Don’t Go To The Beach

Beach season is upon us. Although we here at Abnormal Use advocate staying inside at all times, maximizing the time that we can bill and blog, we understand that some of you yearn to have the sun forcibly remove layers of your skin. If you are one of those people, please read the following before going outside.

Karen Mather purchased some sunless tanning lotion that she alleged caused her injury. Mather v. L’Oreal USA, Inc., No. A10A0458, 2010 WL 2015337 (Ga. Ct. App. May 21, 2010). Mather has multiple sclerosis and “direct sunlight causes her pain.” Nevertheless, it’s beach season, and Mather decided to go to the beach. (The opinion does not reveal why someone who is sensitive to direct sunlight goes to the beach for recreation.) Just before leaving for the beach, Mather purchased two tubes of L’Oreal Paris Sublime Bronze self-tanning lotion, which she used “twice a day for three days and experienced no problems.”

On the drive home, Mather developed some problems “where the sunlight touched her skin through the car windows.” (Again, it is unclear why this plaintiff with such sun sensitivity refuses to wear a long-sleeve shirt). Mather’s skin reddened, and she developed small pustules. Her condition worsened, and she developed abscesses filled with pus, with lesions everywhere, and her multiple sclerosis was exacerbated. In fact,

“Mather testified that, as a result of using the self-tanning lotion, ‘[m]y organs will never be the same.’ “

That is true Plaintiffspeak if I have ever heard it. Dear Defendant, your $10 product affected me to the point where my organs will never be the same. Lots of money will fix my organs.

As you may have guessed, L’Oreal moved for and was granted summary judgment. Mather sued on a failure to warn theory, and, strangely enough, Mather had no evidence that L’Oreal should have known about a reaction such as Mather’s. L’Oreal showed that the active ingredient, hydroxyacetone, is common and safe for use by most people. Even during the product’s testing, of those that experienced some reaction, no reaction resembled Mather’s. This appears to be a case where Mather’s lawyer thought that he might find something decent in the discovery phase to support his case. That was not the case. In the end, Mather had no evidence contradicting L’Oreal’s assertion that the testing process was insufficient. Therefore, feel free to pick up some sunless tanner, or get out in the sun and give yourself lesions naturally.

Facebook and Federal Courts: Mafia Wars Jurisprudence

Mafia Wars significantly marginalizes the social utility of Facebook. I confirmed most of my Facebook friends against my better judgment, only to later hide their status updates, because I don’t care about the fake fortune they have amassed, the ” jobs” they have completed, or the multiple assassination attempts they have survived. I have gone to New York, Las Vegas, Paris, and London. I don’t need to pretend to go there to establish a simulated criminal empire that serves to camouflage a deep sense of loneliness. Moreover, because all Facebook users are subject to Mafia Wars updates, the backlash against Mafia Wars has also risen to new levels, robbing me of the usual cachet I enjoy when I express disdain directed towards society. Mafia Wars, how big a judgment would it take to end this?

Unfortunately, the first federal case to address this pernicious trend is not one in which an injunction was sought against ceaseless Mafia Wars updates. Rather, Zynga Game Network, Inc., the perpetrator of Mafia Wars, brought suit against Jason Williams, Luna Martini, and multiple John Does claiming that they engaged in the “unauthorized sale of Zynga Virtual Goods” through various Mafia Wars related websites. The court explains the backdrop of the dispute:

Mafia Wars (the “Game”) is one of Zynga’s most popular games in which users can start a Mafia family with their friends and compete to become the most powerful family. Zynga has made use of the service mark MAFIA WARS in commerce since September 2008, and of the trademark MAFIA WARS since April 2009. Zynga currently owns Trademark Application Serial No. 77772110 for the mark MAFIA WARS in International Classes 009 and 041. As of December 2009, the Game had over 7 million daily users.

When users sign up with Zynga to play the Game, they receive a certain amount of “Virtual Currency” that can be used to compete with other players. Players can increase their total number of “Virtual Currency” either by their play or by purchase from Zynga. Players use this “Virtual Currency” to purchase various virtual, in-Game digital items (“Virtual Goods”).

