On January 28, 1990, Gerardo Zaza, an employee of Maxwell House Coffee (Maxwell House), was
severely injured when hot molten water and carbon within a quench tank that he was attempting to repair
overflowed and landed on his back, arms and upper extremities, causing second degree burns over twenty-one percent of his body. The quench tank is an integral component part of a large, complex manufacturing
process -- the Maxwell House trecar-carbon regeneration system -- which is used to produce decaffeinated
coffee beans.
The initial designs for the quench tank were prepared by Maxwell House and were submitted to the
engineering firm of Marquess and Nell, Inc. (Marquess), who prepared the final design plans. Marquess
contracted with International Sheet Metal and Plate Mfg., Inc. (International) for a fabricated quench tank.
Maxwell House hired Brennan Company, Inc. (Brennan) to assemble and integrate the trecar-carbon
regeneration system. Calgon Carbon Company (Calgon) was hired to prepare training materials on how to
operate the system and to educate Maxwell House employees in the use of the system. William J. Merz, an
engineer employed by Calgon, conducted a training session for Maxwell House employees on how to use the
trecar-carbon regeneration system, including the quench tank. Zaza attended that training session.
The final plans and specifications for the trecar-carbon regeneration system incorporated three safety
devices designed to avoid an overflow of the molten fluid out of the quench tank. These safety devices were
to be installed by Maxwell House and Brennan. At the time Zaza was injured, however, the safety devices
had not been installed because Maxwell House had decided to omit them. The specifications on which
International bid for the quench tank did not require that International prepare or install any safety devices.
The specifications required only that the fabricator cut holes in the stainless steel tank for the safety devices.
When the tank was delivered to Maxwell House, professional installers had to connect piping to it before the
quench tank became operational.
In June 1991, Zaza filed suit against Marquess, Calgon, Merz, Brennan and International. As to
International, Zaza alleged that strict liability should be imposed because the quench tank was defectively
designed and lacked adequate warnings. On International's motion for summary judgment, the trial court
dismissed the claims against International, finding that International had performed as required under the
specifications given to them by the designer; had no supervisory responsibility over installation; was not
required to install the safety devices; and had no duty to warn intended users of the quench tank.
Zaza appealed to the Appellate Division from the order granting summary judgment in favor of International. A majority of the Appellate Division reversed the grant of summary judgment in favor of International and remanded the matter to the trial court. The majority found that International had a duty to furnish a safe product, the breach of which triggered strict liability; that International's understanding that
Maxwell House would install the safety devices did not relieve it from potential liability; that International
had a duty to warn foreseeable users of the omission and of the dangers of operating the quench tank prior
to the installation of the safety devices. The dissenting member of the appellate panel did not agree that it
was reasonable to hold a sheet metal fabricator strictly liable for a tank that it built in full accordance with
the plans and specifications supplied by the assembler. Moreover, because Maxwell House was obligated to
install the required safety devices before putting the tank into operation, a warning by International was not
necessary.
International appeals to the Supreme Court as of right based on the dissent in the Appellate
Division.
HELD: A fabricator of a component part who builds a component of a system in accordance with the
specifications of the owner, which component part itself is not defective and is not dangerous until it
is integrated into the larger system, has no legal duty to ensure that the owner and installer-assembler properly integrated the component into the system. So long as the specifications were not
obviously dangerous, a fabricator of component parts is not strictly liable to an injured employee of
the owner under the Products Liability Act.
1. Under the PLA, the ultimate question to be resolved in design-defect and failure-to-warn cases is whether
the manufacturer acted in a reasonably prudent manner in designing and fabricating a product. When a
component part is subject to further processing, or where the causing of the injury is not directly attributable
to any defect in the component part, the fabricator is typically not subject to strict liability. A manufacturer
of a component part, which is not dangerous until it is integrated by the owner into a larger system, cannot
be held strictly liable to an injured employee for the failure of the owner and/or assembler to install safety
devices, so long as the specifications provided are not so obviously dangerous that it would be unreasonable
to follow them and so long as the manufacturer was not substantially involved in the design of the final
integrated product. (pp. 10-20)
2. The parties' affidavits, deposition, testimony, and other documents demonstrate that International had no
duty to install the safety devices on the quench tank before the tank left its control. There is no allegation
there was any manufacturing defect in the quench tank itself. It was not feasible, practical, or reasonable for
International, a sheet metal fabricator with no prior experience in the assembly and installation of trecar-carbon regeneration systems, to attach the safety devices to the quench tank, nor could the devices have been
incorporated into the tank at International's factory. Moreover, the work performed by Maxwell House and
its assemblers in order to integrate the quench tank into the trecar-carbon regeneration system constituted a
substantial change to the quench tank. International manufactured the quench tank in strict accordance with
the specifications provided by Maxwell House, a knowledgeable and experienced purchaser and user.
International was not the designer, manufacturer, or installer of the trecar-carbon regeneration system.
International acted in a reasonably prudent manner in delivering the tank to Maxwell House without safety
devices and in relying on Maxwell House and it's experienced assemblers to properly install the tank into the
complicated system. Maxwell House retained complete control over the entire system, not International.
