Opinion ID: 1689947
Heading Depth: 2
Heading Rank: 3

Heading: whether huff should be allowed to proceed on its failure to warn claim.

Text: ¶ 20. Notwithstanding our decision as to the product line theory, Huff asserts that the summary judgment should be reversed and she should be allowed to proceed with her failure to warn claim. Huff points out that several courts, which normally follow the traditional rule of non-liability of successor corporations, have held that a successor corporation may have an independent duty to warn when defects in the predecessor's products come to its attention. Leannais v. Cincinnati, Inc., 565 F.2d 437, 441-43 (7th Cir.1977); Nissen Corp. v. Miller, 323 Md. 613, 594 A.2d 564, 570 n. 3 (1991) (citing 1 L. Frumer & M. Friedman, Products Liability § 2.06[5], at 2-195 (Rev.1989)). The courts consider the following factors as significant in determining the existence of a relationship effective to create a duty to warn: (1) succession to a predecessor's service contract; (2) coverage of the particular machine under the contract; (3) a service of that machine by the purchaser-corporation; and (4) the purchaser-corporation's knowledge of defects and of the location or owner of that machine. Harris v. Newman Mach. Co., 641 F.Supp. 146, 148 (S.D.Miss.1986). Huff asserts a different set of criteria, but it is unclear exactly what authority she relies upon in citing her requirements as opposed to those listed in Harris. Nonetheless, the above elements seem to be the most important when trying to prove a duty to warn. ¶ 21. In the present case, Shopsmith is not subject to liability for failure to warn of defects in its predecessor's products. First, Shopsmith never expressly agreed to assume Magna's service contracts. Second, there is no evidence that Shopsmith ever legally obligated itself to service Magna Mark Vs, even though it did undertake to do so on a few occasions. As for contacting owners of the products, Shopsmith had the right to purchase Magna's customer lists, but there is no indication that it did so. In the present case, contacting the Huffs would have been a virtual impossibility. After all, Dr. Dominick originally purchased the Mark V around 1954, and Mr. Huff did not acquire it until 1994. Furthermore, Mr. Huff purchased the Mark V at an estate sale.