`
`
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`IN THE COURT OF COMMON PLEAS OF ALLEGHENY COUNTY, PENNSYLVANIA
`
`
`
`DAVID VILLA, as Administrator of the Estate
`of RONALD E. VILLA, Deceased,
`
` Plaintiff,
`
` vs.
`
`CROWN CORK & SEAL COMPANY, INC.,
`et al.,
`
` Defendants.
`
`
`CIVIL DIVISION – ASBESTOS
`
`No. GD20-008681
`
`
`Issue No.
`
`
`PRODUCT IDENTIFICATION MOTION
`FOR SUMMARY JUDGMENT
`
`
`Code: 012
`
`Filed on behalf of Crown Cork & Seal
`Company, one of the defendants
`
`Counsel of Record for this Party:
`
`Jerry R. Hogenmiller, Esquire
`PA I.D. #34260
`
`Barry C. Schmid, Esquire
`PA I.D. #66106
`
`Thomson, Rhodes & Cowie, P.C.
`Firm #720
`Two Rodi Plaza
`665 Rodi Road, Suite 301
`Pittsburgh, PA 15235
`
`(412) 232-3400
`
`
`
`
`
`
`
`PRODUCT IDENTIFICATION MOTION FOR SUMMARY JUDGMENT
`
`
`
`
`AND NOW, comes defendant, Crown Cork & Seal Company, Inc. (hereinafter “Crown
`
`Cork & Seal”), by its attorneys, Thomson, Rhodes & Cowie, P.C., and submits the following
`
`Product Identification Motion for Summary Judgment.
`
`
`
`1.
`
`On August 13, 2020, David Villa, as Administrator of the Estate of Ronald E.
`
`Villa, Deceased (hereinafter “plaintiff”) filed a complaint, in which he alleged that Robert E.
`
`Villa had been exposed to products manufactured by Mundet Cork.
`
`
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`2.
`
`Plaintiff alleged that Crown Cork & Seal as successor-in-interest to Mundet Cork
`
`is liable for injuries caused by exposure to the asbestos products of Mundet Cork.
`
`
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`3.
`
`In 1963, Crown Cork & Seal was the nation’s largest producer and seller of metal
`
`bottle caps lined with cork, known as crowns. On November 7, 1963, Crown Cork & Seal
`
`entered into an agreement to purchase the majority of the stock of Mundet Cork, after the
`
`majority shareholder, Joseph J. Mundet, died and his estate offered his shares for sale. At that
`
`time, Mundet Cork also manufactured crowns and was thus a competitor of Crown Cork & Seal.
`
`On November 13, 1963, Crown Cork & Seal purchased the majority of the outstanding stock.
`
`4.
`
`At the time of the stock acquisition, Mundet Cork’s business included the
`
`following relevant divisions: (1) the closure (i.e. bottle cap) division, which held the assets in
`
`which Crown Cork & Seal was interested; and (2) the insulation division, which, among other
`
`things, manufactured, sold, and contracted to install insulation products.
`
`5.
`
` In the summer of 1963, prior to Crown Cork & Seal’s acquisition of Mundet
`
`Cork’s stock, Mundet Cork ceased manufacturing insulation products.
`
`6.
`
` On February 8, 1964, three months after Crown Cork & Seal’s purchase of
`
`Mundet Cork’s stock, Mundet Cork sold its insulation division to Baldwin-Ehret-Hill, Inc.
`
`(hereinafter “B-E-H”), a manufacturer and seller of asbestos-containing products.
`
`
`
`7.
`
`Pursuant to a bill of sale, B-E-H purchased all of Mundet Cork’s insulation
`
`product inventory, insulation contracts, insulation materials, accounts receivables, insulation
`
`manufacturing machinery and equipment, the insulation branch offices, Mundet Cork’s rights,
`
`titles, and interests in all insulation contracts, the right to Mundet Cork’s trade names and
`
`trademarks, and a negative covenant not to compete with B-E-H in the production of magnesia of
`
`calcium silicate products.
`
`
`
`8.
