Justia Civil Procedure Opinion Summaries

Plaintiffs-appellants Jamie and Kelly Etcheson brought an action under the Song-Beverly Consumer Warranty Act (commonly known as the "lemon law") against defendant and respondent FCA US LLC (FCA) after experiencing problems with a vehicle they had purchased new for about $40,000. After admitting the vehicle qualified for repurchase under the Act, FCA made two offers to compromise under Code of Civil Procedure section 998: one in March 2015, to which plaintiffs objected and the trial court found was impermissibly vague, and a second in June 2016, offering to pay plaintiffs $65,000 in exchange for the vehicle's return. Following the second offer, the parties negotiated a settlement in which FCA agreed to pay plaintiffs $76,000 and deem them the prevailing parties for purposes of seeking an award of attorney fees. Plaintiffs moved for an award of $89,445 in lodestar attorney fees with a 1.5 enhancement of $44,722.50 for a total of $134,167.50 in fees, plus $5,059.05 in costs. Finding the hourly rates and amount of counsels' time spent on services on plaintiffs' behalf to be reasonable, the trial court tentatively ruled plaintiffs were entitled to recover $81,745 in attorney fees and $5,059.05 in costs. However, in its final order the court substantially reduced its award, concluding plaintiffs should not have continued to litigate the matter at all after FCA's March 2015 section 998 offer. It found their sought-after attorney fees after the March 2015 offer were not "reasonably incurred," and cut off fees from that point, awarding plaintiffs a total of $2,636.90 in attorney fees and costs. Pointing out their ultimate recovery was double the estimated value of FCA's invalid March 2015 section 998 offer, which they had no duty to counter or accept, plaintiffs contended the trial court abused its discretion by cutting off all attorney fees and costs incurred after that offer. The Court of Appeal agreed and reversed the order and remanded back to the trial court with directions to award plaintiffs reasonable attorney fees for their counsels' services, including those performed after FCA's March 2015 offer, as well as reasonable fees for services in pursuing their motion for fees and costs. View "Etcheson v. FCA US LLC" on Justia Law

The State appealed a circuit court order that, among other things, dismissed its claims against Volkswagen AG ("VWAG"). The State had filed a complaint claiming VWAG and other defendants, violated the Alabama Environmental Management Act ("the AEMA"), and the Alabama Air Pollution Control Act of 1971 ("the AAPCA") when cars VWAG produced had "defeat devices" installed, designed to alter emissions readings on cars with diesel engines. In other words, the complaint alleged defendants had tampered with the emission-control systems or ordered third parties to tamper with the emission-control systems of vehicles that were licensed and registered in the State of Alabama. Giving its reasons for dismissal, the Supreme Court determined that given the unique factual situation involved in this case, and based on reasoning set by the multi-district litigation court, allowing the State to proceed would "stand as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress." Therefore, the trial court properly granted VWAG's motion to dismiss. View "Alabama v. Volkswagen AG" on Justia Law

Hartung Commercial Properties, Inc. ("Hartung"), appealed the grant of summary judgment in favor of Buffi's Automotive Equipment and Supply Company, Inc. ("Buffi's Automotive"). Wayne Hartung bought a piece of commercial property that had an auto-body collision, repair, and paint shop ("the body shop") on the premises. Wayne also formed Har-Mar Collisions, Inc. ("Har-Mar") to operate the body shop. Hartung subsequently entered into a lease with Har-Mar pursuant to which Har-Mar leased the body shop. Wayne had a custom-built paint booth installed in the body shop and hired Buffi's Automotive to make the paint booth operational once it was installed. On January 24, 2011, the body shop was completely destroyed by a fire. On July 8, 2011, Hartung sued Har-Mar, Buffi's Automotive, and several fictitiously named defendants in the circuit court asserting claims of negligence and wantonness related to their alleged roles in causing the fire that destroyed the body shop. Buffi's Automotive alleged that, sometime after the fire destroyed the body shop, Hartung ordered what remained of the body shop and all the equipment inside it to be demolished. Buffi's Automotive argued that Hartung allowed the body shop to be demolished even though it believed at that time that Buffi's Automotive had caused the fire; that Buffi's Automotive "was named as a defendant only after the evidence was destroyed"; and that Buffi's Automotive "should have been placed on notice of the claim and allowed to inspect the premises with its own experts prior to destruction of the evidence." The Alabama Supreme Court determined the circuit court could not properly conclude that the sanction of dismissal, as opposed to some lesser sanction, was mandated in the present case. “[B]ased on the record before us at this time, we are simply not convinced that Buffi's Automotive met its burden in this case.” Accordingly, summary judgment was reversed. View "Hartung Commercial Properties, Inc. v. Buffi's Automotive Equipment and Supply Company, Inc." on Justia Law

