Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

In 2005, plaintiff’s car collided with a train owned by defendant. The train was stopped on the tracks in Louisville, Kentucky, blocking a crossing. Plaintiff never hit her brakes and slammed into the side of the red boxcar at 40 to 45 miles per hour. She survived the crash, claimed that warning lights were not flashing and that she never saw the train until the instant before the impact, and sued in state court for negligence and failure to comply with the Federal Railroad Safety Act, 45 U.S.C. 421, and other federal laws, including 49 U.S.C. 20134, by failing to properly maintain, employ, use and install proper warning devices and procedures at railway crossings. Defendant removed the case to federal court, where it was granted summary judgment. The Sixth Circuit vacated for lack of federal subject matter jurisdiction. Although plaintiff never moved for remand, courts are required to consider jurisdiction. The cited federal regulations do not create or imply a cause of action. View "Hampton v. R.J. Corman R.R. Switching Co." on Justia Law

Stryker, a manufacturer of medical devices, sued its umbrella insurer XL, seeking coverage for claims stemming from the implantation of expired artificial knees. The dispute concerned the precise "defect" that triggers batch coverage under the Medical Products Endorsement. The district court held that XL was liable under the policy for the entirety of Stryker’s losses on both direct claims brought against Stryker, as well as claims brought against Pfizer that Stryker was obligated to reimburse under an asset purchase agreement. The court found that the items were defective if they were available in Stryker’s inventory for implantation by physicians beyond their shelf-life of five years. The Sixth Circuit affirmed XL’s liability for the full amount of Stryker’s losses and pre-judgment interest. XL’s payment to Pfizer applies to exhaust the policy with respect to the direct claims. The court reversed the holding that the aggregate limit of liability of the XL policy does not apply to the judgments on the direct claims and remanded for determination of what portion, if any, of the total liability for those judgments beyond $15 million represents consequential damages as defined under Michigan contract law. View "Howmedica Osteonics, Corp. v. Nat'l Union Fire Ins. Co." on Justia Law

TIG issued a $25 million excess policy to Stryker, a manufacturer of medical devices. Coverage attached above the underlying (XL) umbrella policy, with a limit of $15 million. Stryker sued XL, seeking defense and indemnification for claims related to replacement knees (first suit). Pfizer then sued Stryker, seeking indemnification with respect to claims based on Uni-Knees; the companies had an asset purchase agreement. The court ruled in favor of Pfizer. When XL denied coverage, Stryker sued both insurers. In 2008, the district court held that XL was liable for all of Stryker's liabilities with respect to both suits and also granted declaratory judgment against TIG. XL settled directly with Pfizer, and obtained a ruling that this satisfied its obligations. TIG moved to remove the declaratory judgment ruling, arguing that the ruling that XL was responsible with respect to both suits made it impossible to subject TIG to liability. The district court denied this motion. The Sixth Circuit affirmed that the case is not moot, noting that the claims may exhaust the XL policy; reversed a ruling that TIG is precluded from raising coverage defenses on remand, noting that TIG was not a party to the first suit; and remanded. View "Stryker Corp. v. Nat'l Union Fire Ins. Co." on Justia Law

Plaintiff began experiencing severe headaches and swelling in his left eye in 2007 while incarcerated. Shortly after his release, plaintiff was diagnosed with Ewing’s Sarcoma, a serious form of bone cancer. According to plaintiff, surgery would have been sufficient to treat the disease had prison staff detected it earlier. However, due to the late diagnosis, chemotherapy and radiation are now necessary. In his suit under 42 U.S.C. 1983, the district court held that plaintiff pled sufficient facts upon which one could draw the inference that defendants violated the Eighth Amendment and committed medical malpractice. The doctor and nurse filed an interlocutory appeal, arguing that their involvement with plaintiff was minimal and cannot form the basis for a finding of deliberate indifference or gross negligence. The Sixth Circuit reversed, finding the defendants entitled to qualified immunity. Neither negligent medical care, nor delay in providing medical care, can rise to the level of a constitutional violation absent specific allegations of sufficiently harmful acts or omissions reflecting deliberate indifference.

