JAMES S. GWIN, District Judge.
Plaintiffs Kenneth Chapman, Jessica Vennel, and Jason Jackson bought pressure cookers from Defendant Tristar.
Plaintiffs now move for class certification.
Pressure cookers cook food by building-up and trapping steam within the appliance. After use, the accumulated pressure gradually dissipates to allow a user to safely open the device.
During 2015 and 2016, the Plaintiffs each purchased a Power Pressure Cooker XL ("Pressure Cooker" or "Cooker") from Defendant Tristar. The Plaintiffs say that the Pressure Cookers have an inherent design defect that "permits them to be opened while pressurized and creates the unreasonable and dangerous risk that their contents will suddenly and violently erupt during use."
Plaintiffs forego claims for any class-wide claims for personal injury damages. Instead, Plaintiffs argue the Cookers' defect makes the Cookers worthless.
As to the nationwide express warranty class, Defendant Tristar attacks Plaintiffs' motion on several grounds. Defendant says Plaintiffs cannot satisfy Rule 23's commonality, typicality, adequacy, predominance, or superiority requirements.
Regrettably, the parties skirted briefing the implied warranty, Ohio, Pennsylvania, and Colorado class claims.
The Court next analyzes Rule 23's certification requirements for the various class claims and addresses the Defendant's arguments when applicable.
Rule 23 of the Federal Rules of Civil Procedure controls federal class action lawsuits. Under that Rule, a court may certify a class action if the class seeking certification meets Rule 23(a)'s procedural requirements, and if certification is appropriate under Rule 23(b)(1), (b)(2), or (b)(3).
"Rule 23 does not set forth a mere pleading standard."
Rule 23(a) sets forth the four prerequisites to class certification: (1) the class must be so numerous that "joinder of all members is impracticable"; (2) there must be "questions of law or fact common to the class"; (3) the claims of the representative party must be "typical" of those of the class; and (4) the representative party must "fairly and adequately protect the interests of the class."
"No class that fails to satisfy all four of the prerequisites of Rule 23(a) may be certified, and each class meeting those prerequisites must also pass at least one of the tests set forth in Rule 23(b)."
The Court partially certifies the Plaintiffs' proposed classes. First, the Court determines that each Plaintiff's home state's law governs that particular Plaintiff's claims. Second, we certify an express warranty class, but only for Ohio, Pennsylvania, and Colorado purchasers. Third, the Court certifies an implied warranty class, but only for Colorado purchasers. Fourth, we certify narrowed Ohio classes for strict liability, negligence, and unjust enrichment. Last, the Court certifies a Pennsylvania unjust enrichment class.
"When a putative class action contains members from several states, the Court must undertake a choice of law analysis to determine which states' laws apply to plaintiff's claims."
Although the parties do not brief this matter directly, they agree that individual state laws control the express and implied warranty class claims.
Accordingly, each purchaser's home state's laws control that home state plaintiff's claims.
The Plaintiffs say Tristar breached an express warranty that the Cooker's lid would not open "until all pressure is released."
Certifying a nationwide class is inappropriate because individual state law questions would predominate. Instead, the Court certifies an express warranty class of Ohio, Pennsylvania, and Colorado purchasers.
The following section details why the three-state class satisfies Rule 23(a)'s numerosity, commonality, typicality, and adequacy requirements. Next, the Court explains how the Ohio, Pennsylvania, and Colorado class satisfies Rule 23(b)(3)'s predominance and superiority requirements while the proposed nationwide class fails. Finally, we conclude by addressing Tristar's additional defenses—defenses that mostly go to the weight of Plaintiffs' damage model.
Rule 23(a)(1) provides that a class action may be maintained only if "the class is so numerous that joinder of all members is impracticable." There is no strict numerical test for determining when too many parties make joinder impracticable. Courts look to the specific facts of each case to determine if there is a "substantial" number of affected class members.
Since late 2015, Tristar has sold over 1.6 million pressure cookers.
Rule 23(a)(2) provides that a class action may be maintained only if "there are questions of law or fact common to the class." Commonality is satisfied if the claims of the class "depend upon a common contention" that is "of such a nature that it is capable of classwide resolution— which means that determination of its truth or falsity will resolve an issue that is central to the validity of each one of the claims in one stroke."
The named Plaintiffs and the three-state express warranty class members share common questions that will advance the litigation. These questions include: Do all Pressure Cookers suffer from a design defect that violates an express warranty? Rule 23(a)(2)'s commonality requirement is satisfied.
