Carrillo v. ACH Industries Inc.

ORDER

Review Granted JOSE CARRILLO, Respondent v. ACF INDUSTRIES, INC. Appellant C.A. 2nd, Div. 2, No. B102937 S072065 California Supreme Court Filed September 2, 1998
        Appellant's petition for review GRANTED.




(Editor Note - For your convenience we reprint below the Daily Journal's Ruling Column brief that summarized the earlier decision of the lower court.)



CONSTITUTIONAL LAW

Federal Railroad Safety Laws Don't Pre-empt State Law Product Liability Claim Premised On Design Defect.
        The C.A. 2nd has held in the published portion of the opinion, that the Safety Appliance Act (SAA), and the Federal Railroad Safety Act (FRSA) did not pre-empt the field of safety appliances where the federal regulations contained in the statutes did not subsume the subject matter of relevant state law.
        Jose Carrillo, a truck driver employed by Amoco Chemical Co., delivered polystyrene pellets to a hopper car operated by Wincup Holdings Inc. and manufactured by ACF Industries. Pellets were pumped through a steel hose through hatches on top of the hopper car. The hopper car was 15.5 feet high. The employees of Wincup performed the actual loading. On the day of the accident, while the pellets were pumping, Wincup employees stated they were going to lunch and would return in 30 minutes. The employees did not return on time. Carrillo noticed pellets were overflowing from the top of the car's hatches and off the pump. Carrillo waited 20 minutes, but the employees still did not return. Carrillo, thinking the hose had to be repositioned, climbed the car, untied the rope, and began to pull the heavy steel hose up. The rope broke free, Carrillo spun backward, fell to the ground and suffered multiple fractures to his wrists, left leg, and right heel which required multiple surgeries. Carrillo settled with Wincup. ACF's motion for a directed verdict, stating Carrillo's product defect claims were pre-empted by federal laws regulating railroad safety, was denied. The jury found both design defect and failure to warn and that ACF was 36 percent liable for Carrillo's injuries. After deducting the Wincup settlement, workers' compensation claims, and Carrillo's 6 percent fault, ACF was found liable to Carrillo for $1,429,274.13. ACF contended the defective hopper car claims were pre-empted by federal law.
        The C.A. 2nd affirmed. In areas such as health and safety, states have traditionally exercised authority and there is a presumption against pre-emption absent a clear manifestation of congressional purpose. Pre-emption occurs when state law conflicts with federal law and the state law will be pre-empted where there is proof of congressional intent to "occupy the field." ACF stated that the SAA and the FRSA pre-empted state law because both acts have regulations which specifically deal with safety regulations of railroad cars. However since the "statutory scheme does not evince an intent to occupy the field of safety equipment or measures for railroad cars; it could . . . be read only to prescribe certain minimum national standards." ACF failed to sustain its burden of showing that the SAA and the FRSA pre-empted state law. In the unpublished portion of the opinion it was determined that the jury verdict was supported by the evidence, and that the jury instructions were proper.
        Carrillo v. ACF Industries, Inc., 2nd, No. B102937, Filed June 11, 1998, by Fukuto, J.
        The full text of this case appears in 98 Daily Journal D.A.R. 6149, June 15, 1998.