Justia Products Liability Opinion Summaries

Articles Posted in Consumer Law
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Plaintiff RSD Leasing Inc., a company that leases and, eventually, resells trucks to other commercial entities, appealed from a district court decision, granting in relevant part summary judgment to Defendants Navistar International Corp. and Navistar, Inc., the manufacturer of several allegedly substandard trucks in RSD’s fleet. The sole question on appeal is whether, for purposes of its purchase of those trucks, RSD qualifies as a “consumer” under the Vermont Consumer Protection Act and therefore is eligible to invoke the Act’s protections. In the absence of any on-point Vermont caselaw signaling whether the statute extends “consumer” protections to a business that purchases a good intending exclusively to lease that good to a third party and then to resell it at the end of the lease term, the district court relied in substantial part on two brief passages from the Act’s legislative history, holding that RSD was not acting as a “consumer” when it purchased the trucks at issue.   The Second Circuit wrote that it is unable to confidently predict how the Vermont Supreme Court would decide the matter. Therefore, the court certified to the Vermont Supreme Court the following question: Does a business that purchases goods intending first to lease those goods to end users and then to resell them at the termination of the lease term qualify as a ‘consumer’ under the VCPA? View "RSD Leasing, Inc. v. Navistar Int'l Corp." on Justia Law

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Mark Kielar challenged a superior court’s decision to grant Hyundai Motor America’s (Hyundai) motion to compel arbitration of his causes of action for violation of the Song-Beverly Consumer Warranty Act, and fraudulent inducement arising from alleged mechanical defects in the condition of his 2012 Hyundai Tucson. The superior court’s ruling followed Court of Appeal's earlier decision in Felisilda v. FCA US LLC, 53 Cal.App.5th 486 (2020) and concluded Hyundai, a nonsignatory manufacturer, could enforce the arbitration provision in the sales contract between Kielar and his local car dealership under the doctrine of equitable estoppel. The Court of Appeal joined recent decisions that have disagreed with Felisilda and concluded the court erred in ordering arbitration. Therefore, it issued a preemptory writ of mandate compelling the superior court to vacate its June 16, 2022 order and enter a new order denying Hyundai’s motion. View "Kielar v. Super. Ct." on Justia Law

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Two putative class actions are at issue in these appeals: Nacarino v. Kashi Co., No. 22-15377, and Brown v. Kellogg Co., No. 22-15658. The complaints were filed in the Northern District of California, and they asserted materially identical state-law consumer protection claims for unfair business practices, unjust enrichment, and fraud. Both complaints alleged that the front labels on several of Defendants’ products are “false and misleading” under state and federal law. At issue is whether food product labels that advertise the amount of protein in the products are false or misleading.   The Ninth Circuit affirmed on different grounds the district court’s dismissal of the two complaints. The panel rejected Plaintiffs’ arguments that the protein claims on Defendants’ labels were false because the nitrogen method for calculating protein content overstated the actual amount of protein the products contained. The panel held that FDA regulations specifically allow manufacturers to measure protein quantity using the nitrogen method.   The panel rejected Plaintiffs’ arguments that the protein claims on Defendants’ labels were misleading because the “amount of digestible or usable protein the Products actually deliver to the human body is even lower” than the actual amount of protein the products contain. The panel held that Defendants’ protein claims could be misleading under FDA regulations if they did not accurately state the quantity of protein or if the products did not display the quality-adjusted percent daily value in the Nutritional Facts Panel. However, Plaintiffs’ complaints did not allege that the challenged protein claims were misleading within the meaning of the federal regulations. View "ELENA NACARINO, ET AL V. KASHI COMPANY" on Justia Law