Defendant Tristar says the Plaintiffs' individual claims are not typical of the nationwide class.
Rule 23(a)(3) provides that a class action may be maintained only if "the claims or defenses of the representative parties are typical of the claims or defenses of the class." "Typicality determines whether a sufficient relationship exists between the injury to the named plaintiff and the conduct affecting the class, so that the court may properly attribute a collective nature to the challenged conduct."
Defendant Tristar argues the Plaintiffs allege a class-wide theory that differs from the individual Plaintiffs' claims. Tristar says that the Plaintiffs testified that they "experienced no resistance whatsoever" when opening their Cookers.
The Court disagrees.
The fundamental claim asserted by the Plaintiffs is that the Cookers are defective, unsafe, and worthless because users can open the Cookers while pressure remains inside. This claim is typical as to Ohio, Colorado, and Pennsylvania class members and the named Plaintiffs. Plaintiffs say this defect causes the Cookers not to comply with Defendant's sales representations.
Plaintiffs' expert Dr. Pratt reported that he rotated the lids on the Plaintiffs' Pressure Cookers when pressure remained inside the Cookers.
To the extent that Tristar wishes to impeach Pratt's opinions by comparing the force Dr. Pratt used to open the Cookers against the force used by the Plaintiffs, the Defendant may do so at trial. But this goes to weight, not typicality. The Plaintiffs and the express warranty class share typical claims.
Rule 23(a)(3) provides that a class action may be maintained only if "the representative parties will fairly and adequately protect the interests of the class."
The Court finds Plaintiffs' counsel is qualified to pursue this case. Defendant does not dispute this issue.
Defendant does argue that the Plaintiffs' interests are antagonistic to the proposed class members' interests. Tristar says that Plaintiffs' decision to seek only economic damages "creates substantial risk that any possible personal injury or property damage claims by other class members could be waived."
This Court take the same approach. After adding an opt-out provision for any individual who wishes to individually pursue a personal injury or property damage claim, the Plaintiffs satisfy Rule 23(a)(4)'s requirements.
"The Rule 23(b)(3) predominance inquiry tests whether proposed classes are sufficiently cohesive to warrant adjudication by representation."
Plaintiffs say U.C.C. § 2-313 governs their nationwide breach of express warranty claim. The Plaintiffs argue that common questions of law predominate because the fifty states adopted § 2-313 in a sufficiently uniform manner.
Justice Ginsburg once noted, "[t]he Uniform Commercial Code is not Uniform."
For example U.C.C. § 2-313's requires that a seller's promise must "become[] the basis of the bargain" to form an express warranty. The fifty states use at least three distinct approaches to this "reliance element."
Complicating matters further, states in the latter two groups sometimes require individualized reliance for express warranty plaintiffs.
Here, individualized state-law reliance questions predominate the Plaintiffs' nationwide express warranty claim. The California Pressure Cooker owners
Plaintiffs counter by pointing to Daffin v. Ford Motor Co, where the Sixth Circuit approved class certification for an express warranty claim.
Although state law variations defeat predominance for a nationwide express warranty class, common questions of state law predominate when the class is narrowed to Ohio, Colorado, and Pennsylvania purchasers. These three states agree on the elements of an express warranty claim, particularly that reliance is not an element.
Accordingly, the Ohio, Pennsylvania, and Colorado class satisfies Rule 23(b)(3)'s predominance requirement.
Under Rule 23(b)(3), the Court must find that "a class action is superior to other available methods for fairly and efficiently adjudicating the controversy."
Here, each individual plaintiff would not recover more than the cost of an individual action. Each plaintiff seeks reimbursement for the $100 to $160 Cooker purchase price, far less than an individual action's cost.
Tristar says that Plaintiffs fail to include an economic damages model the Supreme Court in Comcast Corp. v. Behrend requires.
Plaintiffs' argument wins.
Plaintiffs' damages model—a full refund of the purchase price for each class member— satisfies Comcast."
Defendants counter by saying that an overwhelming majority of the potential class includes Cooker owners who realized benefits from their cookers without problems. However, "[w]hether purchasers were nevertheless satisfied with [their Pressure Cookers] does not affect the propriety of a full-refund damages model."