Hart suffers from mesothelioma, caused by exposure to asbestos. In 1976-1977, Hart worked on a McKinleyville sewer project, for Christeve, cutting asbestos-cement pipe, manufactured by Johns-Manville. Hart had no access to information regarding the pipe supplier. Glamuzina a foreman on the project, testified that he observed Hart cut and bevel asbestos-cement pipe without any respiratory protection; knew Johns-Manville manufactured the pipe based on a stamp on the pipe; and believed Keenan supplied the pipe, based on seeing invoices that contained “their K.” Christeve’s then-bookkeeper testified that she did not know whether Keenan supplied asbestos-cement pipe to McKinleyville. Keenan’s corporate representative testified he had “no information” that Keenan sold anything that was used in the McKinleyville project.. A jury found that Hart was exposed to asbestos-cement pipe supplied by Keenan; awarded economic damages, non-economic damages, and damages for loss of consortium; and allocated fault among 10 entities, finding Keenan 17% at fault. The court of appeal reversed, concluding that Glamuzina’s testimony about the invoices was inadmissible hearsay and there was no other evidence Keenan supplied the pipes. The wording on these invoices constitued out-of-court statements offered to prove the truth of the matter asserted: that Keenan supplied the pipes. Glamuzina lacked personal knowledge of who the supplier was. View "Hart v. Keenan Properties, Inc." on Justia Law

Plaintiffs Jacob McGehee and Steven Ray Heath appealed a district court’s grant of summary judgment to defendants Forest Oil Corp. and Lantern Drilling Co. Forest and Lantern leased a drilling device from Teledrift, plaintiffs’ employer, and returned the device after using it in drilling operations. Plaintiffs then proceeded to clean and disassemble it. McGehee discovered several small bolts had fallen into the device. While he attempted to remove them, the lithium battery inside the device exploded, injuring himself and Heath. They sued Forest and Lantern for negligently causing the explosion by allowing bolts to fall into the device. Following discovery, Forest and Lantern moved for summary judgment, which the district court granted, holding they did not owe the plaintiffs a duty of care under Oklahoma tort law. Finding no reversible error in that judgment, the Tenth Circuit affirmed. View "McGehee v. Southwest Electronic Energy" on Justia Law

The Washington Supreme Court was presented an issue of first impression: whether Washington should adopt the "apparent manufacturer" doctrine for common law product liability claims predating the 1981 product liability and tort reform act (WPLA). By this opinion, the Court joined the clear majority of states that formally adopted the apparent manufacturer doctrine. Applying that doctrine to the particular facts of this case, the Court held genuine issues of material fact existed as to whether a reasonable consumer could have believed Pfizer was a manufacturer of asbestos products that caused Vernon Rublee's illness and death. The Court reversed the court of appeals and remanded this case for further proceedings. View "Rublee v. Carrier Corp." on Justia Law

FDA trans fat regulations governing the contents of the Nutrition Facts Panel did not preempt California's unfair competition laws proscribing false or misleading advertising elsewhere on a food product's label. The Ninth Circuit reversed the district court's dismissal of a putative consumer class action alleging that The Kroger Company sold Kroger Bread Crumbs that included misleading labels in violation of California law. The panel held that plaintiff had standing to challenge the legitimacy of defendant's product advertising on the face of the label that it contained "0g Trans Fat per serving." The panel took the occasion to reinforce and apply it's holding in Reid v. Johnson & Johnson,780 F.3d 952, 960 (9th Cir. 2015), that a requirement to state certain facts in the nutrition label was not a license to make that statement elsewhere on the product. The panel also held that plaintiff's labeling claims were not preempted because the FDA regulations did not authorize the contested statements. View "Hawkins v. The Kroger Co." on Justia Law

