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CSX Transportation

3/1/2002

CSX Transportation, Inc. ("CSX"), is a railroad company that owns and maintains the track over which its trains run. CSX employees pack, or tamp, crushed stone under the tracks to keep the rails level. Tampers are used to pack the stone. A tamper is a hydraulic machine that operates much like a jackhammer, with two opposing handles at the top and an opening at the bottom into which is fitted a tool bit that is about 18 inches long with a spade-shaped tip that is about 6 inches wide. The tool bit moves rapidly up and down and is held in place by a latch that locks against a collar on the bit. CSX bought a shipment of tampers from Matweld, Inc. ("Matweld"), in 1990.


Matweld purchases its tampers from a Danish company, Lifton A.S. The tampers arrive at Matweld from Lifton fully assembled with the Matweld label affixed to them. Matweld installs transmission hoses on the Lifton tampers and then sells them. Matweld publishes operating manuals to accompany the tampers, and when the tampers need repair, CSX returns them to Matweld for repair.


Two CSX employees, Tom Dawson and Ronald Arnold, injured their backs in separate but similar accidents involving tampers. In each case, the latch on the tamper failed to hold the tool bit in place. The bit fell out, and the operator lurched forward with the machine in his hands, injuring himself. Dawson was injured in 1996, and Arnold was injured in 1998. Dawson and Arnold sued CSX in separate actions.


Both Dawson and Arnold were injured in Florida, and all parties agree that Florida substantive law should govern these cases, which were consolidated for discovery and trial. CSX settled with Dawson and Arnold before trial, paying Dawson $182,000 and Arnold $375,000. CSX, however, asserted against Matweld a third-party claim for indemnification and contribution under the Florida apparent-manufacturer's-liability doctrine, alleging that Matweld had negligently manufactured the tamper and bit. The third-party claims against Matweld went to trial. The Jefferson Circuit Court made several findings of fact:


"At the time of the injuries, the bits were the original ones which came with the tampers and the equipment had been in use continually from 1990 until 1996 when Dawson was injured. The bit was not repaired or replaced until after the Arnold injury in 1998.


"Dawson was slightly injured when the bit unexpectedly fell out of the nosepiece in January, 1996 but he made no claim for that injury. He did report the incident to the Roadmaster [supervisor] Ron McAlister, who order a 'tie' to be placed over the latch to keep it from inadvertently opening again. ... The evidence is clear and convincing that the latch assembly and the collar on the bit were worn due to many years of hard service described by a witness as 'brutal' service. There is no evidence that CSX notified Matweld that there was any problem with the equipment before the injuries occurred. These machines had reached their service limits and beyond; they were worn out. ... The court finds that neither the latch nor the bit was defective."


The trial court further found that "in order to prevail on the indemnity claim CSX must prove that (1) it was totally without fault and (2) that Matweld did or failed to do something which caused the plaintiffs' injuries. Paul N. Howard Company v. Affholder, Inc., 701 So. 2d 402 [(Fl. Ct. App. 1997)]; Houdaille Industries, Inc., v. Edwards, 374 So. 2d 490, 492-493 (Fla. 1979)." The trial court found that Matweld could not be held liable for purposes of indemnifying CSX because the evidence at trial did not show that CSX was without fault or that Matweld did or failed to do something that resulted in Dawson's and Arnold'

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