Linda TWO TWO, an individual, and Patricia Fodge, an individual, Petitioners on Review, v. FUJITEC AMERICA, INC., a Delaware Corporation, Respondent on Review, and CENTRIC ELEVATORS CORPORATION OF OREGON INC., an Oregon Corporation, Defendant.
CC 090100985; CA A145591; SC S061536
Supreme Court of Oregon
May 8, 2014
355 Or. 319 | 325 P.3d 707
Thomas M. Christ, Cosgrave Vergeer Kester LLP, Portland, argued the cause and filed the brief for respondent on review. With him on the brief was Michael D. Kennedy, Kennedy Bowles, P.C., Portland.
Meagan A. Flynn, Preston Bunnell & Flynn, LLP, Portland, filed the brief for amicus curiae Oregon Trial Lawyers Association.
WALTERS, J.
In this case, we decide that the trial court erred in granting defendant‘s motion for summary judgment on plaintiffs’ negligence claim, but did not err in granting defendant‘s motion for summary judgment on plaintiffs’ strict liability claim.
Plaintiffs Linda Two Two and Patricia Fodge filed a complaint against defendant1 that included claims for negligence and strict liability.2 Plaintiffs alleged that they had been injured in separate incidents in 2008 when an elevator in the building in which they worked dropped unexpectedly and stopped abruptly. In their negligence claim, plaintiffs alleged that defendant had negligently designed, installed, and maintained that elevator and that defendant‘s negligence was the direct and proximate cause of plaintiffs’ injuries. Plaintiffs also alleged that their injuries were of a type that would not have occurred absent someone‘s negligence and that the negligence that caused their injuries was more probably than not attributable to defendant. In their strict liability claim, plaintiffs alleged that defendant had designed, installed, and constructed the elevator and that the elevator was defective and dangerous.
Defendant sought summary judgment on both claims. Defendant supported its motion with various documents, including portions of a modernization contract that defendant had entered into with the federal government to upgrade and maintain the elevator systems in the building in which plaintiffs worked. Defendant also filed an affidavit from one of its employees stating, with regard to plaintiffs’ negligence claim, that defendant‘s initial modernization work and its continued maintenance of the elevator conformed to or exceeded industry standards, that defendant was not in possession or control of the elevator after
Plaintiffs responded to the challenge to their negligence claim by submitting additional pages of the modernization contract, a number of exhibits that arguably demonstrated that the elevator had a longstanding history of mechanical problems, and an affidavit prepared by their attorney pursuant to
“Since the time of the filing of [p]laintiffs’ [c]omplaint [p]laintiffs have retained a qualified elevator expert whom they intend to rely on at trial to support their claims that [d]efendant *** was negligent in [its] service and maintenance of the elevators in the 911 building. Plaintiffs[‘] expert has actually rendered an opinion or provided facts which, if revealed by affidavit or declaration, would be a sufficient basis for denying the motion for summary judgment.”
To respond to defendant‘s challenge to their strict liability claim, plaintiffs pointed to provisions of the modernization contract and other documents in the record as evidence that defendant had undertaken to redesign and manufacture the elevator and that it had supplied and installed the component parts necessary to fulfill its contractual responsibilities.3
The trial court granted defendant‘s motion for summary judgment on both claims. As to the negligence claim, the trial court explained that “there‘s no admissible evidence of causation.” As to the strict liability claim, the court explained that defendant had established, as a matter of law, that it “did not manufacture or sell or distribute or lease the elevator *** or any of its parts.”