`
`Despite the fact that Crown Cork & Seal itself never has been in the business of
`
`manufacturing, selling, distributing, supplying, or installing any asbestos containing products,
`
`Crown Cork & Seal has found itself embroiled in asbestos litigation across the country solely as
`
`a result of its purchase of the majority of the Mundet Cork stock. See, Affidavit of Richard
`
`Krzyzanowski, Exhibit A hereto.
`
`
`
`9.
`
`Pa.R.C.P. 1035.2 provides that any party may move for summary judgment in
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`whole or in part as a matter of law:
`
`(1)
`
`
`(2)
`
`whenever there is no genuine issue of any material fact as
`to a necessary element of the cause of action or defense
`which could be established by additional discovery or
`expert report, or
`
`if, after the completion of discovery relevant to the motion,
`including the production of expert reports, an adverse party
`who will bear the burden of proof at trial has failed to
`produce evidence of facts essential to the cause of action or
`defense which in a jury trial would require the issues to be
`submitted to a jury.
`
`
`Pa.R.C.P. 1035.2.
`
`
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`10.
`
`A court may grant a motion for summary judgment only where the right is clear
`
`and free from doubt. Ducjai v. Dennis, 540 Pa. 103, 113, 656 A.2d 102, 107 (1995). “The
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`record must be viewed in the light most favorable to the nonmoving party, and all doubts as to
`
`
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`the existence of a genuine issue of material fact must be resolved against the moving party.”
`
`Marks v. Tasman, 527 Pa. 132, 135, 589 A.2d 205, 206 (1991).
`
`
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`11.
`
`In opposing a motion for summary judgment, the adverse party “may not rest
`
`upon the mere allegations or denials of the pleadings.” Pa.R.C.P. 1035.3(a). Instead, the
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`nonmoving party “must adduce sufficient evidence on [all] issue[s] essential to his case on which
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`he bears the burden of proof such that a jury could return a verdict in his favor.
`
`
`
`12.
`
` Failure to adduce this evidence establishes that there is no genuine issue of
`
`material fact and the moving party is entitled to judgment as a matter of law.” Ertel v. Patriot-
`
`News Co., 544 Pa. 93, 101-102, 674 A.2d 1038, 1042 (1996), cert. denied, 519 U.S. 1008, 117
`
`S.Ct. 512, 136 L.Ed.2d 401 (1996).
`
`13. With respect to asbestos related injuries, to establish liability and defeat a motion
`
`for summary judgment, the plaintiff must produce evidence establishing that he inhaled asbestos
`
`fibers from a particular defendant’s asbestos containing product. Eckerod v. GAF, 544 A.2d 50,
`
`53 (Pa.Super. 1988); Burger v. Owens Illinois¸ 966 A.2d 611, 615-616 (Pa.Super 2009).
`
`14.
`
`Plaintiff must do more than establish that an asbestos product was present in his
`
`workplace and must produce sufficient evidence of frequency, regularity, and proximity of his
`
`exposure to a particular defendant’s product, such that a jury would be entitled to make the
`
`necessary inference of a causal connection between the defendant’s product and the asserted
`
`injury. Krauss v. Trane U.S., Inc., 2014 Pa.Super. 241, 104 A.3d 556, 565 (Pa.Super. 2014),
`
`citing Gregg v. V-J Auto Parts, Company, 596 Pa. 274, 943 A.2d 216, 226, 227 (Pa. 2007).
`
`15.
`
`Plaintiff has not produced any evidence that Ronald E. Villa experienced regular,
`
`frequent, or proximate exposure to any Mundet Cork products.
`
`16.
`
`However, if even plaintiff had, he cannot recover by operation of 42 Pa. C.S.
`
`§8368.1 et seq. and 15 Pa. C.S. §1929.1 et seq.
`
`
`
`17.
`
`To prevent disproportionate successor liability from driving otherwise innocent
`
`companies into bankruptcy, the Pennsylvania legislature adopted the asbestos successor liability
`
`statute (42 Pa. C.S. §8368.1, et seq. and 15 Pa. C.S. §1929.1, et seq.). This statute limits the
`
`cumulative successor asbestos-related liability of a successor business entity to the fair market
`
`value of the total gross assets of the transferor as of the time of the merger or consolidation with
`
`the successor business entity, adjusted for inflation.
