Justia Products Liability Opinion Summaries

After Plaintiff-appellant David Salazar bought Walmart, Inc.’s “Great Value White Baking Chips” incorrectly thinking they contained white chocolate, he filed this class action against Walmart for false advertising under various consumer protection statutes. The trial court sustained Walmart’s demurrers without leave to amend, finding as a matter of law that no reasonable consumer would believe Walmart’s White Baking Chips contain white chocolate. The thrust of Salazar's claims was that he was reasonably misled to believe the White Baking Chips had real white chocolate because of the product’s label and its placement near products with real chocolate. Salazar also alleged that the results of a survey he conducted show that 90 percent of consumers were deceived by the White Baking Chips’ advertising and incorrectly believed they contained white chocolate. “California courts . . . have recognized that whether a business practice is deceptive will usually be a question of fact not appropriate for decision on demurrer. ... These are matters of fact, subject to proof that can be tested at trial, even if as judges we might be tempted to debate and speculate further about them.” After careful consideration, the Court of Appeal determined that a reasonable consumer could reasonably believe the morsels had white chocolate. As a result, the Court found Salazar plausibly alleged that “‘a significant portion of the general consuming public or of targeted consumers, acting reasonably in the circumstances, could be misled’” by the chips' advertising. Judgment was reversed and the matter remanded for further proceedings. View "Salazar v. Walmart, Inc." on Justia Law

After Plaintiff-appellant David Salazar bought Target Corporation’s White Baking Morsels incorrectly thinking they contained white chocolate, he filed this class action against Target for false advertising under various consumer protection statutes. Salazar claimed he was reasonably mislead to believe the White Baking Morsels had real white chocolate because of the product’s label, its price tag, and its placement near products with real chocolate. To support his position, Salazar alleged that the results of a survey he conducted showed that 88 percent of consumers were deceived by the White Baking Morsels’ advertising and incorrectly believe they contained white chocolate. He also alleged that Target falsely advertised on its website that the “‘chocolate type’” of White Baking Morsels was “‘white chocolate,’” and placed the product in the “‘Baking Chocolate & Cocoa’” category. Target demurred to all three claims on the ground that no reasonable consumer would believe the White Baking Morsels contained real white chocolate. Target also argued that Salazar lacked standing to assert claims based on Target’s website because he did not view the website and did not rely on its representations. The court sustained Target’s demurrer without leave to amend and entered judgment for Target. “California courts . . . have recognized that whether a business practice is deceptive will usually be a question of fact not appropriate for decision on demurrer. ... These are matters of fact, subject to proof that can be tested at trial, even if as judges we might be tempted to debate and speculate further about them.” After careful consideration, the Court of Appeal determined that a reasonable consumer could reasonably believe the morsels had white chocolate. As a result, the Court found Salazar plausibly alleged that “‘a significant portion of the general consuming public or of targeted consumers, acting reasonably in the circumstances, could be misled’” by the White Baking Morsels’ advertising. Judgment was reversed and the matter remanded for further proceedings. View "Salazar v. Target Corp." on Justia Law

The issue this appeal presented for the New Jersey Supreme Court’s review centered on an exclusionary clause in a commercial general liability insurance policy issued by Admiral Insurance Company (Admiral) to Richfield Window Coverings, LLC (Richfield). Richfield sold window coverage products, including blinds, to national retailers like Home Depot and provided retailers with machines to cut the blinds to meet the specifications of the retailers’ customers. Colleen Lorito, an employee of a Home Depot located in Nassau County, was injured while operating the blind cutting machine. She and her husband filed a civil action against Richfield, asserting claims for product liability, breach of warranty, and loss of spousal services. Admiral denied any obligation to defend or indemnify, asserting the claims were not covered under the policy based on the Designated New York Counties Exclusion of the insurance policy. Richfield filed a declaratory judgment action seeking to compel Admiral to defend it in the Lorito case and, if necessary, indemnify it against any monetary damages awarded to the plaintiffs. The Law Division granted summary judgment in favor of Admiral. The Appellate Division reversed, finding that “Richfield’s limited activities and operations have no causal relationship to the causes of action or allegations.” The Supreme Court found that the policy’s broad and unambiguous language made clear that a causal relationship was not required in order for the exclusionary clause to apply; rather, any claim “in any way connected with” the insured’s operations or activities in a county identified in the exclusionary clause was not covered under the policy. Richfield’s operations in an excluded county were alleged to be connected with the injuries for which recovery was sought, so the exclusion applied. Admiral had no duty to defend a claim that it is not contractually obligated to indemnify. View "Norman International, Inc. v. Admiral Insurance Company " on Justia Law

