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Product Liability
Newsletter - December 2001
 
In this Issue...
GM Trailer Design Requirements Not a "Design"
 
December 4, 2001
 

The Eighth Circuit recently declined to extend liability under strict liability or negligence theories in two companion cases against an auto manufacturer when the plaintiff failed to show that the auto manufacturer was engaged in anything more than a legitimate practice to protect its business interests. Ford v. GACS, Inc., 265 F.3d 670 (8th Cir. 2001); Long v. Cottrell, Inc., 265 F.3d 663 (8th Cir. 2001). Both of these cases arise out of injuries sustained by drivers of automobile transport trailers during the course of their employment for an independent hauling company that General Motors hired to transport its cars and trucks to various dealerships.

General Motors did not manufacture the auto transport trailers. Rather, the crux of plaintiffs' claims against General Motors was that it prohibited modifications to the trailers or the use of certain load securement systems other than the system in use on these trailers. In 1982, General Motors established a committee with independent haulers and trailer manufacturers to discuss issues related to damage-free shipment of its products. Plaintiffs additionally claimed that General Motors' mere creation of and involvement in this committee constituted a negligent undertaking to design hauling equipment. The Eighth Circuit rejected both of these arguments.

Missouri courts follow the rules of strict liability in tort as set out in §402A of the Restatement (Second) of Torts (1965).1 Therefore, liability is imposed only on those who are in the chain of distribution that provided the injury-causing product or that placed the injury-causing product in the stream of commerce.

The Eighth Circuit found that General Motors' purported involvement with the allegedly defective product did not rise to a level such that General Motors could be deemed "in the chain of commerce." General Motors used trailers operated by independent companies to haul its cars and trucks to places where consumers purchased them. As such, General Motors was a customer of the independent auto haulers who obtained the auto hauling trailers from the trailer manufacturers. As a customer of the independent hauler, General Motors specified the manner in which its vehicles were to be shipped. By doing so, General Motors did not become a designer or manufacturer of the trailer or become part of the chain of commerce responsible for transferring trailers in the course of its business. To hold otherwise would lead to the absurd consequence of imposing liability on large companies simply because they take reasonable steps to ensure that their products are shipped without damage.

Plaintiffs also contended that General Motors may be liable on a theory of negligent performance of an assumed duty. In order to prevail, plaintiff must show that the party intended "to completely subsume or supplant the duty of the other party in order to incur liability... . It is not enough to intend to supplement the duty of the other party." Plant v. Union Electric Co., 899 S.W.2d 129, 131 (Mo. App. 1995) (emphasis in original).

The Eighth Circuit affirmed the district court decision that General Motors did not owe a duty to the plaintiffs in these cases. General Motors did not render services to the drivers of the auto haulers, which would be necessary for the protection of the drivers or the drivers' things. General Motors did not train the drivers in any way, much less provide safety training. Although General Motors may have participated in the approval process of tie-down systems used to secure its vehicles, the reason for this participation was concern about damage to its vehicles, not to ensure the safety of users of the system. A party cannot be said to have assumed a duty to protect such users simply by seeking to protect its own property interests. By participating in the design process to ensure that the product met its needs, General Motors did not replace the manufacturer's duty to design and produce a safe product.

These decisions have significant implications with respect to the way in which General Motors and other original equipment manufacturers will conduct their businesses in the future. It certainly is clear that the courts do not plan to impose a generic common law duty for merely taking reasonable steps to ensure the damage-free delivery of products.


1Section 402A of the Restatement (Second) of Torts provides: