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Walton v. Avco Corp.

Citations: 610 A.2d 454; 530 Pa. 568; 60 U.S.L.W. 2795; 1992 Pa. LEXIS 342

Court: Supreme Court of Pennsylvania; May 22, 1992; Pennsylvania; State Supreme Court

Narrative Opinion Summary

This case involves cross-appeals arising from a helicopter crash due to a defective engine manufactured by Avco Corporation and installed by Summa Corporation (formerly Hughes Helicopter, Inc.). The crash resulted in fatalities, leading to lawsuits by the estates of the victims. Avco issued a service instruction addressing the defect, which Hughes failed to communicate to the helicopter owner and service centers, resulting in an unremedied defect during an overhaul. The jury found both Avco and Hughes strictly liable, awarding damages to the victims' estates. Avco sought contribution from Hughes based on joint liability, but the court ruled that contribution should consider comparative fault. Hughes' indemnification request was denied due to joint liability. The court emphasized that comparative fault principles should not apply to strict liability cases, affirming the need for strict liability to hold manufacturers accountable. The Superior Court's decision was partially reversed, and the case was remanded for further proceedings, focusing on the appropriate allocation of damages and the application of strict liability principles. The court also addressed the settlement agreements and their impact on contribution rights among joint tortfeasors.

Legal Issues Addressed

Comparative Fault in Strict Liability Cases

Application: The court rejected the introduction of comparative fault principles in allocating damages between strictly liable joint tort-feasors, emphasizing strict liability's distinct nature from negligence.

Reasoning: The court emphasizes that introducing comparative fault concepts into strict liability cases is inappropriate as it confuses the distinction between negligence and strict liability.

Contribution among Joint Tortfeasors

Application: Avco sought contribution from Hughes based on their joint liability, but the court ruled that contribution should be based on comparative fault rather than a pro rata share.

Reasoning: The trial court initially awarded Avco contribution from Hughes based on a pro rata share of the jury's award to the Waltons, but the Superior Court later reversed this, stating that contribution should be based on comparative fault.

Duty to Warn in Product Liability

Application: Hughes was found liable for failing to warn the helicopter's owner and service centers about the known defect, which was deemed an independent and substantial contributing factor to the incident.

Reasoning: The jury identified the engine's defective design as a significant cause of the accident and found that Hughes failed to warn the helicopter's owner and service center about this defect, classifying this failure as an independent and substantial contributing factor to the incident.

Indemnification in Joint Liability

Application: Hughes' request for indemnification from Avco was denied as both parties were found to have concurrent primary liabilities, preventing indemnification.

Reasoning: The trial court denied Hughes' indemnification request from Avco, citing the jury's finding of joint liability, a decision also upheld by the Superior Court.

Strict Liability under Restatement (Second) of Torts Section 402A

Application: The court applied strict liability to both Avco for manufacturing a defective engine and Hughes for failing to warn about the defect, holding them both liable for the accident.

Reasoning: The jury determined that the Avco engine was defective under Section 402A of the Restatement (Second) of Torts, and it was acknowledged that Avco issued Service Instruction 1341 in July 1976, which disclosed the defect that ultimately caused the crash and outlined corrective measures.