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This appeal arises from a dispute about CoolSculpting, a medical device intended to minimize the appearance of fat. When Plaintiff tried CoolSculpting, he developed a rare condition called Paradoxical Adipose Hyperplasia (“PAH”), which enlarges the targeted fat tissue. Needless to say, Plaintiff was unhappy that CoolSculpting maximized the fat he wanted to minimize. So Plaintiff sued Zeltiq Aesthetics, Inc., the manufacturer of the CoolSculpting system, for failure to warn and design defects under Florida law. The district court granted Zeltiq summary judgment. On failure to warn, the district court concluded that Zeltiq’s warnings about PAH were adequate as a matter of law. On design defect, the court determined that Plaintiff failed to provide expert testimony that the risk of CoolSculpting outweighed its utility. Plaintiff challenged both of the district court’s rulings on appeal.   The Eleventh Circuit affirmed. The court explained that Zeltiq warned medical providers in its user manual and training sessions about the exact condition Plaintiff experienced: PAH is an increase of adipose tissue in the treatment area that may require surgery to correct. Accordingly, the district court properly concluded Zeltiq’s warnings were adequate as a matter of law. Further, the court held that it is convinced that Plaintiff’s defect claim fails under either test. View "Terrance Nelson Cates v. Zeltiq Aesthetics, Inc." on Justia Law

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Plaintiff used Roundup on his lawn for thirty years until 2016, when he was diagnosed with malignant fibrous histiocytoma, a form of cancer. He sued Monsanto, Roundup’s manufacturer, in the district court. He alleged that Monsanto knew or should have known that Roundup was carcinogenic but did not warn users of that danger. The question on appeal is whether, under an express preemption provision, a federal agency action that otherwise lacks the force of law preempts the requirements of state law. The district court ruled that a provision of the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Section 136v(b), expressly preempts some of Plaintiff’s claims under Georgia law because the Environmental Protection Agency had approved a label for Roundup that lacked a cancer warning and the Agency classifies Roundup’s main ingredient—glyphosate—as “not likely to be carcinogenic.” Plaintiff argued that his suit is not preempted.   The Eleventh Circuit concluded that the question at issue must be answered by recourse to ordinary principles of statutory interpretation, and the court remanded this appeal to the panel to decide whether Plaintiff’s suit is preempted. The court explained that a conflict between a state-law rule that has the force of law and a federal agency rule that does not have the force of law is not the type of conflict between state and federal legal obligations that the Supremacy Clause addresses. But this reasoning does not extend to express-preemption cases the meaning of the express-preemption provision—not conflicting federal and state legal obligations—triggers preemption. View "John D. Carson v. Monsanto Company" on Justia Law

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This appeal involved the effect of an antiwaiver provision of the Song-Beverly Consumer Warranty Act on a release executed as part of a pre-litigation settlement between plaintiff-appellant Derek Rheinhart and defendants-respondents Nissan North America, Inc. and Mossy Nissan, Inc. (collectively Nissan) over issues that had arisen with Rheinhart’s leased Nissan vehicle. After Rheinhart entered into the settlement agreement and release, he filed a lawsuit alleging violations of the Act and seeking repurchase of his vehicle as well as other statutory remedies. Nissan moved for summary judgment on grounds the settlement agreement and release, which Rheinhart admitted he read and had an opportunity to review before signing, extinguished his claims. The trial court granted the motion, finding section 1790.1 of the Act applied to waivers of consumer warranties in connection with a product purchase, not to releases negotiated to end disputes about those warranties, and thus rejected Rheinhart’s argument that the settlement was unenforceable. Rheinhart contends the court erred. He argued the settlement agreement and release violated section 1790.1 and was unenforceable as a matter of law. The Court of Appeal reversed, finding the settlement agreement and release contravened Rheinhart’s substantive rights under the Act and was void and unenforceable as against public policy. View "Rheinhart v. Nissan North America" on Justia Law

