Justia California Court of Appeals Opinion Summaries

After a bus rollover accident in Arizona caused injuries and deaths, plaintiffs filed suit seeking to recover in strict liability. Plaintiffs, Chinese nationals, are the passengers who were injured, and the survivors of the passengers who were killed. Plaintiffs' theory of the case is that passenger seatbelts would have prevented the deaths and greatly lessened the injuries suffered. The court concluded that the trial court erred in applying Indiana products liability law, which is substantially less favorable to plaintiffs, as opposed to California products liability law. In this case, the tour bus had been manufactured in Indiana, by an Indiana manufacturer, but the manufacturer had previously settled out of the case. The court explained that the trial court should have fully reconsidered the choice of law issue after the manufacturer's settlement with plaintiffs. On de novo review, the court concluded that, considering the governmental interests at stake, California law has an interest in applying its laws, while Indiana does not. The court stated that California’s interest in imposing its rules of strict products liability, in which a California dealership ordered an allegedly defective product, imported it into the state, and sold it to a California tour company, for use on California roads, is strong. Because the trial court erred in applying Indiana law and the error was prejudicial, the court reversed and remanded for a new trial. View "Chen v. L.A. Truck Centers" on Justia Law

Kase was exposed to asbestos insulation used on nuclear submarines during the early 1970s. The trial court rejected claims against a broker that arranged for asbestos-containing insulation to be shipped to the Mare Island Naval Shipyard, where workers packed it around the submarine piping it protected. The court held, on summary judgment, that the Navy‘s procurement of asbestos insulation for its nuclear submarines implicated the government contractor defense set forth in the Supreme Court’s 1988 holding, Boyle v. United Technologies Corp. The broker procured the insulation pursuant to and in compliance with relatively detailed performance and testing specifications, although those specifications did not expressly call out for asbestos in the insulation. According to undisputed evidence, the specifications could only be met by asbestos-containing insulation, and the only product on the Navy‘s approved list of suitable products was the product at issue, Unibestos. The court of appeal affirmed, stating that the defense does not necessarily exclude the procurement of products also sold commercially. The Navy‘s procurement of the asbestos insulation at issue occurred after years of evaluating and weighing the utility of and the health hazards associated with asbestos products and pursuant to specifications that required an asbestos product. View "Kase v. Metalclad Insulation Corp." on Justia Law

This matter arose from Whitney Engler's use of a medical device, the Polar Care 500, that was manufactured by Breg, Inc. (Breg) and prescribed by David Chao, M.D. Engler suffered injuries as a result of her use of the Polar Care 500, and she brought various tort claims against Chao, his medical group Oasis MSO, Inc. (Oasis), and Breg, among others. The jury made findings of malice, oppression, or fraud as to each defendant on at least one claim. In the punitive damages phase of trial, the jury awarded $500,000 against Chao and $7 million against Breg. The jury declined to award any punitive damages against Oasis. Breg, Chao, Oasis, and Virginia Bigler-Engler, as administrator of Engler's estate, appeal. After careful consideration of the parties' arguments on appeal of the outcome of the trial, the Court of Appeals reversed the judgment in part, concluding the jury's verdict as to several claims was not supported by the evidence, including Engler's intentional concealment claim against Breg and her strict products liability claim against Oasis. In light of this reversal of Engler's intentional concealment claim against Breg, the jury's punitive damages award against Breg had to be reversed too. The Court also concluded the jury's award of noneconomic compensatory damages and the jury's award of punitive damages as to Chao were excessive. Those awards were reversed the case remanded for a new trial unless Bigler-Engler accepted reductions in those awards to $1,300,000 and $150,000 respectively. In all other respects, the judgment was affirmed. View "Bigler-Engler v. Breg, Inc." on Justia Law

Fred Duran filed a putative class action complaint against Obesity Research Institute, LLC (ORI) and Wal-Mart Stores, Inc. (Wal-Mart) (collectively, defendants). Duran alleged defendants falsely claimed that ORI's products, Lipozene and MetaboUp, had weight loss benefits. The court approved a claims-made settlement providing that class members submitting a claim without proof of purchase would receive $15, and those submitting receipt(s) would receive one refund of double the unit price paid. The settlement also provided that ORI would cease making certain assertions in product advertising. Defendants also agreed to not oppose a motion seeking $100,000 in attorney fees to class counsel. Objectors, class members DeMarie Fernandez, Alfonso Mendoza, and Brian Horowitz appealed, contending the settlement was the product of collusion. Objectors claimed the class did not receive sufficient notice of settlement, and the settlement was unreasonable and inadequate. They also contended the attorney fee award was excessive. The Court of Appeal reviewed the case and concluded that the trial court's judgment had to be reversed because the class notice failed in its fundamental purpose, to apprise class members of the terms of the proposed settlement. "The erroneous notice injected a fatal flaw into the entire settlement process and undermines the court's analysis of the settlement's fairness." View "Duran v. Obesity Research Institute" on Justia Law

In December 2012, the Korean Ministry of Food and Drug Safety suspended the sales of Mario Badescu's Healing Cream after testing revealed the product contained two unlabeled corticosteroids, hydrocortisone and triamcinolone acetonide. Plaintiffs, on behalf of themselves and a nationwide class of face cream purchasers, filed suit seeking economic damages and equitable relief. Defendants agreed to settle the action before the class was certified. In this appeal, nine class members raise numerous challenges. In the published portion of the opinion, the court held that the one-time publication of the notice of settlement did not violate the Consumers Legal Remedies Act, Civ. Code, 1750 et seq. The court affirmed the judgment. View "Choi v. Mario Badescu Skin Care, Inc." on Justia Law

