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Products Liability Keyed to Fischer, 6th Ed.
Green Plains Otter Tail, LLC v. Pro-Environmental, Inc.
Citation:
953 F.3d 541 (2020)Facts
Green Plains operated an ethanol production facility in Fergus Falls, Minnesota. The facility used a regenerative thermal oxidizer (RTO) manufactured by PEI to burn off pollutants produced during ethanol production. The RTO contained dampers controlled by a hydraulic pump unit (HPU) to regulate vapor flow. In an emergency, the RTO should close the input damper to keep unprocessed vapors out and open the release damper to vent vapors already inside. Both functions required hydraulic pressure. The HPU contained an accumulator that supplied hydraulic fluid for the RTO’s regular cycles and was designed to force fluid back into the system if the hydraulic pump failed, moving the dampers to safe positions. For this to work, the accumulator needed to be precharged with nitrogen.
In 2014, a coupling in the HPU failed, causing a loss of hydraulic pressure. When alarms sounded, Green Plains staff discovered the dampers had not moved to safe positions. Approximately an hour later, an explosion occurred, causing extensive damage to the facility. Post-explosion investigations revealed the accumulator had almost no nitrogen precharge. The HPU manual provided by PEI suggested checking the precharge one week after installation and monthly thereafter, but Green Plains had never checked or recharged the nitrogen during the six years between installation and the explosion. Green Plains sued PEI for negligence and products liability, alleging defective design and failure to adequately warn.
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