More accurately, Defendant suggests that the relatively low number of personal injury problems and relatively low number of reported incidents suggest the Cookers are not defective and the Cookers complied with Defendant's representations. This argument might win at trial but it confuses the Comcast issue. Comcast requires a class plaintiff to align its damages with its claim; it does not require some certainty that the claim will win.
Because the Plaintiffs have satisfied the prerequisites of Rule 23(a), and because the Plaintiffs have satisfied the predominance and superiority requirements of Rule 23(b), the Court certifies an Ohio, Colorado, and Pennsylvania express warranty class.
Plaintiffs say the Pressure Cookers breach the implied warranty of merchantability because users can open the Cookers when pressure remains within the device.
Because Plaintiffs acknowledge that different state privity laws could defeat predominance, Plaintiffs seek to certify an implied warranty class from thirty non-privity states, the District of Columbia, and customers who purchased Cookers directly from Tristar.
Certifying Plaintiffs' class is inappropriate because individual state law questions would still predominate. Instead, the Court certifies an implied warranty class of Colorado purchasers.
Because predominance is outcome determinative in stopping Plaintiffs' proposed multistate implied merchantability class, the Court analyzes predominance first and then addresses Rule 23's remaining requirements.
Individual state law questions defeat predominance in Plaintiffs' proposed thirty-state class.
Plaintiffs say "[t]he only arguably substantive differences between state laws concerns whether privity is required to bring implied warranty claims." This Court disagrees, and this Court agrees with other district courts that have faced the certification of a multi-state implied warranty class.
The several states adopted § U.C.C. 2-314's implied warranty of merchantability provision, but § 2-314's application differs across states because fifty state legislatures and judiciaries have differently enacted and interpreted the provision.
For instance, states differently define "merchantability," and differently interpret whether an alleged defect meets that threshold.
Additionally, some proposed class states define implied warranty as a contract claim whereas others recognize it as a tort.
Furthermore, state prior notice requirements differ in the proposed class. For instance, Alaska purchasers satisfy the notice requirement by filing the lawsuit, whereas Arkansas purchasers "must establish notice by informing the manufacturer of the defect by writing a letter or calling its place of business or corporate headquarters because later filing a complaint will not suffice."
We now turn to the question of narrowing the class to Pennsylvania and Colorado purchasers only.
The Court cannot certify a Pennsylvania implied merchantability warranty class. Under Pennsylvania law, "a manifestation of the breaching defect is required for a[n implied warranty] claim to accrue."
With only Colorado law in play, Rule 23(b)(3)'s predominance is satisfied. In addition, unlike Pennsylvania, Colorado does not have a manifest defect requirement.
Now that predominance is established, the Court turns to Rule 23's remaining requirements.
The Colorado implied merchantability warranty class satisfies numerosity, typicality, adequacy, and superiority requirements for the same reasons detailed in Section III.B.
As to commonality, common questions include: Do the Pressure Cookers have a design defect that makes the Cookers worthless? Are the Pressure Cookers "fit for the ordinary purposes for which such goods are used?"
The Court certifies a breach of implied warranty of merchantability class for Colorado purchasers.
Of the state-specific classes Plaintiffs seek to certify,
Before addressing each class, some background helps. Most of Plaintiffs' Pennsylvaniaand Colorado-specific claims fail due to the economic loss rule. Generally speaking, the economic loss rule prevents plaintiffs from using tort claims when plaintiffs seek only economic damages. The rule prevents plaintiffs from using tort law to make an end-run around bargained contracts.
The Court starts with the proposed Ohio classes, then moves to the Pennsylvania classes, and concludes with the Colorado classes.
The Court narrows and certifies Plaintiffs' Ohio strict liability, negligence, and unjust enrichment classes. We deny the Ohio Product Liability Act class.
In Ohio, "if the plaintiff is a consumer who is not in privity with the defendant seller or manufacturer, as is the case here, then . . . `an action in strict liability may be maintained for purely economic loss.'"
Here, approximately 63% of the Ohio purchasers did not buy their Cookers from Tristar and are not in privity with Tristar.
As to Rule 23's numerosity, typicality, adequacy, and superiority requirements, this Ohio strict liability class satisfies the requirements for the same reasons detailed in Section III.B. Additionally, generalized proof under Ohio laws predominates.
Finally, the Ohio members share common questions. For instance, do the Cookers have a defect that makes them worthless? Did the defect cause the Ohio Plaintiffs economic injuries?