Hennessy manufactured and supplied brake arcing machines used to grind asbestos brakes. Rondon used Hennessy’s machines while working as a mechanic, 1965-1988. Rondon developed mesothelioma as the result of exposure to asbestos while working as a mechanic and brought claims for strict liability and negligence against Hennessy, alleging that its brake arcing machines released asbestos dust that caused him injury when he used them to grind standard brake linings. Hennessy’s grinders themselves did not contain asbestos. Hennessy alleged that the machines were not designed to be used exclusively with asbestos-containing products and were used on non-asbestos brakes. The trial court dismissed. The court of appeal reversed, citing the 2015 decision from the Second District Court of Appeal in Sherman v. Hennessy, holding that the proper test is not the “exclusive use” standard argued by Hennessy and relied on by the trial court, but whether the “inevitable use” of Hennessy’s machines would expose a worker like Rondon to asbestos dust absent safety protection or adequate warning. Rondon produced sufficient evidence to raise a triable issue of fact as to whether the “inevitable use” standard was met. View "Rondon v. Hennessy Indus., Inc." on Justia Law

Hennessy manufactured and supplied brake shoe arcing machines, (grinders) used to grind asbestos brakes. Hetzel allegedly used its grinder while working as a mechanic from 1958 to 1962 and alleged Hennessy knew or should have known its grinders would be used in conjunction with asbestos-containing brake linings. All brake shoe linings used with automobiles during the relevant period contained asbestos. He claimed Hennessy had a duty to warn of the risks. Hennessy’s grinders did not contain asbestos and are designed to reshape the friction material of a brake shoe, regardless of the shoe’s composition, by mechanical abrasion. When the grinder comes into contact with an asbestos-containing brake shoe, it releases asbestos into the air. The trial court entered summary judgment in favor of Hennessy, reasoning that brake shoes without asbestos existed at the time of plaintiff’s exposure and Hennessy’s grinders worked on all brake linings, regardless of whether they contained asbestos. Hetzel, who suffered lung damage, died in 2012. The court of appeal reversed. The combined use of Hennessy’s machines with the asbestos brakes inevitably created a hazardous condition by releasing asbestos fibers into the air. Hennessy was in a position to provide safeguards from this exposure. View "Hetzel v. Hennessy Indus., Inc." on Justia Law

In 2001, BioEnterics obtained FDA approval for the Lap-Band, “designed to induce weight loss in severely obese patients by limiting food consumption" by creation of a small gastric pouch. The FDA indicated that the Lap-Band’s labeling must “specify the requirements that apply to the training of practitioners who may use the device” and required annual progress reports on a postapproval study. BioEnterics's brochure states that surgeons planning laparoscopic placement must have specific experience, participate in a training program authorized by BioEnterics, be observed by “qualified personnel” during their first placements, have the equipment and experience necessary to complete the procedure via laparotomy if required, and report on their personal experiences using the device. In 2003, plaintiff underwent a surgical procedure to implant a Lap-Band, which eventually eroded into her stomach and her liver; Lap-Band tubing became entangled with her small intestine. During surgery to remove the Lap-Band she suffered a massive hemorrhaging from her liver, causing her to experience profound hypotension and systemic shock, resulting in brain damage. More than nine years later, plaintiff filed suit. The court of appeal affirmed dismissal of her claim that the company failed to adequately train physicians in the use of the Lap-Band, as preempted by federal law. View "Glennen v. Allergan, Inc." on Justia Law

Cummins installed asbestos containing products in California and had received hundreds of asbestos bodily injury claims, including many lawsuits, based on exposure to its asbestos containing materials. Cummins purchased 19 U.S. Fidelity insurance policies 1969-1987, and purchased four U.S. Fire policies, 1988-1992, for “primary, umbrella, and or excess insurance policies,” some of which “may be missing or only partially documented.” Cummins and its parent company (Holding, formed in 2014) sought a “declaratory judgment that defendants are obligated to defend and/or indemnify Cummins [Corp.], in full, including, without limitation, payment of the cost of investigation, defense, settlement and judgment . . . , for past, present and future Asbestos Suits under each of the Policies triggered by the Asbestos Suits.” The trial court dismissed without leave to amend, finding that Holding lacked standing. The court of appeal affirmed. Holding, the controlling shareholder of Cummins, does not have a contractual relationship with the insurers and is not otherwise interested in the insurance contracts. View "D. Cummins Corp. v. U.S. Fid. & Guar. Co." on Justia Law

Plaintiff, a salesman for Kaiser Refractories, filed suit against manufacturers and suppliers of asbestos-containing products, including Foster Wheeler, a manufacturer of industrial boilers insulated with refractory, alleging causes of action for, among other things, strict liability and negligence/failure to warn. The jury returned a verdict for Foster Wheeler and plaintiff appealed. The court agreed with plaintiff that the evidence is insufficient to support the verdict, because substantial evidence fails to prove, as required for the sophisticated user defense, that by virtue of his position, training, experience, knowledge, or skill, he knew or should have known of the health risks posed by working with or near the asbestos-containing products he sold and which were used in Foster Wheeler boilers. Accordingly, the court reversed and remanded for a new trial. View "Moran v. Foster Wheeler Energy Corp." on Justia Law