ROBERTS V. RICH FOODS, INC.
Case Date: 03/21/1995
Docket No: SYLLABUS
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(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
JOHN J. ROBERTS, ET AL V. RICH FOODS, INC., ET AL (A-68-94)
Argued November 29, 1994 -- Decided March 21, 1995
GARIBALDI, J., writing for a unanimous Court.
The matter before the Court concerns the interpretation of the phrase "without impairing the
usefulness of the product" as used in section 3a(2) of the New Jersey Products Liability Act of 1987 (the
Act). Section 3a(2) of the Act provides an absolute, affirmative defense for defendants in product-liability
action that alleges design defect, if "the harm was caused by an unsafe aspect of the product that is an
inherent characteristic of the product and that would be recognized by the ordinary person who uses or
consumes the product." There are two exceptions to section 3a(2) that preclude the use of the defense: when
(1) the product is industrial machinery or other equipment that is used in the workplace; and when (2) the
danger "can feasibly be eliminated without impairing the usefulness of the product."
On August 27, 1987, a tractor-trailer owned by Rich Foods, Inc., and operated by William Lovette
struck a car driven by Anita Roberts (Roberts). Roberts was rendered a paraplegic. Roberts' husband,
John, and their minor children were also injured. Following the accident, Lovette told police that, as he had
entered a construction area with a posted speed limit of 45 miles per hour, he had been driving at 60 to 65
miles per hour and entering data in an "X-300" on-board computer manufactured by Cadec Systems, Inc.
(Cadec).
In September 1987, John Roberts, individually and on behalf of his minor children, filed a complaint
charging Rich Foods, Lovette and his wife with negligence in causing the accident. In February 1988,
Roberts filed a cross-claim against Rich Foods and Lovette, and a third-party complaint against five other
parties involved in the accident. On August 25, 1989, both John Roberts and Anita Roberts amended their
pleadings to allege a products-liability action against Cadec for defectively designing, manufacturing, and
labeling the computer. The members of the Roberts family eventually settled with Rich Foods and Lovette.
The sole issue at trial was whether Cadec defectively designed the X-300 computer by enabling it to
be operated while a truck is in motion, thereby increasing the risk that the driver's attention will be diverted
from the road. Trucking companies are required to pay taxes based on fuel and road usage (mileage) in
each state. The X-300's purpose is to provide a computerized record of that road-usage information for tax-reporting requirements. There was testimony at trial that the state/toll-road function of the computer is
operable while the vehicle is moving so that, when crossing state lines or entering or exiting toll roads, a
driver can record data with greater precision. The computer automatically records the odometer reading,
time, and date when the driver presses the appropriate button that is similar to the button depression on a
car radio. There was also testimony that it was technologically and economically feasible to make the X-300
operable only when a truck is stationary and that the reason the computer is operable while the vehicle is in
motion is for the convenience of the driver.
The trial court charged the jury that Roberts had the burden of proving that the computer was
defective because it was not reasonably safe for its intended or reasonably foreseeable use. To meet that
burden, Roberts had to prove that the computer's risks outweighed its utility. The trial court instructed the
jury to use the risk/utility analysis for the purpose of determining whether the Cadec computer was
defectively designed. The court also charged the jury on the section 3a(2) defense, but not on that section's
two statutory exceptions.
The Supreme Court granted Cadec's petition for certification.
HELD: To preclude the defendant's use of the 3a(2) defense, the plaintiff bears the burden of proving that
the danger feasibly could have been eliminated without impairing the product's usefulness. A
plaintiff seeking to establish this second exception to the 3a(2) defense must prove that the
defendant could have eliminated the danger without eliminating an inherent characteristic of the
product, and thereby significantly diminishing the product's intended use.
1. In interpreting section 3a(2), the Court is mindful of the legislative policy limiting the liability of
manufacturers in order to balance the interests of the public and the individual with a view toward economic
reality. Under common law, the components of the 3a(2) defense were part of the risk/utility analysis, and it
was the plaintiff's burden to prove that the risk outweighed utility. That burden remains the same under
section 3a(2). (pp. 8-14)
2. The Act provides the defendant with a defense that did not exist under common law. Under the
Act, a product that satisfies the 3a(2) standard is, by statutory definition, not defectively designed. Because
this is an affirmative defense, it is the defendant who has the burden of proof. However, case law and
legislative history are silent on whose burden it is to prove the second exception to section 3a(2) that the
danger feasibly could have been eliminated without impairing the usefulness of the product. Placing that
burden of proof on the plaintiff conforms to both the plain language of the statute and the legislative intent.