The Court certifies a strict-liability class for Ohio purchasers not in privity with Tristar.
Plaintiffs also seek certification for an Ohio class alleging negligent design.
"Ohio law permits ordinary consumers who are not in privity of contract with product manufacturers to bring claims such as negligent design . . . in order to recover damages for economic injury only."
The Court certifies this Ohio negligent design class under the same framework as the Ohio strict liability class—i.e. for those members not in privity with Tristar.
The Court narrows and grants certification to an Ohio class alleging unjust enrichment.
In Ohio, unjust enrichment occurs "when a party retains money or benefits which in justice and equity belong to another."
Approximately 37% of Pressure Cooker purchasers bought their Cookers directly from Tristar.
This Ohio unjust enrichment class satisfies Rule 23's numerosity, typicality, adequacy, predominance and superiority requirements under the same rationale discussed in Sections III.B and III.D.1.a. Finally, the Ohio class satisfies commonality with questions like "Did Tristar retain a benefit under the circumstances where it would be unjust to do so without payment?"
The Court certifies an unjust enrichment class for Ohio purchasers who purchased pressure cookers directly from Tristar.
The Court denies certification for an Ohio Class alleging Ohio Product Liability Act violations.
To recover under the OPLA, Plaintiffs "must allege [relief] other than economic damages."
First, the Court determines the economic loss rule stops Plaintiffs' Pennsylvania strict liability and negligence claims. Second, we certify a Pennsylvania unjust enrichment class. Finally, the Court denies certification for a class under Pennsylvania's Unfair Trade Practices and Consumer Protection Law ("UTPCPL").
The Court declines to certify a Pennsylvania strict liability class.
"Pennsylvania's interpretation of the economic loss rule disallows recovery under a strict liability theory where the only resulting damage is to the defective product itself."
Plaintiffs dropped their personal injury claims and now only allege that a design defect makes the Cookers worthless.
We also deny certification for a Pennsylvania negligence class.
The Pennsylvania Supreme Court has said that "[t]he economic loss doctrine provides no cause of action exists for negligence that results solely in economic damages unaccompanied by physical injury or property damage."
The Court certifies the Pennsylvania Plaintiffs' unjust enrichment claim.
Pennsylvania law permits "indirect purchasers to establish claims for unjust enrichment so long as they can prove that the defendant benefitted at the plaintiff's expense, even if the benefit flowed indirectly from the plaintiff to the defendant."
However, this Pennsylvania class "may proceed with their unjust enrichment claim as an alternative theory, although they will not be able to recover under both [an express warranty] theory and an unjust enrichment theory."
The Court certifies an unjust enrichment class for Pennsylvania Pressure Cooker purchasers.
The Court declines to certify Plaintiffs UTPCPL claim.
Under Pennsylvania's "gist of the action doctrine," a plaintiff cannot "re-cast[] ordinary breach of contract claims into tort claims."
"The important difference between contract and tort actions is that the latter lie from the breach of duties imposed as a matter of social policy while the former lie for the breach of duties imposed by mutual consensus."
Here, the Plaintiffs seek reimbursement for their Cookers. Plaintiffs can pursue these damages under the Cookers' warranties. Furthermore, the Plaintiffs' UTPCPL claim "essentially duplicates [the Plaintiffs] breach of contract claim."
The Court denies certification of all the Colorado classes.
Under Colorado's economic loss rule, a plaintiff cannot recover for strict liability when the plaintiff only claims economic damages that "could have been addressed under the [product's] warranty."
In Colorado, "a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for such a breach absent an independent duty of care under tort law."
Under Colorado law, "[u]njust enrichment requires some form of misconduct by [the Defendant], such as fraud, coercion, or a clear act of bad faith."
The economic loss doctrine bars certification of a Colorado Products Liability Class.
"The question in any case where the economic loss rule is alleged to apply is whether the duty allegedly violated exists independent of the contract."
Because Tristar alleges damages only with regard to the Cookers themselves, the economic loss doctrine bars the Colorado Products Liability class.
Currently, this case is scheduled to hold its final pretrial conference on May 17, 2017 and then go to trial on May 22, 2017. However, the Court will reset these dates so the parties may give potential class members sufficient notice. Accordingly, trial is now set for July 10, 2017 on a two-week stand-by basis. The parties will meet for a final pretrial conference July 3, 2017 at noon.
For the foregoing reasons, the Court
IT IS SO ORDERED.