Opinion ID: 2460785
Heading Depth: 1
Heading Rank: 1

Heading: evidentiary basis for punitive damages.

Text: OCF was formed in 1938 by its two parent companies, Owens-Illinois and Corning Glass Works. It was stipulated at trial that between 1953 and 1958, OCF sold and distributed an asbestos-containing pipecovering manufactured by its parent company, Owens-Illinois, and distributed under the brand name Kaylo. OCF purchased the product from Owens-Illinois in 1958, and from 1958 to 1972, OCF manufactured, marketed and sold asbestos-containing Kaylo. From 1951 to 1984, Golightly was employed as a maintenance mechanic and insulator at Martin Marietta, formerly known as Union Carbide. In that employment, he insulated pipes and was thereby exposed to abestos-containing Kaylo. Golightly's work included removing and replacing old Kaylo and installing new Kaylo, both of which required sawing the material, thus creating a dust which he consequently inhaled. At trial, Golightly produced credible medical evidence that he was suffering from asbestosis and throat cancer, and that his exposure to asbestos-containing Kaylo in the 1950's, 60's and 70's was a substantial contributing factor in causing those conditions. There was also substantial evidence that OCF knew both before and during that period that exposure to asbestos could cause asbestosis and lung cancer, but that it continued to manufacture, sell and/or distribute asbestos-containing Kaylo without affixing any warning labels to the product. There was further evidence from which a jury could believe that in marketing Kaylo, OCF intentionally concealed, minimized, and even misrepresented the health effects of working with the product. The jury found against OCF on the theory of strict liability, i.e., that it designed, manufactured or marketed a product that was defective and unreasonably dangerous. Dealers Transport Co. v. Battery Distributing Co., Ky., 402 S.W.2d 441 (1966). Twenty different defendants were sued in this litigation. All but OCF either settled or were dismissed prior to trial. The jury found under a comparative negligence instruction that the cause of Golightly's injuries was attributable 100% to OCF's conduct, and awarded punitive damages under an instruction incorporating the language of KRS 411.184 and .186. [1] OCF first asserts that it was entitled to a directed verdict on the issue of punitive damages because of uncontradicted evidence that Kaylo conformed to the state of the art in existence at the time ... the product was manufactured. KRS 411.310(2). In other words, the fact that other companies were also manufacturing and distributing asbestos-containing products which were inherently dangerous when used in the manner in which they were intended to be used should preclude OCF from being held liable for doing the same thing. The purpose of KRS 411.310(2) is not to insulate an entire industry from liability just because every member of that industry was manufacturing and distributing a product known to be inherently dangerous. We agree that if an industry adopts careless methods, it cannot be permitted to set its own uncontrolled standard. Herme v. Tway, Ky., 294 S.W.2d 534 (1956). If the only test is to be that which has been done before, no industry or group will ever have any great incentive to make progress in the direction of safety. Jones v. Hutchinson Mfg., Inc., Ky., 502 S.W.2d 66, 70 (1973). Rather, the purpose of KRS 411.310(2) is to protect a manufacturer from liability for failure to anticipate safety features which were unknown or unavailable at the time the product in question was manufactured and distributed. Id. at 71. There was substantial probative evidence in this case that OCF knew of the health risks associated with the use of Kaylo both before and during the time it manufactured the product and placed it in the stream of commerce; and that it knowingly marketed Kaylo without warning labels, and concealed, minimized and/or misrepresented in its advertisements the health risks involved in working with the product. That evidence was sufficient to overcome OCF's motion for a directed verdict on the issue of punitive damages. Hanson v. American Nat'l Bank & Trust Co., Ky., 865 S.W.2d 302 (1993); Horton v. Union Light, Heat & Power Co., Ky., 690 S.W.2d 382 (1985).