John Mcshain, Inc. v. Cessna Aircraft Company

563 F.2d 632 (3rd Cir. 1977)

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Nature of the Case

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Facts

P purchased an aircraft manufactured by D for $282,136. In December 1969, with several hundred landings and 147 hours of flight, the main landing gear of the plane collapsed as the plane alighted on the runway in Baltimore. P had the aircraft repaired by Butler Aviation-Friendship, Inc. at a cost of $11,734. D representatives visited the Butler repair facilities. The plane was then returned to P. After 5 hours of further flight, the plane's landing gear once more gave way upon touchdown. The cost of repairs this time totaled $24,681. P refused to fly the craft again. P filed an action seeking rescission of the original sales contract and the return of the purchase price. P then filed the present action against D in district court, alleging defective design in the landing gear and P's failure to correct that design despite knowledge of the defects. Before the action was filed, P signed an agreement releasing Butler from any liability for the accident in exchange for $10 and the right to engage as a consultant Ralph Harmon, who was at the time an employee of Butler's sister corporation. Harmon ultimately testified as an expert witness in support of the design-defect contention. The judge allowed the release to be entered into evidence and read to the jury for the purpose of impeaching Harmon's testimony. D accepted liability for the first collapse on the ground that the existence of an understrength bolt had been discovered in the landing gear, and that that bolt was the cause of the original breakdown. P got a verdict of $11,734 but the jury found that there was no design defect in the landing gear. McShain moved for a new trial. That motion was denied and P appealed in part on the admission of the Butler settlement and agreement.