The Eighth Circuit affirmed the district court's order limiting the scope of plaintiff's general causation phase discovery in this products liability suit alleging that plaintiff's husband's use of Enbrel caused his myelodysplastic syndrome (MDS) which resulted in his death. The court held that the district court did not abuse its discretion in limiting the scope of plaintiff's general causation discovery; the district court's basis for weighing proportionality was based on common sense and the search conducted by plaintiff's counsel during the discovery hearing; the district court did not rely on misrepresented facts by Amgen in issuing its discovery orders; any error in failing to provide plaintiff an opportunity to cross-examine Amgen's expert was harmless; the district court was under no obligation to order Amgen to provide plaintiff with materials the FDA requests—but does not require—from pharmaceutical companies when the agency evaluates safety risks; and plaintiff's assertion that the district court's order limiting the scope of her discovery prejudiced her case was rejected.The court also held that the district court did not abuse its discretion by imposing sanctions under Rule 11 and by imposing sanctions under 28 U.S.C. 1927. Finally, the district court properly exercised its inherent power to sanction plaintiff's counsel, and here was no abuse of discretion View "Vallejo v. Amgen, Inc." on Justia Law

Integra LifeSciences Corporation ("Integra") petitioned the Alabama Supreme Court for mandamus relief in a suit brought by Tawni Brooks and her husband, Bobby Brooks. In 2014, Brooks underwent a double mastectomy and breast-reconstruction procedure at Springhill Memorial Hospital in Mobile. Brooks experienced complications following her surgery, and a subsequent surgery performed in 2015, revealed that those complications were potentially related to surgical mesh implanted in her body as part of the 2014 procedure. In 2016, Brooks sued the doctor who performed the procedure and various fictitiously named defendants, including "the manufacturer of the mesh used in [Brooks]'s operation." Integra was ultimately determined to be the manufacturer of the mesh; the company moved for summary judgment on grounds that the applicable statute of limitations had run, and that Brooks' second amended complaint did not relate back to the original complaint. As to Brooks' Alabama Extended Manufacturer's Liability Doctrine ("AEMLD") claim against Integra, the Alabama Supreme Court granted Integra's petition and issued a writ directing the trial court to enter a summary judgment in favor of Integra. With respect to the breach-of-warranty claim, however, Integra did not establish a clear legal right to relief; as to that claim, the petition was denied. View "Ex parte Integra LifeSciences Corporation." on Justia Law

In 1999, homeowners Renaul and Karen Abel contracted with Gilliam Construction Company, Inc. for the construction of a house in an upscale Landrum subdivision. In constructing the house, Gilliam used windows manufactured by Eagle & Taylor Company d/b/a Eagle Window & Door, Inc. (Eagle & Taylor). Sometime after the home was completed, the Abels discovered damage from water intrusion around the windows. The Abels brought suit against Gilliam for the alleged defects and settled with Gilliam and its insurer, Nationwide Mutual, for $210,000. Nationwide and Gilliam (collectively Respondents) then initiated this contribution action seeking repayment of the settlement proceeds from several defendants, including Eagle, alleging it was liable for the obligations of Eagle & Taylor. The narrow question presented by this case on appeal to the South Carolina Supreme Court was whether Eagle Window & Door, Inc. was subject to successor liability for the defective windows manufactured by a company who later sold its assets to Eagle in a bankruptcy sale. The Court determined answering that question required a revisit the Court's holding in Simmons v. Mark Lift Industries, Inc., 622 S.E.2d 213 (2005) and for clarification of the doctrine of successor liability in South Carolina. The court of appeals affirmed the trial court's holding that Eagle is the "mere continuation" of the entity. The Supreme Court reversed because both the trial court and court of appeals incorrectly applied the test for successor liability. View "Nationwide Mutual Insurance v. Eagle Window & Door" on Justia Law