Users can additionally earn Virtual Goods by either doing “jobs” or playing the Game. Zynga allows users to use the “Virtual Currency” or Virtual Goods while playing the Game, but retains sole and exclusive ownership of them and of the source code that allows them to be used in the Game. Zynga has not authorized any third party to sell the “Virtual Currency” or Virtual Goods required to play the Game. Users are informed in the Terms of Service that they are prohibited from selling “Virtual Currency” or Virtual Goods for real-world money or for exchanging “Virtual Currency” or Virtual Goods for anything of value outside of the Game.

In the present action, Zynga has alleged claims against Defendants for the unauthorized sale of Zynga Virtual Goods through the Internet domain names MAFIAWARSDIRECT.COM, MWBLACKMARKET.COM, and MWFEXPRESS.COM. Through these domain names, Defendants sell Virtual Goods that users, playing the Game through the Providers’ websites and/or applications, can use to compete with other players who obtained their Virtual Goods directly from Zynga. Defendants use Zynga’s MAFIA WARS mark and similar variations of it in advertising and for selling Virtual Goods. Plaintiff has never authorized Defendants to use the MAFIA WARS mark, sell Virtual Goods for use in the Game, or transfer Virtual Goods that Defendants have “sold” to players through the Infringing Websites.

Zynga Game Network Inc. v. Williams, No. CV-10:01022, 2010 WL 2077191, at *1 (N.D. Cal. May 20, 2010).

Sigh. No injunction sought; of course, Zynga can’t sue to enjoin itself. Interestingly enough, this is the second federal opinion involving Mafia Wars, the first being Zynga Game Network, Inc. v. McEachern, No. 09-1557, 2009 WL 1108668, at *1 (N.D. Cal. April 24, 2009). In that case, Zynga sought a temporary restraining order against a former employee who had developed Mafia Wars but left the company to create his own game, Mob Underworld.

We write about frivolous lawsuits nearly every day. Isn’t there one vexatious litigant out there who can save my Facebook account from this game? Come on!

In the mean time, we’ll consult Wigmore on Mafia Wars to explore our options.

Stick a Fork in It

I’ve never driven a forklift, and I’ve also never been fortunate enough to have been injured at work. It would be nice to collect from the worker’s compensation carrier and then have the luxury of filing suit against some third-party. Tashee Parker was employed by Home Depot at one of its distribution centers. Mr. Parker was hurt when the forklift he was driving collided with a pallet jack, injuring his foot. The Supreme Court in Orange County, New York, in Parker v. Raymond Corp., No. 2005/7189, 2010 WL 1999529 (N.Y. Sup. Ct. May 17, 2010), recently terminated Mr. Parker’s case against the forklift manufacturer via summary judgment.

Parker alleged that the forklift had a design defect. What he didn’t know at the outset was that the forklift was “first developed by Raymond in the 1940s.” Also, the design and manufacture of the forklift are “subject to certain design and safety standards . . . which . . . have been incorporated into Federal regulations. . . . The subject forklift meets or exceeds all such requirements and standards.” If you are a plaintiff, it is not a good sign when the court points out that the equipment that you claim has a design defect has been around for more than 60 years and exceeds the necessary regulations. The forklift probably doesn’t have a design defect. Most likely. Someone probably would have found it before you, Mr. Johnny-come-lately plaintiff.

It comes as no surprise to most of us that plaintiffs regularly make fantastical arguments. Usually, these fantastical arguments succeed in defeating summary judgment, allowing the plaintiff to settle his lawsuit for more than it is worth. The New York Supreme Court did not buy what the plaintiff was selling. Plaintiff argued that the forklift should have been made with a “foot guard” to “facilitate the operator’s ability to safely remain within the confines of the compartment,” even though Plaintiff admitted at deposition that he was trained to remain in the operator’s compartment, and, had he done so, he would not have been injured. Moreover, the Plaintiff had his expert introduce a sham affidavit to defeat summary judgment, even though at the expert’s deposition “he was unable to recall any basis to conclude that the design of Defendant Raymond’s forklift violated any ANSI standard.” Summary judgment granted.

