Opinion
[No. S046001.
Jan. 23, 1997.]
HARVEY RICHARDS, Plaintiff and Respondent, v. OWENS-ILLINOIS, INC., Defendant and Appellant.
Counsel
Morgenstein & Jubelirer, Eliot S. Jubelirer, Lee Ann Huntington and Bruce A. Wagman for Defendant and Appellant.
Thelen, Marrin, Johnson & Bridges, Ronald F. Lopez, Miruni Soosaipillai, Haight, Brown & Bonesteel, Roy G. Weatherup, William J. Sayers, Caroline E. Chan, Brobeck, Phleger & Harrison, Thomas M. Peterson and Meredith N. Landy as Amici Curiae on behalf of Defendant and Appellant.
John C. Robinson and Bryce C. Anderson for Plaintiff and Respondent.
Steven M. Woodside, County Counsel (Santa Clara), Ann M. Ravel, Chief Assistant County Counsel, William C. Katzenstein, County Counsel (Riverside), Karen Keating Jahr, County Counsel (Shasta), Louise E. Renne, City Attorney (San Francisco), Patrick Mahoney, Elizabeth D. Laporte, Lieff, Cabraser, Heimann & Bernstein, Richard M. Heimann, Elizabeth J. Cabraser, William B. Hirsch, Robert J. Nelson and Jacqueline E. Mottek as Amici Curiae.
[MAJORITY â BAXTER, J.]
Opinion
BAXTER, J.
Proposition 51 (Civ. Code, § 1431 et seq.), adopted by the voters in 1986, provides that in a tort action governed by principles of comparative fault, a defendant shall not be jointly liable for the plaintiffâs ânon-economic damages,â but shall only be severally liable for such damages âin direct proportion to that defendantâs percentage of fault.â (§ 1431.2, subd. (a).) Section 1714.45, adopted by the Legislature in 1987, provides that with specified exceptions, a manufacturer or seller âshall not be liableâ in a âproduct liability actionâ for harm caused by the ingestion of a âcommon consumer product intended for personal consumption, such as . . . tobaccoâ which is âinherently unsafeâ and consumed with âordinary [community] knowledgeâ of its danger.
We confront a narrow but significant question: To the extent section 1714.45 protects tobacco companies from direct âliability]â for harm caused by smoking, does it also preclude the allocation of proportionate âfaultâ to absent tobacco companies in a smokerâs suit for asbestos-related lung injury, in order to reduce the ânon-economicâ damages payable by the asbestos defendant under Proposition 51?
The Court of Appeal concluded that section 1714.45 applies only in direct actions against suppliers of the products described by the statute, and has no effect when Proposition 51 is invoked in a suit from which such suppliers are absent. Hence, the Court of Appeal reasoned, the defendant in an asbestos action may reduce its own ânon-economic damageâ exposure by proving that tobacco suppliers share âfaultâ for lung injuries suffered by a plaintiff who smoked.
For its holding, the Court of Appeal relied primarily on DaFonte v. Up-Right, Inc. (1992) 2 Cal.4th 593 [7 Cal.Rptr.2d 238, 828 P.2d 140] (DaFonte). DaFonte held that Proposition 51 permits a tort defendant to apportion âfaultâ among all âtortfeasorsâ responsible for the injury, whether or not present in the action, including those who are immune from direct suit. There we concluded that in a farm employeeâs suit against a harvester manufacturer for injury caused by a defect in the machineâs design, the defendant could limit its liability for ânon-economicâ damages by showing that the employerâs negligence contributed to the injury, even though employers are statutorily immune from tort damages for job-related injuries to their employees.
However, we are persuaded that DaFonte does not govern here. The employerâs immunity at issue in DaFonte derives narrowly from an alternate scheme of workersâ compensation; as we made clear in DaFonte, this immunity does not imply that a negligent employer lacks legal âfaultâ or is not a âtortfeasor.â The immunity accorded by section 1714.45 to suppliers of certain unhealthy consumer products such as tobacco is of a materially different kind. Section 1714.45 represents a legislative judgment that to the extent of the immunity afforded, such companies have no âfaultâ or responsibility, in the legal sense, for harm caused by their products. To the same extent, such companies are thus not âtortfeasorsâ to whom comparative âfaultâ can be assigned for purposes of Proposition 51.
Our conclusion in this regard disposes of the sole basis on which the appellant in this case has contended that the trial court should have allowed its âtobacco company defense.â It follows that the judgment of the Court of Appeal must be reversed.
Facts
Plaintiff Harvey Richards (Richards), who was bom in 1918, held various shipyard jobs from 1939 until his retirement in 1983. From 1950 until his retirement, he worked at Mare Island Naval Shipyard (Mare Island). In 1988, he sued Owens-Illinois, Inc. (Owens-Illinois) and numerous other manufacturers of asbestos products, claiming respiratory injury and fear of cancer arising from exposure to asbestos on the job. The complaint alleged causes of action based on negligence, strict liability for a âdefective" product, and negligent and intentional infliction of emotional distress. Richardsâs case was consolidated for trial with the similar claims of four other plaintiffs.
Under procedures adopted by the Solano County Superior Court for general use in asbestos litigation, the trial took place in two phases. In the first phase, the jury was to determine, as to each plaintiff, whether exposure to asbestos was a proximate cause of injury and, if so, the total amount of damages. Richards presented medical evidence that he has asbestosis, or reduced lung volume which results when inhalation of asbestos particles causes lung tissue to scar and thicken. The evidence further suggested that Richards, a longtime smoker, also has obstructive airway disease most likely due to smoking. According to Richardsâs expert, however, this condition was mild and would be asymptomatic absent the asbestosis.
