Bic Pen Corp. v. Carter Ex Rel. CarterBic Pen Corp. v. Carter Ex Rel. Carter
delivered the opinion of the Court,
Six-year-old Brittany Carter was severely burned when her five-year-old brother,
BIC brings six issues on appeal: (1) whether Carter presented legally sufficient evidence of causation; (2) whether federal law preempts Carter’s claims; (3) whether Carter proved either a design or manufacturing defect; (4) whether BIC acted with malice; (5) whether the trial court erred in giving a spoliation instruction; and (6) whether the trial court’s judgment awarded excessive interest. Because we conclude that federal law preempts the design defect claim, we reverse the court of appeals’ judgment and remand to the court for it to consider thе remaining issues.
I
The J-26 lighter is subject to the federal standards for child-proof lighters and must be certified as compliant by the Consumer Product Safety Commission (“the Commission”).
After evaluating data showing thаt disposable lighters posed a significant risk of harm to the public, the Commission adopted regulations requiring disposable lighters to be child-resistant and setting a protocol for testing a lighter’s child resistance.
See
The regulations then set out the testing protocol.
Before receiving a certificate of compliance from the Commission, manufacturers must provide the Commission with a complete description of the child-resistant features of the lighter and all related dimensions and force requirements.
The J-26 lighter underwent qualification testing in 1994,
2
with six surrogates representing the range of forces intended for use in the J-26.
See
II
The United States Constitution provides that the laws of the United States are “the supreme Law of the Land; ... any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.”
BIC argues that Carter’s claims here are impliedly preempted because they
In addition to this saving clause, the CPSA also includes a preemption clause.
Whenever a consumer product safety standard under this chapter is in effect and applies to a risk of injury associated with a consumer product, no State or political subdivision of a State shall have any authority either to establish or to continue in effect any provision of a safety standard or regulation which prescribes any requirements as to the performance, composition, contents, design, finish, construction, packaging, or labeling of such product which are designed to deal with the same risk of injury associated with such consumеr product, unless such requirements are identical to the requirements of the Federal standard.
The United States Supreme Court considered the interplay between saving clauses and express preemption provisions in
Geier v. American Honda Motor Co.,
Two courts have considered this question with conflicting results. The Mississippi Supreme Court agreed with BIC, holding that implied preemption should apply.
Frith v. BIC Corp.,
The Commission considered higher and lower standards before setting the child-resistance standard at eighty-five percent.
See
The Commission, moreover, was aware that greatеr child resistance might be achieved but specifically rejected imposing standards above eighty-five percent, noting that a higher standard would reduce the utility and convenience of the product and increase costs disproportionate to the benefits. See 58 Fed.Reg. 37,589. The Commission specifically noted that “[a] higher ([ninety] percent) acceptance criterion was also considered,” but rejected because the “higher performance level [was] not commercially or technically feasible for many firms” and “would have substantial adverse effects on manufacturing and competition, and would increase costs disproportionate to benefits.” Id. The so-called “rateheting-up” effect also played a part in the Commission’s decision. See 57 Fed.Reg. 36,950. This effect results from a manufacturer’s need to exceed a standard because of: (1) “component and assembly quality control limits” (i.e., manufacturing tolerances); and (2) “potential variation in the results of testing.” Id.; accord id. at 36,945; 36,946 (noting that manufacturers would need to make lighters that perform above the eighty-five percent level to minimize the possibility that the Commission would test a manufacturer’s fighter and obtain results below the eighty-five percent level). The Commission thus concluded that an eighty-five percent standard would generally result in the production of surrogate fighters approaching ninety-percent effectiveness when tested. See 58 Fed.Reg. 37,570.
As already noted, one of the Commission’s primary concerns was the selection of a standard that encouraged the manufacture of child-resistant fighters and their acceptance by adult users.