While no new groundbreaking law was announced in Parker, it’s always fun to read an opinion that rebuts ridiculosity at every point. More than likely, it would have been cheaper to pay Parker than to conduct discovery, get an expert, depose the other expert, and move for summary judgment. But Raymond decided to pay more and give Parker what he deserved. Raymond Corporation, we here at Abnormal Use salute you.

When to Make a Rash Decision

Because of his concern for “access to justice,” our illustrious governor vetoed House bill 3161, which would have increased certain court fees to help fund the judiciary. This commitment is admirable, because we must ensure that parents have the right to seek redress for their children’s diaper rash. As reported earlier by Law360, parents seeking justice for their children have filed a class action suit in the Southern District of Ohio because Procter & Gamble has manufactured diapers that allegedly cause “rashes, blisters, welts, bleeding, oozing, chemical burns, infections, sores, scarring and/or other ailments on babies’ and children’s extremely sensitive and delicate bottoms and other body parts . . . .” The Complaint is captioned as Clark v. The Procter & Gamble Co., 1:10-CV-00301, and may be accessed via PACER. The dangerous instrumentality is a newly designed Pampers Dry Max diaper.

Although the complained of diaper rash is probably more serious than other famous rashes, there are a couple of things (at least) that are concerning to me about this litigation. First, it centers on diaper rash. Is this really what the founding fathers had in mind when they signed the Declaration of Independence, preserving the right to sue over diaper rash? As noted by the National Library of Medicine, “[m]ost babies who wear diapers will have some type of diaper rash.” (To its credit, the NLM also notes that diaper rash is “rash in the diaper area,” lest one think that the diaper itself can experience rash.)

As noted by the NLM, diaper rash is caused by prolonged contact of the baby’s excretions with the skin. Lawyers will have to engage in discovery about diaper changing habits.

Q: How often did you change Junior’s diaper?
A: As often as he needed it.
Q: Did you ever leave a wet diaper on your child?
A: Never. I stand at the ready when my child urinates.

Moreover, the plaintiffs will develop some pediatric toxicologist who will say that it is more probable than not that Pampers causes diaper rash. I’m not sure what the failure to mitigate argument looks like, since carpet cleaning can be fairly expensive.

A more legitimate concern is P&G’s management of this issue in social media. Facebook has several pages devoted to this issue (see, e.g., here and here), and there is a lengthy discussion thread on Pampers’ Facebook page about the rash. In fact, the Complaint references a Facebook page requesting that P&G do away with the diapers. Through Facebook, a purported class has developed on its own, without any legwork by plaintiffs’ attorneys. Also, P&G will have to figure out how to be responsive via social media without damaging its litigation strategy. Perhaps P&G can offer some free samples as a show of confidence in its product. Whatever is decided, P&G has some problems ahead, because few things are worse than an angry parent.

When Is a Product Sold?

I am honored to have the Cinco de Mayo post, and, in honor of this holiday, please ponder with me the age-old question, when does a bucket truck become a bucket truck? In Campbell v. Altec Industries, Inc., No. 09-13472, 2010 WL 1740691 (11th Cir. May 3, 2010) [PDF], the Eleventh Circuit certified a question to the Georgia Supreme Court to decide an statute of repose issue. Campbell worked for Georgia Power Company and was injured when a cylinder on a bucket truck, owned by Georgia Power, failed. Campbell sued the manufacturer of the truck (“Altec”) and the manufacturer of the defective lift cylinder (“THI”). The statute of repose limits the timing of a products liability action to “ten years from the date of the first sale for use or consumption of the personal property causing or otherwise bringing about the injury.” The certified question asks whether the statute of repose begins to run when

(1) a component part causing an injury is assembled or tested, (2) a finished product, which includes an injuring component part, is assembled, or, (3) a finished product, which includes an injuring component part, is delivered to its initial purchaser?

