Opinion
I. Introduction
Defendant Plant Insulation Company appeals from the judgment against it in this asbestos case, claiming the trial court erred in excluding the United
II. Factual and Procedural Background
We set forth only those facts pertinent to the appeal. Plaintiffs and respondents Cloristeen Collins and Patricia Collins (plaintiffs) are, respectively, the wife and daughter of Ulysses Collins (Collins). Collins died on May 8, 2005, of mesothelioma contracted as a result of workplace exposure to asbestos. Collins worked as a welder at the Hunters Point Naval Shipyard from 1960 to 1973, and as a boilermaker welder at the Standard Oil refinery in Richmond from 1973 through 1976. His last job was at the Mare Island Naval Shipyard, where he worked as a structural welder and pipewelder from 1976 through 1994. Throughout his career, Collins worked extensively with asbestos and asbestos-containing products, including those distributed and installed by defendant Plant Insulation Company (Plant).
At the close of evidence, plaintiffs moved for a directed verdict regarding the Navy, arguing fault could not be allocated to the service pursuant to Proposition 51 (Civ. Code, § 1431 et seq.).
1
Citing
Munoz v. City of Union City
(2007)
The special verdict form listed 17 entities, including Plant, among which the jury could allocate responsibility for Collins’s injuries. During deliberations, the jury sent a note to the court asking why the Navy was “omitted from [the] list of responsibility allocation.” The court responded “[a]s a matter of law you may not apportion to the U.S. Navy. Do not speculate as to why.” The jury found Plant was negligent and liable under strict products liability, and allocated fault as follows: 20 percent to Plant, 15 percent to Fibreboard, 5 percent to Chevron/Standard Oil, 30 percent to Owens-Coming Fiberglas/FENCO/Kaylo, and 30 percent to Johns-Manville/Western Asbestos/Westem MacArthur.
III Discussion
Plant challenges the trial court’s ruling that excluded the Navy from the list of entities to which fault could be allocated pursuant to Proposition 51. There is no dispute the Navy is immune from liability for plaintiffs’ asbestos claims. Whether the Navy’s immunity precludes an allocation of fault under Proposition 51 turns on the nature and character of the immunity, and is a question of law we review de novo. (See
People ex rel. Lockyer
v.
Shamrock Foods Co.
(2000)
A. Proposition 51 and Fault Allocation to Immune Entities
We first examine the purpose and scope of Proposition 51, and its application to individuals and entities immune from suit.
By 1986, when Proposition 51 was placed on the ballot, “the courts had eliminated certain inequities of the former tort recovery system, but so-called ‘deep pocket’ defendants whose fault was slight could still be saddled with large damage awards mainly attributable to the greater fault of others who were able to escape their full proportionate contribution. [Citation.] Proposition 51 sought to modify this system of recovery.”
(DaFonte v. Up-Right, Inc.
(1992)
“Proposition 51 first codified its purpose by adding section 1431.1 to the Civil Code. This statute decries the unfairness and cost of the ‘deep pocket’ rule to both ‘governmental and private defendants’ [citation] and cites the
“To carry this intent into effect, Proposition 51 amended section 1431 and added section 1431.2. Amended section 1431 establishes a presumption that ‘[a]n obligation imposed upon several persons ... is presumed to be joint, and not several, except as provided in Section 1431.2 ... 2 (Italics added.) New section 1431.2 declares that in actions for wrongful death, personal injury, or property damage based on comparative fault, ‘the liability of each defendant for non-economic damages shall be several only and shall not be joint.’ The statute further specifies that ‘[e]ach defendant shall be liable only for the amount of non-economic damages allocated to that defendant in direct proportion to that defendant’s percentage of fault, and a separate judgment shall be rendered against that defendant for that amount.’ ” (DaFonte, supra, 2 Cal.4th at pp. 599-600, quoting § 1431.2, subd. (a).)
“Proposition 51 thus retains the joint liability of all tortfeasors, regardless of their respective shares of fault, with respect to all objectively provable expenses and monetary losses. On the other hand, the more intangible and subjective categories of damage were limited by Proposition 51 to a rule of strict proportionate liability. With respect to these noneconomic damages, the plaintiff alone now assumes the risk that a proportionate contribution cannot be obtained from each person responsible for the injury.”