See
We find additional support for our conclusion in the CPSA, which provides for the creation of state specific exemptions to the federal regulations:
Upon application of a State or political subdivision of a State, the Commission may by rule, after notice and oppоrtunity for oral presentation of views, exempt from the provisions of subsection (a) of this section [preemption of all non-identical state standards] (under such conditions as it may impose in the rule) any proposed safety standard or regulation which is described in such application and which is designed to protect against a risk of injury associated with a consumer product subject to a consumer product safety standard under this chapter if the State or political subdivision standard or regulation—
(1) provides a significantly higher degree of protectiоn from such risk of injury than the consumer product safety standard under this chapter, and
(2) does not unduly burden interstate commerce.
In determining the burden, if any, of a State or political subdivision standard or regulation on interstate commerce, the Commission shall consider and make appropriate (as determined by the Commission in its discretion) findings on the technological and economic feasibility of complying with such standard or regulation, the cost of complying with such standard or regulation, the geographic distribution of the consumer product to which the standard or regulation would apply, the probability of othеr States or political subdivisions applying for an exemption under this subsection for a similar standard or regulation, and the need for a national, uniform standard under this chapter for such consumer product.
The Supreme Court’s most recent case on preemption is in agreement.
Riegel v. Medtronic, Inc.,
552 U.S.-,
State tort law that requires a manufacturer’s catheters to be safer, but hence less effective, than the model the FDA has approved disrupts the federal scheme no less than state regulatory law to the same effect. Indeed, one would think that tort law, applied by juries under a negligence or strict-liability standard, is less deserving of preservation. A state statute, or a regulation adopted by a state agency, could at least be expected to apply cost-benefit analysis similar to that applied by the experts at the FDA ... A jury, on the other hand, sees only the cost of a more dangerous design, and is not concerned with its benefits....
Id. at 1008. The Court held that the plaintiffs claims regarding the design, labeling, and manufacture of an arterial catheter were preempted. Id. at 1005, 1011.
Although
Riegel
addressed an express preemption provision, its policy analysis is likewise applicable here.
See id.
at 1002. Both the MDA provisions in
Riegel
and the CPSA provisions at issue here require products to go through safety testing before being released on the market. In both cases, a careful analysis of the provi
In summary, we disagree with the court of appeals that Carter’s judgment below can be affirmed on the theory of design defect because the J-26 was properly certified according to the federal protocol and because imposing a higher standard under common law would conflict with the federal regulatory scheme in this area.
Ill
BIC next argues that the manufacturing defect claim is also preempted because it is merely a restatement of the design defect claim. We disagree. “A manufacturing defect exists when a product deviates, in its construction or quality, from the specifications or planned output in a manner that renders it unreаsonably dangerous.”
Cooper Tire & Rubber Co. v. Mendez,
In the court of appeals, BIC argued that the evidence of manufacturing defect was both legally and factually insufficient.
TV
BIC next challenges the jury finding of malice, the predicate for the award of exemplary damages in this case. The jury found that the J-26 was defectively designed and manufactured, and that BIC acted with malice in the production of this lighter. The court of appeals affirmed, holding that a reasonable trier of fact could have formed a firm conviction or belief that BIC acted with malice.
When this case was filed, malice was defined under section 41.001(7) 6 of the Civil Practice and Remedies Code as:
(A) a specific intent by the defendant to cause substantial injury to the claimant; or
(B) an act or omission: (i) which when viewed objectively from the standpoint of the actor at the time of its occurrence involves an extreme degree of risk, considering the probability and magnitude of the potential harm to others; and (ii) of which the actor has actual, subjective awareness of the risk involved, but nevertheless proceeds with conscious indifference to the rights, safety, or welfare of others.
V
Finally, BIC argues that the judgment awards excessive interest because the interest rates provided in House Bill 2415
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should apply to this judgment signed on August 8, 2003. The court of appeals disagreed, holding that the new, lower interest rate provided in this legislation did not take effect until September 1, 2003, three weeks after rendition of the judgment in this case.
The Texas Constitution provides that once a bill becomes law by being passed by the Legislature and signed by the Governor, it generally does not take effect until ninety days after the adjournment of the session in which it was enacted.
