FLORIDA POWER LIGHT v. WESTINGHOUSE ELEC

Citation Codes

Equivalent Citations

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Docket Number

No. 84-5946.

Attorney(S)

Alvin B. Davis, Nancy Swerdlow, Steel Hector Davis, Miami, Fla., for plaintiff-appellant. R. Benjamine Reid, Kimbrell, Hamann, Jennings, Womack, Carlson Kniskern, P.A., Miami, Fla., for defendant-appellee.

Judges

Peter Thorp Fay
John Cooper Godbold

Acts

Judiciary And Judicial Procedure — Courts Of Appeals — Jurisdiction And Venue — Interlocutory Decisions

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Smart Summary

Factual and Procedural Background

Florida Power Light (FPL) sued Westinghouse Electric Corp. asserting claims for breach of warranty and negligence. The claims arose from Westinghouse's undertaking to design, manufacture, and furnish nuclear generating plant equipment for FPL’s Turkey Point plant in Dade County, Florida. The district court granted partial summary judgment in favor of Westinghouse on the negligence claim but denied partial summary judgment on the breach of warranty claim. FPL appealed the summary judgment on the negligence claim under 28 U.S.C. § 1292(b).

Legal Issues Presented

Whether Florida law permits a buyer under a contract for goods to recover economic losses in tort without a claim for personal injury or property damage to property other than the allegedly defective goods.
If Florida law precludes recovery for economic loss in tort without a claim for personal injury or property damage to other property, whether this rule should be applied retroactively in this case.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent	Rule or Principle Cited For	Application by the Court
Florida Power Light Co. v. Westinghouse Electric Corp., 785 F.2d 952 (11th Cir. 1986)	Certification of legal questions to the Supreme Court of Florida regarding economic loss recovery in tort.	The Eleventh Circuit certified two key questions of Florida law to the state's highest court to clarify the applicable legal standards.
Florida Power Light Co. v. Westinghouse Electric Corp., 510 So.2d 899 (Fla. 1987)	Florida Supreme Court’s ruling on economic loss doctrine and retroactivity of the rule.	The Florida Supreme Court answered the certified questions, holding that economic losses cannot be recovered in tort absent personal injury or other property damage, and that this rule applies retroactively. The Eleventh Circuit adopted this controlling precedent.

Court's Reasoning and Analysis

The Eleventh Circuit considered the interlocutory appeal under 28 U.S.C. § 1292(b) regarding the negligence claim. Because the legal issues involved the interpretation of Florida law on economic loss recovery in tort, the court certified two questions to the Florida Supreme Court. The Florida Supreme Court ruled that Florida law does not permit recovery of economic losses in tort absent personal injury or damage to other property, and that this rule applies retroactively. The Eleventh Circuit, bound by the highest state court’s authoritative interpretation in this diversity case, affirmed the partial summary judgment in favor of Westinghouse on the negligence claim.

Holding and Implications

The Eleventh Circuit affirmed the partial summary judgment in favor of Westinghouse on the negligence claim.

The decision directly affects the parties by resolving that FPL cannot recover economic losses in tort without personal injury or property damage to other property under Florida law. No new precedent was established by the Eleventh Circuit, as it deferred to the Florida Supreme Court’s controlling ruling.

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FLORIDA POWER LIGHT CO., A FLORIDA CORP., PLAINTIFF-APPELLANT, v. WESTINGHOUSE ELECTRIC CORP., A PENNSYLVANIA CORP. QUALIFIED TO DO BUSINESS IN FLORIDA, DEFENDANT-APPELLEE.

PER CURIAM:

Florida Power Light sued Westinghouse asserting a breach of warranty claim and a negligence claim, arising out of an undertaking by Westinghouse to design, manufacture and furnish nuclear generating plant equipment for FPL's Turkey Point plant in Dade County, Florida. The court granted a partial summary judgment in favor of Westinghouse on the negligence claim and denied partial summary judgment on the breach of warranty claim.

The case is before us on an interlocutory appeal by FPL under 28 U.S.C. § 1292(b) from the summary judgment for Westinghouse on the negligence claim.

This court certified to the Supreme Court of Florida two issues:

(1) Whether Florida law permits a buyer under a contract for goods to recover economic losses in tort without a claim for personal injury or property damage to property other than the allegedly defective goods.

(2) If Florida law precludes recovery for economic loss in tort without a claim for personal injury or property damage to other property, whether this rule should be applied retroactively in this case.

Florida Power Light Co. v. Westinghouse Electric Corp., 785 F.2d 952 (11th Cir. 1986).

The Supreme Court of Florida has answered the first question "no" and the second question "yes." Florida Power Light Co. v. Westinghouse Electric Corp., 510 So.2d 899 (Fla. 1987). This decision, appropriately made by the highest court of the state in this diversity case, controls our decision.

The partial summary judgment in favor of Westinghouse on the negligence claim is AFFIRMED.