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Business Associations Keyed to Coffee, 9th Ed.
Fletcher v. Atex, Inc.
Citation:
68 F.3d 1451 (1995)Facts
From 1981 until December 1992, Atex was a wholly-owned subsidiary of Kodak. The plaintiffs filed suit against both Atex and Kodak for repetitive stress injuries allegedly caused by their use of computer keyboards manufactured by Atex. The plaintiffs argued that Kodak should be liable under four theories: (1) that Atex was merely Kodak’s alter ego or instrumentality; (2) that Atex was Kodak’s agent in the manufacture and marketing of the keyboards; (3) that Kodak was the “apparent manufacturer” of the Atex keyboards; and (4) that Kodak acted in tortious concert with Atex. The plaintiffs pointed to evidence including Atex’s participation in Kodak’s cash management system, Kodak’s approval requirements for Atex’s major expenditures, overlap in directors, references to Atex as a Kodak “division” in promotional materials, and Kodak’s awareness of repetitive stress injury risks. Kodak maintained that it observed all corporate formalities with Atex, did not participate in the design or manufacture of the keyboards, and was not involved in decisions regarding warnings about repetitive stress injuries.
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