Articles Posted in US Supreme Court

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Manufacturers produced equipment for three Navy ships. The equipment required asbestos insulation or asbestos parts to function as intended, but the manufacturers did not always incorporate the asbestos into their products, so the Navy later added the asbestos. Two Navy veterans, exposed to asbestos on the ships, developed cancer. They sued the manufacturers. The manufacturers argued that they should not be liable for harms caused by later-added third-party parts. The Supreme Court affirmed the Third Circuit in rejecting summary judgment for the manufacturers. The Court adopted a rule between the “foreseeability” approach and the “bare-metal defense,” that is "especially appropriate in the context of maritime law, which has always recognized a ‘special solicitude for the welfare’ of sailors." Requiring a warning in these circumstances will not impose a significant burden on manufacturers, who already have a duty to warn of the dangers of their own products. A manufacturer must provide a warning only when it knows or has reason to know that the integrated product is likely to be dangerous for its intended uses and has no reason to believe that the product’s users will realize that danger. The rule applies only if the manufacturer directs that the part be incorporated; the manufacturer makes the product with a part that the manufacturer knows will require replacement with a similar part; or a product would be useless without the part. View "Air & Liquid Systems Corp. v. DeVries" on Justia Law

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Loos sued BNSF under the Federal Employers’ Liability Act for injuries he received while working at BNSF’s railyard. A jury awarded him $126,212.78, ascribing $30,000 to lost wages. BNSF asserted that the lost wages constituted “compensation” taxable under the Railroad Retirement Tax Act (RRTA) and asked to withhold $3,765 of the $30,000. The district court and the Eighth Circuit rejected the requested offset. The Supreme Court reversed. A railroad’s payment to an employee for work time lost due to an on-the-job injury is taxable “compensation” under the RRTA. RRTA refers to the railroad’s contribution as an “excise” tax, 26 U. S. C. 3221, and the employee’s share as an “income” tax, section 3201. Taxes under the RRTA and benefits under the Railroad Retirement Act, 45 U.S.C. 231, are measured by the employee’s “compensation,” which both statutes define as “any form of money remuneration paid to an individual for services rendered as an employee.” The Court noted similar results under the Federal Insurance Contributions Act and the Social Security Act. View "BNSF Railway Co. v. Loos" on Justia Law