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State v. United States Steel Corp.6/24/1996
he subject letter would be most appropriate, assuming, of course, that he feels this effort on our part is warranted.
USX's favorable opinions regarding the use of Cor-Ten in the stadium project were thereafter echoed in another letter to Veland dated October 11, 1968, from D.J. Carney, USX's vice-president in charge of applied research, which provided:
Recently, Frank Felix of our Los Angeles Construction Marketing Office asked us to comment on the suitability of using unpainted USS COR-TEN steel for the proposed Municipal Stadium in Honolulu, Hawaii. It is our understanding the stadium site is about 1,000 feet from Pearl Harbor in an atmospheric environment containing no industrial pollutants. In addition, we have been advised that the minimum temperature is about 68 F, and the average rainfall is 40 inches per year.
One of our principal concerns ordinarily would be exposure to salt air; however, it is our understanding there is very little wave action in the harbor and the prevailing winds blow toward the water. Moreover, rainfall would tend to wash off any salt deposits on the steel that might result from occasional severe storms. In view of these conditions, airborne salts would not be a problem. We would, however, appreciate the opportunity of reviewing the drawings of the stadium so that possible staining problems with other materials or spectators might be identified and avoided.
As you might imagine, we in U.S. Steel would very much like to see COR-TEN steel used for this outstanding construction project. If you believe a personal visit to the project site by a qualified U.S. Steel representative would be helpful in confirming the suitability of using exposed COR-TEN for this application, we will be happy to make the necessary arrangements. If you decide such a visit might be worthwhile, possibly a COR-TEN presentation to Mr. Tsutomu Izumi, building supervisor for the City and County of Honolulu, might also be appropriate.
We are hopeful this Discussion will be helpful in establishing that the use of unpainted COR-TEN steel is appropriate for the Municipal Stadium in Honolulu. Please do not hesitate to contact us if there is anything additional you might require from us.
The City subsequently approved CLA's design and proposal to use weathering steel in the structure of the stadium.
Responsibility for the stadium project was later transferred to the state, and the Aloha Stadium was eventually constructed under the state's auspices. Throughout its involvement with the project, the state continued to use CLA as its architect.
Thereafter, the stadium began to rust. Rather than merely forming a "protective" patina, the corrosion worsened over time to a point where it began to impair the structural integrity of the stadium. The state then filed the present action against numerous defendants, including USX, raising various theories of recovery, including various forms of negligence, negligent misrepresentation, unfair or deceptive acts or practices in the conduct of any commerce or trade, breach of express and implied warranties, vicarious liability, enterprise liability, and common-law fraud. The state eventually settled with all parties except USX, and the case proceeded to trial in July 1993.
Prior to trial, the circuit court granted USX's motion to dismiss the state's tort claims, holding:
The Court rules that where a seller or a manufacturer of a product negligently misrepresents the qualities, performance characteristics, or capabilities of the product, and the product fails to perform according to those representations, resulting in economic damages only, the seller may not
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