An electronic gaming device designed and supplied by Planet Bingo, LLC caused a fire in the United Kingdom. Several third parties made demands that Planet Bingo pay their damages resulting from the fire. However, Planet Bingo’s liability insurer, the Burlington Insurance Company (Burlington), denied coverage. Planet Bingo filed this action for breach of contract and bad faith against Burlington. In a previous appeal, the Court of Appeal held that Burlington’s policy did afford coverage, though only if one of the third-party claimants filed suit against Planet Bingo in the United States or Canada. Such a suit was then filed. Burlington accepted the defense and managed to settle the suit for its policy limits. In this action, the trial court granted summary judgment for Burlington, ruling that Burlington had provided all of the benefits due under the policy. Planet Bingo appealed, contending that Burlington conducted an inadequate investigation, and that Burlington wrongfully failed to settle the third-party claims, instead, denying coverage in the hope that the claimants would sue Planet Bingo in the United Kingdom, which would have let Burlington off the coverage hook. Planet Bingo claimed (and Burlington did not dispute) that it lost profits because the fire claims remained pending and unsettled. The Court of Appeal held Planet Bingo made out a prima facie case that Burlington was liable for failure to settle. Even though none of the claimants made a formal offer to settle within the policy limits, one subrogee sent a subrogation demand letter; according to Planet Bingo’s expert witness, in light of the standards of the insurance industry, this represented an opportunity to settle within the policy limits. The Court therefore did not address Planet Bingo’s claim that Burlington conducted an inadequate investigation. The Court also did not decide whether lost profits were recoverable as damages, because this issue was not raised below. View "Planet Bingo LLC v. The Burlington Ins. Co." on Justia Law

In 2005-2006, GM changed the dashboard used for GMT900 model cars from a multi-piece design to a single-piece design, which made the dashboard prone to cracking in two places. Plaintiffs, from 25 states, alleged that GMT900 vehicles produced in 2007-2014 contained a faulty, dangerous dashboard and that GM knew of the defective dashboards before GTM900 vehicles hit the market. The complaint contained no allegation that any of the plaintiffs have been hurt by the allegedly defective dashboards. The complaint, filed on behalf of a nationwide class, alleged fraudulent concealment, unjust enrichment, and violations of state consumer protection statutes and the Magnusson-Moss Warranty Act.The Sixth Circuit affirmed the dismissal of the case. At worst, Plaintiffs suffered only cosmetic damage and a potential reduced resale value from owning cars with cracked dashboards. Although the plaintiffs claimed that routine testing, customer complaints, and increased warranty claims alerted GM to the defective dashboards and accompanying danger, that is not enough to survive a motion to dismiss without specifics about how and when GM learned about the defect and its hazards, and concealed the allegedly dangerous defect from consumers. Even accepting that GM produced defective vehicles, under the common legal principles of the several states, the plaintiffs must show that GM had sufficient knowledge of the harmful defect to render its sales fraudulent. View "Smith v. General Motors LLC" on Justia Law

Francisca Gomez died as the result of a horrific industrial accident while she was cleaning a seed sorting machine as part of her employment with the Crookham Company (“Crookham”). Her family (the Gomezes) received worker’s compensation benefits and also brought a wrongful death action. The Gomezes appealed the district court's decision to grant Crookham’s motion for summary judgment on all claims relating to Mrs. Gomez’s death. The district court held that Mrs. Gomez was working within the scope of her employment at the time of the accident, that all of the Gomezes’ claims were barred by the exclusive remedy rule of Idaho worker’s compensation law, that the exception to the exclusive remedy rule provided by Idaho Code section 72-209(3) did not apply, and that the Gomezes’ product liability claims failed as a matter of law because Crookham was not a “manufacturer.” In affirming in part and reversing in part, the Idaho Supreme Court determined the trial court erred when it failed to consider whether Crookham committed an act of unprovoked physical aggression upon Mrs. Gomez by consciously disregarding knowledge that an injury would result. As such, the matter was remanded to the district court for further proceedings. View "Gomez v. Crookham" on Justia Law