Under those circumstances, International is not strictly liable for its failure to install the safety devices on the
quench tank. (pp. 20-24)
3. The manufacturer of the component part, not dangerous in and of itself, does not have a duty to warn an employee of the immediate purchaser of the component where the immediate purchaser is aware of the need to attach safety devices. Holding International liable would impose on a component part manufacturer the duty to investigate whether the use of its non-defective product would be made dangerous by the integration of that product into the complex system designed and installed by experts. In failing to provide a warning on the use of the quench tank, International acted as a reasonably prudent person in the same and similar circumstances would have acted. The duty to warn does not extend to the speculative anticipation of how component parts that are not defective can become potentially dangerous, depending on the nature of their
integration into a complex system designed and assembled by others. Because the quench tank was not
defectively designed and International had no duty to warn, International's motion for summary judgment
should have been granted. (pp. 24-34)
Judgment of the Appellate Division is REVERSED and summary judgment is GRANTED in favor of
International.
JUSTICE COLEMAN, concurring in part and dissenting in part, in which JUSTICES HANDLER
and O'HERN join, dissents only from that portion of the Court's opinion that holds International had no
duty to place a warning on the quench tank to alert intended users of dangers inherent in its use without
safety devices. According to Justice Coleman, whenever, as in this case, a jury can find that it is objectively
foreseeable that an owner might use a product in a manner inconsistent with its intended purpose, such as by
failing to install safety devices, then the manufacturer of component parts has the duty to warn the owner's
employees, provided that warning could have prevented or reduced the likelihood of an accident. Therefore,
it was feasible for International to have attached a warning to the quench tank to caution intended users of
the inherent dangers associated with using the tank for its intended purpose in the event Maxwell House
failed to install the safety devices.
CHIEF JUSTICE WILENTZ and JUSTICES POLLOCK and STEIN join in JUSTICE
GARIBALDI's opinion. JUSTICE COLEMAN filed a separate opinion concurring in part and dissenting
in part in which JUSTICES HANDLER and O'HERN join.
SUPREME COURT OF NEW JERSEY
A-
63 September Term 1995
GERARDO ZAZA and FRANCES ZAZA,
his wife,
Plaintiffs-Respondents,
v.
MARQUESS and NELL, INC., a
Coporation d/b in New Jersey;
CALGON CARBON COMPANY, a company
d/b in New Jersey; WILLIAM MERZ;
and BRENNAN COMPANY, INC., a
Company d/b in New Jersey,
Defendants,
and
INTERNATIONAL SHEET METAL &
PLATE MFG., INC., a New Jersey
Corporation,
Defendant-Appellant.
Argued January 3, l996 -- Decided May 9, 1996
On appeal from the Superior Court,
Appellate Division.
John J. Scanlon argued the cause for
appellant (Scanlon & Heim, attorneys).
Alfred D. Alvarez argued the cause for
respondents (Mr. Alvarez, attorney; Mr.
Alvarez and Andrew S. Maze, on the brief).
The opinion of the Court was delivered by
GARIBALDI, J.
This appeal presents the question of whether under the
Products Liability Act, N.J.S.A. 2A:58C-l to -7, a component part
fabricator that builds a system component in accordance with the
specifications of the owner, which component is not dangerous
until it is integrated into the larger system, can be held
strictly liable to an injured employee for the failure of the
owner, installer-assembler, and training consultant to install
safety devices and provide warnings. The Appellate Division
found that such a fabricator could be held strictly liable. We
now reverse.
quench tank, and numerous pipes, watering screws, scrubbers and
fans. All of those parts must be fully integrated and assembled
in order to create a properly working trecar-carbon regeneration
system. It is a two-fold system. In the top portion of the
system, the ultimate coffee product is made, and a byproduct
(carbon) is reclaimed in the lower portion. The quench tank is
located in the lower portion where the carbon regeneration
process takes place. After the basic coffee product has been
made in the top portion, the carbon, which has been heated in the
multiple hearth furnace to 1700 degrees fahrenheit, leaves the
furnace through a large tube and enters the quench tank. At the
same time the molten carbon enters the quench tank, cool water is
pumped into the quench tank at the rate of twenty-two gallons per
minute. The superheated carbon-water mixture moves through the
quench tank for approximately thirty minutes, then exits the tank
through two pipelines, and finally comes to rest in separate
storage tanks where it is kept for future processing.
The initial designs for the quench tank were prepared by
Maxwell House and were submitted to the engineering firm of
Marquess and Nell, Inc., (Marquess) who prepared the final design
plans. Marquess contracted with defendant International Sheet
Metal & Plate Mfg., Inc. (International) for a fabricated quench
tank. Maxwell House hired Brennan Company, Inc. (Brennan) to
assemble and integrate the trecar-carbon regeneration system.
Calgon Carbon Company (Calgon) was hired to prepare training
materials on how to operate the system and to educate Maxwell
House employees in the use of the trecar-carbon regeneration
system. William J. Merz, an engineer employed by Calgon,
conducted a training session for Maxwell House employees on how
to use the trecar-carbon regeneration system, including the
quench tank. Plaintiff attended the training session.
The specifications on which defendant bid for the quench
tank did not require that the fabricator prepare or install any
safety devices. Rather, the specifications called for the
fabricator to cut holes for the safety devices. The quench tank
fabricated by defendant is best described as a stainless steel
tank with holes in it. The tank also contains six flanges, which
are devices used to hold pipes in place. The quench tank was
sold to Maxwell for $7,400. When it was delivered to Maxwell
House, professional installers had to connect water ingress
piping, carbon extrusion piping and water discharge piping before
it could be made operational.