Richards testified that he was exposed to uncontained insulation products at all his places of employment, though he was uncertain which, if any, contained asbestos. He further indicated that he has serious breathing problems, is progressively weakening, and fears he will contract cancer. The jury found that Richards had suffered an asbestos-related injury, and that he had sustained $5,000 in economic damages and $275,000 in ânon-economicâ damages. Between the first and second stages of trial, all the defendants except Owens-Illinois settled.
The second phase of trial, against Owens-Illinois alone, addressed liability and apportionment of damages. At this phase, plaintiffs received the benefit of a âburden-shiftingâ instruction generally applicable in Solano County asbestos litigation. Under this instruction, once the plaintiff has proved that a particular asbestos supplierâs product was âdefective,â that the plaintiffâs injury was legally caused by asbestos exposure, and that he was exposed to asbestos fibers from the defendantâs product, the burden shifts to the defendant to prove that its product was not a legal cause of the injury.
Each plaintiff sought to show that he had been exposed to asbestos from a product manufactured by Owens-Illinois. Richards testified that during the 1950âs at Mare Island, he sometimes worked around, and occasionally handled, uncontained insulation products when dust from these materials was in the air. Evidence was presented that Owens-Illinoisâ asbestos insulation product âKayloâ was extensively used at Mare Island during this period, and that âKayloâ gave off dust when used.
Owens-Illinois was allowed to show, in turn, that other asbestos manufacturers, and the plaintiffsâ various employers, shared âfaultâ for the plaintiffsâ long-term exposure to asbestos. Owens-Illinois was also permitted to present evidence that smoking was a ânegligentâ contributing factor to each plaintiffâs condition. Richards himself acknowledged that he had smoked between one and two packs of cigarettes per day from 1941 until 1984. Undisputed evidence indicated that smoking sharply increases the risk of lung disease, including cancer, and works âsynergisticallyâ with asbestos exposure to enhance the severity of resulting damage to the lungs.
By in limine motions, Owens-Illinois sought permission to establish that, in addition to plaintiffsâ own ânegligenceâ for smoking, and the âfaultâ assigned to other asbestos manufacturers and employers, cigarette manufacturers also shared âfaultâ for plaintiffsâ injuries because they supplied the harmful tobacco products plaintiffs had consumed. Under Proposition 51, Owens-Illinois urged, the proportionate âfaultâ of tobacco companies for plaintiffsâ injuries should further reduce, to that extent, Owens-Illinoisâs liability for the plaintiffsâ ânon-economicâ damages.
Plaintiffsâ counsel objected. Counsel did not cite section 1714.45 by number, but he argued that because the âlaw in Californiaâ says tobacco companies âhavenât committed a tortâ when consumption of their products causes injury, they cannot âshare in the wealth as . . . tort-feasors.â The court ruled that no âtobacco company defenseâ could be presented, because the tobacco companies âarenât on trial here.â The court thereafter excluded all proffered evidence concerning the âfaultâ of tobacco manufacturers, and it refused to allow a verdict form in which âfault" could be apportioned to these entities.
In his argument to the jury, Owens-Illinoisâs counsel urged at length that the plaintiffs were negligent because they continued to smoke long after they had notice that smoking was hazardous to health, and that the long-term consumption of tobacco products was a contributing cause of their lung diseases. The courtâs instructions made clear that each plaintiffâs entire recovery must be reduced to the extent of his own comparative ânegligenceâ contributing to his condition. The jury was further instructed to assign percentages of âfaultâ for each injury, adding up to a total of 100 percent, among (1) the plaintiff himself, (2) Owens-Illinois, (3) other manufacturers of asbestos to which the plaintiff was exposed, and (4) each employer who contributed to the exposure.
In Richardsâs case, the jury apportioned fault as follows: 1 percent to Owens-Illinois, 2.5 percent to Richards, and 96.5 percent to the remaining entities to which the jury was allowed to assign fault. After further adjustment for pretrial settlements, Richards recovered a net judgment against Owens-Illinois of $5,133.73.
Owens-Illinois appealed. In its Court of Appeal briefs, Owens-Illinois cited as error the denial of its âtobacco company defense,â the burden-shifting instruction, and several other unrelated trial issues.
The Court of Appeal reversed. Its basis for doing so was its conclusion that the trial courtâs rejection of the proffered âtobacco company defenseâ was prejudicial error. The Court of Appeal observed that under our DaFonte decision, apportionment of a defendantâs ânon-economicâ damages for purposes of Proposition 51 must include the âuniverse of tortfeasors,â including those who are immune from suit. The court perceived no material distinction between the employerâs immunity considered in DaFonte and the tobacco companiesâ immunity involved in this case.
The Court of Appeal also resolved the other issues raised by Owens-Illinois. Certain of Owens-Illinoisâs arguments were rejected, but the Court of Appeal ruled, for purposes of guidance âif there is a retrial,â that the burden-shifting instruction was improper and should not be given again.
Richards petitioned for review, raising only the âtobacco defenseâ issue. In its answer, Owens-Illinois confined itself to the same question and did not exercise its right to present other aspects of the Court of Appealâs decision for our consideration. (See Cal. Rules of Court, rule 28(e)(5).) Though we issued no order specifically limiting the issues on review, the partiesâ briefs on the merits are likewise concerned only with the âtobacco companyâ question. We therefore confine our decision to that issue.