In 2012, Timothy Hinton was deer hunting when he fell from his tree stand. He was using a fall-arrest system (FAS), but the tree strap snapped, and Timothy plunged eighteen feet, eventually dying from his injuries. In 2013, Timothy’s parents, Marsha and Thomas Hinton, filed a wrongful-death suit based on Mississippi products-liability law. The defendant manufacturer, C&S Global Imports, Inc., defaulted and was not a source of recovery. So the litigation turned its focus to the manufacturer’s insurer, Pekin Insurance Company. After the Mississippi Supreme Court ruled Mississippi had personal jurisdiction over the Illinois-based insurer, Pekin successfully moved for summary judgment based on the clear tree-stand exclusion in C&S Global’s policy. Retailer Sportsman’s Guide, which sold Timothy the tree stand and FAS in 2009, also moved for and was granted summary judgment, giving rise to this appeal. As grounds for its decision, the trial court relied on the innocent-seller provision in the Mississippi Products Liability Act (MPLA), and found no evidence of active negligence by Sportsman's Guide. The Hintons argued in response: (1) Sportsman’s Guide waived its innocent-seller immunity affirmative defense; (2) a dispute of material fact existed over whether Sportsman's Guide was an innocent seller; or (3) alternatively, Mississippi’s innocent-seller provision should not control: instead the trial court should have followed Minnesota’s approach - the state where Sportsman’s Guide is located (under Minnesota’s law, innocent sellers may be liable when manufacturers are judgment proof, like C&S Global was here). Finding no reversible error in the trial court's judgment, the Mississippi Supreme Court affirmed. View "Hinton v. Sportsman's Guide, Inc." on Justia Law

In 2004, Hernandez, age 11, was a passenger in a 1992 Oldsmobile Cutlass that was involved in a head-on collision; she was seriously injured. Hernandez alleged that the Cutlass was not designed to be crashworthy and did not provide adequate protection to children riding in the back seat when the vehicle was involved in a frontal collision. Hernandez did not attempt to hold the manufacturer liable but sued Enterprise. Hernandez argued that a rental car company, NCRS, was strictly liable because NCRS placed the Oldsmobile “into the stream of commerce.” NCRS has sold its business in 1995 and, after a series of transactions, Enterprise became a successor in 2003. The case was stayed while Hernandez litigated an unsuccessful identical legal claim against other alleged NCRS affiliates. The trial court granted Enterprise summary judgment. The court of appeal affirmed. Enterprise did not succeed to any liability NCRS would have had for Hernandez’s injuries. After the sale of NCRS’s assets plaintiffs such as Hernandez could have sought recourse against General Motors. In addition, one of the successor owners entered bankruptcy through no fault of the acquiring entities, so the subsequent owners do not come within an exception to the general rule against successor liability in an asset sale. View "Hernandez v. Enterprise Rent-A-Car Co. of S.F." on Justia Law

Oberdorf walked her dog with a retractable leash. Unexpectedly, the dog lunged. The D-ring on the collar broke and the leash recoiled and hit Oberdorf’s face and eyeglasses, leaving Oberdorf permanently blind in her left eye. Oberdorf bought the collar on Amazon.com. She sued Amazon.com, including claims for strict products liability and negligence. The district court found that, under Pennsylvania law, Amazon was not liable for Oberdorf’s injuries. A third-party vendor, not Amazon itself, had listed the collar on Amazon’s online marketplace and shipped the collar directly to Oberdorf. The court found that Amazon was not a “seller” under Pennsylvania law and that Oberdorf’s claims were barred by the Communications Decency Act (CDA) because she sought to hold Amazon liable for its role as the online publisher of third-party content. The Third Circuit vacated and remanded. Amazon is a “seller” under section 402A of the Second Restatement of Torts and thus subject to the Pennsylvania strict products liability law. Amazon’s involvement in transactions extends beyond a mere editorial function; it plays a large role in the actual sales process. Oberdorf’s claims against Amazon are not barred by section 230 of the CDA except as they rely upon a “failure to warn” theory of liability. The court affirmed the dismissal under the CDA of the failure to warn claims. View "Oberdorf v. Amazon.com Inc" on Justia Law

Seattle’s Duncan Place condominium complex was built in 2009, with Danze faucets in all 63 units. The faucets’ water hoses can corrode and crack in normal use. Several faucets failed, causing property damage and replacement costs. Danze’s “limited lifetime warranty” promises to replace defective parts. Danze refused to repair or replace the faucets. The Owners Association filed suit on behalf of itself, unit owners, and a proposed nationwide class, asserting claims under Washington law. The judge rejected all claims, holding that Washington’s independent-duty doctrine barred claims of negligence and strict product liability; the unjust-enrichment claim was premised on fraud but did not satisfy the FRCP 9(b) heightened pleading requirements. A Washington claim for breach of an express warranty requires that the plaintiff was aware of the warranty. Duncan Place was unable to make that allegation in good faith with respect to any unit owners.The Seventh Circuit reversed in part. The Washington Product Liability Act subsumes the negligence and strict-liability claims; the “independent duty doctrine” generally bars recovery in tort for direct and consequential economic losses stemming from the product’s failure (damages associated with the “injury” to the product itself) but does not bar recovery for damage to other property. Duncan Place alleged in general terms that the defective faucets caused damage to other condominium property, so the WPLA claim is not entirely blocked by the independent duty doctrine. View "Duncan Place Owners Associatio v. Danze, Inc." on Justia Law