The final plans and specifications for the trecar-carbon
regeneration system incorporated three safety devices designed to
avoid an overflow of the molten fluid out of the quench tank.
These safety devices were to be installed by Maxwell House and
Brennan. The devices included a spectacle shut-off valve, a
high-level fluid sensor, and an overflow pipe. The spectacle
shut-off valve was designed to stop the flow of the molten carbon
from leaving the hearth furnace and entering the quench tank
whenever personnel were working on the quench tank or associated
piping. It was supposed to be located in the chute between the
hearth furnace and the quench tank. The high-level fluid sensor
was designed to trigger an alarm and light whenever the fluid
level in the quench tank reached a dangerous level. The overflow
pipe was to be located eight inches below the top of the quench
tank and was designed to divert the fluids within the quench tank
through a piping system to another location away from the user if
the fluids reached a high level within the tank. It is
uncontroverted that the installation of the overflow pipe would
have prevented the quench tank from pouring out its molten
contents on plaintiff.
Although all three safety devices were included in the
design plans prepared by Marquess, none was actually in operation
at the time plaintiff sustained his injuries. Brennan, the
installer, claims that its function was to install and integrate
the quench tank into the system based on the plans provided to it
by Maxwell House, that Maxwell House decided to omit the safety
devices recommended by Marquess, and that Maxwell House approved
the installation. Maxwell House's decision to omit the safety
devices appears to have been deliberate. Although the spectacle
shut-off valve was on site and available when the tank was being
installed, Maxwell House chose not to install it. When an
engineer informed Maxwell House of the omission, the company
chose to disregard the advice.
In June l99l, plaintiff filed this action against Marquess,
Calgon, William J. Merz, Brennan, and International. The
complaint against International alleged that strict liability
should be imposed because the quench tank was defectively
designed and lacked adequate warnings.
Motions for summary judgment were filed by Marquess,
Calgon, its employee William J. Merz, and International.
Plaintiff filed a motion for summary judgment, opposed
defendants' motions for summary judgment and simultaneously
cross-motioned for summary judgment as to defendants Marquess and
International.
During oral argument on the motions for summary judgment,
the trial court attempted to sort out the responsibilities of the
designer (Marquess), fabricator (International), training
consultant (Calgon) and installer-assembler (Brennan). With
respect to International's legal responsibility, the court found
that:
[Defendant] doesn't create the spectacle
shutoff system, the high liquid sensor
device, or the overflow pipe system. He
tells me he's the fabricator who makes the
holes for them.... And here's a sheet metal
guy who prepares pieces of sheet metal that
he submits to an installer who puts them
together at the site, and he's got all the
holes in them. And you're [plaintiff's
counsel] saying that he's got a non-delegable
duty to the consumer or to the injured party
to see to it that the installer puts it in,
the manufacturer install his sheet metal
properly before it is functional; is that
what you're saying?
necessary to make this skeleton a viable
component in this overall unit.
Brennan, and Calgon settled. Plaintiff then appealed to the
Appellate Division from the order granting summary judgment in
favor of International. In his appeal, plaintiff argued that the
quench tank was "defective" under N.J.S.A. 2A:58C-2 because: (l)
defendant deviated from the design specifications by not
incorporating an overflow pipe into the quench tank; (2)
defendant failed to provide adequate warnings to Maxwell House
and plaintiff; and (3) the quench tank was unsafe for its
intended purpose.
The Appellate Division, by a 2-1 majority, reversed the
grant of summary judgment in favor of International and remanded
the matter to the trial court for further proceedings. According
to the Appellate Division majority, whether the quench tank was a
complete product or a component part in the trecar-carbon
regeneration system was irrelevant. The majority explained that:
[International] had a duty to furnish a safe
product, the breach of which triggers strict
liability....The fact that defendant may have
understood that Maxwell House would install
the safety devices in the holes it cut did
not relieve defendant from potential
liability. . . . That fact only relates to
the issues of proximate cause.
According to the majority, if installation was not feasible or
premature, defendant had a duty to warn foreseeable users -
Maxwell House and Maxwell House employees -- of the omission and
of the dangers of operating the quench tank prior to the
installation of the safety devices.
The dissenting member found that it was not "reasonable" to
hold a sheet metal fabricator strictly liable for a tank that it
built in full accordance with the plans and specifications
supplied by the assembler. The dissent opined that it was
Maxwell House's obligation to install the safety devices required
by the plans before putting the tank into operation.
The dissenting member was also unequivocal in his belief
that a warning was not necessary. He wrote:
It [a warning] makes no sense to me. This
was not a finished product placed in the
stream of commerce. It was a special order,
placed after competitive bidding.
International has not been shown to have
deviated from the specifications and
standards required of it in its contract. It
is not reasonable to require that warnings be
placed on the tank by International as the
plans of Maxwell House put all on notice that
three safety devices were required. . . .
Why was a warning necessary when engineers
who were on the site for the very purpose of
seeing to it that the plans were followed and
that the operation was carried out safely. .
