Justia Products Liability Opinion Summaries

In 2007, two groups filed separate class action suits against Volkswagen. The cases were consolidated for pre-trial purposes because they raised substantially similar allegations: that several models of Volkswagen and Audi automobiles had defectively designed sunroofs that, when clogged by plant debris and pollen, allowed water to leak into the vehicle. While leakage could be prevented through regular cleaning and maintenance, Volkswagen allegedly failed to inform car owners of these preventive measures because such a disclosure would acknowledge a design defect, and would likely obligate Volkswagen to cover any resulting damage under their warranty program. The parties reached a settlement, under which a "reimbursement group" received the right to reimbursement for certain qualifying damages, paid from an $8 million fund. "Residual group" member were required to wait until the reimbursement group made its claims. The court certified a single class. The Third Circuit reversed, agreeing with objectors that the representative plaintiffs, all members of the reimbursement group, cannot adequately represent the interests of the class members in the residual group; the certification violated FRCP 23(a)(4). View "Dewey v. Volkswagen " on Justia Law

Plaintiffs installed shingles manufactured by Owens Corning (debtor). They discovered leaks in 2009; shingles had cracked. Each sent warranty claims, which were rejected. They filed a class action alleging fraud, negligence, strict liability, and breach of warranty. In 2000, the debtors had filed Chapter 11 bankruptcy petitions; the Bankruptcy Court set a claims bar date in 2002 and approved a notice that appeared in multiple publications. Notices of the confirmation hearing for the Plan, in 2006, included generic notice to unknown claimants. At the time they filed the class action plaintiffs did not hold “claims” under 11 U.S.C. 1101. The Third Circuit subsequently established a rule that a claim arises when an individual is exposed pre-petition to a product or other conduct giving rise to an injury, which underlies a right to payment under the Bankruptcy Code. Based on that holding, the district court held that plaintiffs’ claims were discharged. The Third Circuit affirmed in part and remanded, agreeing that plaintiffs had “claims.” Both were “exposed” to the product before confirmation of the plan. Plaintiffs were not afforded due process by published notice, however, because they could not have known they had claims at the time of confirmation. View "Wright v. Owens Corning" on Justia Law

The named plaintiffs are Ohio residents who purchased front-loading washing machines manufactured by defendant. Within months after their purchases, the plaintiffs noticed the smell of mold or mildew emanating from the machines and from laundry washed in the machines. One plaintiff found mold growing on the sides of the detergent dispenser, another saw mold growing on the rubber door seal, despite allowing the machine doors to stand open. They filed suit, alleging tortious breach of warranty, negligent design, and negligent failure to warn. The district court certified a class comprised of Ohio residents who purchased one of the specified machines in Ohio primarily for personal, family, or household purposes and not for resale (Federal Rule of Civil Procedure 23(a) and (b)(3)). The Sixth Circuit affirmed class certification, with proof of damages reserved for individual determination. Plaintiffs’ proof established numerosity, commonality, typicality, and adequate representation. Common questions predominate over individual ones and class action is a superior method to adjudicate the claims.View "Glazer v. Whirlpool Corp." on Justia Law

The Seventh Circuit consolidated two cases involving transfer to courts in another country. One is an appeal from an order to transfer cases involving vehicular accidents allegedly caused by tires installed on vehicles in Latin America, from the Southern District of Indiana to the courts of Mexico. Its i a suit by Mexican citizens arising from the death of another Mexican citizen in an accident in Mexico. The second involves transfer, to Israel, of suits against manufacturers of blood products used by hemophiliacs, which turned out to be contaminated by HIV; it was brought by Israeli citizens infected by the products in Israel. The Seventh Circuit affirmed the transfers. Noting the existence of apparently dispositive precedent, the court referred to "ostrich-like tactic of pretending that potentially dispositive authority against a litigant's contention does not exist." View "Gonzalez-Servin v. Ford Motor Co." on Justia Law

A class action suit against tobacco-related entities, first filed in 1998, alleged that for years the tobacco companies conspired to conceal the facts about the addictive and dangerous nature of cigarettes by intentionally using incomplete, misleading, or untruthful marketing and advertising. The putative class consists of Illinois residents who bought or smoked cigarettes, seeking disgorgement of profits on an unjust enrichment theory. After extensive proceedings, the district court dismissed for failure to state a claim. The Seventh Circuit affirmed. Mere violation of a consumer's legal right to know about a product's risks, without anything more, cannot support a claim that the manufacturer unjustly retained the revenue from the product's sale to the consumer’s detriment. Plaintiffs did not allege that they suffered any harm, that they relied on the marketing, or that they would have acted differently had the defendants been truthful. View "Cleary v. Philip Morris Inc." on Justia Law