Grimshaw v. Ford Motor Co.

California Court of Appeal · 1981 · Torts

Tortsproducts liabilitypunitive damagesdesign defectwrongful deathpunitive damagesstrict products liabilitydesign defect

Facts

A 1972 Ford Pinto stalled on a freeway and, after being rear-ended at an impact speed of roughly 28 to 37 miles per hour, burst into flames. Evidence showed Ford had designed the Pinto with the fuel tank behind the rear axle, minimal crush space, an insubstantial bumper, inadequate rear reinforcement, and a differential housing whose exposed bolts or flange could puncture the tank. Crash tests revealed the Pinto's fuel system failed low-speed rear-impact tests, and evidence showed inexpensive design changes could have reduced or eliminated the danger. There was substantial evidence that Ford management knew of these dangers and feasible fixes but decided to proceed because of cost savings.

Issue

Whether punitive damages are legally available in a strict products liability design defect case and, if so, whether the evidence was sufficient to support a finding that Ford acted with malice and that such malice was attributable to the corporation. The case also presented whether the reduced punitive award could stand and whether heirs in a wrongful death action could amend to seek punitive damages.

Rule

Under Civil Code section 3294, punitive damages may be awarded in a noncontract action, including a strict products liability design defect case, when the defendant's conduct shows malice, meaning not only an intent to injure but also a conscious disregard of the probability that the conduct will result in injury to others. For a corporation, punitive damages may be imposed when managerial employees acting within the scope of employment authorize, approve, ratify, or themselves engage in the malicious conduct. In design defect cases, a product may be found defective if it fails to perform as safely as an ordinary consumer would expect when used in an intended or reasonably foreseeable manner; industry custom is irrelevant to strict liability defect.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Sacramento, Larkspur Mobility released a compact electric scooter with a battery compartment placed where low-speed side impacts often crushed the casing. Internal tests showed a substantial risk of thermal fire in ordinary city collisions, and engineers proposed a $7 shield, but product executives rejected it to preserve margins. After Maya Torres suffered severe burns in a foreseeable collision, she sued on a strict products liability design-defect theory and sought punitive damages.

Under the majority rule, are punitive damages categorically unavailable because Maya proceeded in strict products liability rather than negligence?

Explanation. Punitive damages are not barred merely because the claim is strict products liability for design defect. The majority held Civil Code section 3294 applies to noncontract actions, including strict products liability, when the defendant's conduct shows malice. Malice includes conscious disregard of the probability that conduct will result in injury to others, not just a specific intent to injure.