In doing so, we conclude that the Court of Appealâs analysis was incorrect in this respect. We will therefore reverse the judgment of the Court of
Discussion
The evolution of California law governing liability for tortious injury is amply documented. In general, a tortfeasor is liable for all damage of which his tortious act was a proximate cause. â[He] may not escape this responsibility simply because another actâeither an âinnocentâ occurrence such as an âact of Godâ or other [tortious] conductâmay also have been a [concurrent] cause of the injury.â (American Motorcycle Assn. v. Superior Court (1978) 20 Cal.3d 578, 586 [146 CaL.Rptr. 182, 578 P.2d 899] (American Motorcycle), italics in original; see generally, Civ. Code, § 1714; 6 Witkin, Summary of Cal. Law (9th ed. 1988) Torts, § 970, pp. 360-361; Rest.2d Torts, §§431, 432, 439, pp. 428, 430, 464.)
âIn cases involving multiple tortfeasors, [this] principle . . . has commonly been expressed in terms of âjoint and several liability.â â (American Motorcycle, supra, 20 Cal.3d at p. 586.) âJoint and several liabilityâ means that â[w]hen [the] independent [tortious] actions of a number of tortfeasors are each a proximate cause of a single injury, each tortfeasor is . . . personally liable for the damage sustained, and the injured person may sue one or all of the tortfeasors to obtain a recovery for his injuries; the fact that one of the tortfeasors is impecunious or otherwise immune from suit does not relieve another tortfeasor of his liability for damage which he himself has proximately caused.â (American Motorcycle, supra, 20 Cal.3d at p. 587.)
Though a rule of joint and several liability protects the plaintiffâs right to full compensation for his tortious injury, its traditional application often forced a defendant to pay a proportion of the total damages that was far in excess of his relative fault, with no recourse against other concurrent tortfeasors. By statute, the right of âcontributionâ exists only among those tortfeasors who are jointly liable on the plaintiffâs judgment, and then only for amounts in excess of each such defendantâs equal âpro rataâ share. (Code Civ. Proc., §§ 875, 876; see American Motorcycle, supra, 20 Cal.3d at pp. 592, 599 et seq.) Courts recognized an âequitableâ right to âindemnityâ among joint tortfeasors, but in earlier years this doctrine operated on an âall or nothingâ basis, allowing the entire loss to be borne by, or shifted to, the most culpable tortfeasor alone. (American Motorcycle, supra, at pp. 593-595.)
Under the traditional common law, similar âall or nothingâ doctrines operated against the injured person, as powerful exceptions to the rule that one is responsible for all damage proximately caused by his tort. The doctrine of contributory negligence held that if the plaintiffâs own want of due care had contributed in any measure to his injury, his recovery in tort
was barred, even though the tortious conduct of others was also responsible for the harm. (American Motorcycle, supra, 20 Cal.3d at p. 587.) Moreover, if the plaintiff had knowingly and voluntarily âassumed the riskâ of anotherâs breach of duty, he could recover nothing when the breach resulted in his injury. (See Knight v. Jewett (1992) 3 Cal.4th 296, 304 [11 Cal.Rptr.2d 2, 834 P.2d 696].)
Considerations peculiar to the workersâ compensation system had caused the development of special rules in that area. When an employee was injured on the job, the employer was liable for statutory benefits âwithout regard to negligenceâ (Lab. Code, § 3600, subd. (a)); on the other hand, even if the employer was negligent, his payment of such benefits was âin lieu of any other liabilityâ for the injury (ibid.), and they were the employeeâs âexclusive remedyâ against the employer (id., § 3602, subd. (a)).
No implication arose, however, that the employer was thereby absolved of âfault,â or that his âfaultâ was legally irrelevant in the tort system. Indeed, except as otherwise provided by the workersâ compensation laws, the employer remained a full participant in that system as it then operated.
Thus, despite his receipt of workersâ compensation benefits as his sole remedy against the employer, the employee could sue all other tortiously responsible persons for the full amount of his damages. (Lab. Code, § 3852.) To prevent double recovery, however, any damages awarded the employee in a trial against third party tortfeasors â âmust be reduced by the amount of [workersâ] compensation [benefits] he received.â â (Associated Construction & Engineering Co. v. Workersâ Comp. Appeals Bd. (1978) 22 Cal.3d 829, 834 [150 Cal.Rptr. 888, 587 P.2d 684] (Associated Construction), quoting Witt v. Jackson (1961) 57 Cal.2d 57, 73 [17 Cal.Rptr. 369, 366 P.2d 641].)
By the same token, where third parties were responsible in tort for the employeeâs injuries, the employer could seek recoupment of benefits paid or owed to the employee, either by suing such third parties directly, or by asserting a lien or credit against any tort recovery by the employee. (Lab. Code, § 3850 et seq.) But if the employer himself was even slightly at fault for the injury, his recoupment of benefits was entirely precluded. (Roe v. Workmenâs Comp. Appeals Bd. (1974) 12 Cal.3d 884, 889 [117 CaL.Rptr. 683, 528 P.2d 771]; Witt v. Jackson, supra, 57 Cal.2d 57, 73.)
