Johnson v. Cyklop Strapping Corp.Johnson v. Cyklop Strapping Corp.
- Reporters:
- ,
- Before:
- Pressler P.J.A.D., Bilder, Muir Jr.
This is how the important procedural issues involved in the appeal came about. Plaintiff Woodrow Johnson, Jr., had been employed as a foreman by Polyfilm, Inc., a manufacturer of, among other products, plastic bags. Plaintiff‘s duties included the task of loading the finished product on skids and then securing the skids with strapping material fastened by a buckle. On December 3, 1981, plaintiff, while performing this task, was tightening the strapping material when the strap broke, hurling the buckle into his left eye. As a result of the trauma, he permanently lost his vision in that eye. His ensuing complaint, which alleged a causative defect in the design and manufacture of the strapping material, joined a number of defendants identified as distributors or manufacturers of the strapping. By the time the critical procedural events took
After some discovery proceedings had been engaged in, both FMC and Cyklop moved for summary judgment dismissing all claims against it. While plaintiff opposed both motions, Levine, inexplicably, did not participate in either.1 According both plaintiff and Levine the benefit of all favorable facts and inferences, the record on the jointly heard motions showed the following facts. Levine, although it manufactures some packaging goods, is only a distributor of the strapping material here in question. It sells this material in rolls in the same form in which it purchases it from the manufacturer without alteration or processing of any kind. Polyfilm was one of Levine‘s strapping customers, and plaintiff testified, both on deposition and at trial, that the strapping which broke had arrived in a shipment from Levine to Polyfilm on the very day of the accident. Levine‘s potential liability as a link in the distributive chain was thus established.
As to the liability of the other two defendants, the import of the deposition testimony of Alan Levine, Levine‘s manager of operations, was that Levine had originally purchased the strapping material only from FMC, which manufactured it. In November 1980 FMC sold its entire industrial packaging division, including its remaining inventory, to Cyklop, which appears to have been created as a subsidiary of its parent German company for the purpose, among others, of continuing the business of that FMC division. All FMC customers were appropriately
Levine‘s inability to identify with certainty the manufacturer of the December 3, 1980 shipment to Polyfilm was the gravamen of FMC‘s and Cyklop‘s summary judgment motions. The motion judge, focusing on the question of the manufacturer of the goods rather than on the question of the identity of the party from whom Levine had purchased them, was of the view that plaintiff‘s failure conclusively to establish the manufacturer‘s identity was fatal to his claims against both FMC and Cyklop. He also concluded that the circumstances respecting these two defendants did not invoke the doctrine of Anderson v. Somberg, 67 N.J. 291 (1975), cert. den. 423 U.S. 929, 96 S.Ct. 279, 46 L.Ed.2d 258 (1975), under which plaintiff‘s burden of proving which of several defendants is actually culpable shifts to the burden of each defendant to exclude itself from culpability. And finally, the judge was of the view that the successor liability doctrine enunciated by Ramirez v. Amsted Industries, Inc., 86 N.J. 332 (1981), was not applicable to Cyklop‘s acquisition from FMC since Cyklop had purchased only a division of FMC, leaving FMC itself intact as a viable, continuing and responsible entity.3 Accordingly, on February 15, 1985, the judge entered summary judgments dismissing all affirmative claims made by all other parties against both FMC and Cyklop.