Plaintiffs appealed to the Court of Appeals, which affirmed. Two Two v. Fujitec America, Inc., 256 Or App 784, 305 P3d 132 (2013). As to plaintiffs’ negligence claim, the Court of Appeals agreed with defendant that plaintiffs’
Plaintiffs sought, and we allowed, review. Before this court, plaintiffs argue that their
Under
“The court shall grant the motion if the pleadings, depositions, affidavits, declarations and admissions on file show that there is no genuine issue as to any material fact and that the moving party is entitled to prevail as a matter of law. No genuine issue as to a material fact exists if, based upon the record before the court viewed in a manner most favorable to the adverse party, no objectively reasonable juror could return a verdict for the adverse party on the matter that is the subject of the motion for summary judgment. The adverse party has the burden of producing evidence on any issue raised in the motion as to which the adverse party would have the burden of persuasion at trial. The adverse party may satisfy the burden of producing evidence with an affidavit or a declaration under section E of this rule.”
Thus, under
In this case, defendant moved for summary judgment and “raised in the motion” four issues with regard to plaintiffs’ negligence claim: that (1) defendant properly performed the modernization of the elevator; (2) defendant was not in control or possession of the elevator after December 31, 2007; (3) plaintiffs’ incidents could have occurred through no fault or negligence of defendant and plaintiffs thus were not entitled to use the doctrine of res ipsa loquitor to prove negligence; and (4) defendant properly inspected and maintained the elevator through December 31, 2007. Because plaintiffs had the burden of persuasion on those issues at trial,
Instead, defendant first raised the issue of causation as a basis for summary judgment in its reply memorandum. There, defendant argued that plaintiffs’
When the case reached the Court of Appeals, plaintiffs contended generally that their
Thus, as this case comes to us, the Court of Appeals and the parties all have assumed that defendant raised lack of causation as a basis for its motion for summary judgment.
The specific question to which we now turn is whether the
“Motions under this rule are not designed to be used as discovery devices to obtain the names of potential expert witnesses or to obtain their facts or opinions. If a party, in opposing a motion for summary judgment, is required to provide the opinion of an expert to establish a genuine issue of material fact, an affidavit or a declaration of the party‘s attorney stating that an unnamed qualified expert has been retained who is available and willing to testify to admissible facts or opinions creating a question of fact, will be deemed sufficient to controvert the allegations of the moving party and an adequate basis for the court to deny the motion. The affidavit or declaration shall be made in good faith based on admissible facts or opinions obtained from a qualified expert who has actually been retained by the attorney who is available and willing to testify and who has actually rendered an opinion or provided facts which, if revealed by affidavit or declaration, would be a sufficient basis for denying the motion for summary judgment.”
(Emphasis added.)
“Since the time of the filing of [p]laintiffs’ [c]omplaint [p]laintiffs have retained a qualified elevator expert whom they intend to rely on at trial to support their claims that [d]efendant *** was negligent in [its] service and maintenance of the elevators in the 911 building. Plaintiffs[‘] expert has actually rendered an opinion or provided facts which, if revealed by affidavit or declaration, would be a sufficient basis for denying the motion for summary judgment.”
(Emphasis added.)
The italicized part of the second sentence of plaintiffs’ affidavit mirrors the italicized portion of
In Moore, a medical malpractice action, the defendants moved for summary judgment on the ground that they were not negligent in their diagnosis and advice and that the plaintiff‘s return to work did not cause his condition to worsen. Id. at 264. In response, the plaintiff submitted both his own affidavit averring that his return to work had aggravated his medical condition and an affidavit from his attorney stating that he had retained an expert who “is available and willing to testify to the diagnoses, standard
In Moore, the court stated that the defendant‘s motion raised two bases for summary judgment, but, without explaining why, required that the plaintiff create a question of fact in all issues as to which the plaintiff would bear the burden of persuasion at trial, not only those issues raised in the motion. Id. The Court of Appeals may have been incorrect in that regard, but its reasoning was otherwise apt.
As the court explained,
To understand why such difficulties may arise, it is helpful to outline the sanctions that may attach when an attorney files an
“The affidavit does not have to recite on what issues the expert will testify. It need state only that an expert has been retained and is available and willing to testify to admissible facts or opinions that would create a question of fact.”
