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Guerrero v. Allison Engine Company3/22/2000
FOR PUBLICATION
OPINION - FOR PUBLICATION
Case Summary
Daniel Laguna ("Laguna"), and the estate of Carlos Guerrero ("Guerrero"), appeal the trial court's Order entering summary judgment in favor of Allison Engine Company ("Allison").
Issue
The sole issue is whether Indiana should recognize the "product line exception" in product liability cases brought by injured persons against successor corporations.
Facts/Procedural History
The facts in this case are not in dispute. On July 20, 1994, Guerrero and Laguna were involved in a helicopter accident at Fort Campbell, Kentucky. In this accident Guerrero died and Laguna was injured. The helicopter, an AH-6, was equipped with an Allison 250-C30 enhanced diffuser engine. Guerrero and Laguna allege that the helicopter stalled while in flight, causing it to crash to the ground. Guerrero and Laguna claim that Allison was negligent in the design and manufacture of the engine system. Further, Guerrero and Laguna claim that the engine system was defective and unreasonably dangerous. Guerrero and Laguna also assert a breach of implied warranty.
General Motors Corporation ("GM"), through its Allison Gas Turbine Division ("GM/Allison"), manufactured and sold the helicopter's engine on September 30, 1986. On March 31, 1990, a Commercial Engine Bulletin ("CEB 72-3176") was issued by GM/Allison, which called for the installation of enhanced engine diffuser assemblies on model 250-C30 engines. The enhanced engine diffuser assembly was installed into the subject engine on October 5, 1993, by Airwork, an independent company that was a GM authorized maintenance facility.
On December 1, 1993, Allison paid cash for the assets of GM/Allison. No stock was transferred as a part of the consideration of the sale. No members of GM's Board of Directors became members of Allison's Board of Directors. The sale of GM/Allison to Allison represented a relatively small percentage of GM's total assets. As part of the purchase agreement, Allison assumed no liability for claims of damage, injury, or death arising from or relating to any product designed, manufactured, acquired, marketed or sold prior to the closing date of the asset sale.
After the asset sale, GM and Allison were separate and distinct companies. GM remained in business and was not dissolved. Allison adopted a new corporate logo and the GM logo was removed from equipment, vehicles, and signs purchased by Allison and FAA nameplates were changed. Allison used a different tax identification number and government cage code than that used by GM. Allison also obtained a new classified clearance from the United States government. Allison continued to manufacture the 250-C30 engine. Allison also continued to work on the enhanced diffuser changes to 250-C30 engines.
Following the parties' summary judgment hearing, the trial court denied Plaintiffs' Motion for Leave to File Amended Complaint against Allison, but granted Plaintiffs leave to file an Amended Complaint as to GM. Thereafter, Guerrero and Laguna amended their complaint to include a claim for damages against GM. GM answered Plaintiffs' Amended Complaint. Guerrero and Laguna appeal the trial court's Order entering summary judgment against them on their complaints for personal injuries against Allison.
Discussion
Guerrero and Laguna contend that Indiana should recognize the "product line exception" in product liability cases brought by injured parties against successor corporations. Specifically, Guerrero and Laguna argue the following:
The fact that [Allison] continued to sell and service the ident
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