Approximately a year later, while preparing for a then scheduled but ultimately adjourned March 1986 trial date, Levine fortuitously discovered old inventory records which had, it claimed, long since been haphazardly placed in an unused desk drawer. Among them was a card on which its running inventory balances of strapping material were noted. An entry on the card apparently showed that in May 1981, after the sale by FMC to Cyklop but prior to the accident, Levine‘s strapping inventory was zero.4 If this were in fact so, then Levine would have conclusively established that its December 3, 1981 shipment to Polyfilm was sold to it by Cyklop even if it could not establish whether Cyklop had manufactured it or had itself received it from FMC as part of the FMC inventory included in the sale to it of the FMC industrial packing division. Armed with this information, Levine on February 10, 1986, moved pursuant to
We address first, as the dispositive issue, the propriety of the denial of Levine‘s February 1986 motion for relief from the prior summary judgments which had dismissed all claims made by all parties against Cyklop and FMC. The trial judge, as we have noted, predicated his denial on the assumption, concurred in by all parties, that Levine‘s application for relief was governed by the strict and exacting standards of
On motion, with briefs, and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment or order for the following reasons: (a) mistake, inadvertence, surprise, or excusable neglect; (b) newly discovered evidence which would probably alter the judgment or order and which by due diligence could not have been discovered in time to move for a
new trial under R. 4:49 ; (c) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; (d) the judgment or order is void; (e) the judgment or order has been satisfied, released or discharged, or a prior judgment or order upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment or order should have prospective application; or (f) any other reason justifying relief from the operation of the judgment or order.
The reference in the opening sentence to a final judgment or order would seem on its face to foreclose any argument as to the character of the judicial disposition intended to be subject to the rule. In short, “final” appears to qualify both “judgment” and “order.”6 We are first persuaded that this is so by our examination of the history, text and construction of the cognate federal rule,
The question as to the scope of the application of
The addition of the qualifying word “final” emphasizes the character of the judgments, orders or proceedings from which Rule 60(b) affords relief; and hence interlocutory judgments are not brought within the restrictions of the rule, but rather they are left subject to the complete power of the court rendering them to afford such relief from them as justice requires.
See 28 U.S.C.A., Rules 60-76, at p. 17. And see generally 7 Moore, Federal Practice, § 60.16(4). Since the 1946 amendment of
At the outset, it may be pointed out that although the Court has previously ruled on the second defense, this does not prevent a reconsideration of that defense. Rule 60(b) permits the Court to relieve a party from a final order on the grounds of “mistake, inadvertence, surprise, or excusable neglect.” The order at hand was an interlocutory order. The Court‘s power to afford relief is therefore neither based on, nor bound by, the restrictions of Rule 60(b). * * *
This complete power over interlocutory decrees is stated in John Simmons Co. v. Grier Brothers Co., 1922, 258 U.S. 82, 90, 91, 42 S.Ct. 196, 199, 66 L.Ed. 475 * * *. Rule 60(b) as first adopted did not distinguish between final and interlocutory decrees, and was subject to the interpretation that it applied to both. See, 7 Moore‘s Federal Practice, Para. 60.16(4). The 1946 revision inserting the word “final” emphasizes the practice with regard to interlocutory decrees or orders. See Kliaguine v. Jerome, D.C.N.Y. 1950, 91 F. Supp. 809, where the court, relying on its power over interlocutory orders granted leave to file a new motion for summary judgment after a former motion for summary judgment had previously been denied.
See also, expressly rejecting the applicability of
The inherent power of the court to modify its own interlocutory orders prior to the entry of final judgment has long since been recognized in New Jersey. The Court of Errors and Appeals embraced the doctrine in Lyle v. Staten Island Terra Cotta Lumber Co., 62 N.J. Eq. 797, 805 (E. & A. 1901). It was reconfirmed by the Chancery Court in Fidelity Union Trust Co. v. Petchensky, 119 N.J. Eq. 514, 516 (Ch. 1936) as follows:
“Nor have we any doubt of the power of a court, while a case and the parties are before it, upon proper hearing to reconsider, modify and enlarge its previous orders in respect to a pending controversy. Such power and such authority is so familiar and so well understood that we see no occasion for citing authorities in support of it.” Calaf v. Fernandez (C.C.A.), 239 Fed.Rep. 795.
See also Falcon B. & L. Assn. v. Schwartz, 121 N.J. Eq. 27, 31 (Ch. 1936).