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Plaintiff contended that P&G’s packaging “represents that the Products are natural, when, in fact, they contain nonnatural and synthetic ingredients, harsh and potentially harmful ingredients, and are substantially unnatural.” Plaintiff stated that if he had known when he purchased them that the products were not “from nature or otherwise natural,” he would not have purchased the products or paid a price premium for the products. Plaintiff asserted claims under California’s Unfair Competition Law (“UCL”), California’s False Advertising Law (“FAL”), and California’s Consumers Legal Remedies Act (“CLRA”).   The Ninth Circuit affirmed the district court’s Fed. R. Civ. P. 12(b)(6) dismissal of Plaintiff’s action alleging that P&G violated California consumer protection laws by labeling some of its products with the words “Nature Fusion” in bold, capitalized text, with an image of an avocado on a green leaf. The panel held that there was some ambiguity as to what “Nature Fusion” means in the context of its packaging, and it must consider what additional information other than the front label was available to consumers of the P&G products. Here, the front label containing the words “Nature Fusion” was not misleading— rather, it was ambiguous. Upon seeing the back label, it would be clear to a reasonable consumer that avocado oil is the natural ingredient emphasized in P&G’s labeling and marketing. With the entire product in hand, the panel concluded that no reasonable consumer would think that the products were either completely or substantially natural. The survey results did not make plausible the allegation that the phrase “Nature Fusion” was misleading. View "SEAN MCGINITY V. THE PROCTER & GAMBLE COMPANY" on Justia Law

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Plaintiff Kamiya Perry appealed a judgment entered in favor of defendant Kia Motors America, Inc. (Kia) after a jury found in favor of Kia in her automobile defect trial. On appeal, she argued: (1) the trial court abused its discretion by refusing to instruct the jury that Kia had concealed evidence (certain engineering documents) during discovery; (2) the trial court erred by excluding the testimony of Kia’s paralegal who verified discovery requests relevant to the engineering documents; and (3) she was not given a fair trial because the jurors were required to deliberate in a small room, which, in the midst of the coronavirus disease 2019 (COVID-19) pandemic, incentivized the jury to complete their deliberations quickly. Finding no reversible error, the Court of Appeal affirmed the trial court's judgment. View "Perry v. Kia Motors America, Inc." on Justia Law

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The National Advertising Division (“NAD”), a self-regulatory organization, concluded that Defendant Young Living Essential Oils, LC’s (“Young Living”) claims that its oils are “therapeutic-grade” and impart physical and/or mental health benefits are “unsupported,” and recommended that Young Living stop making these claims. Plaintiff had already spent money on Young Living’s products, including lavender oil advertised to “promote [a] feeling of calm and fight occasional nervous tension” and peppermint oil that allegedly “helps to  maintain energy levels.” Feeling misled by claims that the products would have effects like “promoting feelings of relaxation & tranquility,” Plaintiff sued, on behalf of herself and other similarly situated individuals, asserting claims under common law and various state statutes that she believes protect consumers like her against companies like Young Living. The district court dismissed Plaintiff’s suit, finding that Young Living’s claims that its products would do things like “help to maintain energy levels” was run-of-the-mill puffery that companies use when trying to persuade potential customers to part with their dollars.   The Second Circuit vacated in part and affirmed in part. The court vacated the district court’s ruling insofar as it dismissed the New York General Business Law claims for being based on statements of non-actionable puffery and the unjust enrichment claim for not satisfying the Rule 9(b) requirement. The court affirmed the ruling as to the dismissal of the breach of warranty claims. The court found that Plaintiff’s stated the circumstances constituting fraud with sufficient particularity to satisfy Rule 9(b) and certainly with enough particularity to give fair notice of her claim and enable the preparation of a defense. View "MacNaughton v. Young Living Essential Oils, LC" on Justia Law

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Plaintiffs Oscar and Audrey Madrigal sued defendant Hyundai Motor America (Hyundai) under California’s automobile lemon law. Early in the case, Hyundai made two offers to compromise under Code of Civil Procedure section 998, both of which were rejected. After a jury was sworn in, plaintiffs settled with Hyundai for a principal amount that was less than Hyundai’s second section 998 offer. The parties elected to leave the issue of costs and attorney fees for the trial court to decide upon motion. Under the settlement agreement, once the issue of costs and attorney fees was resolved and payment was made by Hyundai, plaintiffs would dismiss their complaint with prejudice. The issue this case presented for the Court of Appeal's review centered on whether section 998’s cost-shifting penalty provisions apply when an offer to compromise is rejected and the case ends in settlement. Under the facts of this case, the Court held that it did and therefore reversed the order of the trial court. View "Madrigal v. Hyundai Motor America" on Justia Law