Two decades ago, we began to address the most arbitrary effects of this traditional system upon plaintiffs, defendants, and employers. âIn Li v. Yellow Cab Co. (1975) 13 Cal.3d 804 [119 Cal.Rptr. 858, 532 P.2d 1226, 78 A.L.R.3d 393] (Li), [we] eliminated the all-or-nothing doctrine of contributory negligence. Thereafter, a plaintiffâs recovery against others responsible for the injury could only be reduced in proportion to his or her own share of fault.â (DaFonte, supra, 2 Cal.4th 593, 598.) Li also made clear that insofar as the plaintiffâs assumption of risk was but âa variant of contributory negligence,â the assumption of risk doctrine should be merged âinto the general scheme of assessment of liability in proportion to fault.â (Li v. Yellow Cab Co. (1975) 13 Cal.3d 804, 825 [119 Cal.Rptr. 858, 532 P.2d 1226, 78 A.L.R.3d 393] (Li).)
âIn American Motorcycle, we concluded that Liâs comparative fault principles did not abrogate each defendantâs joint and several liability for damages attributable to the fault of others. Our opinion adhered to the pre-Li principle that culpable defendants, rather than the injured plaintiff, should bear the risk of inadequate contribution by others responsible for the harm. (20 Cal.3d at pp. 588-590.)â (DaFonte, supra, 2 Cal.4th at p. 598.) We also made clear in American Motorcycle that when reducing the plaintiffâs recovery in proportion to his fault, that fault must be weighed âagainst the combined total of all other causative negligence. . . .â (American Motorcycle, supra, 20 Cal.3d at p. 589, fn. 2.) This meant, in effect, that â[n]either the allocation of fault, nor the amount of a joint and several damage award, ÂŁvar[ied] by virtue of the particular defendants who happened] to be before the court . . . .â [Citation.]â (DaFonte, supra, 2 Cal.4th at p. 603, quoting American Motorcycle, supra, 20 Cal.3d at p. 589, fn. 2.)
âHowever, American Motorcycle took some steps to ameliorate the harshness of the joint-and-several-liability rule. Our opinion concluded that one sued for personal injury could join other concurrent tortfeasors in the original action in order to allocate proportionate responsibility, or could seek equitable indemnity from such tortfeasors in proportion to their fault. (20 Cal.3d at pp. 591-598, 604-607.) More recent cases make clear that any share of damages attributable to an insolvent tortfeasor should be apportioned equitably among the solvent tortfeasors. [Citations.]â (DaFonte, supra, 2 Cal.4th 593, 598.)
We also acted to accommodate the workersâ compensation system to the principles of Li and American Motorcycle. We concluded that insofar as permitted by the employerâs limited statutory liability, he should share normally in the payment of damages for a job-related injury to the extent of his own proportionate fault.
Thus, we decided, the rule that an employerâs negligence necessarily precluded all recoupment of workersâ compensation benefits from a third party tortfeasor must be abrogated. In a system of comparative fault, if the employer paid or owed benefits representing a share of the employeeâs damages in excess of the employerâs percentage of fault, the employer must be allowed to recoup the excess only from third party tortfeasors, or by lien or credit against the employeeâs tort settlement or judgment, but if the employerâs percentage of fault exceeded his benefit liability, no recoupment could be had. (Aceves v. Regal Pale Brewing Co. (1979) 24 Cal.3d 502, 512-513 [156 Cal.Rptr. 41, 595 P.2d 619]; Associated Construction, supra, 22 Cal.3d 829, 842.) âUnder this formula, third party defendants remained jointly and severally liable to the injured employee for all damages attributable to the employerâs fault which were not covered by workersâ compensation benefits. [Citations.]
âIn sum, by 1986 the courts had eliminated certain inequities of the former tort recovery system, but so-called âdeep pocketâ defendants whose fault was slight could still be saddled with large damage awards mainly attributable to the greater fault of others who were able to escape their full proportionate contribution. [Citation.] Proposition 51 sought to modify this system of recovery.
âProposition 51 first codified its purpose by adding section 1431.1 to the Civil Code. This statute decries the unfairness and cost of the âdeep pocketâ rule to both âgovernmental and private defendantsâ (id., subds. (a)-(c)) and cites the exploitation of relatively blameless defendants who âare perceived to have substantial financial resources or insurance coverage . . . .â (Id., subd. (b).) Section 1431.1 declares that in order to remedy these inequities and avoid âcatastrophicâ financial consequences to public and private individuals and entities, âdefendants in tort actions shall be held financially liable in closer proportion to their degree of fault.â (Id., subd. (c).)
âTo carry this intent into effect, Proposition 51 amended section 1431 and added section 1431.2. Amended section 1431 establishes a presumption that â[a]n obligation imposed upon several persons ... is presumed to be joint, and not several, except as provided in Section 1431.2 . . . .â (Italics added.) New section 1431.2 declares that in actions for wrongful death, personal injury, or property damage based on comparative fault, âthe liability of each defendant for non-economic damages shall be several only and shall not be joint.â The statute further specifies that â[e]ach defendant shall be liable only for the amount of non-economic damages allocated to that defendant in direct proportion to that defendantâs percentage of fault, and a separate judgment shall be rendered against that defendant for that amount.â (Id., subd. (a).)â (DaFonte, supra, 2 Cal.4th at pp. 599-600.)
In DaFonte, we considered the correct method of apportioning âfaultâ for purposes of Proposition 51. There, a farm employee sued the manufacturer of a mechanical grape harvester, alleging that the machineâs unsafe design had caused him personal injury. The manufacturer sought to reduce its liability for ânon-economicâ damages under Proposition 51 by demonstrating that negligent safety policies of the plaintiffâs employer, who was immune from suit under the workersâ compensation law, were partly responsible for the injury. The plaintiff urged that Proposition 51 only allows comparison of a defendantâs fault with that of all other tort defendants, and does not permit apportionment of fault to absent or immune tortfeasors. We agreed with the manufacturer, however, that âall fault responsible for the plaintiffs injuriesâ must be considered. (DaFonte, supra, 2 Cal.4th at p. 603, italics in original.)