About four years after a driver, insured by State Farm, collided with Phelps’s car and caused a spine injury that required surgery, Phelps filed suit, alleging that State Farm violated Kentucky’s Unfair Claims Settlement Practices Act. The district court granted summary judgment in favor of State Farm on the ground that Phelps had failed to show that the three years taken to settle her claim raised a genuine dispute as to whether State Farm had acted in bad faith. The Sixth Circuit reversed, noting State Farm’s low initial offer, extensive delays, four transfers to new adjusters, and prolonged refusal to disclose policy limits.

In 2004, plaintiff had arthroscopic surgery to treat pain and instability in his shoulder joint. The doctor implanted a pain-pump catheter and, over the next two days, a Stryker pain pump delivered a regular dose of a local anesthetic, bupivicaine, to the joint. Plaintiff’s condition improved after surgery but worsened over time, and in 2008 he learned he no longer had any cartilage remaining in his shoulder, a condition called chondrolysis. He sued, alleging strict liability, negligence and breach of warranty. The district court concluded that Stryker could not reasonably have known about the risk of chondrolysis in 2004 and thus had no duty to warn of the risk and held that Plaintiff failed as a matter of law to prove causation. The Sixth Circuit affirmed. Plaintiff did not present any evidence that Stryker knew or should have known that the use was dangerous or that a warning on Stryker's pain pump would have caused the doctor not to use the device in his joint space.

OneBeacon and AMICO were insurers of the B.F. Goodrich and, among others, were liable for environmental cleanup at the Goodrich plant in Calvert City, Kentucky. AMICO settled with Goodrich, but OneBeacon’s predecessor went to trial. A state court jury found for Goodrich, and OneBeacon was ordered to pay $42 million in compensatory damages and $12 million in attorney fees. The state court also denied OneBeacon's request for settlement credits to reflect amounts paid by other insurers, such as AMICO, through settlements with Goodrich. OneBeacon sought equitable contribution; AMICO removed to federal court. The district court granted AMICO summary judgment. The Sixth Circuit affirmed. Ohio policy favoring settlements provides that a settled policy is exhausted for purposes of equitable contribution; the court declined to address whether Ohio law permits interclass contribution actions or whether the jury finding of bad faith bars equitable relief.

Decedent died when a 28-ton beam struck an overpass, fell off of the trailer transporting it, and crushed the cab of his truck, which was on the highway behind the trailer. The district court granted motions for summary judgment in favor of companies responsible for loading the beam on the trailer, hiring the trucking company, and obtaining permits. The court construed Michigan Compiled Laws 257.719(1) as forbidding recovery from anyone other than the owner of a vehicle that collides with a lawfully established bridge. The Sixth Circuit reversed. The estate did not bring suit directly under the statute. In a common-law negligence case, all principles concerning common-law liability and defenses apply. The statute may imply that others who pay may be able to shift their liability to an owner, not that they can have no liability in the first instance. The fact that liability for all damages and injury is fixed on the owner of the vehicle even where concurrent or intervening acts of negligence precipitate the accident, does not imply that tortfeasors responsible for those concurrent or intervening acts cannot also be liable.

V&M filed suit against Centimark alleging breach of contract and negligence after metal roof sheeting panels being installed at its steelwork facility fell into an electrical substation, causing loss of power for more than 30 hours. Damages for repairs and lost profits were around $3 million The district court granted Centimark summary judgment, ruling that V&M failed to produce sufficient evidence of causation to sustain either legal claim. The Sixth Circuit reversed and remanded, holding that genuine issues of material fact exist.

Plaintiffs were catastrophically injured in automobile accidents. All sustained traumatic brain injuries and are now mentally impaired. State Farm initially paid no-fault insurance benefits for the cost of attendant care services rendered at home, but reduced the rates on the basis of market surveys of the cost of the services. State Farm refused to raise the rates because it could not verify whether plaintiffs had received the type of care that would justify paying higher rates. Plaintiffs refused to submit documentation regarding the nature and extent of the care they were receiving. Plaintiffs sued. The district court awarded plaintiffs monetary sanctions, instead of default judgment, in response to State Farm’s violation of discovery orders. A jury rendered a verdict in State Farm’s Favor. The Sixth Circuit dismissed appeal regarding the discovery sanctions, for lack of jurisdiction, but otherwise affirmed.