(pp. 14-16)
3. The legislative history of the Act suggests that "without impairing the usefulness" implicates the
product's inherent characteristics and intended use. Dangers that are inherent cannot be eliminated without
impairing usefulness; an inherent danger arises from an aspect of the product that is indispensable to its
intended use. Further, "impairing the usefulness of the product" means significantly diminishing its intended
use. Thus, even when it is economically feasible to eliminate the danger, section 3a(2) still provides a
defense if eliminating the danger would require eliminating an inherent characteristic. Of course, an
inherent characteristic is one that is an essential characteristic. (pp. 16-20)
4. Although it is technologically and economically feasible to redesign the computer, it is not clear that
that can be done without impairing the product's usefulness. Thus, the jury must decide whether operability
of all functions of the computer while in motion is an inherent characteristic of the X-300, and whether
eliminating that feature in whole or in part would significantly diminish its intended use. Here, the trial
court failed to properly charge the jury in respect of the exception to the 3a(2) defense. Whether Cadec,
without impairing the usefulness of the computer, could have eliminated the dangers posed by the X-300's
being operable while in motion is a question of fact that a jury properly charged should decide. (pp. 20-22)
As MODIFIED, the judgment of the Appellate Division is AFFIRMED.
CHIEF JUSTICE WILENTZ and JUSTICES HANDLER, POLLOCK, O'HERN and STEIN join in
JUSTICE GARIBALDI's opinion. JUSTICE COLEMAN did not participate.
SUPREME COURT OF NEW JERSEY
JOHN J. ROBERTS, both as an
Plaintiffs,
v.
RICH FOODS, INC., a foreign
Defendants,
and
ANITA I. ROBERTS,
Defendant and Third-Party
v.
CADEC SYSTEMS, INC., a foreign
Defendant and Third-Party
and
THE ESTATE OF ORLANDO SOLER,
Jersey, FLEET SAFETY, a Virginia
Third-Party Defendants.
Argued November 29, 1994 -- Decided March 21, 1995
On certification to the Superior Court,
Penny A. Bennett argued the cause for
appellant (Smith, Stratton, Wise, Heber &
Brennan, attorneys; Peter R. Freed, of
counsel; Mr. Freed and Grayson Barber, on the
brief).
Benjamin Goldstein argued the cause for
respondent (Maressa, Goldstein, Birsner,
Patterson, Drinkwater & Oddo, attorneys).
The opinion of the Court was delivered by
GARIBALDI, J. This appeal concerns the interpretation of the phrase "without impairing the usefulness of the product" as used in section 3a(2) of the New Jersey Products Liability Act of 1987 (the Act), N.J.S.A. 2A:58C-1 to -7. Section 3a(2) of the Act provides an absolute, affirmative defense for defendants in suits for design defect, if "the harm was caused by an unsafe aspect of the product that is an inherent characteristic of the product and that would be recognized by the ordinary person who uses or consumes the product." Section 3a(2) also provides two exceptions that preclude use of the defense: when the product is "industrial machinery or other equipment [that] is used in the workplace"; and when the danger "can feasibly be eliminated
without impairing the usefulness of the product." Only the
second exception is before us. In September 1987, John Roberts, individually and as guardian ad litem for his two children, filed a complaint charging Rich Foods, Lovette, and his wife with negligence for causing the accident. In February 1988, Anita Roberts filed a cross-claim against Rich Foods and Lovette, and a third-party complaint against five additional parties involved in the accident. On August 25, 1989, plaintiffs and third-party plaintiff amended their pleadings to commence a product-liability action against Cadec for defectively designing, manufacturing, and labeling the computer. After a complicated series of claims
and cross-claims among the many parties involved, the members of
the Roberts family settled with Rich Foods and Lovette. All
parties agreed that Lovette had been negligent; that Rich Foods,
as his employer, was responsible; and that Lovette's negligence
was a proximate cause of the accident.
[relating to] road use taxes for various
states.
Simmons explained that the state/toll-road function is operable
while a vehicle is in motion so that, when crossing state lines
or entering or exiting toll roads, a driver can record data with
greater precision.