. . Further, a warning would not have served
to put the plaintiff on notice. This was not
a machine or tool that was put into the hands
of a user or worker. It was part of a system
installed within a plant as part of a fully
designed and integrated manufacturing
process.
should "as a matter of sound judicial policy, . . . apply this
conservative legislative policy").
The Act does not "codify all issues relating to product
liability" rather, the Legislature intended it to address
"matters that require[d] clarification." Roberts, supra, l39
N.J. at 374 (quoting N.J.S.A. 2A:58C-l). The Act left unchanged
the three theories under which a manufacturer or seller may be
held strictly liable for harm. Jurado v. Western Gear Works, l3l
N.J. 375, 384 (l993); Dewey v. R.J. Reynolds Tobacco Co.,
121 N.J. 69, 94-95 (1990); Fabian v. Minster Mach. Co.,
258 N.J.
Super. 261, 271 (App. Div.), certif. denied,
130 N.J. 598 (1992).
Specifically, N.J.S.A. 2A:58C-2 provides:
A manufacturer or seller of a product
shall be liable in a product liability action
only if the claimant proves by a
preponderance of the evidence that the
product causing the harm was not reasonably
fit, suitable or safe for its intended
purpose because it: a. deviated from the
design specifications, formulae, or
performance standards of the manufacturer or
from otherwise identical units manufactured
to the same manufacturing specifications or
formulae, or b. failed to contain adequate
warnings or instructions, or c. was designed
in a defective manner.
The common law standard required that the plaintiff prove that the product in question was not "reasonably fit, suitable and safe for its intended or foreseeable purposes." Suter v. San Angelo Foundry & Machine Co., 8l N.J. l50, l76 (l979) (emphasis added). The elimination in N.J.S.A. 2A:58C-2 of Suter's
extension of strict liability to "foreseeable purposes" suggests
that while the theories of liability are unchanged, the standard
of liability is different than the prior common law standard.
Such a distinction "is consistent with the legislative intention,
embodied in the statute, . . . of limiting the expansion of
manufacturer liability." William A. Dreier et al., New Jersey
Products Liability & Toxic Torts Law ¶ l5:3-l, at 295 (l995 ed.).
was injured. Liability should be imposed only when the
manufacturer is responsible for the defective condition. Taylor
v. Abbe, Inc.,
516 F.2d 145, 147 (3d Cir. 1975); see also
O'Brien, supra, 94 N.J. at l79-80 (citations omitted) ("The
necessity of proving a defect in the product as part of the
plaintiff's prima facie case distinguishes strict from absolute
liability, and thus prevents the manufacturer from also becoming
the insurer of a product.")
The term "defect" is not self-defining and has no
universally accepted meaning suitable for every strict products
liability case. Soler v. Castmaster,
98 N.J. 137, 145 (1984);
O'Brien, supra, 94 N.J. at 180. Defects are classified as design
defects, manufacturing defects or inadequate warning defects.
Feldman, supra, 97 N.J. at 449. Generally, the emphasis in
strict products liability analysis is on the safety of the
product, not on the reasonableness of the manufacturer's conduct.
Becker, supra, l38 N.J. at l52 (citing Feldman, supra, 97 N.J. at
450). However, under the Act, as under the common law, the
ultimate question to be resolved in design-defect and failure-to-warn cases is whether the manufacturer acted in a reasonably
prudent manner in designing and fabricating a product. Feldman,
supra, 97 N.J. at 45l; Fabian, supra, 258 N.J. Super. at 273;
Dreier et al., supra, ¶ l:l-2, at 2. As we observed in Feldman,
supra, 97 N.J. at 451:
When the strict liability defect consists of
an improper design or warning, reasonableness
of the defendant's conduct is a factor in
determining liability. The question in
strict liability design-defect and warning
cases is whether, assuming that the
manufacturer knew of the defect in the
product, he acted in a reasonably prudent
manner in marketing the product or in
providing the warnings given. Thus, once the
defendant's knowledge of the defect is
imputed, strict liability analysis becomes
almost identical to negligence analysis in
its focus on the reasonableness of the
defendant's conduct.
jurisdictions, responsibility for installing a safety device is
determined by reference to three criteria: (l) the trade custom
indicating the party that normally would install the safety
device; (2) the relative expertise of the parties, looking to
which party is best acquainted with the design problems and
safety techniques in question; and (3) practicality, focusing on
the stage at which installation of the device is most feasible.
See, e.g., Verge v. Ford Motor Co., 58l F.2d 384 (3d Cir. l978);
Christner v. E.W. Bliss Co., 524 F.Supp. ll22 (M.D.Pa. l98l);
Ford v. International Harvester Co.,
430 So.2d 9l2 (Fla. Dist.
Ct.), cert. denied, 44l So.2d 63l (Fla. l983).
In Michalko, supra, we limited the factual inquiry for
determining responsibility for the lack of a safety device to the
question of practicality or feasibility of the installation of a
safety device by the component manufacture.See footnote 2 We stated that
"when it is feasible for the rebuilder of machinery or the
manufacturer of component parts to incorporate a safety device
and it fails to do so, the rebuilt machine or component part will
be deemed to be a defective product when delivered by the
manufacturer to its owner." Michalko, supra, 9l N.J. at 395
(emphasis added). Similarly, in Bexiga, supra, we stated:
Where a manufacturer places into the channels
of trade a finished product which can be put
to use and which should be provided with
safety devices because without such it
creates an unreasonable risk of harm, and
where such safety devices can feasibly be
installed by the manufacturer, the fact that
he expects that someone else will install
such devices should not immunize him.
