WILLIAM C. LEE, District Judge.
Defendant Electrolux Home Products, Inc. manufactured a clothes dryer that caught on fire causing considerable damage to the home of Kelly Slabach, subrogee in this action, and her husband. State Farm Fire & Casualty insured the Slabach's home, paid their insurance claim and then sued Electrolux to recover the amount paid on the Slabach's behalf. State Farm asserts claims of strict product liability, negligence, and breach of warranty, all of which are dependent on its theory that the design and warnings for the dryer were defective thereby creating an unreasonably dangerous product.
Electrolux designated its expert Dr. Christine Wood ("Wood") to counter State Farm's allegations. State Farm then moved to preclude Wood's testimony [DE 92] under Fed.R.Evid. 702 and the court's gatekeeping function identified in Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), and its progeny. Subsequently, the undersigned referred the motion to Magistrate Judge Roger B. Cosbey pursuant to 28 U.S.C. § 636(b)(1)(B), Federal Rule of Civil Procedure 72(b), and N.D.Ind. Local Rule 72-1(b), for a Report and Recommendation. [DE 117]. On November 5, 2012, the Magistrate Judge entered his Report and Recommendation ("R & R") [DE 121] recommending that State Farm's motion to exclude Wood's testimony be denied in part and granted in part. Thereafter, both Electrolux and State Farm filed their Objections to the Magistrate Judge's R &
From the outset, the parties disagree on the appropriate standard of review for this Court's review of the Magistrate Judge's R & R. State Farm cites cases which indicate that motions relating to evidentiary matters are non-dispositive and, under Fed. R.Civ.P. 72(a) and 28 U.S.C. 636(b)(1)(A) the standard of review is "clearly erroneous." See RMED Int'l, Inc. v. Sloan's Supermarkets, Inc., 2000 WL 420548, *2, n. 1 (S.D.N.Y. April 18, 2000) ("A decision to admit or exclude expert testimony is considered `nondispositive' of the litigation."); Cusumano v. Mapco Gas Products, Inc., 1994 WL 86653, *1 (N.D.Ill. March 10, 1994). Electrolux, however, argues that as a general rule, when objections are received to a Magistrate Judge's Report and Recommendation pursuant to 28 U.S.C. § 636(b)(1)(B),
In this case, while the Court agrees with State Farm that the "clearly erroneous" standard is likely the more appropriate one in light of the non-dispositive nature of the motion in limine, the Court shall conduct a de novo review of both the Magistrate Judge's R & R. As is evidenced by this Court's ultimate conclusion, under either standard the Magistrate Judge's R & R survives scrutiny.
On August 16, 2006, the Slabach's dryer caught fire, causing damage to their home and personal property for which State Farm paid $234,825.21.
Electrolux designated Drs. Christine Wood and Duane L. Steffey
The Magistrate Judge's R & R sets forth in detail Dr. Wood's qualifications including her extensive and impressive educational background, work history, including her employment with Exponent as a Principal Scientist and Director of the Human Factors Practice,
Her qualifications aside, the Magistrate Judge examined in great detail whether Dr. Wood's two statistical opinions are based upon a reliable methodology. Ultimately, he concluded that her statistical opinions, that is the two opinions in the Dr. Wood Report, should be excluded as unreliable for three reasons. First, the Magistrate Judge determined that in conducting her statistical analysis, Dr. Wood used data obtained from two different sources when she could have and should have used data.from comparable sources. He noted, for instance, that Dr. Wood obtained the number of fires involving all manufacturers' dryers from the National Fire Protection Association ("NFPA"),
(R & R, p. 1050 quoting State Farm Fire & Cas. Co. v. Electrolux, No. 2:10-CV-01147 RSM, 2012 WL 161821, at *3 (W.D.Wash. Jan. 4, 2012)).