We reasoned as follows: By the plain terms of the initiative, each âdefendantâsâ share of the plaintiffâs ânon-economicâ damages is strictly limited by that âdefendantâsâ proportionate share of all âfault.â With respect to this portion of the plaintiffâs loss, Proposition 51 abolishes the system of joint and several liability among tortfeasors âroot and branchâ by removing a âdefendantâsâ exposure to payment of damages in excess of his or her own âfault,â and by placing on the plaintiff, rather than the âdefendant[sj,â the risk that any person at âfaultâ for the injury will fail to contribute his or her full proportionate share. The statutory protection is constant and absolute; it does not permit a âdefendantâsâ share of ânon-economicâ damages to vary depending upon which other tortfeasors happen to be before the court, or upon the reason why a full proportionate contribution from each such tortfeasor may not be forthcoming. Regardless of whether the gap is caused by the insolvency, the absence, or even the immunity of another tortfeasor, each culpable âdefendantâ remains liable for the same amount of ânon-economicâ damagesâthose proportionate to his or her own degree of âfault.â (DaFonte, supra, 2 Cal.4th at pp. 600-604.)
Owens-Illinois and its amici curiae contend that DaFonte dictates a similar result in this case. They urge that even if tobacco companies are themselves immune from liability for their productsâ contribution to plaintiffâs lung disease, these companiesâ proportionate responsibility for the injuryâi.e., their comparative âfaultâânecessarily reduces Owens-Illinoisâs own degree of âfaultâ for the same injury. Hence, it is argued, the comparative âfaultâ of the tobacco companies must apply to diminish Owens-Illinoisâ proportionate share of liability for ânon-economicâ damages under Proposition 51.
However, DaFonte held only that, by the specific terms of Proposition 51, a defendantâs âfaultâ must be compared to all other âfaultâ responsible for the injury. As we made clear in DaFonte, the employerâs immunity from tort damages for job-related injuries, an immunity narrowly founded on an alternative compensation scheme, does not imply any absence , of legal âfaultâ or tortious responsibility in an employer whose act or omission contributed to the harm. (DaFonte, supra, 2 Cal.4th at pp. 598-599, 604, fn. 6.) On the other hand, to the extent the immunity of section 1714.45 would apply in a direct action against tobacco suppliers, that immunity arises from a premise which is also inconsistent with the allocation of legal âfaultâ to such entities under Proposition 51, as contemplated in DaFonte. The contention of Owens-Illinois and its amici curiae must therefore be rejected.
Section 1714.45 provides that a manufacturer or seller âshall not be liableâ in a âproduct liability actionâ for injury or death caused by a product which (1) âis inherently unsafe and ... is known to be unsafe by the ordinary consumerâ who consumes the product with âordinary [community] knowledgeâ of its danger, and (2) âis a common consumer product intended for personal consumption, such as sugar, castor oil, alcohol, tobacco, and butter, as identified in comment i to Section 402A of the Restatement (Second) of Torts.â (§ 1714.45, subd. (a), italics added.)
Contending that section 1714.45 is irrelevant to the case before us, Owens-Illinois and its amici curiae reason as follows: The statute declares that the suppliers of such products are immune from direct âUab[ilityY' under the circumstances described, but it contains no similar express declaration that the âfaultâ of such entities cannot be considered in other contexts where their âliability]â is not at issue. Indeed, the statute pronounces itself âdeclarativeâ of existing California law, which necessarily includes the previously adopted Proposition 51. Moreover, the abbreviated legislative history of section 1714.45 shows it was a hasty compromise of long-divergent interests, intended only to prevent withdrawal of the enumerated products from the market, against the wishes of society, by eliminating their suppliersâ direct monetary exposure for harm caused by the productsâ normal consumption. Under these circumstances, the statute should be narrowly construed so as to allow the assignment of âfaultâ to these suppliers in settings where they will face no monetary liability.
These contentions have superficial appeal, but they do not withstand scrutiny. Whatever the most immediate purpose of section 1714.45, its plain language reveals a premise which is inconsistent with the narrow construction proposed by Owens-Illinois and its amici curiae.
Section 1714.45 draws its express inspiration from product liability principles addressed by section 402A of the Restatement Second of Torts (Restatement), and particularly comment i thereto (comment i). (See Civ. Code, § 1714.45, subd. (a)(2).) Section 402A of the Restatement proposes generally that when a manufacturer or distributor sells a product âin a defective condition unreasonably dangerous to the user or consumerâ (p. 347, italics added), and the product reaches that person, as expected and intended, without substantial change in its condition, the seller is âsubject to liabilityâ for physical harm âthereby caused to the ultimate user or consumer.â
However, comment i asserts an important qualification of the general rule, giving reasons that are significant to our analysis here. Comment i makes clear that, under the Restatement formulation, â[t]he rule [of liability] applies only where the defective condition of the product makes it unreasonably dangerous to the user or consumer.â (Restatement, p. 352, italics added.) As comment i then explains, â[m]any products cannot possibly be made entirely safe for all consumption,â but if a product is pure and unadulterated, its inherent or unavoidable danger, commonly known to the community which consumes it anyway, does not expose the seller to liability for resulting harm to a voluntary user.
