Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

Kia and Hyundai manufactured millions of vehicles between 2011 and 2021 that lacked engine immobilizers, a standard anti-theft device, and had ignition assemblies that were easily compromised. These design features made the cars especially vulnerable to theft, leading to a surge in thefts nationwide, particularly after a viral social media trend demonstrated how to steal these vehicles. In two separate incidents, teenagers stole such cars and, while driving them, caused accidents that resulted in severe injury to Donald Strench and the death of Matthew Moshi. Strench and Moshi’s estate brought suit against Hyundai and Kia, respectively, alleging that the companies were liable under the Ohio Product Liability Act (OPLA) for design defects that made the cars susceptible to theft and, consequently, to the resulting injuries.The United States District Court for the Southern District of Ohio dismissed the claims, holding that the plaintiffs could not establish proximate causation as a matter of Ohio law. The district court relied on Ohio precedents that generally absolve car owners of liability for injuries caused by thieves who steal their cars, applying the same reasoning to the manufacturers.On appeal, the United States Court of Appeals for the Sixth Circuit held that the Ohio cases concerning car owners’ liability do not control product liability claims against manufacturers. The Sixth Circuit found that, under OPLA and Ohio common law, foreseeability must be assessed from the perspective of a manufacturer, who is expected to have specialized knowledge of risks, including those arising from third-party theft. The court concluded that the plaintiffs plausibly alleged that the manufacturers should have foreseen the risk of theft-related accidents. The Sixth Circuit reversed the district court’s dismissal of the design defect and inadequate warning claims, but affirmed the dismissal of the manufacturing defect and nonconformance to representation claims. The case was remanded for further proceedings on the surviving claims. View "Moshi v. Kia Motors Am., Inc." on Justia Law

Several individuals from five different states purchased ovens with front-mounted burner knobs manufactured by a major appliance company. They allege that these ovens have a defect causing the stovetop burners to turn on unintentionally, sometimes resulting in gas leaks. The plaintiffs claim they were unaware of this defect at the time of purchase, but that the manufacturer had prior knowledge of the issue through consumer complaints sent to the U.S. Consumer Product Safety Commission (CPSC) and reviews posted on the company’s website. The plaintiffs assert that, had they known about the defect, they would have paid less for the ovens or not purchased them at all.The plaintiffs filed a class action in the United States District Court for the Western District of Michigan, alleging violations of federal warranty law, fraud by omission, breach of express and implied warranties, unjust enrichment, and violations of state consumer protection statutes. The district court found that the plaintiffs had Article III standing, as they alleged a concrete injury, but dismissed all claims for failure to state a plausible claim for relief. The plaintiffs appealed the dismissal of their state common law fraud and statutory consumer protection claims, while the manufacturer argued that the plaintiffs lacked standing.The United States Court of Appeals for the Sixth Circuit reviewed the case de novo. The court held that the plaintiffs had Article III standing because they plausibly alleged economic injury from overpaying for a defective product. The court further held that the plaintiffs plausibly alleged the manufacturer’s knowledge of the defect and its safety risks, particularly because the CPSC had sent incident reports directly to the manufacturer. The court reversed the district court’s dismissal of most state law fraud and consumer protection claims, except for the Illinois common law fraud claim, which failed for lack of a duty to disclose under Illinois law. The case was remanded for further proceedings consistent with these holdings. View "Tapply v. Whirlpool Corp." on Justia Law