In Bexiga, supra, 60 N.J. at 409-l0, we concluded that it was
practical for the manufacturer to install a safety device that
could be used for all purposes of the machine, and therefore we
held the manufacturer strictly liable for the plaintiff's
injuries. But see Verge v. Ford Motor Co.,
581 F.2d 384 (3d Cir.
1978) (holding that component part manufacturer was not
responsible for including backup warning device or other safety
device on cab and chasis and would not be liable for injuries
caused in absence of such device, where installation of safety
devices by component part manufacturer was not feasible).
A further requirement for the imposition of strict liability
on a component part fabricator is that the component part reach
the user without substantial change. Michalko, supra, 91 N.J. at
399. Where a component part is subject to further processing, or
where the causing of the injury is not directly attributable to
any defect in the component part, the fabricator is typically not
subject to strict liability. Accord City of Franklin v. Badger
Ford Truck Sales, Inc.,
207 N.W.2d 866, 870 (Wis. 1970).
In its recent draft, the American Law Institution (A.L.I.)
concluded that a component part manufacturer generally is not
liable unless the component itself is defective or the component
provider substantially participated in the design of the final
product.
[I]t would be unjust, impractical, and
inefficient to impose liability solely on the
ground that the manufacturer of the
integrated product utilizes the component in
a manner that renders the integrated product
defective. To hold a component supplier to
the same liability as the seller of the
integrated product would require the
component seller to scrutinize another's
product with respect to which the component
seller has no role in developing. This would
impose substantial costs on the component
seller, who would have to develop sufficient
sophistication to review the decisions of the
business entity that already has assumed
responsibility with regard to the integrated
product.
[Restatement (Third) of Torts § l0 cmt. a
(Tentative Draft No. 3, l996) (hereinafter
Restatement, Tentative Draft).]
The majority of courts from other jurisdictions have held that a manufacturer of a component part, which is not dangerous until it is integrated by the owner into a larger system, cannot be held strictly liable to an injured employee for the failure of the owner and/or assembler to install safety devices, so long as the specifications provided are not so obviously dangerous that it would be unreasonable to follow them. For example, in Jordan v. Whiting Corp., 212 N.W.2d 324 (Mich.Ct.App. 1973), rev'd in part on other grounds, 240 N.W.2d 468 (Mich. 1976), a plaintiff
brought suit against the manufacturer of component parts used in
a crane. The plaintiff alleged that the assembled crane was
defectively designed. However, the component parts were not in
and of themselves defective. The trial court granted a directed
verdict to the component part manufacturer and the verdict was
affirmed on appeal. The appellate court stated:
The obligation that generates the duty to
avoid injury to another which is reasonably
foreseeable does not--at least yet--extend to
the anticipation of how manufactured
components not in and of themselves dangerous
or defective can become potentially dangerous
dependent upon the nature of their
integration into a unit designed, assembled,
installed, and sold by another.
See also Koonce v. Quaker Safety Products & Mfg., 798 F.2d 700, 715 (5th Cir. 1986) (holding that "[i]f the component part manufacturer does not take part in the design or assembly of the final system or product, he is not liable for defects in the final product if the component part itself is not defective"); Sprangler v. Kranco, Inc., 481 F.2d 373, 374-75 (4th Cir. 1973) (holding that manufacturer of crane produced to owner's specifications was not liable for injury which might have been prevented if crane had been equipped with alarm which sounded when backing up, so long as specifications provided were not so obviously dangerous that they should not reasonably have been followed); Lesnefsky v. Fischer & Porter Co., 527 F.Supp. 951,
955 (E.D.Pa. 1981) (holding that manufacturer of component parts that produces component part in accordance with specifications of buyer is not liable for part's defective design unless manufacturer has or should have knowledge that product is unsafe for intended use); Orion Ins. Co. v. United Technologies Corp. 502 F.Supp. l73, l78 (E.D. Pa. l980) (holding that manufacturer of helicopter's stationary star, that was manufactured according to specifications of a third party with superior knowledge and in which there was no manufacturing defect, not liable for design defect that arose from third party's incorporation of star into helicopter); Mayberry v. Akron Rubber Machinery Corp., 483 F.Supp. 407, 413 (N.D.Okla. 1979) (holding that where "a supplier furnishes a component part free of defects and without knowledge of the design of the end product, strict liability should not be imposed on the supplier for injury resulting from the end product design"); Castaldo v. Pittsburgh-Des Moines Steel Company, 376 A.2d 88, 90 (Del. 1977) (holding manufacturer of product (storage tank), built in accordance with plans and specifications of employer, not liable for damage occasioned by defect in specifications, unless plans are so obviously dangerous that no reasonable person would follow them); Woods v. Graham Engineering Corp., 539 N.E.2d 316, 3l8-l9 (Ill.App.Ct.), cert. denied, 545 N.E 2d l35 (Ill. l989) (holding that component part manufacturer is liable only when responsible for design of final product or component part itself caused the injury, but component
manufacturer not liable under strict liability if injury resulted
from dangerous condition created by party who created final
product); Loos v. American Energy Savers, Inc.,
522 N.E.2d 841,
845 (Ill.App.Ct. l988) (holding that absent failure to
manufacture according to specifications, component part
manufacturer not responsible for injuries caused by its defective
design); Molina v. Kelco Tool & Die, Inc.,
904 S.W.2d 857, 86l
(Tex.Ct.App. 1995) (holding that component part manufacturer that
manufactures a component part in accordance with buyer's
specifications is free from strict liability if the part itself
is not defective); Davis v. Dresser Industries,
800 S.W.2d 369,
370 (Tex.Ct.App. 1990) (holding that strict liability for
component part manufacturers is limited when component part
integrated into larger unit before distribution such that if
component part manufacturer does not participate in the design or
assembly of final system or product, manufacturer not liable for
defects in final product if component part itself not defective).