We agree. However, the fact that an attorney is permitted to proceed in that fashion does not mean that the attorney must or will do so. An attorney may choose to specifically delineate the issues that an expert will address,
The affidavit that plaintiffs submitted in this case, defendant contends, is issue-specific. According to defendant, plaintiffs averred that they had retained an expert to testify to one specified element of their negligence claim—failure to adhere to the standard of care—and that other evidence was required to defeat summary judgment on another element—causation.7
Defendant is correct that plaintiffs’
Although plaintiffs’
Even if plaintiffs’ affidavit addressed only the standard of care and not causation, there also is a second, independent reason for our conclusion that the trial court erred in granting summary judgment on plaintiffs’ negligence claim. If we were to give plaintiffs’ affidavit the limited interpretation for which defendant advocates—that plaintiffs had retained an expert who could testify only that defendant had failed to meet the standard of care in its service and maintenance of the elevator—a jury could nonetheless infer
Causation may be proved by circumstantial evidence, expert testimony, or common knowledge. Trees v. Ordonez, 354 Or 197, 220, 311 P3d 848 (2013). In Trees, a medical negligence case, the court concluded that the plaintiff had adduced evidence from which a reasonable jury could find that the defendant had breached the standard of care by leaving protruding screws near the plaintiff‘s esophagus following neck surgery. The court also concluded that the jury could infer that the defendant‘s alleged negligence had caused the plaintiff‘s injuries from the fact of the protruding screws, expert testimony that the esophagus was perforated, and the fact that the plaintiff‘s condition had improved after the screws were removed.
In this case, defendant argues, and its employee attested, that elevators may drop “through no fault or negligence of anyone, including, simply because of the age of the elevators.” Therefore, defendant contends, a reasonable jury could not infer that plaintiffs’ injuries were caused by defendant from the fact of the drop alone. However, plaintiffs did not rely only on the elevator‘s drop to establish causation. They submitted an affidavit indicating that a qualified expert would testify that defendant had negligently maintained and serviced the elevator. From evidence that the elevator dropped abruptly and without explanation, together with evidence that defendant was negligent in maintaining and servicing it, a reasonable jury could infer that the elevator did not drop due to age or some other unidentified cause but because of defendant‘s negligence. Of course, a reasonable jury also could reach a contrary conclusion, but, on summary judgment, the question is not which conclusion is most likely but whether an issue of fact exists that permits jury resolution.9
In this case, the trial court failed to give effect to plaintiffs’
We proceed to plaintiffs’ strict liability claim. As noted, the trial court granted defendant‘s motion for summary judgment on that claim because the court concluded that the summary judgment record demonstrated that defendant did not manufacture, sell, lease, or distribute the elevator or any of its component parts. The Court of Appeals also concluded that defendant was not subject to Oregon‘s strict liability statute,
“(1) One who sells or leases any product in a defective condition unreasonably dangerous to the user or consumer or to the property of the user or consumer is subject to liability for physical harm or damage to property caused by that condition, if:
“(a) The seller or lessor is engaged in the business of selling or leasing such a product; and
“(b) The product is expected to and does reach the user or consumer without substantial change in the condition in which it is sold or leased.”
In enacting
In Hoover v. Montgomery Ward, 270 Or 498, 528 P2d 76 (1974), this court considered the reach of Section 402A in deciding whether a defendant that was alleged to have improperly installed a tire could be held strictly liable. The court cited cases from other jurisdictions which had held that a party that provides a defectively dangerous product in the course of providing a service may be subject to strict liability under Section 402A. Id. at 501-02. In one of those cases, Newmark v. Gimbel‘s Incorporated, 54 NJ 585, 258 A2d 697 (1969), the New Jersey Supreme Court held that a beauty shop could be strictly liable for injuries that occurred when a shop employee applied a defective permanent wave lotion to a patron‘s hair. The Oregon Supreme Court did not express disagreement with Newmark or the other cases that it cited, but it declined to extend their reasoning to the case before it. The court determined that the plaintiff had not alleged that the tire that the defendant had supplied and installed was defectively dangerous. Hoover, 270 Or at 502. The plaintiff had alleged that it was the service (the installation) that was defective, not the product (the tire). Id. at 502-03.