Plaintiffs in this multi-district products liability suit allege that they purchased defective Chrysler Pacifica minivans from FCA, which were recalled due to a risk of battery explosions. After the recall, plaintiffs filed seven putative class action suits, which were consolidated in the Eastern District of Michigan. During discovery, FCA discovered that some plaintiffs had agreed to arbitration clauses when purchasing their minivans and moved to compel arbitration for those plaintiffs. The district court denied FCA’s motion, finding that FCA had waived its right to arbitrate by moving to dismiss the entire complaint.The United States District Court for the Eastern District of Michigan denied FCA’s motion to compel arbitration, concluding that FCA had waived its right to arbitrate by engaging in litigation conduct inconsistent with that right, specifically by moving to dismiss the plaintiffs’ claims. The district court made this finding sua sponte, without the plaintiffs raising the issue of waiver.The United States Court of Appeals for the Sixth Circuit reviewed the case and reversed the district court’s decision. The appellate court held that a party cannot waive its right to arbitration without knowledge of that right. The court found that FCA did not know about the arbitration clauses until it obtained the relevant purchase agreements through discovery. Additionally, the appellate court determined that the district court erred by raising the issue of waiver on its own, violating the principle of party presentation. The Sixth Circuit concluded that the district court’s decision was clearly erroneous and remanded the case for further proceedings consistent with its opinion. View "Berzanskis v. FCA US, LLC" on Justia Law

Fire-Dex, a manufacturer of personal protective equipment for firefighters, faced lawsuits from firefighters and their spouses alleging exposure to carcinogens from Fire-Dex's products. These lawsuits were consolidated in multidistrict litigation in South Carolina. Fire-Dex had general commercial liability insurance policies with Admiral Insurance Company and requested Admiral to defend and indemnify it against the lawsuits. Admiral refused, leading to a declaratory judgment action in federal court in Ohio, where the district court declined to exercise jurisdiction.The United States District Court for the Northern District of Ohio initially had diversity jurisdiction over Admiral's declaratory judgment action but chose to abstain from exercising it, a decision affirmed by the Sixth Circuit. Subsequently, Fire-Dex filed a lawsuit in Ohio state court seeking a declaration that Admiral must defend and indemnify it, along with compensatory and punitive damages for breach of contract and bad faith. Admiral removed the case to federal court and filed counterclaims for declaratory judgment. Fire-Dex moved to remand the case to state court.The United States Court of Appeals for the Sixth Circuit reviewed the district court's decision to remand the declaratory claims and stay the damages claims. The Sixth Circuit held that the district court erred in abstaining from the declaratory claims under Thibodaux abstention, as the case did not involve unsettled questions of state law intimately involved with state sovereignty. The court also found that abstaining from the declaratory claims was an abuse of discretion because the declaratory and damages claims were closely intertwined, and no traditional abstention doctrine applied to the damages claims. The Sixth Circuit vacated the district court's order and remanded for further proceedings. View "Fire-Dex, LLC v. Admiral Insurance Co." on Justia Law

Timothy Davis accidentally shot himself in the leg with his Sig Sauer P320 X-Carry pistol while getting out of his truck. Davis claimed the gun was fully holstered and that he did not pull the trigger. He alleged that the P320 was defectively designed, making it prone to accidental discharge, and that alternative designs could have prevented his injury. Davis filed a products-liability lawsuit against Sig Sauer under Kentucky law, citing strict liability and negligence.The United States District Court for the Eastern District of Kentucky granted Sig Sauer’s motions to exclude Davis’s expert witnesses and for summary judgment. The court found that Davis’s experts, James Tertin and Dr. William J. Vigilante, Jr., did not investigate the exact circumstances of the shooting and thus could not opine on causation. Without expert testimony, the court held that Davis could not pursue his products-liability claims.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court affirmed the district court’s exclusion of the experts’ opinions on causation but reversed the exclusion of their testimonies on design defects and reasonable alternative designs. The appellate court found that the experts’ opinions were admissible to prove that the P320 was defectively designed and that reasonable alternative designs existed. The court held that Davis had demonstrated a genuine issue of material fact regarding whether the P320 was defectively designed and caused his injury. Consequently, the court vacated the district court’s grant of summary judgment and remanded the case for further proceedings. View "Davis v. Sig Sauer, Inc." on Justia Law

The United States Court of Appeals considered an indemnification case between Nissan, an automobile manufacturer, and Continental, a brake parts supplier. Nissan sought indemnification from Continental for a $24 million jury award and $6 million in attorney fees and costs resulting from a products liability lawsuit in California. The lawsuit arose after an accident involving a Nissan vehicle, with the jury finding that the design of the vehicle’s braking system caused harm to the plaintiffs. Nissan argued that a provision in their contract with Continental obligated Continental to indemnify them for the jury award and litigation costs. Both the district court and the Court of Appeals disagreed, holding that the contract required Nissan to show that a defect in a Continental-supplied part caused the injury, which Nissan failed to do. The Appeals Court affirmed the district court's decision to grant summary judgment in favor of Continental. View "Nissan North America, Inc. v. Continental Automotive Systems, Inc." on Justia Law