A harmless bill might be passed in its inception by the requisite vote, and then be radically amended and such amendments be put into immediate effect without the vote required by the Constitution. If such were the rule, the vote on the original bill would control as to whether it became a law immediately after its final passage, and not the final vote subsequently taken on the amendments placed thereon by the other branch of the Legislature, and the plain provision of the Constitution requiring that it be adopted by a vote of two-thirds of all the members of each house, in order to declare an emergency, could be evaded.
Id.
Subsequent amendments and resolutions must accordingly meet the constitutional requirement of a recorded, two-
Here, the Legislature passed House Bill 2415 by a two-thirds majority vote of each house on June 1, 2003. See Act of June 2, 2003, 78th Leg., R.S., ch. 676, § 1, 2003 Tex. Gen. Laws 2096, 2097. The vote was taken by a recorded vote. See id. The next day, the Legislature adopted Senate Resolution 66, which amended House Bill 2415 by changing its cap on the post-judgment interest rate from the yield on United States Treasury Bills to the prime rate as published by the Federal Reserve Bank of New York. See id. Whilе the resolution was adopted without objection, the vote was not recorded, and thus under the Constitution did not qualify for expedited effect but rather took effect on September 1, 2003. Id. Accordingly, we agree with the court of appeals that this interest rate did not apply to the judgment in this case.
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Because we conclude that Carter’s design defect claim is preempted by federal law and therefore cannot serve as the basis for affirming the judgment below, we reverse the court of appeals’ judgment and remand the cause to that court to rеview the issues that remain.
Notes
. The exemplary damages were reduced to $750,000 as required by section 41.008 of the Texas Civil Practice and Remedies Code.
. The J-26 was also tested in 1997. The lighter at issue here was manufactured in October 1997, and there was some dispute at trial as to which test applied. The court of appeals concluded that the 1994 specifications should apply, and the parties do not dispute that conclusion here.
See
. National Traffic and Motor Vehicle Safely Act’s express preemption provision provides:
Whenever a Federаl motor vehicle safety standard established under this title is in effect, no State or political subdivision of a State shall have any authority either to establish, or to continue in effect, with respect to any motor vehicle or item of motor vehicle equipment^] any safety standard applicable to the same aspect of performance of such vehicle or item of equipment which is not identical to the Federal standard.15 U.S.C. § 1392(d) (1988), repealed by Pub.L. No. 103-272, § 7(b), 108 Stat. 1379 (1994).
. National Traffic and Motor Vehicle Safety Act’s saving clause provides that “Compliance with any Federal motor vehicle safely standard issued under this title does not exempt any person from any liability under common law.”
.The United States Supreme Court has vacillated between express and implied conflicts preemption in recent cases. For example, in
Cipollone v. Liggett Group, Inc.,
. Section 41.001(7) was amended in 2003 after this lawsuit was filed. Act of June 2, 2003, 78th Leg., R.S. ch. 204 § 23.02(d), 2003 Tex. Gen. Laws 847, 899. Citations in the text to section 41.001 refer to the prior version.
. House Bill 4 contains almost identical language to House Bill 2415, regarding changes to the post-judgment interest provisions of Texas Finance Code section 304.003(c). Compare Act of June 2, 2003, 78th Leg., R.S., ch. 204, § 6.01, 2003 Tex. Gen. Laws 847, 862 (House Bill 4) with Act of June 2, 2003, 78th Leg., R.S., ch. 676, § 1, 2003 Tex. Gen. Laws 2096-97 (House Bill 2415). Because House Bill 4 became effective on September 1, 2003, it does not apply to this case. See Act of June 2, 2003, 78th Leg., R.S., ch. 204, § 6.01, 2003 Tex. Gen. Laws 847, 862.
. "No law passed by the Legislature, except the general appropriation act, shall take effect or go into force until ninety days after the adjournment of the session at which it was enacted, unless the Legislature shall, by a vote of two-thirds of all the members elected to each House, otherwise direct; said vote to be taken by yeas and nays, and entered upon the journals.’’