Opinion ID: 2123251
Heading Depth: 1
Heading Rank: 4

Heading: The Fusion Appeal

Text: The issue presented by this appeal is whether Plastics had a right to full indemnity from Fusion as the trial court held, or whether Fusion was entitled to have the jury determine the comparative negligence of Plastics and Fusion and limit Fusion's liability to contribution only. Although we are of the view that the trial court might well have submitted the issue of comparative negligence under other circumstances, in the context of this case it was proper not to do so. Reconciling the special verdicts applicable to Plastics' liability the court properly held that Plastics was found negligent only as to information supplied [to Polaris] concerning the polyethylene gasoline tanks. In Tolbert v. Gerber Industries, Inc., 255 N.W.2d 362 (Minn.1977) we abrogated Rule 4 set forth in Hendrickson v. Minnesota Power & Light Co., 258 Minn. 368, 104 N.W.2d 843 (1960) which had granted indemnity where the one seeking indemnity has incurred liability merely because of failure, even though negligent, to discover or prevent the misconduct of the one sought to be charged. Tolbert held that an installer of equipment had a duty to inspect and discover a defect in a component part supplied by a manufacturer, and that failure to do so required a determination of comparative negligence rather than an award of indemnity. The events which gave rise to this litigation occurred in the years 1968 and 1969, at a time when all of the Hendrickson rules were applicable. The rights and duties of manufacturers, suppliers, and consumers as to indemnity were clearly and explicitly defined in Hendrickson. Whether or not Plastics in fact relied on that case in transacting business is not before us. They had a right to invoke whatever rule then applied. Had these matters been litigated promptly, or at any time before 1977, Plastics would undoubtedly have had an absolute right to indemnity, unless, of course, this case had been used as a vehicle for rescinding the rule. Where the question is as close as this and where the equities lean as heavily in favor of respondent, it is not inappropriate to accord some weight to the law which was in effect when the cause of action arose. The manner in which these verdicts were framed and submitted to the jury leaves the court with a murky and complex set of facts to address. Two facts were clear to the trial court, however, and they are equally clear to this court. First, Fusion, leader in the field for many years, misled Plastics with assurances that its resin had been thoroughly tested and tried without any history of failure; and second, Plastics relied on these assurances to the extent it believed further testing was unnecessary. The trial court in effect characterized Plastics' role as merely a conduit for supplying Polaris with Fusion's misinformation. As we have indicated, we are not entirely free from doubt as to the jury's intention in finding Plastics negligent with respect to supplying Polaris with information. It may be that the jury believed it was Plastics' duty to conduct tests of its own, or the jury may have simply found that Plastics was vicariously liable for conveying Fusion's misinformation. In the latter situation, Plastics would be entitled to indemnity under the first rule in the Hendrickson case [w]here the one seeking indemnity has only a derivative or vicarious liability for the damage caused by the one sought to be charged. Id. at 372, 104 N.W.2d at 848. Since the parties did not seek or obtain verdicts which would have made it possible to identify Plastics' negligence as either independent of Fusion's or simply vicarious as to Fusion, we are of the opinion that the trial court's conclusions were not clearly erroneous. Accordingly we affirm its order awarding Plastics full indemnity against Fusion. Affirmed in part, reversed in part, and remanded. AMDAHL and SIMONETT, JJ., not having been members of this court at the time of argument and submission, took no part in the consideration or decision of this case.