With respect to the opinions expressed in Dr. Wood's Warnings Report, the Magistrate Judge concluded that those opinions were both reliable and admissible. In doing so, he pointed out that Dr. Wood reviewed the warnings, owner's guide, and instructions associated with the Slabachs' dryer and went on to analyze the various factors relevant to the adequacy of a warning prior to offering her opinions. Moreover, Dr. Wood, relied upon the American National Standard for Product Safety Signs and Labels and explained that the warnings met those standards. She further "noted that the safety information for the dryer utilized common formatting techniques
Despite the detailed and thorough discussion by the Magistrate Judge, both sides have filed objections to the portions of his recommendations that hinders their cause. Electrolux challenges the Magistrate Judge's recommendation that Dr. Wood's statistical analysis be excluded as unreliable while State Farm challenges the recommendation that Dr. Wood's opinions as to the adequacy of the warnings is permissible. It is to these specific objections that the Court now turns.
With respect to Electrolux's challenges to the R & R, it asserts that the Magistrate Judge misapplied the independent verification standard; erred in finding Dr. Wood's comparative analysis unreliable because she took data from two different sources; and erred in concluding that the statistical opinions were unreliable because they did not fit the facts of the case. (Objections, p. 2). It also asserts that the Magistrate Judge impermissibly intervened in areas reserved for the jury or other fact-finder. Having reviewed these objections as well as the record before the Magistrate Judge, his R & R and the briefs of the parties, the Court concludes they are not well-taken.
Electrolux argues that the Magistrate Judge unfairly required Dr. Wood to independently verify the data she received from Electrolux noting that there is nothing "illicit" in an expert analyzing data that was prepared for litigation by an interested party. See Southwire Company v. J.P. Morgan Chase & Co., 528 F.Supp.2d 908, 934 (E.D.Wis.2007). However, the Magistrate Judge did not assert that the data was skewed or improperly provided to Dr. Wood at all; what the Magistrate Judge concluded is that without Dr. Wood independently verifying the facts provided to her by Electrolux, an interested party, her analysis suffered from a reliability flaw because she had not confirmed that her analysis was comparing apples to apples rather than apples to oranges. In fact, Dr. Wood's own testimony was that she accepted the reports she received from Electrolux and did nothing additional to research the sources of the information, how the data was compiled, or verify the reliability of the data. This problem, the Court concludes, as did the Magistrate Judge, renders Dr. Wood's opinion unreliable. See R & R, pp. 1048-49 (citing authorities).
More importantly, however, the comparative analysis is irrelevant to the facts of this case. The underlying theory is that Electrolux dryers have a design defect in that they permit lint to accumulate in areas that combust thereby creating a higher rate of fires than other dryers manufactured in the United States. Thus, the relevant inquiry is whether Electrolux dryers have a higher rate of fires caused by lint collection in high combustion areas than other manufacturers' dryers. The data analyzed by Dr. Wood is not limited to this particular design problem. She does not analyze the data provided to her to assess the reported cause of the dryer fire; rather, she examines all types of dryer fires to all types of dryer fires reported to Electrolux. Thus, her analysis is not specific to the issue in this case. Instead, it is a general analysis of whether, on the whole, Electrolux dryers are comparatively safer than other brands. Accordingly, the Court agrees with the Magistrate Judge's R & R, that the statistical opinions offered by Dr. Wood are unreliable and must be excluded. Electrolux's objections to the R & R are therefore, OVERRULED.
This leaves State Farm's objections to the portion of the R & R that recommends denying the motion in limine with respect to Dr. Wood's warning opinions. There is little to be said about the validity of State Farm's objection. State Farm asserts that Dr. Wood's opinion is flawed because her opinion speculates that if the Slabach's had complied with the warnings provided, there would have been no fire and thus, no injury. (State Farm Objection, p. 2). However, this is a mischaracterization of Dr. Wood's opinions. Dr. Wood specifically indicates in her report that "the fact that some users may not follow the safety information presented within an instruction or warning does not make the information `defective.'" (Dr. Wood Warnings Report, p. 5). Paraphrasing slightly, Dr. Wood's opinion is simply that based upon her knowledge and research, the warning information she reviewed for Electrolux dryers is adequate in factual content, location, and format to warn the users of safety risks associated with the use of the product. The Court has reviewed this report and has found no opinion by Dr. Wood that indicates had the Slabach's followed the warnings, no fire would have occurred.