Thus, comment i observes, â[ordinary sugar is a deadly poison to diabetics, and castor oil found use under Mussolini as an instrument of torture,â but this is not what the Restatement means by âunreasonably dangerous.â âGood whiskey is not unreasonably dangerous merely because it will make some people drunk, and is especially dangerous to alcoholics .... Good tobacco is not unreasonably dangerous merely because the effects of smoking may be harmful .... Good butter is not unreasonably dangerous merely because, if such be the case, it deposits cholesterol in the arteries and leads to heart attacks . . . .â (Restatement, pp. 352-353, italics added.)
The clear premise of comment i is that no âliabilityâ arises under the circumstances therein described because there is no sound basis for liability. In other words, comment i posits, a manufacturer or seller breaches no legal duty to voluntary consumers by merely supplying, in unadulterated form, a common commodity which cannot be made safer, but which the public desires to buy and ingest despite general understanding of its inherent dangers.
California has developed its own law of liability for a âdefectiveâ product (See Greenman v. Yuba Power Products, Inc. (1963) 59 Cal.2d 57 [27 Cal.Rptr. 697, 377 P.2d 897, 13 A.L.R.3d 1049]), which is assimilated into the comparative âfaultâ system (see Daly v. General Motors Corp. (1978) 20 Cal.3d 725 [144 Cal.Rptr. 380, 575 P.2d 1162]), but whose substance differs in some respects from the Restatementâs views. In particular, California has rejected the Restatementâs limitation of liability to products that are both âdefectiveâ and âunreasonably dangerous.â (See Cronin v. J.B.E. Olson Corp. (1972) 8 Cal.3d 121 [104 CaLRptr. 433, 501 P.2d 1153].) Instead, California law permits recovery for all injuries caused because a product was âdefectiveâ either in manufacture (i.e., it was a mistake in the production process) or in design (i.e., even though marketed as intended, it failed to meet âordinary consumer expectationsâ of safety or harbored âexcessive preventable dangerâ). (Barker v. Lull Engineering Co. (1978) 20 Cal.3d 413, 430 [143 CaLRptr. 225, 573 P.2d 443, 96 A.L.R.3d 1].)
Section 1714.45 thus did not adopt the âunreasonably dangerousâ terminology of Restatement section 402A, and of comment i thereto, but the statute still clearly imports into California law the fundamental premise of comment i. Like comment i, section 1714.45 negates âliability]â to voluntary users for the mere manufacture or sale of âcommon consumer produces] intended for personal consumption,â specifically including âsugar, castor oil, alcohol, tobacco, and butter,â as âidentified in comment [z],â which are âinherently unsafeâ and are understood to be so by âordinary knowledge common to the community,â but which are nonetheless consumed with such ordinary knowledge. Like the Restatement, the statute thus precludes âliability]â for the furnishing of such products on grounds that under the circumstances described in the statute, their âinherentâ dangers do not make them âdefectiveâ when used as intended by voluntary consumers who are aware of the risks, and suppliers breach no legal duty to such knowing and voluntary consumers by merely furnishing these products in unadulterated form. In other words, under the conditions described by section 1714.45, a tobacco supplier simply commits no tort against knowing and voluntary smokers by making cigarettes available for their use.
It would be anomalous if, though immunized on such grounds from direct liability for providing an âinherently unsafeâ product to a knowing and voluntary consumer, the supplier could nonetheless be assigned âfaultâ for doing so in an action between that same consumer and a third party defendant. The principles of DaFonte, supra, 2 Cal.4th 593, do not require such a result, and we decline to reach it. We conclude that to the extent section 1714.45 affords tobacco suppliers immunity from âliab[ility]â in direct actions against them, on grounds that the immunized conduct breaches no duty and constitutes no tort, the statute also precludes indirect assignment of comparative âfaultâ or responsibility to such entities for purposes of Proposition 51.
Owens-Illinois suggests we must reach a contrary result because subdivision (c) of section 1714.45 states that the statute is âdeclarativeâ of âexisting California law.â As Owens-Illinois points out, when section 1714.45 was enacted, âexisting California lawâ included the previously adopted Proposition 51. However, section 1714.45 makes no specific reference to Proposition 51, and there is no necessary relationship between the two statutes that affects our analysis here. Nothing in Proposition 51 requires a determination, contrary to the premise of section 1714.45, that cigarette manufacturers have legal âfaultâ or responsibility for smoking injury which may reduce the amount of the smokerâs ânon-economicâ damage recovery in a suit against a third party. Thus, Owens-Illinoisâs contention must fail.
Owens-Illinois urges that if section 1714.45 was intended, under the conditions described, as a complete abrogation of normal tort rules governing duty of care, causation, âfault,â and product defects, the statute would have said so explicitly. Indeed, Owens-Illinois suggests, the Legislature has expressed just such purposes in several analogous laws whose language is broader than that of section 1714.45. (Citing, as examples, §§ 846 [owner of estate in land generally âowes no duty of careâ to keep the premises safe for uncompensated recreational use], 1714, subd. (b) [furnishing of alcoholic beverages to intoxicated person is ânot the proximate causeâ of injuries resulting from intoxication], and 1714.4 [firearms and ammunition are not âdefectiveâ in design merely because they can cause injury when discharged; actual injuries from discharge of firearms or ammunition âare not proximately causedâ by such potential for harm].) Hence, Owens-Illinois insists, the absence of similar language from section 1714.45 is significant.