`
`18.
`
` The fair market value of the Mundet Cork stock, adjusted for inflation, is
`
`between $66,435,000 and $68,609,000. As of 2010, Crown Cork & Seal already had paid over
`
`$600 million in asbestos-related liabilities, and this figure only has gotten higher. See Affidavit
`
`of Alfred Dermody, attached hereto as Exhibit “B,” and Report of Edward Waddington, attached
`
`hereto as Exhibit “C.”
`
`19.
`
`Accordingly, Crown Cork & Seal cannot liable to the plaintiff.
`
`WHEREFORE, Crown Cork & Seal Company, Inc. respectfully requests that this
`
`Honorable Court grant summary judgment in its favor and against plaintiff.
`
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`Respectfully submitted,
`
`THOMSON, RHODES & COWIE, P.C.
`
`By: Barry C. Schmid___________________
` Jerry R. Hogenmiller, Esquire
` Barry C. Schmid, Esquire
` Attorneys for Crown Cork & Seal
` Company, one of the defendants
`
`
`W:\RER\11207 Crown Cork (A)-WPa\Villa, Ronald E. 11207-1282\Pleadings\Product ID Motion for Summary Judgment Villa.docx
`
`
`
`AFFIDAVIT OF RICHARD L, KRZYZANOWSKI1
`
`SS.
`
`))
`
`)
`
`COMMONWEALTH OF PENNSYLVANIA
`
`COUNTY OF PHILADELPHIA
`
`I, RICHARD L. KRZYZANOWSKI,being an adult and of sound toind, and upon
`personal knowledge, depose and say:
`
`i.
`am the former Secretary and General Counsel for defendant Crown Cork & Seal
`Company,Inc. (“Crown”), a position from which I retired in January of2000 after over 30 years
`of service at Crown, and am authorized by Crown to make this Affidavit in support of Crown’s
`Motion for Summary Judgment. I make this Affidavit based upon personal knowledge,inclusive
`of knowledge obtained in the ordinary course and scope of my duties as former Secretary and
`General Counsel for Crown, and upon the information contained in the true and correct copies of
`the documents attached to this Affidavit as Exhibits 1 -- 3.
`
`Crown is a manufacturer and distributor of a variety of food and beverage
`2.
`packaging products,
`Crown has never engaged in the business of manufacturing,
`distributing, advertising, or selling any asbestos-containing (or other) insulation product,
`since its incorporation.
`
`In 1963, Crown was a New York corporation and the nation’s largest producer
`3,
`and seller of metal bottle caps lined with cork, also known as crowns.
`In 1963, Mundet Cork
`Corporation (“Mundet Cork”), also a manufacturer ofbottle metal caps and, thus, a competitor of
`Crown in that business, was the sixth largest producer and seller of metal bottle caps. On
`November 7, 1963, Crown entered into an agreement to purchase the majority of the stock of
`Mundet Cork. The majority shareholder of Mundet Cork, Joseph J. Mundet, had died and his
`
`
`
`
`
`estate had offered his shares for sale. Crown was primarily interested in purchasing the assets of
`
`Mundet cork associated with its competing bottle cap operations, and, in particular, Mundet
`Cork’s North Bergen, N.J. plant location, Crown was interested in this location because it was
`conveniently close to New York and therefore useful in reducing Crown’s costs for transporting
`cans to Crown’s New York customers.
`
`Consequently, on November 13, 1963, Crown purchased the majority of the
`4,
`outstanding stock in Mundet Cork from the Mundet estate. No Crown stock wag exchanged for
`Mundet Cork’s stock. Crown paid the total sum of approximately Seven Million Dollars
`
`($7,000,000.00) for the Mundet Cork stock.
`
`Subsequent to Crown’s purchase ofsome ofMundet Cork stock on November 13,
`5,
`1963, Mundet Cork remained a separate New York corporation until 1966.