Id. The district court ruled that the statute of repose began to run on January 14, 1998, when Altec placed the completed lift assembly on a test chassis and operated it. “The final assembly of the lift cylinder and placement onto the bucket truck, however, did not occur until sometime in March 1998. The initial delivery to the ultimate purchaser, Georgia Power Company, then occurred in April 1998.” Id. The district court’s order granting the defendants’ motion for partial summary judgment shed’s more light on the facts, noting that Georgia Power initially ordered the bucket truck in March 1997 from Altec, and Altec purchased the lower lift boom cylinder in October 1997. The district court essentially reasoned that Altec purchased the cylinder for production of the truck ordered by Georgia Power, and the completion of the lift assembly on January 14, 1998, which could operate independently of the truck itself, was the moment triggering the statute of repose.

Thus, the relevant inquiry is not when the bucket truck ultimately entered the stream of commerce or whether it was operating as it was intended but rather the movement and function of the lift.

Order, Campbell v. Altec Indus., Inc., No. 08-CV-0810 (N.D. Ga. Feb. 19, 2009) [DE #56]. As shown above, the dates matter, because if the statute of repose was triggered by the assembly of the final bucket truck or its delivery, then Campbell’s suit is timely.

It will be interesting to see what Georgia does with this case. The case will impact vehicles that do something in addition to being vehicles (fire trucks with ladders) in addition to finished products made from components that can function independently of the finished product. I like the defendant-friendly ruling, but I don’t know if it will hold up in a different factual scenario, e.g., firefighter deaths from a defective ladder assembly.

Partying at Mardi Gras

Obviously, we vet all posts here to an abnormal extent, seeking to bring you, our readers, content that is timely, thoughtful, and based on rigorous and bulletproof analysis. Because of this tireless dedication to the truth, we need to set the record straight on a subject of great importance to us all: Mardi Gras.

Fellow blogger Brett Burlison runs a plaintiff-oriented blog in San Francisco, and he recently authored a post entitled “Product Liability Gets More Difficult.” The post is reproduced below:

Let’s say you decide to head south and enjoy Mardi Gras. But let’s also say that you have the unfortunate distinction of being harmed by a float. Maybe the float collapses and falls on you or maybe you suffer personal injuries due to one of the vehicles in the parade.

In any event you’re injured. You would think that there would be laws that protect you and other injury victims like you in such a situation and that make sure you are adequately compensated for your injuries – made whole.

Well, not so fast – the legislature in Louisiana is considering a bill that would actually make it harder for injury victims to be compensated if they are harmed at Mardi Gras. According to media reports, a bill has been introduced by a state representative from New Orleans that would require proof of gross negligence or a deliberate act in order to hold a company that makes floats for Mardi Gras liable for damages due to injuries of death.Two years ago an individual was crushed by a float that was defective. Advocates for injury victims believe that the bill has been introduced to simply shield float manufactures from liability for future similar events.

That’s not really the case. As reported here, and as evident from the language of the bill, the limitation of liability does not extend “to any claim or cause of action against a manufacturer or lessor for damages arising from the failure in the design, manufacture, or maintenance of the trailer or float.” H.B. 902, 2010 Reg. Sess. (La. 2010). Rest assured that, were you to be injured by a float, your products liability action would be available, although I’m not sure how to define the “user” of a float.

Apparently there was some confusion as to the scope of the bill, with the bill’s sponsor merely wanting to limit the filing of frivolous lawsuits, i.e., potential plaintiffs severely injured by beads thrown from the float. But there is some question about a constituent of the bill’s sponsor benefiting from the bill. As an example of the type of lawsuits filed, see the New Orleans Metro Crime and Courts News, discussing the appeal of a case of a woman injured by a flying coconut. She claimed injuries including a cut to the forehead, a loss of interest in Mardi Gras, and “nightmares of airborne coconuts.” Apparently, in the olden days of Mardi Gras, persons riding on the float could hurl the coconuts at onlookers and be protected from ordinary negligence. Although the coconut crowd has adopted a tamer, “handing out” policy, other groups still toss “missiles” such as beads, cups, and doubloons from their floats.