We are not persuaded. The linguistic variety itself in these laws demonstrates that the Legislature, when addressing a series of distinct tort-reform issues, has chosen no consistent phraseology to achieve its objectives. On the other hand, the import of section 1714.45 itself is clear. Though the statute states only an exemption from direct âliability]â where specified conditions are met, the express premise which justifies this immunity is of a broader nature. This premise is that suppliers of certain products which are âinherently unsafe,â but which the public wishes to have available despite awareness of their dangers, should not be responsible in tort for resulting harm to those who voluntarily consumed the products despite such knowledge. With respect to injuries meeting the statuteâs requirements, that principle precludes the assignment of legal âfaultâ to such suppliers in all contexts, including suits from which they are absent by law.
Owens-Illinois observes that the Legislature has adopted numerous regulatory, research, and prevention programs which express its compelling concern for reducing tobacco use in California. Hence, Owens-Illinois reasons, section 1714.45 cannot be deemed a policy judgment that cigarettes are not âdefective,â or that suppliers have no legal âfaultâ or responsibility for providing them.
In the context at issue here, however, the Legislature has made just such a judgment. The laws cited by Owens-Illinois certainly demonstrate the high level of public and political understanding that tobacco products are harmful. They also indicate political support for some responsive measures designed to discourage smoking. On the other hand, lawmakers continue to honor the apparent public preference for retaining these products on the market, and for preserving a right of personal choice to enjoy them, despite their known risks. In this regard, the Legislature has determined, the mere manufacture and sale of such products create no tortious responsibility to individuals who voluntarily consumed them with the communityâs knowledge that they were unsafe.
Owens-Illinois notes we held in Potter v. Firestone Tire & Rubber Co. (1993) 6 Cal.4th 965 [25 Cal.Rptr.2d 550, 863 P.2d 795] that principles of comparative fault require consideration of the effects of smoking on the plaintiffâs injuries, including his reasonable fear of cancer. (Id. at p. 1011.) But Potter contains no support for the specific argument Owens-Illinois is making here. Potter, of course, did not address the provisions of section 1714.45. Moreover, Potter neither states nor implies that the proper allocation of damages for smoking-related injury is to be achieved by assigning responsibility to tobacco companies. On the contrary, we indicated that the issue was the legal effect of any âevidence that plaintiffs, on their own, voluntarily ingested this toxic substance.â (Potter, supra, 6 Cal.4th at p. 1010, italics added.)
On the narrow issue before us, we therefore conclude that the Court of Appeal erred by reversing the judgment for Richards on grounds that Owens-Illinois should have been allowed to assign âfaultâ to absent tobacco companies in order to reduce its liability for Richardsâs ânon-economicâ damages under Proposition 51. Any and all other issues concerning the proper allocation of legal responsibility for the consequences of smoking are beyond the scope of our decision, and we express no opinion thereon.
Because the Court of Appeal incorrectly awarded Owens-Illinois a new trial to pursue its âtobacco defense,â we must reverse the Court of Appealâs judgment. In doing so, however, we must remand for consideration of a question previously undecided by the Court of Appeal, but rendered material by our own resolution of the âtobacco defenseâ issue.
As noted above, after it reversed the trial courtâs judgment for refusing to allow Owens-Illinoisâs âtobacco defense,â the Court of Appeal also concluded, for purposes of guidance in any retrial, that the Solano County Superior Courtâs burden-shifting instruction was âerroneous.â Richards has not challenged that ruling in this court. Because we have now concluded that
denial of the âtobacco defenseâ does not warrant a new trial, it becomes necessary to determine whether the additional error cited by the Court of Appeal is itself grounds for such relief. The Court of Appeal should therefore determine, in the first instance, whether the âerroneousâ burden-shifting instruction given in the trial of this matter caused prejudice warranting reversal of the trial court judgment in Richardsâs case. (See Cal. Const., art. VI, § 13; People v. Watson (1956) 46 Cal.2d 818, 836 [299 P.2d 243].)
We observe, however, that the propriety of the burden-shifting instruction given in this case is currently pending before us in Owens-Illinoisâs appeal of a companion judgment from the same trial. (Rutherford v. Owens-Illinois, Inc., review granted July 13, 1995 (S046944).) Should we decide that matter while this case remains pending before the Court of Appeal on remand, nothing we say here is intended to preclude the Court of Appeal from applying such intervening authority in reaching a proper disposition. (See, e.g., Waller v. Truck Ins. Exchange, Inc. (1995) 11 Cal.4th 1, 24-25 [44 Cal.Rptr.2d 370, 900 P.2d 619]; Salazar v. Eastin (1995) 9 Cal.4th 836, 859 [39 Cal.Rptr.2d 21, 890 P.2d 43]; DiGenova v. State Board of Education (1962) 57 Cal.2d 167, 179 [18 Cal.Rptr. 369, 367 P.2d 865].)
The judgment of the Court of Appeal is reversed, and the cause is remanded for further proceedings consistent with the views expressed in this opinion.
George, C. J., Mosk, J., Kennard, J., Werdegar, J., Chin, Jâ and Brown, J., concurred.
On February 19, 1997, the opinion was modified to read as printed above.
All further unlabeled statutory references are to the Civil Code.
Though plaintiffâs counsel failed to expressly identify section 1714.45 as the source of his objection, the nature of the objection was clear to the court and all counsel. Hence, we reject Owens-Illinoisâ contention that because of counselâs omission, plaintiff has waived, for purposes of appeal, all reliance on this statute.