of the non-moving party. Here, the parties' affidavits,
depositions, testimony, and other documents convince the Court
that International had no duty to install the safety devices on
the quench tank before it left its control.
Plaintiff does not allege any manufacturing defect in the
quench tank itself. The quench tank was not in and of itself
dangerous or defective. It was a sheet metal tank with holes in
it. Specifically, plaintiff's expert alleged that "the design of
the Quench tank was improper in not including an overflow pipe
and/or an automatic shutoff when the superheated carbon-water
mixture reached a certain level in the Quench tank." The dissent
relies heavily on Michalko, supra. Ante at ___ (slip op. at ).
However, the facts in the present case are very different from
the facts in Michalko, supra. In the latter case, the defendant
did not contest the fact that the press it rebuilt was a
defectively designed product. Michalko, supra, 91 N.J. at 395.
In Michalko, supra, the defendant knew that safety devices were
not included in the design plans and that the owner was unlikely
to install safety devices on his own. Ibid. In contrast,
plaintiff has provided no evidence that the quench tank was in a
defective condition when it was delivered to Maxwell House or
that International knew or should have known that Maxwell House
was unlikely to install safety devices.
Moreover, it was not feasible, practical, or reasonable for
defendant, a sheet metal fabricator with no prior experience in
the assembly and installation of trecar-carbon regeneration
systems, to attach the safety devices to the quench tank. The
safety devices could not have been incorporated into the quench
tank at its factory. The shut-off valve was not located in or on
the quench tank, but rather in the chute between the hearth
furnace and the tank. Similarly, installation of the overflow
line required that the tank be first installed in Maxwell House's
plant. Further, defendant lacked the expertise required to
attach the safety devices and to integrate the tank into the
trecar-carbon regeneration system -- a system that was actually
composed of separate "systems" interfacing with one another.
Furthermore, the work performed by Maxwell House and its
assemblers in order to integrate the quench tank into the trecar-carbon regeneration system constituted a substantial change to
the quench tank. Before it became part of the complex trecar-carbon regeneration system, the quench tank was merely an
isolated unoperative component. It was not until it was
installed as part of the regeneration system that it became a
functional, operative product.
As stated previously, the critical issue in design-defect
cases is the reasonableness of the manufacturer in marketing that
design. International acted in a reasonably prudent manner in
fabricating the quench tank and in delivering it to Maxwell House
without incorporating the safety devices. It was not feasible or
practical for defendant to attach the safety devices to the tank.
International manufactured the quench tank in strict accordance
with the specifications provided by Maxwell House, a
knowledgeable and experienced purchaser and user. International
was not the designer, manufacturer, or installer of the trecar-carbon regeneration system.
International is in the business of welding sheet metal to
form tanks and other objects. It is a small family-run business
located in a one-story cinder block building, that employs
fifteen people, many of whom are family members. International
was not expected to, and did not have, the experience or the
ability to integrate and assemble all the complex parts of the
total trecar-carbon regeneration system. That system was so
complex that even Maxwell House, a large company skilled for
years in the making of coffee, did not have enough expertise to
install and assemble the system. Maxwell House found it
necessary to hire Brennan, an outside company, to assemble and
integrate the trecar-carbon regeneration system. Maxwell House
also found it necessary to hire Calgon to prepare training
manuals for its employees in the use of the trecar-carbon
regeneration system and to instruct its employees on how to
operate the system.
The design plans provided that the safety devices would be
provided by others. International acted reasonably in relying on
Maxwell House and its experienced assemblers, two entities with
superior knowledge of the trecar-carbon regeneration system, to
properly install the tank into the complicated system. Defendant
had no control over the quench tank once it was sold and no
control over the final assembly of the system. Maxwell House
retained complete control over the design of the regeneration
system and the quench tank's installation into the system.
It was not defendant's failure to attach the safety devices
in the quench tank that caused plaintiff's injury. Defendant did
exactly what it was paid $7,400 to do; it's sole obligation was
to produce a component part that was safe and satisfactory
according to the specifications provided by Maxwell House. It
did that. Under those circumstances, we find that International
is not strictly liable for its failure to install the safety
devices on the quench tank.
Corp.,
133 N.J. 58l, 593-94 (1993) (citing Freund, supra, 87 N.J.
at 242 (holding that "the duty to warn in the strict liability
cause of action is based on the notion that absent a warning or
adequate warning a product is defective, in that it is not
reasonably fit, suitable or safe for its intended purposes")).
