Air & Liquid Systems Corp. v. DeVries

Background

Two Navy veterans (Kenneth McAfee and John DeVries) and their families sued makers of ship equipment—pumps, blowers, and turbines—after asbestos that the Navy added to that equipment exposed them and later caused cancer and death. Several companies (including Air and Liquid Systems, CBS, Foster Wheeler, Ingersoll Rand, and General Electric) often delivered equipment in “bare-metal” form without asbestos; the Navy later added asbestos insulation or parts. The families sued the equipment makers for failing to warn about asbestos risks. The District Court granted summary judgment to the manufacturers, the Third Circuit vacated and remanded, and the Supreme Court agreed to decide the proper maritime rule.

Reasoning

The Court explained that federal courts fashion maritime common law and surveyed three approaches. It rejected a broad foreseeability test and also rejected a categorical bare-metal defense. Instead the Court adopted a middle rule: a product maker must warn when (i) its product requires incorporation of a part, (ii) the maker knows or has reason to know the integrated product is likely to be dangerous for its intended uses, and (iii) the maker has no reason to believe users will realize that danger. The Court affirmed the Third Circuit’s judgment and instructed the District Court to reevaluate prior summary-judgment rulings under this rule.

Real world impact

The ruling lets families of sailors pursue warning claims against equipment makers in maritime cases when required, later-added parts make the final product dangerous. It increases warning obligations for bare-metal equipment sellers in the maritime context. The Court emphasized the rule applies in maritime torts and did not resolve whether the same rule should govern non-maritime cases.

Dissents or concurrances

Justice Gorsuch (joined by Justices Thomas and Alito) dissented, arguing the opinion departs from traditional common-law limits on warning duties, creates uncertainty about “required” parts and “integrated products,” and risks unfair retrospective liability.