$2,831.50 of the judgment was attributed to âeconomicâ damages, and $2,302.23 was attributed to ânon-economicâ damages. The former figure apparently represents the total amount of âeconomicâ damages as reduced by Richardsâs comparative negligence (i.e., 97.5 percent of $5,000, or $4,875) less pretrial payments, for which entire net amount Owens-Illinois remained jointly and severally liable even though it was found only 1 percent at fault. Under Proposition 51, the latter figure apparently constitutes a several judgment representing Owens-Illinoisâs 1 percent share of total ânon-economicâ damages ($275,000 x .01 - $2,750) less pretrial payments.
Proposition 51 went into effect on June 4, 1986, the day after its adoption by the voters. (Evangelatos v. Superior Court (1988) 44 Cal.3d 1188, 1193, fn. 2 [246 Cal.Rptr. 629, 753 P.2d 585] (Evangelatos).) In Evangelatos, we held that Proposition 51 is not retroactive, and that the former rule of full joint and several liability for all tort damages thus applies to all causes of action that âaccruedâ before the measureâs effective date. (Evangelatos, supra, at p. 1227.) Richards filed his suit in October 1988, after Proposition 51 went into effect. The complaint and evidence suggest that Richards had an abnormal X-ray in late 1987 or early 1988 and that he was diagnosed with asbestosis at that time. Richards had not previously noticed breathing difficulties beyond those he expected for a particular level of activity at his age. However, his medical witness indicated that the progression of lung disease noted in the 1987-1988 X-ray would produce unusual shortness of breath. The parties to this appeal present no issue whether Richardsâs cause of action accrued before Proposition 51 went into effect, and both appear to assume that Proposition 51 applies here. Accordingly, we, too, will proceed from that premise.
Amicus curiae briefs on behalf of Owens-Illinois have been filed by Fibreboard Corporation, the Center for Claims Resolution, and Sequoia Ventures, Inc. The City and County of San Francisco, and the Counties of Riverside, Santa Clara, and Shasta, have filed an amicus curiae brief taking no position on the Proposition 51 question, but urging us not to decide issues concerning the meaning of section 1714.45 which are beyond the scope of the matter before us. (See post, fn. 8.)
Section 1714.45 provides in full as follows:
â(a) In a product liability action, a manufacturer or seller shall not be liable if:
â(1) The product is inherently unsafe and the product is known to be unsafe by the ordinary consumer who consumes the product with the ordinary knowledge common to the community; and
â(2) The product is a common consumer product intended for personal consumption, such as sugar, castor oil, alcohol, tobacco, and butter, as identified in comment i to Section 402A of the Restatement (Second) of Torts.
â(b) For purposes of this section, the term âproduct liability actionâ means any action for injury or death caused by a product, except that the term does not include an action based on a manufacturing defect or breach of an express warranty.
â(c) This section is intended to be declarative of and does not alter or amend existing California law, including Cronin v. J.B.E. Olson Corp., (1972) 8 Cal.3d 121 [104 Cal.Rptr. 433, 501 P.2d 1153], and shall apply to all product liability actions pending on, or commenced after, January 1, 1988.â
As noted above (fn. 6, ante), subdivision (c) of section 1714.45 provides in pertinent part that â[t]his section is intended to be declarative of and does not alter or amend existing California law, including Cronin v. J.B.E. Olson Corp., (1972) 8 Cal.3d 121 [104 Cal.Rptr. 433, 501 P.2d 1153].â In Cronin, we rejected the Restatement view that one suing for injuries on a theory of strict product liability must prove the product was both âdefectiveâ and âunreasonably dangerous.â (Cronin v. J.B.E. Olson Corp., supra, 8 Cal.3d at pp. 127-135.) Thus subdivision (c) of section 1714.45, including its reference to Cronin, may have been intended simply to â[eliminate] doubt, if there was any, that the new statute left untouched the rule, reaffirmed in Cronin, that a plaintiff in a products liability case seeking recovery upon the theory of strict liability need not establish that the defect in the product that caused his injuries made the product unreasonably dangerous.â (American Tobacco Co. v. Superior Court (1989) 208 Cal.App.3d 480, 489 [255 Cal.Rptr. 280].)
In order to dispose of this appeal as indicated, it is not necessary to determine the exact substantive scope of the immunity described by section 1714.45, because Owens-Illinois has never litigated that issue. On the apparent assumption that tobacco companies enjoy ânearly completeâ immunity from direct liability for harm to smokers caused by the availability of cigarettes (see American Tobacco Co. v. Superior Court, supra, 208 Cal.App.3d 480, 487), Owens-Illinois did not cross-complain against those entities. Moreover, when asserting its right to mount a âtobacco company defenseâ under Proposition 51, Owens-Illinois argued only that, however the immunity might apply in a direct suit against tobacco suppliers, it is irrelevant when a third party defendant seeks to allocate âfaultâ to absent tobacco companies for purposes of reducing its own share of ânon-economicâ damages. Owens-Illinois did not challenge the holding of American Tobacco, and made no offer of proof suggesting that if section 1714.45 did apply in the Proposition 51 context, Owens-Illinois would nonetheless produce evidence coming within an exception to the conduct immunized by the statute. In oral argument before this court, counsel for Owens-Illinois effectively conceded that its âtobacco company defenseâ would simply have demonstrated the risks of smoking and did not seek to prove any conduct for which tobacco companies might be subject to liability as an exception to the immunity described in section 1714.45. Hence, on the narrow issue before us for review, we may conclude that the trial court committed no error by rejecting Owens-Illinoisâs proffered defense. In doing so, we need not and do not take any position on the exact parameters of the immunity provided by section 1714.45, or on the correctness of the American Tobacco decision in this regard.