In the multidistrict National Prescription Opiate Litigation, municipalities from across the nation, Indian Tribes, and other entities allege that opioid manufacturers, distributors, pharmacies, and retailers acted in concert to mislead medical professionals into prescribing, and millions of Americans into taking and often becoming addicted to, opiates. Two northeast Ohio counties, Trumbull and Lake, alleged that national pharmaceutical chains “created, perpetuated, and maintained” the opioid epidemic by filling prescriptions for opioids without controls in place to stop the distribution of those that were illicitly prescribed and that conduct caused an absolute public nuisance remediable by abatement under Ohio common law.The district court ordered a bellwether trial, after which a jury concluded that the “oversupply of legal prescription opioids, and diversion of those opioids into the illicit market” was a public nuisance in those counties and that defendants “engaged in intentional and/or illegal conduct which was a substantial factor in producing" that nuisance. The district court entered a $650 million abatement order and an injunction requiring defendants to “ensure they are complying fully with the Controlled Substances Act and avoiding further improper dispensing conduct.” On appeal, the Sixth Circuit certified a question of law to the Ohio Supreme Court: Whether the Ohio Product Liability Act, Ohio Revised Code 2307.71, abrogates a common law claim of absolute public nuisance resulting from the sale of a product in commerce in which the plaintiffs seek equitable abatement, including both monetary and injunctive remedies? View "Trumbull County v. Purdue Pharma, L.P." on Justia Law

Cash died when a hammermill shredder exploded at his workplace. The Tennessee Occupational Safety and Health Administration (TOSHA) determined that the explosion was primarily caused by the accumulation of combustible aluminum dust produced by the shredding process. The personal representative of his estate sued REI, the company that assembled and sold the shredder to LR, Cash’s employer, asserting four product-liability claims. The district court granted REI summary judgment, because it “did not design the hammermill system at issue, and instead assisted LR with locating primarily used components that LR requested based on the design of LR’s existing system, REI is not legally responsible for any alleged defect in the system as a whole.”The Sixth Circuit reversed. A key requirement of the contract-specification defense is that the customer provided the manufacturer with detailed plans or specifications directing how the product should be built. The district court erred in holding that no genuine dispute of material fact exists as to whether REI followed LR’s design specifications. There was evidence to suggest that REI contemplated incorporating a dust-collection bin in the design, one that had not been requested. View "Cash-Darling v. Recycling Equipment, Inc." on Justia Law

Ethicon manufactures a mesh sling, used to treat stress urinary incontinence, and a posterior mesh “Prolift, “designed to treat pelvic organ prolapse. In 2009, Dr. Guiler surgically implanted both devices to treat Thacker. Before the surgery, Thacker reviewed and signed an informed consent form that listed several risks, including: “infections and/or erosions of the mesh” which could require additional follow-up surgeries, urinary retention, “[p]ainful intercourse and vaginal shortening,” and treatment failure. After the surgery, Thacker’s incontinence worsened, and she suffered from shooting pain in her groin area and severe abdominal swelling and bloating. In 2010, Thacker started experiencing severe and unbearable pain during intercourse.Thacker ultimately sued Ethicon, alleging strict liability and negligence claims under the Kentucky Product Liability Act for design defect and failure to warn. The district court granted Ethicon summary judgment. The Sixth Circuit reversed. Dr. Guiler’s testimony suggested that he likely would have recommended a different course of treatment had Ethicon given adequate information. Thacker’s expert testified that no reasonable physician would have used the Pelvic Mesh Devices to treat Thacker had Ethicon given adequate information in 2009. A jury could accept that expert’s opinion that a feasible alternative design would have prevented Thacker’s injuries. View "Thacker v. Ethicon, Inc." 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