In a letter dated October 5, 1987, to the National Transportation Safety Board, the President of Cadec wrote that "a single button depression, similar to the button depression that changes a radio station on a car radio, determines the information that is
displayed." The other entries can be recorded at a later time,
"when it is safe to do so."
went on to instruct the jury on the section 3a(2) defense, but
not on that section's two statutory exceptions.
the section 3a(2) defense. The Appellate Division remanded the
case for a new trial on Roberts's third-party complaint against
Cadec. Hence, we approach our interpretation of section 3a(2) mindful of the Legislature's policy to limit the liability of manufacturers so as to "`balance[] the interests of the public and the individual with a view towards economic reality.'" Shackil v. Lederle Labs., 116 N.J. 155, 188 (1989) (quoting Shackil v. Lederle Labs., 219 N.J. Super. 601, 643 (1987) (Shebell, J.A.D., dissenting), rev'd, 116 N.J. 155 (1989)). See also DePrimo v. Lehn & Fink Prods. Co., 223 N.J. Super. 265, 273 (Law Div. 1987) (finding that in interpreting the Act, court
should as "matter of sound judicial policy, . . . apply this
conservative legislative policy"). The Legislature
The Legislature passed the Act as "remedial legislation to establish clear rules [in] . . . actions for damages for harm caused by products, including certain principles under which liability is imposed." N.J.S.A. 2A:58C-l. The law does not "codify all issues relating to product liability"; rather, the Legislature intended it to address "matters that require clarification." Ibid. The Act left intact "the three theories under which a manufacturer or seller may be held strictly liable for harm caused by a product -- defective manufacture, defective design, and defective warnings." Dewey v. R.J. Reynolds Tobacco Co., 121 N.J. 69, 94-95 (1990). See N.J.S.A. 2A:58C-2. The Act also provides that a claimant must "prove[] by a preponderance of the
evidence that the product causing the harm was not reasonably
fit, suitable or safe for its intended purpose." N.J.S.A.
2A:58C-2. Except as modified by sections 3 and 4 of the Act,
the elements of the causes of action brought for such product
claims "are to be determined according to the existing common law
of the State." Senate Judiciary Comm., Statement to Senate Bill
No. 2805 (July 22, 1987), reprinted in note following section 1
(hereinafter "Senate Judiciary Committee Statement").
Section 3a(2) provides a. In any product liability action against a manufacturer or seller for harm allegedly caused by a product that was designed in a defective manner, the manufacturer or seller shall not be liable if:
. . . .
(2) The characteristics of the product are
known to the ordinary consumer or user, and
the harm was caused by an unsafe aspect of
the product that is an inherent
characteristic of the product and that would
be recognized by the ordinary person who uses
or consumes the product with the ordinary
knowledge common to the class of persons for
whom the product is intended, except that
this paragraph shall not apply to industrial
machinery or other equipment used in the
workplace and it is not intended to apply to
dangers posed by products such as machinery
or equipment that can feasibly be eliminated
without impairing the usefulness of the
product . . . .
In construing a statute we first look at its plain language.
Merin, supra, 126 N.J. at 434. The Senate Judiciary Committee
Statement notes that section 3a(2) adopts the "consumer
expectations" test that we recognized in O'Brien v. Muskin Corp.,
94 N.J. 169 (1983) and Suter v. San Angelo Foundry & Machine Co.,
81 N.J. 150 (1979). However, examining the language of section
3a(2), we recognized in Dewey, supra, that the test is really a
"'hybrid' provision [that] combines the 'consumer expectations'
doctrine for determining whether a product is defective with the
obvious-danger factor of the risk-utility analysis to create a
defense to a design-defect claim." 121 N.J. at 96 (citations
omitted).
Under pre-Act New Jersey case law, the risk/utility analysis
determined whether or not a product was defectively designed -
that is, whether its design was fit for its intended purpose. In
Cepeda v. Cumberland Engineering Co.,
76 N.J. 152 (1978),
overruled in part by Suter, supra,
81 N.J. 150, we listed the
factors of that analysis:
[Id. at 174 (quoting John W. Wade,
On the Nature of Strict Tort
Liability For Products,
44 Miss.
L.J. 825, 837-38 (1973).]
contained a defect. To establish a prima facie case, the
plaintiff should adduce sufficient evidence on the risk-utility
factors to establish a defect." 94 N.J. at 185.
[Fabian v. Minster Mach. Co.,
258 N.J. Super. 261, 271 (App. Div.),
certif. denied, 130 N.J. 598
(1992).]
[William A. Dreier et al., Products
Liability and Toxic Tort Law in New
Jersey: A Practitioner's Guide, at
135.1 (6th ed. 1988 & Supp. 1990)
(emphasis added).]
Such an interpretation of 3a(2) accords with the fact that, under
common law, the components of the 3a(2) defense were part of the
risk/utility analysis, and it was the plaintiff's burden to prove
that risk outweighed utility. That burden remains on the
plaintiff under section 2.
The Act effected the same "conversion" -- from mere factor
to absolute defense -- for the "state-of-the-art" test. N.J.S.A.
