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Estate of Shebel6/22/1999
ON PETITION TO TRANSFER
The Products Liability Act bars product liability claims for injuries sustained more than ten years after the product is delivered to its "initial user or consumer." See Ind. Code ยง 33-1-1.5-5 (1993). We hold that a "user or consumer" under this statute includes a distributor who uses the product extensively for demonstration purposes and that the ten year statute begins with delivery for this use.
Factual and Procedural Background
On January 10, 1992, William Shebel, Jr. was struck in the chest and killed by a piece of a computer controlled lathe. The piece flew from the machine when it crashed as Shebel was delivering a bill to Bruce Kaufman who was operating the lathe. Shebel's Estate filed a products liability action against the manufacturer of the lathe, Mori Seiki Co., Ltd., ("Mori") and an American affiliate of the company that manufactured the computer controller of the lathe, Yaskawa Electric America, ("Yaskawa").
The lathe involved in the accident was sold by its manufacturer, Mori, to Yamazen Company, a trading company in Japan which in turn sold it to Yamazen, USA, Inc., ("Yamazen") its American subsidiary. The lathe was delivered to Yamazen on March 5, 1981. Yamazen purchased the lathe for the purpose of using it in demonstrations at trade shows, and in fact the lathe was used to make parts at three trade shows over the course of the next year. In January, 1982, the lathe was sold to Hasbach Company as a used "demo machine," but was returned in December of that year. Aegis Sales and Engineering Incorporated then purchased the lathe as a used machine at a discount from Yamazen and took delivery in January, 1983. The computer on the lathe indicated that the machine had been used for "hundreds" and "possibly thousands" of hours when it was delivered to Aegis. After another intermediate owner, Kaufman purchased the lathe in early 1990.
Mori and Yaskawa moved for summary judgment, arguing that the Estate's action was barred by the statute of repose and alternatively that several other defenses required summary judgment in their favor. The trial court held that, as a matter of law, Yamazen was a "user or consumer" of the lathe, and that uncontroverted facts established that Shebel's injury occurred more than ten years after the lathe was delivered to Yamazen. Accordingly, summary judgment was entered for both defendants based on the statue of repose.
The Estate appealed, arguing that the "initial user or consumer" of the lathe could not be determined as a matter of law where conflicting inferences could be drawn from the facts. The Estate also argued that genuine issues of material fact bore on the definition of "user or consumer," and that other issues precluded summary judgment.
The Court of Appeals, with Judge Garrard Dissenting, reversed the trial court, holding that, as a matter of law on these undisputed facts, Yamazen as a distributor was a "seller" and not a "user or consumer." Estate of Shebel v. Yaskawa Elec. America, Inc., 676 N.E.2d 1091 (Ind. Ct. App. 1997). We granted the defendants' petition for transfer and now affirm the trial court's grant of summary judgment.
Standard of Review
Summary judgment is appropriate when the designated evidence shows that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56 (C); see also Meridian Mut. Ins. Co. v. Auto-Owners Ins. Co., 698 N.E.2d 770, 773 (Ind. 1998). Although the Estate has the burden of persuading us that the grant of summary judgment was erroneous, we carefully assess the trial court's decision to ensure that the Estate wa
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