Emslie v. BORG-WARNER AUTOMOTIVE, INC.
2011 U.S. App. LEXIS 17743
| 2d Cir. | 2011Background
- Plaintiffs James and Lisa Emslie are Scottish residents who sued Borg-Warner Automotive, Inc. and Recreative Industries, Inc. in the Western District of New York.
- The ATV at issue allegedly had a defectively designed transmission, designed by Borg-Warner and manufactured by Recreative (via its subsidiary Skid Steer).
- Borg-Warner sold the design in 1975 and ceased involvement in the transmission business long before the 2001-2005 events giving rise to suit.
- The district court granted Borg-Warner summary judgment and dismissed Recreative under forum non conveniens.
- Emslies argued Sage v. Fairchild-Swearingen as a basis for liability; the court found Borg-Warner could not be held liable under the facts of this case.
- This is a diversity case with plaintiffs from Scotland and defendants incorporated in Delaware and New York.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Borg-Warner can be liable for a defectively designed transmission. | Emslie argues Borg-Warner designed the defect. | Borg-Warner had no control over the design or transmission and is not in the stream of commerce. | No liability; summary judgment affirmed. |
| Whether Sage extends liability to this post-sale design. | Sage logic supports liability because the original designer could discover and correct the defect. | Sage does not apply because Borg-Warner no longer designed or sold the transmission and could not discover or correct defects. | Not applicable to these facts; Sage does not override the district court. |
| Whether the district court abused its discretion in granting forum non conveniens for Recreative. | Forum non conveniens dismissal is improper given facts. | British courts are an adequate alternative forum; witnesses and situs favor dismissal. | No abuse; district court properly dismissed Recreative. |
Key Cases Cited
- Voss v. Black & Decker Mfg. Co., 59 N.Y.2d 102 (N.Y. 1983) (defect design requires reasonable safety and substantial factor in injury; balancing harm and precautions)
- Sage v. Fairchild-Swearingen Corp., 70 N.Y.2d 579 (N.Y. 1987) (original manufacturer in position to discover and correct design defect; applicability limited by facts)
- Blackburn v. Johnson Chemical Co., 128 Misc.2d 623 (Sup. Ct. 1985) (imposition of strict liability where party in best position to eliminate danger)
- Norex Petroleum Ltd. v. Access Indus., Inc., 416 F.3d 146 (2d Cir. 2005) (abuse of discretion standard for forum non conveniens)
- Wright v. Goord, 554 F.3d 255 (2d Cir. 2009) (de novo review standard for summary judgment)