There is no indication we can discover in the formative years following the adoption of the 1948 State Constitution and the original set of rules of court, patterned on the federal rules, of an intention or understanding that these documents effected any limitation on that inherent power of the court. Indeed, the contrary seems to be so. As we have already pointed out, the original predecessor of
We are further satisfied that these principles constituted, in those early days, an accepted procedural predicate. Thus, in Hogan v. Hodge, 6 N.J. Super. 55, 59 (App.Div. 1949), Justice [then Judge] Jacobs pointed out that while a determination not subject to immediate appeal remained “`subject to revision’ at any time before disposition of the entire action,” an immediately appealable order — that is, a final judgment — was subject to the relief provisions of
Despite the apparent clarity of the intended limitation of
Therefore, we hold that the principle of finality of judgments does not prevent a trial court from granting relief from its interlocutory orders upon a change in the governing law before litigation ends. During this time, the trial court has complete power over its interlocutory orders and may revise them when it would be consonant with the interests of justice to do so. See John Simmons Co. v. Grier Brothers Co., 258 U.S. 82, 42 S.Ct. 196, 66 L.Ed. 475 (1922); 7 Moore, Federal Practice ¶ 60.16[4], at 87-88. See, also, Scheck v. Houdaille Constr. Materials, Inc., 121 N.J. Super. 335, 343-345 (Law Div. 1972). A contrary rule would wreak havoc in our appellate courts, because it would require that every litigant seek leave to appeal from every interlocutory order, to protect himself should the applicable law change before the end of litigation. [Id. at 619]
We now complete the full circle on which we embarked in Ford v. Weisman by holding unequivocally that review of interlocutory orders by the court prior to final judgment is governed not by
Applying this standard here, we are satisfied that the court erred in denying Levine‘s motion for relief from the partial summary judgments. To begin with, we are of the view that the initial motion of Cyklop at least was erroneously decided. It is a basic principle of products liability law that not only the manufacturer of a defective product but also all subsequent parties in the regular chain of distribution are responsible in strict liability for damages sustained by the ultimate user as a result of the defect. See, e.g., Michalko v. Cooke Color & Chem. Corp., 91 N.J. 386, 394 (1982); Newmark v. Gimbel‘s Incorporated, 54 N.J. 585, 595 (1969). Irrespective of plaintiff‘s uncertainty of the identity of the manufacturer of the defective strapping, there was nevertheless an adequate factual basis in the summary judgment record to support a finding that Cyklop was Levine‘s source of supply, whether as manufacturer or as successor in interest of FMC‘s inventory. Cyklop‘s motion should have been denied. Moreover, if Cyklop were held in as a potential source of Levine‘s supply, then, it would seem clear, FMC should have been kept in as well, at least to respond to Cyklop‘s cross-claims against it in the event Cyklop could show that FMC had been its supplier of the defective shipment.
The evidence offered by Levine on its motion for relief, namely the newly discovered inventory card, constituted persuasive evidence that Cyklop had in fact been its immediate supplier. The judge, presented with this evidence, should have corrected his prior legal error, which lay in requiring not merely the demonstration of a genuine dispute of material fact
The remaining question is the manner in which the error of the trial judge in denying Levine‘s motion for relief can best be rectified. It is clear that Levine‘s cause of action against Cyklop and any cause of action which Cyklop would have against FMC are claims for contribution or common-law indemnification. The parties must now be accorded the right which they have been denied to prosecute those claims. But we see no reason why the prospective prosecution of these independent, affirmative claims should in any way affect the finality or enforceability of plaintiff‘s verdict against Levine particularly since plaintiff has no further interest in prosecuting his direct affirmative claims against Cyklop and FMC. Compare, e.g., Young v. Steinberg, et al., 53 N.J. 252 (1969). We conclude that Levine must now prosecute its cross-claims against Cyklop and Cyklop its against FMC in a plenary proceeding in which both Cyklop and FMC may litigate the questions both of their respective liability and damages. As the Supreme Court made clear in Young v. Steinberg, et al., 53 N.J. 252, 255 (1969), where contribution is in issue, an alleged joint tortfeasor against whom a contribution claim is made is entitled to “have his day
In so ruling, we recognize that pursuant to