On the legal side, surely this move is motivated to protect Mardi Gras from Lousiana’s system of pure comparative negligence, where any drunken reveler in any other setting may run up defense costs and potentially obtain a recovery even if he is 99 percent negligent in causing his own injury. (The coconut article notes the tens of thousands in legal fees spent solely by one group in defense of claims). Nevertheless, if you choose to attend Mardi Gras, beware of flying objects, and plan out your legal theory about how you were using a float at the time of your injury.

Minimum Contacts for Maximum Recovery

Rather than describing the due process limitation on a state’s exercise of personal jurisdiction, “minimum contacts” may more accurately describe the interpersonal relationships of some of us at Abnormal Use. While relationships and the due process limits on personal jurisdiction may both be equally obtuse, only one can support a blog post. Alas, perhaps we can make some headway with personal jurisdiction.

The Colorado Court of Appeals recently found minimum contacts supporting personal jurisdiction in Etchieson v. Central Purchasing, LLC, No. 09-CA-0218, 2010 WL 1491642 (Colo. Ct. App. Apr. 15, 2010) [PDF]. Etchieson was injured when an electric meter exploded. As happens now in our globalized society, the defective product was manufactured outside of the United States by a Chinese company (“Precision”) with “no offices, employees, or facilities in the United States.” Id. The electric meter was purchased and sold among several companies before reaching the hands of the Plaintiff. Without going through a painful recitation of the facts, perhaps it is sufficient to say that Precision purposefully sold its product in the United States, but Precision did not “aim any advertising exclusively at Colorado and no Precision personnel ever visited Colorado.” Id. The trial court found these contacts insufficient to support exercise of the long-arm statute, but the Court of Appeals reversed.

The Colorado Court of Appeals discussed specific jurisdiction and Supreme Court precedent involving foreign corporations. At the risk of oversimplifying, the court of appeals reasoned that Precision purposefully manufactured its product for the United States market, and, because of that general availing of the broader market, Precision availed itself of the Colorado market. Moreover, specific jurisdiction was reasonable because “in the context of product liability, the limits on personal jurisdiction have been relaxed as trade has . . . globalized . . . and as modern transportation and communication have eased the burden of defending oneself in a distant state . . . .” Id. Therefore, personal jurisdiction is proper.

So what? How is this Plaintiff going to effectuate any judgment that he gets against a foreign company with no domestic assets? It seems a lot of this is driven by Colorado’s apportionment of liability statute, which does not permit recovery against any one tortfeasor in excess of the jury’s finding of liability. Moreover, a jury could consider the liability of any nonparty in the proceeding in its assessment of liability.

A Motorcycle Built for Two

To capitalize on our increasing popularity, the contributors at Abnormal Use have floated the idea of pursuing product sponsorship deals, e.g., Old Spice becoming the official deodorant of the blog. Today, I adopt the Honda Gold Wing as the blog’s unofficial motorcycle. No motorcycle better speaks to the classic risk-aversion of the defense attorney. I, personally, have never seen a Gold Wing rider 1) without a helmet or 2) cruise at a speed in excess of 35 miles per hour. In addition, the design of the Gold Wing promotes the use of Daubert against all oncoming Plaintiffs’ attorneys.

In American Honda Motor Co. v. Allen, No. 09-8051, 2010 WL 1332781 (7th Cir. Apr. 7, 2010) the Seventh Circuit considered the application of Daubert prior to an order certifying a class. Honda sought leave to appeal the district court’s grant of class certification. Plaintiffs, unhappy purchasers of Gold Wings, asserted that the bike had a design defect: Namely, the motorcycle does not properly compensate for “wobble.” Imagine the front wheel of your bike shaking from right to left to the point where you would lose control. (Note: A Google search will reveal multiple videos on motorcycle wobble not appropriate to link here.). Plaintiffs’ claims were based entirely on the expert report of Mark Ezra, who has testified against Honda since the mid-1980s. Ezra developed a wobble decay standard, which set forth that a motorcycle, by its design, should dissipate a certain amount of wobble so that the rider does not react to the wobble.