That said, State Farm points to particular portions of her warning opinions such as Dr. Wood's opinion that Electrolux's 18
More importantly, however, State Farm's issues with Dr. Wood's warnings opinions are an issue for cross-examination at trial, not a reason to exclude her warnings opinions as a whole. Indeed, "[a] Daubert inquiry is not designed to have the district judge take the place of the jury to decide ultimate issues of credibility and accuracy." Lapsley v. Xtek, Inc., 689 F.3d 802, 805 (7th Cir.2012) If, as it does in this case, the proposed expert testimony meets the Daubert threshold of relevance and reliability, the accuracy of the actual evidence is to be tested before the jury with the familiar tools of "vigorous cross-examination, presentation of contrary evidence, and careful instruction on the burden of proof." Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 596, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). Accordingly, the Court OVERRULES State Farm's Objections to the Magistrate Judge's R & R.
Based on the foregoing, the Court the Court will OVERRULE Electrolux's objections to the R & R [DE 123]; OVERRULE State Farm's objections to the R & R [DE 124]; ADOPT the R & R in its entirety [DE 121]
ROGER B. COSBEY, United States Magistrate Judge.
Plaintiff State Farm Fire & Casualty Company insured Kelly Slabach, the subrogee in this action, and her husband. In August 2006, the Slabachs' clothes dryer, which Defendant Electrolux Home Products, Inc., manufactured, caught on fire, causing considerable property damage to their home. State Farm paid for the damage and then sued Electrolux to recover the amount paid. State Farm brings strict product liability, negligence, and breach of warranty claims against Electrolux, all of which are based on its theory that the design of and warnings associated with the Slabachs' Electrolux dryer were defective and unreasonably dangerous.
Electrolux denies these allegations and proffered Dr. Christine Wood as an expert. State Farm subsequently moved to preclude Dr. Wood from testifying. (Docket #92.) On September 24, 2012, District
For the following reasons, the undersigned Magistrate Judge will recommend that Plaintiffs Motion to Exclude Dr. Christine T. Wood from Testifying at Trial (Docket #92) be GRANTED IN PART and DENIED IN PART.
On August 16, 2006, Kelly and Rodney Slabach's dryer caught fire, causing damage to their home and personal property. (Pl.'s Mem. in Supp. of its Mot. to Exclude Dr. Christine T. Wood from Testifying at Trial ("Pl.'s Mem. in Supp.") 1.) State Farm insured the Slabachs and paid approximately $234,825.21 for the property damage and their additional losses. (Pl.'s Mem. in Supp. 1; Compl. ¶ 11.)
The Slabachs' dryer was a gas fired dryer manufactured by Electrolux. (Pl.'s Mem. in Supp. 1.) As such, State Farm subsequently brought a subrogation action against Electrolux, alleging that the Slabachs' dryer was defectively and dangerously designed, manufactured, assembled, and sold and failed to have adequate warnings regarding the potential for the dryer to malfunction and ignite a fire. (See Compl. ¶ 8.)
To counter State Farm's claims, Electrolux retained Drs. Christine T. Wood and Duane L. Steffey of Exponent, Inc., to serve as its experts. (Pl.'s Mem. in Supp. 4-5.) Drs. Wood and Steffey co-authored a written report entitled, "Evaluation of Fire Risks Associated with Clothes Dryers: Electrolux Dryers and All Dryers."
Dr. Wood received a Ph.D in experimental psychology and a B.A. in psychology from Stanford University. (Dr. Wood Report App. B at 18.) She works at Exponent
Dr. Wood has performed risk analysis for child-play fires as well as fires involving kitchen ranges, smoke detectors, and dishwashers. (Dr. Wood Dep. 7-8.) She is a member of the Society for Risk Analysis and has published several articles on risk analysis, including the rollover risk for pickup trucks, playground hazard risks, and the risks from the occupational use of extension ladders. (See Dr. Wood Report App. B at 20-23.)
