Oswalt v. RESOLUTE INDUSTRIES, INC.
642 F.3d 856
| 9th Cir. | 2011Background
- Oswalt's boat CHUG caught fire from the heater during repairs by Resolute's employee Albrecht; the burner unit was the fire source and would ignite only with power.
- Albrecht reattached the burner near the cabin ceiling after removing it; he left to move another boat and returned to smoke, with power allegedly still flowing to the unit.
- Oswalt and Federal Insurance sued Resolute for negligence and breach of the implied warranty of workmanlike performance; Resolute sued Webasto (manufacturer) in a third-party action for design/warning defects.
- The district court granted Webasto summary judgment on Resolute's warnings claim; after a bench trial, it found Resolute breached the implied warranty and awarded damages for hotel costs and surveyor fees.
- On appeal, the Ninth Circuit held: (a) Webasto proper on inadequate warnings; (b) design defect claim should not be summarily resolved in Webasto's favor; (c) Resolute liable on Oswalt's implied warranty claim; (d) damages for loss of use and surveyor fees affirmed; (e) remanded for further proceedings on the design defect claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Inadequate warnings and instructions | Resolute | Webasto | Webasto entitled to summary judgment |
| Design defect claim viability | Resolute | Webasto | Trial court erred; remand for design defect issue |
| Implied warranty causation | Resolute | Oswalt causation lacks direct proof | Resolute liable for implied warranty breach |
| Loss of use and hotel damages | Oswalt (via Resolute) | Resolute disputes damages | Damages for loss of use/ hotel costs sustained |
| Surveyor fees recoverability | Oswalt (via Federal) | Resolute disputes fees | Surveyor fees recoverable |
Key Cases Cited
- Pan-Alaska Fisheries, Inc. v. Marine Constr. & Design Co., 565 F.2d 1129 (9th Cir. 1977) (federal maritime tort law and product liability framework)
- Saratoga Fishing Co. v. Marco Seattle Inc., 69 F.3d 1432 (9th Cir. 1995) ( Restatement (Third) guidance and products liability principles in admiralty)
- Restatement (Third) of Torts: Products Liability § 2, (1998) (—) (defines product defect categories including design and warnings)
- United States v. Standard Oil Co. of Cal., 495 F.2d 911 (9th Cir. 1974) (circumstantial evidence support for causation in maritime context)
- The Conqueror, 166 U.S. 110 (1897) (loss-of-use damages on a vessel for non-recreational use standards)