The District Court, for multiple reasons, was critical of Mr. Ezra’s science, but declined to exclude him at such an early stage of the proceedings. The Seventh Circuit ruled that this failure to exclude was an abuse of discretion and “exclusion is the inescapable result” in this matter. Going forward, the Seventh Circuit noted that some substantive decisions may have to be made prior to deciding the motion for class certification.

We hold that when an expert’s report or testimony is critical to class certification, . . . a district court must conclusively rule on any challenge to the expert’s qualifications or submissions prior to ruling on a class certification motion.

Id. No longer can a Plaintiff bootstrap his way to class certification by hiring an expert. As we noted earlier here, the Seventh Circuit seems earnestly concerned in making sure Defendants are treated fairly in federal class actions, or, in this case purported class actions. While Plaintiffs’ complaint may pass muster under Iqbal/Twombley, the Seventh Circuit sends yet another message to Plaintiffs: Consider Daubert before filing your class action. Moreover, the Seventh Circuit has set forth another method for a court to consider the substance of a lawsuit early in the litigation. Defendants, begin working on your Daubert motions right away.

Pathological Pathologist

You’ve just lost several million dollars gambling in Vegas. After thinking about how to explain this to your wife on the plane ride home, and assuming your survival after such conversation, your thoughts begin to turn on how to make up this deficit in the family budget. Although a return trip to Vegas is not immediately ruled out, your thoughts turn to filing suit against some big pockets. After Wells v. Smithkline Beecham Corp., No. 09-50244, 2010 WL 1010591 (5th Cir. March 22, 2010) [PDF], the return trip to Vegas may seem more appealing.

Wells, the Plaintiff, sued Smithkline Beecham d/b/a GSK, because he claimed that GSK’s drug Requip caused irresistable gambling urges. Wells was a pathologist who had to retire due to Parkinson’s disease. Wells was originally prescribed Mirapex to alleviate his symptoms, but he later read an article that Mirapex might cause “problem gambling.” Wells had already lost $2 million at this point. He was then prescribed Requip, which did not bear any warning about problem gambling. You can bet what happened next.

The district court granted summary judgment to GSK on causation, and the Fifth Circuit affirmed, citing Daubert. Wells put up three experts to say something like “Requip causes gambling problems.” Although Wells’ counsel was able to string together some case-specific information showing some correlation between Requip and gambling impulses, the Fifth Circuit was pretty clear:

Each of the three experts, though, conceded that there exists no scientifically reliable evidence of a cause-and-effect relationship between Requip and gambling.

Id. I imagine that the defense lawyer was somewhat bewildered when each expert admitted at deposition that there was no scientific evidence on which to base an opinion as to causation. The summary judgment motion pretty much writes itself. Without any scientific basis of opinion, the experts can’t opine in court, and, therefore, Wells claim failed for lack of proof of causation. What’s the big deal, you say? This seems pretty straightforward. Well yes, but I would point out two issues on which I will pontificate. First, Wells was just unlucky in the factual sense of the word. Based upon the Requip Patient Information [PDF] (which admittedly is an updated version that notes the potential for impulsive behaviors, including gambling) Wells could have experienced some other side effects that may or may not have been preferable. First, the warnings indicate that a patient may fall asleep during an activity of daily living, perhaps without a warning of drowsiness. Narcolepsy in Vegas could have its positives and negatives. I could envision a scenario where you’re losing at a table without the will to get up, and then you faceplant into your chips. While having a chip impaled through your forehead may hurt, at least the (figurative) bleeding would stop (maybe). I suppose there’s always the chance for somnambulistic wagering.

