Air & Liquid Systems Corp. v. DeVries, 586 U.S. ___ (2019)
Manufacturers produced equipment for three Navy ships. The equipment required asbestos insulation or asbestos parts to function as intended, but the manufacturers did not always incorporate the asbestos into their products, so the Navy later added the asbestos. Two Navy veterans, exposed to asbestos on the ships, developed cancer. They sued the manufacturers. The manufacturers argued that they should not be liable for harms caused by later-added third-party parts.
The Supreme Court affirmed the Third Circuit in rejecting summary judgment for the manufacturers. The Court adopted a rule between the “foreseeability” approach and the “bare-metal defense,” that is "especially appropriate in the context of maritime law, which has always recognized a ‘special solicitude for the welfare’ of sailors." Requiring a warning in these circumstances will not impose a significant burden on manufacturers, who already have a duty to warn of the dangers of their own products. A manufacturer must provide a warning only when it knows or has reason to know that the integrated product is likely to be dangerous for its intended uses and has no reason to believe that the product’s users will realize that danger. The rule applies only if the manufacturer directs that the part be incorporated; the manufacturer makes the product with a part that the manufacturer knows will require replacement with a similar part; or a product would be useless without the part.
Where equipment manufactured for Navy ships required the subsequent installation of asbestos parts by the Navy, and the manufacturer had no reason to believe that the product’s users would realize the danger of exposure, the manufacturer had a duty to warn.
SUPREME COURT OF THE UNITED STATES
Syllabus
Air & Liquid Systems Corp. et al. v. DeVries, individually and as administratrix of the Estate of DeVries, Deceased, et al.
certiorari to the united states court of appeals for the third circuit
No. 17–1104. Argued October 10, 2018—Decided March 19, 2019
Petitioners produced equipment for three Navy ships. The equipment required asbestos insulation or asbestos parts to function as intended, but the manufacturers did not always incorporate the asbestos into their products. Instead, the manufacturers delivered much of the equipment to the Navy without asbestos, and the Navy later added the asbestos to the equipment. Two Navy veterans, Kenneth McAfee and John DeVries, were exposed to asbestos on the ships and developed cancer. They and their wives sued the manufacturers, alleging that the asbestos exposure caused the cancer and contending that the manufacturers were negligent in failing to warn about the dangers of asbestos in the integrated products. Raising the “bare-metal defense,” the manufacturers argued that they should not be liable for harms caused by later-added third-party parts. The District Court granted summary judgment to the manufacturers, but the Third Circuit, adopting a foreseeability approach, vacated and remanded.
Held: In the maritime tort context, a product manufacturer has a duty to warn when its product requires incorporation of a part, the manufacturer knows or has reason to know that the integrated product is likely to be dangerous for its intended uses, and the manufacturer has no reason to believe that the product’s users will realize that danger. Pp. 4–11.
(a) Tort law imposes a duty to exercise reasonable care on those whose conduct presents a risk of harm to others. That includes a duty to warn when the manufacturer “knows or has reason to know” that its product “is or is likely to be dangerous for the use for which it is supplied” and “has no reason to believe” that the product’s users will realize that danger. 2 Restatement (Second) of Torts §388. Three approaches have emerged on how to apply that “duty to warn” principle when a manufacturer’s product requires later incorporation of a dangerous part in order for the integrated product to function as intended. The first—the foreseeability rule—provides that a manufacturer may be liable when it was foreseeable that its product would be used with another product or part, even if the manufacturer’s product did not require use or incorporation of that other product or part. The second—the bare-metal defense—provides that if a manufacturer did not itself make, sell, or distribute the part or incorporate the part into the product, the manufacturer is not liable for harm caused by the integrated product—even if the product required incorporation of the part and the manufacturer knew that the integrated product was likely to be dangerous for its intended uses. A third approach, falling between those two, imposes on the manufacturer a duty to warn when its product requires incorporation of a part and the manufacturer knows or has reason to know that the integrated product is likely to be dangerous for its intended uses.
The third approach is most appropriate for this maritime context. The foreseeability rule would sweep too broadly, imposing a difficult and costly burden on manufacturers, while simultaneously overwarning users. The bare-metal defense ultimately goes too far in the other direction. After all, a manufacturer that supplies a product that is dangerous in and of itself and a manufacturer that supplies a product that requires incorporation of a part that the manufacturer knows or has reason to know is likely to make the integrated product dangerous for its intended uses both “kno[w] or ha[ve] reason to know” that the product “is or is likely to be dangerous for the use for which it is supplied.” And in the latter case, the product manufacturer will often be in a better position than the parts manufacturer to warn of the danger, because the product manufacturer knows the nature of the ultimate integrated product. Requiring a warning in these circumstances will not impose a significant burden on manufacturers, who already have a duty to warn of the dangers of their own products. Nor will it result in substantial uncertainty about when product manufacturers must provide warnings, because the rule requires a manufacturer to warn only when its product requires a part in order for the integrated product to function as intended. And this Court is unaware of any substantial overwarning problems in those jurisdictions that have adopted the approach taken here. Requiring the product manufacturer to warn when its product requires incorporation of a part that makes the integrated product dangerous for its intended uses is especially appropriate in the context of maritime law, which has always recognized a “ ‘special solicitude for the welfare’ ” of sailors. American Export Lines, Inc. v. Alvez, 446 U.S. 274, 285. Pp. 4–10.