The Product Liability Act defines a warning defect by
defining its opposite, an adequate warning. N.J.S.A. 2A:58C-4
provides:
In any product liability action the
manufacturer or seller shall not be liable
for harm caused by a failure to warn if the
product contains an adequate warning or
instruction or, in the case of dangers a
manufacturer or seller discovers or
reasonably should discover after the product
leaves its control, if the manufacturer or
seller provides an adequate warning or
instruction. An adequate product warning or
instruction is one that a reasonably prudent
person in the same or similar circumstances
would have provided with respect to the
danger and that communicates adequate
information on the dangers and safe use of
the product, taking into account the
characteristics of, and the ordinary
knowledge common to, the persons by whom the
product is intended to be used ...
Feldman, supra, 97 N.J. at 450-5l. The major question in such
cases is whether, "assuming that the manufacturer knew of the
defect in the product, he acted in a reasonably prudent manner in
. . . providing the warnings given." Feldman, supra, 97 N.J. at
451.
The general rule is that a manufacturer of a component part
will not be held strictly liable for failure to warn where the
danger involved is not foreseeable. See, e.g., Cropper v. Rego
Distribution Center, Inc.,
542 F.Supp. 1142, ll56 (D.Del. 1982)
(holding that component part manufacturer was not liable for
failing to place in its catalog warning of dangers involved in
using component part in connection with unloading riser, on
ground that manufacturer could not be expected to foresee every
possible misuse to which part might be put); Mayberry v. Akron
Rubber Machinery Corp.,
483 F.Supp. 407, 4l3-l4 (N.D.Okla. 1979)
(holding that supplier of component parts which were not
defective did not have duty to warn subsequent product
manufacturer and employees of danger that might arise after
components were assembled according to manufacturer's exclusive
design); Temple v. Wean United, Inc.,
364 N.E.2d 267, 272 (Ohio
1977) (holding duty to warn does not extend to speculative
anticipation of how manufactured components, not in and of
themselves dangerous or defective, can become potentially
dangerous dependent on integration into unit designed and
assembled by another); Shawver v. Roberts Corp.,
280 N.W.2d 226,
230-33 (Wis. 1979) (holding that where defect in conveyor that
caused injury to worker arose because of location of controls,
where component part manufacturer had no involvement in design or
location of controls, and where buyer incorporated product safety
features in equipment which it manufactured, there was no duty on
part of component part manufacturer to warn of possible dangers
of conveyor being used while worker was standing on it); accord
Strimbu v. Amercian Chain & Cable Co.,
516 F.2d 781 (6th Cir.
1975); Foecker v. Allis-Chalmers,
366 F.Supp. 1352 (E.D.Pa 1973);
Munger v. Heider Mfg. Corp.,
456 N.Y.S.2d 271 (App.Div. 1982).
The majority of jurisdictions also hold that a supplier of a
component part that does not contain a latent defect has no duty
to warn the subsequent assembler of any danger that may arise
after the components are assembled. Mitchell v. Sky Climber
Inc.,
487 N.E.2d 1374, 1376 (Mass. 1986); see Frazier v.
Materials Transp. Co.,
609 F.Supp. 933 (W.D.Pa. 1985); Lockett v.
General Elec. Co.,
376 F.Supp. 1201 (E.D.Pa. 1974), aff'd, 5ll
F.2d l394 (3d Cir. l975); Castaldo v. Pittsburgh-Des Moines Steel
Co.,
376 A.2d 88 (Del. 1977). For example, in Munger, supra,
an employee of the Scott Paper Company was injured when the arm
of a tension roll assembly in a paper machine fell upon him. The
injured employee sued the four corporations that manufactured
various components of the paper machine. The plaintiff argued
that each of the component part manufacturers had a duty to
foresee and warn employees that Scott might not post appropriate
warnings. The court disagreed, holding that
in the absence of any proof that the
component designs were defective or that the
parts were wrongfully manufactured, no public
policy can be served by imposing liability on
a manufacturer of specialized parts of a
highly technical machine, particularly when,
as here, the parts were created in accordance
with the design, plans and specifications of
the owner and assembler of the unit.
Id. at 273. Accord Sperry v. Bauermeister, Inc.,
804 F.Supp. 1134 (E.D.Mo. 1992), aff'd,
4 F.3d 596 (8th Cir. l993); Frazier
v. Materials Transp. Co.,
609 F.Supp. 933 (W.D.Pa. 1985); Orion
Ins. Co. v. United Technologies Corp., 502 F.Supp. l73 (E.D.Pa.
l980).
The prevailing view is that a manufacturer of a component
part, not dangerous in and of itself, does not have a duty to
warn an employee of the immediate purchaser of the component
where the immediate purchaser is aware of the need to attach
safety devices. Restatement, Tentative Draft § l0 cmt. b.
For example, in Crossfield v. Quality Equipment Co., l F.3d 70l,
704 (8th Cir. l993), the court held that, under Missouri law, the
supplier of a non-defective chain for use in a machine that
malfunctioned did not have a duty to warn. The court stated:
To impose responsibility on the supplier of
the chain in the context of the larger
defectively designed machine system would
simply extend liability too far. This would
mean that suppliers would be required to hire
machine design experts to scrutinize machine
systems that the supplier had no role in
developing. Suppliers would be forced to
provide modifications and attach warnings on
machines that they never designed nor
manufactured. Mere suppliers cannot be
expected to guarantee the safety of other
manufacturers' machinery.