(DaFonte, supra,
Proposition 51 thus contemplates a defendant’s fault will be “compared to all other ‘fault’ responsible for the injury.”
(Richards v. Owens-Illinois, Inc.
(1997)
The statute “neither states nor implies an exception for damages attributable to the fault of persons who are immune from liability .•. . .”
(DaFonte, supra,
In
DaFonte,
the plaintiff was injured at work when his hand was crushed in a mechanical grape harvester. He received benefits from his employer’s workers’ compensation insurer and sued the manufacturer of the harvester for negligence and product defect.
(DaFonte, supra,
After analyzing the intent and purpose of Proposition 51, the Supreme Court rejected the plaintiff’s argument. (DaFonte, supra, 2 Cal.4th at pp. 601-604.) Under workers’ compensation law, an employer is liable for statutory compensation “without regard to negligence,” but is immune from “any other liability.” (Lab. Code, § 3600, subd. (a).) The court explained that an employer’s immunity from suit does not mean it owes no duty of care to its employees and cannot be characterized as being at “fault” for injuries suffered in the workplace for purposes of Proposition 51. (DaFonte, at p. 604, fn. 6.) “No substantial reason is asserted, let alone a ‘compelling’ one, why Proposition 51’s manifest policy should not apply” to third party suits by injured workers. (Id. at pp. 603-604.)
In
Richards,
the plaintiff sued Owens-Illinois, Inc., for asbestos-related injuries.
(Richards, supra,
14 Cal.4th at
pp.
989-990.) The plaintiff was a smoker, and Owens asked that tobacco companies be included in the list of entities as to which fault could be allocated pursuant to Proposition 51,
The Supreme Court reversed the appellate court, explaining the tobacco companies’ immunity was fundamentally different than the employer’s immunity at issue in
DaFonte. (Richards, supra,
14 Cal.4th at pp. 998-1004.) The tobacco companies’ immunity was the result of a legislative decree that the companies’ conduct simply was not wrongful, i.e., that the companies did not owe, and therefore could not breach, any duty of care in connection with the sale of cigarettes.
(Id.
at pp. 999-1002.) The language of the statute and legislative history demonstrated section 1714.45 represented “a legislative judgment that to the extent of the immunity afforded, such companies have no ‘fault’ or responsibility, in the legal sense, for harm caused by their products. To the same extent, such companies are thus not ‘tortfeasors’ to whom comparative ‘fault’ can be assigned for purposes of Proposition 51.”
(Richards,
at p. 989.) “[T]he Legislature has determined, the mere manufacture and sale of such products create no
tortious
responsibility to
individuals
who voluntarily consumed them with the community’s knowledge that they were unsafe.”
(Id.
at p. 1002.) In short, “when the Immunity Statute was in effect, supplying pure and unadulterated tobacco products to knowing and voluntary consumers of those products was not subject to tort liability because it breached no legal duty and thus constituted no tort.”
(Myers, supra,
Thus, under DaFonte and Richards, whether fault can be allocated to an immune individual or entity under Proposition 51 depends on whether the immunity is essentially an immunity from suit, or whether it is based on a predicate determination the conduct in question is not wrongful under the law. Subsequent cases illustrate this distinction.
In
Ford v. Polaris Industries, Inc.
(2006)
B. The Navy’s Immunity
With these legal principles in mind, we now examine the nature and character of the Navy’s immunity.
“The United States, as sovereign, is immune from suit save as it consents to be sued . . . .”
(United States v. Sherwood
(1941)
The FTCA “provides that, subject to certain exceptions, ‘[t]he United States shall be liable, respecting the provisions of this title relating to tort claims, in the same manner and to the same extent as a private individual under like circumstances.’ ”
(Department of Army
v.
Blue Fox, Inc., supra,
It is undisputed the Navy is immune from liability in this case by virtue of the “discretionary function exception” to the FTCA. This exception has been held to bar actions based on the federal government’s alleged negligence in using asbestos on ships, failing to warn of its dangers, and promulgating an inadequate policy or having no policy for asbestos safety in shipyards.