2A:58C-3a(l). For example, in reviewing a jury charge, the
Appellate Division held that, "by including the state-of-the-art
element only as an element of the risk/utility analysis, the
court failed to give defendant the benefit of the absolute
statutory affirmative defense available under N.J.S.A. 2A:58C-3a(1)." Fabian, supra, 258 N.J. Super. at 274. The same
analysis applies to the section 3a(2) defense: if the defendant
has proved it, and the plaintiff has not disproved it, the
plaintiff will not recover.
under common law. Just as section 3a(2) elevates some of those
factors to an absolute defense that the defendant may raise, this
exception to 3a(2) elevates a different factor to an exception
that the plaintiff may raise. That the plaintiff will in most
cases have to prove that the danger could be eliminated without
impairing usefulness makes the plaintiff's task more difficult,
and that was the intent of the Act. Hence, if a plaintiff proves
by a preponderance of the evidence that the defendant could have
eliminated the danger without impairing the usefulness of the
product, then the product might be defectively designed even
though the defendant has proved the 3a(2) defense. Cadec asserts that removal of the danger posed by an allegedly defective product may impair its usefulness without rendering the product totally useless. Hence, Cadec seeks a standard under which the plaintiff has to prove that the danger can be eliminated without significantly diminishing the usefulness of the product. Under that standard, a plaintiff
could not prevail by showing that the defendant could have
designed a product that was safer, but significantly less useful.
court has predicted how this Court would eventually interpret the
phrase. In McWilliams v. Yamaha Motor Corp., USA,
780 F. Supp. 251 (D.N.J. 1991), modified,
987 F.2d 200 (3d Cir. 1993), the
plaintiff, whose legs had been injured in a motorcycle accident,
claimed that the section 3a(2) defense was not available to the
defendant motorcycle manufacturer because the defendant could
feasibly have eliminated the danger of leg injury by adding crash
bars. Id. at 253-54. Applying the Act, the district court held
leg injuries to be an open and obvious danger of motorcycle
riding that is inherent in the intended use of motorcycles and
that, therefore, cannot feasibly be eliminated:
fact as to whether the addition of crash bars would have
eliminated the risk of lower leg injury . . . without impairing
the usefulness" of the motorcycle. McWilliams, supra, 987 F.
2d
at 206. However, the Court of Appeals focused on whether adding
crash bars would eliminate the danger, not on whether adding
crash bars would impair the usefulness of the motorcycle. Id. at
205-06. For that reason, the opinion of the Court of Appeals is
not directly on point.
evaluation of the second exception to the 3a(2) defense: juries
will inevitably weigh the extent to which the elimination of the
inherent danger would impair usefulness against the extent to
which the change would improve a hazardous condition. Cadec argues that part of the intended use of the X-300 is to accept data entry while in motion. That would mean that operating while in motion is an inherent characteristic of the X-300, and that diverting the driver's eyes from the road is an inherent danger. Although Roberts discounts the reasons that Cadec's witnesses offered for making the computer operable while in motion -- convenience and precision -- Cadec claims that those two characteristics are integral to the X-300. Cadec admitted that it could have made the X-300 inoperable while in motion, but Roberts and the Appellate Division misapprehended that admission as a concession that Cadec could so
design the computer without impairing its usefulness -- a
concession that the second exception to 3a(2) made the defense
unavailable to Cadec. Even though it is technologically and
economically feasible to redesign the product, it is not clear
that that can be accomplished without impairing the usefulness of
the X-300 -- without, that is, removing one of its inherent
characteristics.
However, the trial court also should have charged the
exception to the section 3a(2) defense. We do not agree with the
trial court that the proofs were sufficient as a matter of law to
establish that making the X-300 inoperable in whole or in part
while in motion would so impair the usefulness of the product
that an instruction on the "impairing the usefulness" exception
to the 3a(2) defense was unnecessary. Nor do we agree with the
Appellate Division's conclusion that the record establishes that
Cadec could feasibly have eliminated the dangers that the X-300
poses without impairing its usefulness. Instead, on this record,
we find that whether Cadec could have -- without impairing the
usefulness of the computer -- eliminated the dangers posed by the
X-300's being operable while in motion is a question of fact that
a jury properly charged should decide. For example, Cadec may
prove that the initial, one-touch data entry cannot be made
inoperable while in motion without impairing the usefulness of
the X-300. The record is unclear, however, on whether Lovette
was attempting to make the initial entry or the follow-up entries
as he entered the construction area. Thus, Roberts may prove
that Cadec could, without impairing the usefulness of the
computer, feasibly have made only the ten-second follow-up
procedure inoperable while in motion. All those considerations
are properly for the jury to resolve.
NO. A-68 SEPTEMBER TERM 1994
DECIDED March 21, 1995
Chief Justice Wilentz PRESIDING
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