Similarly, in Lesnefsky v. Fischer & Porter Co., 527 F.Supp. 951 (E.D.Pa. 1981), the court held that a manufacturer of a control panel for a brewery cooker was not liable for injuries sustained by an employee of the brewery where it appeared that the control panel was manufactured according to the brewery's specifications, the brewery had superior knowledge about the operations of such equipment, and the brewery maintained complete control over the installation of the equipment. The plaintiff, an employee of the brewery, was injured when boiling water spilled out of an access port on the cooker. Id. at 953. The cooker was operated by a control panel manufactured by the defendant pursuant to the specifications provided by the brewery. Ibid. The plaintiff argued that the defendant was liable for not designing a temperature override control or a shut-off valve and because the defendant had a duty to warn the user of the inherent risks involved in operating the cooker without such safety devices. Ibid. The component part manufacturer alleged that it was not liable since it did not design, manufacture or install the steam valve or hatch cover, the parts which caused the plaintiff's injuries. Ibid. The court agreed, stating that the component part was not defective and there was no evidence that
the part was so obviously dangerous that the manufacturer had an
obligation to warn the ultimate user of the risk, or to refuse to
manufacture the panel without making modifications. The court
also noted that the manufacturer lacked the expertise required to
recognize risks which might arise in the operation of the control
panel in the brewery. Id. at 954.
Likewise, in Orion Co. v. United Technologies Corp.,
502 F.Supp. 173 (E.D.Pa. 1980), the court addressed a similar
situation. There, the court determined that a manufacturer of a
component part, a helicopter star, which was manufactured
according to the specifications of an assembler with superior
knowledge and in which there was no manufacturing defect, was
under no duty to warn the user of a design defect, where the
component part manufacturer had no knowledge of the defect. The
court noted that (1) there was no manufacturing defect in the
component, (2) the assembler set the specifications for the
component, (3) the component was properly inspected to ensure
that it met those specifications, (4) the assembler was a
sophisticated purchaser, and (5) as a matter of law it was
reasonable for the component-part manufacturer to rely upon the
assembler's specifications. Id. at 177.
As the court properly observed in Orion, supra:
[N]o public policy can be served by imposing
a civil penalty on a manufacturer of
specialized parts for a highly technical
machine according to the specifications
supplied by one who is expert at assembling
these technical machines, who does so without
questioning the plans or warning of the
ultimate user. The effect of such a decision
on component parts manufacturers would be
enormous. They would be forced to retain
private experts to review an assembler's
plans and to evaluate the soundness of the
proposed use of the manufacturer's parts.
The added cost of such procedure both
financially and in terms of stifled
innovation outweighs the public benefit of
giving plaintiffs an additional pocket to
look to for recovery. I believe the better
view is to leave the liability for design
defects where it belongs and where it now is
-- with the originator and the implementer of
the design -- the assembler of the finished
product.
Holding defendant liable would impose on a component part fabricator, whose products were built in accordance with the designer's specifications and whose part when it left defendant's plant was not defective, the duty to investigate whether the use of its non-defective product would be made dangerous by the integration of that product into the complex system designed and installed by experts. Component fabricators would become insurers for the mistakes and failures of the owners and installers to follow their own plans. Defendant would have to retain an expert to determine whether each and every integrated manufacturing system that incorporates one of its sheet metal products is reasonably safe for its intended use. In Bond v. E.I. DuPont de Nemours & Co., 868 P.2d lll4, ll20 (Colo. App. l993), the court in holding that a seller of Teflon integrated by the manufacturer in a prosthesis had no duty to warn observed:
"there is little social utility in placing the burden on a
manufacturer of component parts or supplier of raw materials
against injuries caused by the final product when the component
parts or raw materials themselves were not unreasonably
dangerous." See also Kealoha v. E.I. DuPont de Nemours & Co.,
844 F.Supp. 590, 594 (D. Hawaii l994) ("Permitting plaintiffs to
maintain a suit against the bulk supplier of inherently safe raw
materials would lead to absurd consequences: there would be no
end to potential liability if every manufacturer of nuts, bolts
and screws could be held liable when this hardware was used in a
defective product.").
In failing to provide any warning on the use of the quench
tank defendant acted as "a reasonably prudent person in the same
or similar circumstances . . . taking into account the
characteristics of, and the ordinary knowledge common to, the
persons by whom the product is intended to be used. . .," would
have acted. N.J.S.A. 2A:58C-4. Even if defendant wanted to
provide a warning, there is no suitable location on the quench
tank for a warning. The quench tank is not a single unit
designed to come into contact with workers. Moreover, plaintiff
did not produce any evidence that the tank was so obviously
dangerous that International had an obligation to warn the users
of the trecar-carbon regeneration system. Maxwell House's plans
called for the installation of safety devices, and professionals
were hired to ensure that the plans were followed. In that
context, to require a component part manufacturer to warn of a danger of which the installer, the engineers, the owner, and the company hired to train the employees were already aware would be pointless. The duty to warn does not extend to the specu