(Sea-Land Service, Inc. v. United States
(3d Cir. 1990)
Plant argues the Navy’s immunity is essentially one from suit and does not mean the service owes no duty of care as to its enlisted personnel and civilian employees and thus cannot be characterized as a “tortfeasor” for purposes of Proposition 51. Plaintiffs contend sovereign immunity is based on the historical adage “the King can do no wrong” and therefore the Navy’s actions cannot be “wrongful” and thus no “fault” can be allocated to the service. We agree with Plant and conclude the Navy is properly included among those entities to which fault may be apportioned in an asbestos case.
The discretionary function exception to the federal government’s waiver of its sovereign immunity in the FTCA represents a policy decision by Congress that certain actions of the United States, even if wrongful, are immune from suit. The federal statute states: “The provisions of this chapter . . . shall not apply to . . . [¶] [a]ny claim . . . based upon the exercise or performance or the failure to exercise or perform a discretionary function or duty on the part of a federal agency or an employee of the Government, whether or not the discretion involved be abused.” (28 U.S.C. § 2680(a), italics added.) The plain language of the statute thus acknowledges the federal government can “abuse” its discretion—an acknowledgement that would be superfluous absent recognition conduct by the government can, indeed, be wrongful.
The federal courts of appeals have likewise consistently stated the discretionary function exception protects the government from suit regardless of negligence. “ ‘[A]t its root, the discretionary function exception is about power, not fairness. The sovereign has, by the exercise of its authority, reserved to itself the right to act without liability for
misjudgment and carelessness
in the formulation of policy.’ ”
(Walters v. U.S.
(8th Cir. 2007)
The discretionary function exception to the FTCA waiver is based on a “desire to prevent judicial ‘ second-guessing’ of legislative and administrative decisions grounded in social, economic, and political policy through the
The federal government also has adopted an alternative compensation system for federal employees under the Federal Employees’ Compensation Act (FECA), akin to the alternative compensation system provided by the California’s workers’ compensation law. The FECA provides, in part, “The United States shall pay compensation as specified by this subchapter for the disability or death of an employee resulting from personal injury sustained while in the performance of his duty . . . [including for] [¶] . . . [¶] . . . [disability or death from a war-risk hazard . . . .” (5 U.S.C. § 8102(a)—(b).) “In enacting this provision, Congress adopted the principal compromise—the
‘quid pro
quo’—commonly found in workers’ compensation legislation: employees are guaranteed the right to receive immediate, fixed benefits, regardless of fault and without need for litigation, but in return they lose the right to sue the Government.”
(Lockheed Aircraft Corp. v. United States
(1983)
Plaintiffs argue there is no evidence Collins was a civilian employee of the Navy covered under the FECA or an enlisted servicemember covered by the Veterans Benefits Act. This argument misses the mark. What these alternative compensation schemes reinforce is that federal immunity is immunity from suit, not a legislative decree the federal government can do no wrong and owes no duty of care to its employees and service personnel.
Plaintiffs’ reliance on the old maxim “the King can do no wrong” is also misplaced. Although the United States looked to English common law when embracing the doctrine of sovereign immunity, it repudiated the fiction of an infallible monarch. The United States Supreme Court long ago described the maxim plaintiffs invoke as an “ancient and discredited doctrine.”
(Dalehite v.
Moreover, “the meaning traditionally ascribed to this phrase is an ironic perversion of its original intent: ‘The maxim merely meant that the King was not privileged to do wrong. If his acts were against the law, they were
injuriae
(wrongs). Bracton, while ambiguous in his several statements as to the relation between the King and the law, did not intend to convey the idea that he was incapable of committing a legal wrong.’ ”
(Owen v. City of Independence
(1980)
Federal sovereign immunity is thus grounded not on the notion the government is infallible and can do no wrong, but on the jurisdictional theory it must consent to suit before it can be sued for its wrongful conduct. (See, e.g.,
United States v. Navajo Nation (2009) 556
U.S._,_[
We therefore agree with the decision of our colleagues in
Taylor, supra,
The Court of Appeal concluded it did not need to decide whether the discretionary function exception or the
Feres/Stencel
rule applied because
“even assuming the Navy was immune,
the trial court properly allowed the fault of the Navy to be taken into account in allocating responsibility for plaintiffs’ injuries.”
