Opinion ID: 716638
Heading Depth: 2
Heading Rank: 2

Heading: The Boyle Test for Government Contractor Immunity

Text: 17 In Boyle v. United Technologies Corp., 487 U.S. 500, 108 S.Ct. 2510, 101 L.Ed.2d 442 (1988) the Supreme Court wrote that 18 [l]iability for design defects in military equipment cannot be imposed, pursuant to state law, when (1) the United States approved reasonably precise specifications; (2) the equipment conformed to those specifications; and (3) the supplier warned the United States about the dangers in the use of the equipment that were known to the supplier but not to the United States. Id at 512, [108 S.Ct. at 2518]. 19 The Court explained that government contractor immunity is derived from the Government's immunity from suit where the performance of a discretionary function is at issue. Id at 511, 108 S.Ct. at 2518 (citing the Federal Tort Claims Act, 28 U.S.C. § 2680(a)). 7 The Court concluded that the selection of the appropriate design for military equipment to be used by our Armed Forces is assuredly a discretionary function. Id at 511, 108 S.Ct. at 2518. 20 The first two elements of the test ensure that the Government, and not the contractor, is exercising discretion in selecting the design. The third element is necessary to eliminate any incentive that this defense may create for contractors to withhold knowledge of risks. Id., at 512, 108 S.Ct. at 2518. 21
22 In Stout v. Borg-Warner Corp., 933 F.2d 331 (5th Cir.1991), this Court enumerated some of the constituents of reasonably precise specifications and government approval of those specifications for the purposes of satisfying the first element of the government contractor immunity defense. We held that the government contractor immunity defense is available where review [of the project] involved, inter alia, [the contractor's] submission of detailed drawings at various progressive stages of the design, critical design reviews where Army engineers' critiqued [the contractor's] work, and, finally, the production of prototype models tested and evaluated for months by the Army for its actual performance. Stout, 933 F.2d at 336. See Trevino v. General Dynamics Corp., 865 F.2d 1474, 1480 (1989) (if government engages in meaningful review of design the first element of Boyle test is established); see also Kleemann v. McDonnell Douglas Corp., 890 F.2d 698, 701 (4th Cir.1989) (It is this salient fact of governmental participation in the various stages of the aircraft's development that establishes the military contractor defense.); Harduvel v. General Dynamics Corp., 878 F.2d 1311, 1320 (11th Cir.1989) (requirement that government approve reasonably precise specifications is met where contractor incorporated design that government subsequently reviewed and approved). 23 In this case, the Air Force's substantive review, evaluation and testing of the C-5A clearly implicates the Government's discretionary function and approval of reasonably precise specifications. The defendants included with their motion for summary judgment unrebutted affidavits declaring that Lockheed, General Electric and the Air Force worked closely together on the development of the C-5A from its planning stages to its full production. In addition, the Air Force, through its personnel, inspected and supervised every aspect of the production of the C-5A. Clearly, the approvals in this case go far beyond mere rubber stamping. See Trevino, 865 F.2d at 1480 (When the government merely accepts, without any substantive review or evaluation, decisions made by a government contractor, then the contractor, not the government, is exercising discretion). In this case, the Government did not leave the critical design decisions to the private contractor, but worked closely with the defendants every step of the way. Trevino, 865 F.2d at 1480. 24
25 The plaintiffs argued that the C-5A did not conform to the original design specifications because [w]hat the Air Force chose in the C-5A procurement program was a failsafe performance specification.... According to the plaintiffs, the design of the circuit was not failsafe because a single point electrical failure, such as the one alleged to have occurred, could result in an accident. However, such a general design specification is not contemplated by the first element of the Boyle test because [o]nly the detailed, quantitative specifications--and not those calling for such vagaries as a failsafe, simple or inexpensive product--are relevant to the government contractor defense. Kleemann, 890 F.2d at 703 (4th Cir.1989). 26 The defendants introduced evidence showing that the Air Force inspectors were present and actively involved throughout the design, review, development and testing of the C-5A. Furthermore, the evidenced showed that the Air Force accepted and has used the C-5A for over 20 years without any significant problems. From this evidence the district court could have concluded that the C-5A was built in accordance with Air Force specifications. See Smith v. Xerox Corp., 866 F.2d 135, 138 (5th Cir.1989). 27 In an attempt to rebut the defendants' evidence, the plaintiffs included affidavits and other exhibits describing the general process of military procurement for military aircraft, such as the C-5A, where the Government has very little to do with the actual design and development of the plane. However, none of that information specifically addresses the actual development of the C-5A; the information describes only how procurement was to work in theory. This background information, while interesting, is of no legal relevance because it does not rebut the defendants' highly specific information about the actual development of the C-5A. 28
29 Finally, the plaintiffs argue that the defendants did not warn the Air Force about the dangers created by the design of the electrical circuit. The defendants had a duty to warn the Air Force only of design defects of which the Air Force had no knowledge. See Stout, 933 F.2d at 336. 30 The unrebutted deposition testimony of an Air Force engineer involved in the development and implementation of ECP 7054 described how wires were moved from one place in the pylon to another, but that if two wires terminated into the same ground stud that was not changed. This testimony places beyond all the doubt the Air Force's specific knowledge about the design of the electrical circuit. This conclusion about the Air Force's knowledge is sound, even without the benefit of the deposition testimony, because in order for the Air Force to have changed the location of the ground stud in the pylon pursuant to the modification, its responsible officers had to have seen the stud and been aware of its design. 31 The unrebutted affidavits and exhibits describing the development of the C-5A clearly establish that the Air Force approved reasonably precise specifications of the C-5A, the C-5A conformed to those specifications and the Air Force was aware of any safety implications created by the design of the electrical circuit. The plaintiffs did not come forward, as is their burden on summary judgment, with any evidence to create a triable issue of material fact. Therefore, the defendants are entitled to the government contractor immunity defense.