(b) The maritime tort rule adopted here encompasses all of the following circumstances, so long as the manufacturer knows or has reason to know that the integrated product is likely to be dangerous for its intended uses, and the manufacturer has no reason to believe that the product’s users will realize that danger: (i) a manufacturer directs that the part be incorporated; (ii) a manufacturer itself makes the product with a part that the manufacturer knows will require replacement with a similar part; or (iii) a product would be useless without the part. P. 10.
873 F.3d 232, affirmed.
Kavanaugh, J., delivered the opinion of the Court, in which Roberts, C. J., and Ginsburg, Breyer, Sotomayor, and Kagan, JJ., joined. Gorsuch, J., filed a dissenting opinion, in which Thomas and Alito, JJ., joined.
Amicus brief of Evelyn Hutchins, Flora Everett, James T. McAllister submitted. |
Amicus brief of Evelyn Hutchins, Flora Everett, James T. McAllister submitted. |
Amicus brief of Port Ministries International submitted. |
Amicus brief of American Association for Justice submitted. |
Amicus brief of Evelyn Hutchins, Flora Everett, James T. McAllister not accepted for filing. (Resubmitted with complete documentation - August 31, 2018) |
Brief amicus curiae of American Association for Justice filed. (Distributed) |
Brief amici curiae of Evelyn Hutchins, Flora Everett, James T. McAllister filed. (Distributed) |
Brief amicus curiae of Port Ministries International filed. (Distributed) |
Brief amicus curiae of Multiple Veterans Organizations filed. (Distributed) |
Amicus brief of Multiple Veterans Organizations submitted. |
Brief amici curiae of Multiple Veterans Organizations filed. (Distributed) |
Brief of Roberta G. DeVries, Individually and as Administratrix of the Estate of John B. DeVries, Deceased, et al. submitted. |
Brief of respondents Roberta G. DeVries, Individually and as Administratrix of the Estate of John B. DeVries, Deceased, et al. filed. (Distributed) |
Record received from the U.S.C.A. 3rd Circuit. The record is electronic. |
Record requested from the U.S.C.A. 3rd Circuit. |
CIRCULATED |
Brief amici curiae of Product Liability Advisory Counsel, Inc. filed. |
Brief amici curiae of The Chamber of Commerce of the United States of America, et al. filed. |
Brief amicus curiae of Coalition for Litigation Justice, Inc., et al. filed. |
Brief amicus curiae of Richard A. Epstein filed. |
SET FOR ARGUMENT On Wednesday, October 10, 2018 |
Brief of petitioners Air and Liquid Systems Corp., et al. filed. |
Joint appendix filed (2 volumes). (Statement of costs filed) |
Brief of respondent General Electric Co. in support of petitioners filed. |
Motion to extend the time to file the joint appendix and the opening briefs on the merits granted. The time to file the joint appendix and petitioners' brief on the merits is extended to and including July 9, 2018. The time to file respondents' brief on the merits is extended to and including August 20, 2018. |
Motion for an extension of time to file joint appendix and the opening briefs on the merits filed. |
Petition GRANTED. |
DISTRIBUTED for Conference of 5/10/2018. |
DISTRIBUTED for Conference of 4/27/2018. |
Reply of petitioners Air and Liquid Systems Corp., et al. filed. |
Brief of respondents Roberta G. DeVries, Executrix of the Estate of John B. Devries, Deceased, et al. in opposition filed. |
Brief amicus curiae of The Chamber of Commerce of the United States of America filed. |
Motion to extend the time to file a response is granted and the time is extended to and including March 23, 2018. |
Blanket Consent filed by Petitioners, Air and Liquid Systems Corp., et al.. |
Motion to extend the time to file a response from March 9, 2018 to March 23, 2018, submitted to The Clerk. |
Petition for a writ of certiorari filed. (Response due March 9, 2018) |
Application (17A625) granted by Justice Alito extending the time to file until January 31, 2018. |
Application (17A625) to extend the time to file a petition for a writ of certiorari from January 1, 2018 to February 1, 2018, submitted to Justice Alito. |