(Taylor, supra,
Plaintiffs argue
Taylor
is inapposite, pointing out “the words ‘sovereign immunity’ appear nowhere in the opinion.” They contend
Taylor
“overlooked the fact that by default the Navy ‘is not a tortfeasor,’ ” because “[d]ue to the parties’ framing of the issues on appeal, the court in
Taylor
was not asked to consider, and therefore did not consider, the issue of sovereign immunity.” True, the appellate court did not use the specific phrase “sovereign immunity.” However, the court plainly was dealing with that issue given its reference to the discretionary function exception and the
Feres/Stencel
doctrine and its holding that, regardless of whether either of these exceptions to the FTCA applied, apportionment of fault to the Navy was proper. Thus,
Plaintiffs also argue
Taylor
is no longer good law in light of
Munoz, supra,
In a second appeal, the plaintiffs argued the trial court erred in reducing the judgment, rather than increasing the officer’s percentage of fault. The Court of Appeal agreed, stating “[sjince Union City was not a tortfeasor, there was no basis for allocating a portion of the damages [to it] under principles applicable when two or more defendants are legally at fault.”
(Munoz, supra,
Munoz
considered only the immunities created by California’s Government Code to shield California “public entities” as defined and specified by the state statute. It did not consider, let alone analyze, the character of the Navy’s immunity. Further, it acknowledged
Taylor’s
holding and quoted the Court of Appeal’s pivotal statement that it was “ ‘aware of no declaration stating the government breaches no duty to military personnel when it exercises its
We thus conclude the trial court erred in excluding the Navy from the list of entities as to which the jury could apportion fault pursuant to Proposition 51. Since the evidence was sufficient to support an apportionment of fault to the Navy, the error was prejudicial, requiring reversal of the judgment.
C. Scope of Retrial
Plaintiffs argue a retrial should be limited to apportionment of fault. Plant maintains there should be a new trial on all issues.
A limited retrial may be ordered if the issue to be tried “ ‘can be separately tried without such confusion or uncertainty as would amount to a denial of a fair trial.’ ”
(Torres v. Automobile Club of So. California
(1997)
There has been no challenge to the jury’s liability verdict here, and we agree that, as in O’Kelly, a retrial can properly be limited to the issue of apportionment of fault without causing “confusion or uncertainty.”
The judgment is reversed and the case remanded for a retrial limited to apportionment of fault. The entities on the list among which the jury on retrial can apportion fault shall include the Navy and the entities to which some percentage of fault was assigned by the jury in the first trial.
Margulies, Acting P. J., and Dondero, J., concurred.
A petition for a rehearing was denied July 2, 2010, and the opinion was modified to read as printed above. Respondents’ petition for review by the Supreme Court was denied August 11, 2010, S184316. George, C. J., did not participate therein.
Notes
All further statutory references are to the Civil Code unless otherwise indicated.
The judgment was actually entered on November 12, 2008.
Richards’s
holding was subsequently abrogated by amendment of section 1714.45, to eliminate the tobacco companies’ immunity from tobacco-related tort claims.
(Myers v. Philip Morris Companies, Inc.
(2002)
Overruled on another ground as noted in
United States
v.
Varig Airlines
(1984)
The
Feres
doctrine is another exception to the waiver of sovereign immunity in the FTCA for “injuries to servicemen where the injuries arise out of or are in the course of activity incident to service.”
(Feres, supra,
For the same reason Taylor held there was no need to decide whether an exception to the FTCA applied, there is no merit to plaintiffs’ argument that there is “no evidence” an exception applied here, rendering the Navy subject to suit. The issue is not whether there was a “waiver” of the Navy’s immunity, but whether the character and nature of its immunity are such as to preclude an allocation of fault pursuant to Proposition 51. Like Taylor, we conclude the Navy’s immunity does not preclude such an allocation.
We also note trial courts in asbestos cases have routinely used verdict forms listing the Navy as one of the entities among which fault may be apportioned. (See, e.g.,
Donaldson
v.
National
Marine,
Inc.
(2005)