Second, this brings up a larger philosophical point about accrual of causes of action. While I am sure that someone has examined this in a law review article, I don’t have a lot of extra time to comb Hein Online. The Fifth Circuit makes a big deal out of “statistically significant epidemiological support.” It’s hard to study a purported disease until someone tells the scientist that they think they might have that disease or exhibits such symptoms. Then the scientist has to gather a statistically significant group to study, rule out causes, and then make a hypothesis of causation. It can take a long time to create “statistically significant epidemiological support,” longer maybe than some statutes of limitations. The court even says this:

Perhaps Requip is a cause of problem gambling, but the scientific knowledge is not yet there.

Id. There have to be some legal guinea pigs for cases involving new diseases/side effects that will likely not recover in order to establish scientific evidence that a particular drug either does or does not cause a specific side effect. Obviously we can’t wait for studies in every situation. That means that the initial plaintiffs may accrue a cause of action (reasonable notice that something is wrong with you) before there is legally significant proof of causation. What does this mean for defendants? Use Daubert early and often, before the science develops. But this does not help Wells. Maybe he can asset an equitable lien in some plaintiff’s future proceeds, if there turns out to be causation later. For now, Wells is left with the remorse that his money that he brought to Vegas stayed in Vegas.

Third Restatement Comes In First in Pennsylvania

Over the course of the past year, I have become quite accustomed to the federal government telling me that it knows what is best for me, regardless of what actually may be best for me. Depending on which side of the aisle you stand, you may revel in the audacity of hope, or just simply marvel at the audacity of your political opponents. But we need not sink into the ether of partisanship; not this day – not when there is jurisprudence to be discussed. As will be seen in the coming months, in our land of multiple sovereigns, the judiciary too walks a delicate line among competing interests. As an example of that trend, the Eastern District of Pennsylvania recently authored an opinion illustrating the unique nature of our system.

In Hoffman v. Paper Converting Machine Co. , No. 08-3012, 2010 WL 845984 (E.D. Pa. March 3, 2010), the Plaintiff injured himself when using a printing press, amputating fingers on his right hand. He sued in federal court. The defendants moved for summary judgment. The initial issue in the decision relates to the proper substantive law for decision. Even though a federal court sitting in diversity applies substantive state law, the federal court may still be forced to speculate what a state court might do when state law is nebulous on the issue at hand. The district court, per the case discussed below, ruled that the Third Restatement was the standard of decision, and it decided various issues raised in the summary judgment motion.

In Berrier v. Simplicity Manufacturing, Inc., 563 F.3d 38 (3d Cir. 2009) [PDF], the Third Circuit was confronted with the issue of whether Pennsylvania courts would adopt the principles of the Third Restatement of Torts. The Third Circuit had some pretty strong indications (a pending case before the Pennsylvania Supreme Court) that the Pennsylvania Supreme Court was going to move to the liability scheme found in the Third Restatement, so the Third Circuit made that prediction. It turned out that the Pennsylvania Supreme Court dismissed the pending appeal as improvidently granted, and, therefore, Pennsylvania, for the time being, still adheres to the Second Restatement.

In Hoffman, the Plaintiff preferred the Second Restatement, while Defendants sought the application of the Third. Deciding between the Second and Third Restatement is a big decision, since each presents a different definition of a product defect, and in a products liability action, the definition of defect is likely to come up at some point in the proceedings. But there really was no decision to be made:

[A] district court is bound by Third Circuit precedent on state law issues unless a subsequent[] decision by the highest state court diverges from Third Circuit precedent.

Hoffman at *3. The district court ruled that the Third Restatement was the standard of decision, and it decided the various issues related to the summary judgment motion, granting it in part and denying it in part.

Defendants, pay attention. You can now do some forum shopping of your own, deciding whether to stay in state court, or remove to federal court, depending on which liability scheme is favorable to you. If you decide to remove, don’t forget about Iqbal and Twombley. As much as I would love to pontificate a potential law school exam question on this, I think I’ll just make the point that, in the short term, plaintiffs in Pennsylvania will have to pay attention to their products cases (including potential CAFA jurisdiction) to ensure that they get to apply Pennsylvania substantive law, at least in the short term, or in the alternative, prepare their complaints to survive a motion to dismiss under either standard. For the time being, in federal court, Pennsylvania state law is not really Pennsylvania state law.