`
`6.
`
`On February 10, 1966, Mundet Cork was merged with Crown in the State ofNew
`
`York, A copy ofthe merger documents is attached hereto as Exhibit1,
`
`7.
`
`On March 30, 1989, Crown was reincorporated in the Commonwealth of
`
`Pennsyivania and consolidated through merger on May 1, 1989. A copy of the Articles of
`
`Incorporation is attached as Exhibit 2,
`
`8.
`
`At the time of the stock acquisition, Mundet Cork’s business included the
`
`following relevant divisions:
`(1) the closure (i.e., bottle cap) division, which beld the assets in
`which Crown was interested; and (2) the insulation division, which, among other things,
`manufactured, sold, and contracted to install insulation products, The closure division at no
`
`time had anything to do with asbestos,
`
`In the surnmer of 1963, prior to Crown’s acquisition of Mundet Cork's stock,
`9.
`Mundet Cork ceased manufacturing insulation products. Immediately after the acquisition ofthe
`
`
`
`Mundet Cork stock, Mundet Cork, at the request of Crown its majority shareholder, began
`looking for a buyer for the insulation division.
`
`On Febmary 8, 1964, three months after Crown’s purchase of Mundet Cork’s
`10.
`stock, Mundet Cork sold its insulation division to Baldwin-Rhret-Hill (“B-E-H”), a manufacturer
`and seller ofasbestos-containing insulation products. Pursuant to a Bill ofSale and Assignment,
`B-E-H purchased all of Mundet Cork’s insulation product inventory; all of Mundet Cork’s
`insulation contracts; all of Mundet Cork’s insulation raw materials; Mundet Cork’s accounts
`receivables relating to its
`insulation business,
`including receivables from both product
`manufacturing and product installation; Mundet Cork’s insulation manufacturing machinery,
`tools, and equipment; the insulation division's branch offices; Mundet Cork’s rights, titles, and
`interest in all insulation contracts; the right to Mundet Cork’s trade names and trademarks for use
`in the manufacture of insulation products; and a negative covenant ftom Mundet Cork not to
`compete with B-E-H in the production of magnesia or calcium silicate products. B-E-H also
`expressly assumed all liabilities and obligations ofMundet Cork arising from and after February
`8, 1964, under the relevant Mundet Cork leases, contracts, and performance bonds, A copy of
`the Bill of Sale and Assignment, dated February 8, 1964, is attached as Exhibit3.
`
`No former employees of Mundet Cork’s insulation division came to work for
`li.
`Crown, and Crown retained no former officers of Mundet Cork. All documents and records
`related to the transferred assets were acquired by B-E-H, See id
`
`During 1964, Mundet Cork’s crown manufacturing equipment was teplaced with
`12.
`more modern and updated equipment. Aluminum can manufacturing equipment was also added
`to the North Bergen plant,
`
`
`
`It was Crown’s intention and understanding that in entering into the Bill of Sale
`13,
`and Assignment with B-B-H on February 8, 1964, Mundet Cork had sold the entire business and
`product line ofthe Insulation Division to B-E-H, Seeid.
`
`Although referred to as a division of Crown for accounting purposes, Mundet
`14,
`Cork remained a separate corporation until February 10, 1966 when merged with Crown.
`
`Crown’s intention in “merging” the remaining Mundet Cork assets into Crown in
`13.
`1966 was to transfer and consolidate Mundet Cork’s residual bottle Cap operation assets into
`Crown. By the time ofthat “merger”, Mundet Cork had long since divested itselfofany vestiges
`ofits previous insulation operations,
`
`As a result of a settlement achieved involving disputed insurance coverage
`16.
`available under policies issued to the former Mundet Cotk applicable to asbestos-related
`Habilities, which settlement Crown entered into several years prior to 2005, Crown received
`Three Million Seven Hundred Thousand Dollars ($3,700,000.00).
`
`FURTHER AFFIANT SAYETH NAUGHT,
`
`
`
`SWORN TO BEFORE MBE and subscribed in my presence this
`February 2011.
`
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