Articles Posted in U.S. Court of Appeals for the Tenth Circuit

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The Cervenys sued the manufacturer of Clomid (Aventis, Inc.), asserting various tort claims under Utah law: failure to warn under theories of strict liability and negligence, breach of implied warranty, negligent misrepresentation, and fraud. They presented two theories, pointing to two types of warning labels that Aventis had allegedly failed to provide: (1) a label that warned of risks to the fetus when a woman takes Clomid before becoming pregnant; and (2) a label that unmistakably warned about harm to the fetus when Clomid is taken during pregnancy. The district court rejected the Cervenys’ claims based on preemption. The Tenth Circuit held that the district court ruling was correct on the Cervenys’ first theory, because the undisputed evidence showed that the FDA would not have approved a warning about taking Clomid before pregnancy. But on the second theory, the Tenth Circuit found the district court did not explain why a state claim based on the FDA’s own proposed language would be preempted by federal law. The district court also erred in failing to distinguish the remaining claims (breach of implied warranty, negligent misrepresentation, and fraud) from the failure-to-warn claims. These claims are based at least partly on affirmative misrepresentations rather than on a failure to provide a warning. The district court failed to explain why claims involving affirmative misrepresentations would have been preempted. View "Cerveny v. Aventis, Inc." on Justia Law

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Petitioner Zen Magnets, LLC (“Zen”) challenged a regulation promulgated by Respondent Consumer Product Safety Commission (“the Commission”) restricting the size and strength of the rare earth magnets that Zen sold. The sets consisted of small, high-powered magnets that users could arrange and rearrange in various geometric designs. The component magnets are unusually small (their diameters are approximately five millimeters) and unusually powerful. Magnets of this type have been marketed and sold to consumers (by Zen and other distributors) as desktop trinkets, stress-relief puzzles, and toys, and apparently also for educational and scientific purposes. Although the strength of these magnets was part of their appeal, it could also pose a grave danger when the magnets are misused, particularly if two or more magnets were ingested. During 2011, in response to reports of injured children, Commission staff began evaluating whether the magnet sets currently on the market complied with ASTM F963 (“the toy standard”). In May 2012, the Commission required the thirteen leading magnet set distributors to report any information of which they were aware reasonably supporting the conclusion that their magnets did not comply with an applicable safety standard, contained a defect, or created an unreasonable risk of serious injury. Four months after eliminating ten of the leading magnet set distributors, the Commission proposed a new safety standard aimed at regulating the size and strength of all magnet sets. Unlike the toy standard, the final rule was not limited to magnets designed or marketed as toys for children under fourteen years of age, but rather applied to all magnet sets. Zen was the only remaining importer and distributor of the magnet sets targeted by the final rule. Over the years, Zen made efforts to comply with the toy standard by implementing age restrictions and placing warnings on its website and packaging, as well as by imposing sales restrictions on its retail distributors. Its magnet sets, however, did not comply with the strength and size restrictions of the final rule. Zen sought judicial review of that safety standard. The Tenth Circuit Court of Appeals concluded that the Commission’s prerequisite factual findings, which were compulsory under the Consumer Product Safety Act, were incomplete and inadequately explained. Accordingly, the Court vacated and remanded this case back to the Commission for further proceedings. View "Zen Magnets v. Consumer Product Safety Comm'n" on Justia Law

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A recreational boating accident killed four adults. The boat had been rented from Aramark Sports and Entertainment Services, LLC. Because the accident occurred on navigable waters, the case fell within federal admiralty jurisdiction. Anticipating that it would be sued for damages, Aramark filed in the United States District Court for the District of Utah a petition under the Limitation of Liability Act, which permitted a boat owner to obtain a ruling exonerating it or limiting its liability based on the capacity or value of the boat and freight. The district court denied the petition, leaving for further proceedings the issues of gross negligence, comparative fault, and the amount of damages. Aramark appealed the denial. After review, the Tenth Circuit held the district court erred in its application of admiralty principles of duty and remanded for further proceedings. View "In re: Aramark Sports" on Justia Law

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David Helmer and Felicia Muftic were lead plaintiffs representing a certified class of homeowners who contended a radiant-heating hose, the Entran 3, manufactured by Goodyear Tire & Rubber Company (“Goodyear”) suffered design defects leading to cracks and leaks (the hose was used to convey hot fluid to provide heating for homes, installed permanently in walls, under flooring and in ceilings and concrete. At trial, Goodyear argued the leaks were caused by third parties’ improper installations. The jury returned a verdict in favor of Goodyear, concluding the Entran 3 was not defectively designed. On appeal, Plaintiffs argued that insufficient evidence supported the district court’s instruction on nonparty fault. They further argued that the district court failed to require proof of a necessary fact before instructing the jury regarding Colorado’s presumption that a product was not defective if ten years have passed since it was first sold. After review, the Tenth Circuit concluded that any error in the third-party liability instruction was harmless, and the inclusion of the instruction as to the presumption was proper. View "Helmer v. Goodyear Tire & Rubber" on Justia Law

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Virl Birch died when the off-road vehicle in which he was riding flipped over and pinned him to the ground. His surviving family members sued Polaris Industries, the vehicle manufacturer, for strict products liability, negligence, and breach of warranty. Polaris argued there was no evidence Birch’s vehicle was defective at the time of sale, and moved for summary judgment. Well after the deadlines for amending the pleadings and for discovery had passed, Birch’s survivors filed motions: (1) to add new theories to their complaint; and (2) for additional discovery. A magistrate judge denied both motions as untimely, and the district court affirmed the magistrate’s ruling. Based on the allegations in the unamended complaint, the district court then granted summary judgment to Polaris on all claims. The survivors appealed the district court’s denial of their two motions and the grant of summary judgment. But finding no reversible error in the district court's judgment, the Tenth Circuit affirmed. View "Birch v. Polaris Industries" on Justia Law