In this case, we also need not decide whether a business that supplies and installs a defective product may be strictly liable for injuries caused by the product. That is because, in this case, the record on summary judgment does not include evidence that defendant supplied the component parts that it installed in the elevator. In an affidavit that defendant filed in support of its motion for summary judgment, defendant‘s employee averred that “[a]ll components for the modernization were manufactured and supplied by vendors and suppliers specified by GSA or its consultants.” Plaintiffs claim that they submitted evidence to create a question of fact on the issue of who supplied the components and who manufactured the elevator. We are not persuaded.
The evidence on which plaintiffs rely is evidence that (1) defendant was hired to modernize the elevator and was paid a significant sum for parts and labor; (2) defendant
Parts of the modernization contract are in the summary judgment record. One page of the contract is the bid schedule demonstrating that the total bid price was $1,011,753.30. The first item on the bid schedule is “elevator modernization” with a lump sum base bid of $856,964.90. Another page of the contract describes the services required for the “initial work” (which we take to be the “modernization“) as inspection of the elevators, submission of an inspection report specifying the deficiencies that require correction, and repair or adjustment of the deficiencies as determined by the government. That page does not require defendant to manufacture the elevator or to supply any parts necessary to repair it, and no other evidence in the record shows that defendant billed or was paid for parts that it supplied. Other items on the bid schedule are for interim and long-term maintenance. The pages of the contract that describe defendant‘s scheduled maintenance and call-back obligations also do not require defendant to provide the parts necessary to fulfill those obligations. However, with respect to “minor repair work,” those pages provide that defendant will be reimbursed for “material” at cost, but that the government has the right to furnish to defendant “all parts and/or materials required for a particular repair.” Plaintiffs did not produce any documents indicating that defendant did any “minor repair work” pursuant to those provisions or that defendant, as opposed to the government, supplied parts or materials in fulfilling its obligations.
We also do not view defendant‘s representation that MCE supplied component parts as raising an issue of fact about whether defendant did so. The affidavit submitted by defendant‘s employee avers that MCE is a third party and that MCE, not defendant, supplied component products.
Finally, the summary judgment record indicates that, in October 2007, defendant assigned its contract to perform long-term service and maintenance services to Centric, which assumed all contractual rights and obligations effective January 1, 2008. In the assignment agreement, defendant agreed to provide Centric with parts and warranted them for one year. However, the agreement between defendant and Centric, which also appointed Centric as a distributor of defendant‘s products, did not require Centric to procure products only from defendant. Centric was permitted to obtain products from other manufacturers in certain circumstances. The summary judgment record is devoid of evidence that defendant actually sold parts to Centric or that Centric installed defendant‘s parts in the elevator in which plaintiffs were injured. We therefore agree with the Court
Before concluding, however, we think it important to caution against a misreading of this or the Court of Appeals opinion. In explaining its decision, the Court of Appeals stated that the “evidence only supports the allegation that [defendant] provided a service by installing, per [the government‘s] conditions and specifications, component parts manufactured and supplied by other parties.” Two Two, 256 Or App at 796. The court‘s statement is a correct statement of the facts in the record in this case; the record indicates that defendant installed parts that the government specified. However, the government‘s specification is not material to our analysis. Under
In summary, the trial court erred in granting summary judgment on plaintiffs’ negligence claim but did not err in granting summary judgment on plaintiffs’ strict liability claim.
Notes
“Since the time of the filing of [p]laintiffs’ [c]omplaint [p]laintiffs have retained a qualified elevator expert whom they intend to rely on at trial to support their claims that [d]efendant[‘s] modernization of the elevators *** was defective and dangerous to an extent beyond that which an ordinary consumer would have expected. Plaintiffs[‘] expert has actually rendered an opinion or provided facts which, if revealed by affidavit or declaration, would be a sufficient basis for denying the motion for summary judgment.”