Dr. Wood has also analyzed injury and illness, adverse event, and accident data from a wide range of sources and used quantitative analyses to develop and assess the effectiveness of safety information and dissemination methods. (Dr. Wood Report App. B at 18.) She has further presented quantitative analyses of accident patterns for individual products to regulatory agencies and has designed and collected data using written questionnaires, interviews, and group discussions. (Dr. Wood Report App. B at 18.) Before joining Exponent, Dr. Wood held a number of research positions. (See Dr. Wood Report App. B at 18.)
On March 1, 2012, State Farm moved to exclude Dr. Wood from testifying at trial, arguing that she is not qualified to render her proffered opinions that the risk of fires involving Electrolux dryers is statistically lower than risk of fires for other manufacturers' dryers and that Electrolux dryers are not unreasonably dangerous (Pl.'s Mem. in Supp. 5); that her methodology in reaching these opinions was unreliable (Pl.'s Mem. in Supp. 6-12); and that her opinions on warnings were also unreliable (Pl.'s Mem. in Supp. 14-18). Electrolux responded, countering State Farm's arguments. (Docket #97.) In its reply (Docket #102), State Farm also argues that Dr. Wood's statistical opinions do not fit the facts of the case. (Pl.'s Reply Mem. in Supp. of its Mot. to Exclude Dr. Christine T. Wood from Testifying at Trial ("Pl.'s Reply") 6.)
The admissibility of expert evidence is governed by Federal Rule of Evidence 702, Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), and its progeny. Winters v. Fru-Con Inc., 498 F.3d 734, 741 (7th Cir.2007). Rule 702 provides that following:
FED.R.EVID. 702.
Daubert requires a district court to exercise a "gatekeeping" function to ensure that expert testimony is both reliable
According to the Seventh Circuit Court of Appeals, to gauge reliability, "the court is to determine whether the expert is qualified in the relevant field and ... examine the methodology the expert has used in reaching his conclusions." Smith v. Ford Motor Co., 215 F.3d 713, 718 (7th Cir.2000). When determining whether an expert is qualified, the court should consider her "full range of practical experience as well as academic or technical training...." Trs. of Chi. Painters & Decorators Pension v. Royal Int'l Drywall & Decorating, Inc., 493 F.3d 782, 788 (7th Cir.2007) (quoting Smith, 215 F.3d at 718). Nevertheless, "[a] court's reliability analysis does not end with its conclusion that an expert is qualified to testify about a given matter.... [T]he court's gatekeeping function [also] focuses on an examination of the expert's methodology." Smith, 215 F.3d at 718; see also Winters, 498 F.3d at 742. Accordingly, "[an] expert's[] work is admissible only to the extent it is reasoned, uses the methods of the discipline, and is founded on data. Talking off the cuff — deploying neither data nor analysis — is not an acceptable methodology." Lang v. Kohl's Food Stores, Inc., 217 F.3d 919, 924 (7th Cir.2000). The court's focus must be solely on the principles and methodology the expert used and not on the conclusions generated. Winters, 498 F.3d at 742; see also Smith, 215 F.3d at 718 ("The soundness of the factual underpinnings of the expert's analysis and the correctness of the expert's conclusions based on that analysis are factual matters to be determined by the trier of fact....").
Specifically, Daubert outlined the following, non-exhaustive factors to guide district courts in assessing an expert's methodology:
Bielskis v. Louisville Ladder, Inc., 663 F.3d 887, 894 (7th Cir.2011) (quoting Daubert, 509 U.S. at 593-94, 113 S.Ct. 2786). At the same time, this inquiry is fact-dependent and flexible; the district court is given "wide latitude in performing its gate-keeping function and determining both how to measure the reliability of expert testimony and whether the testimony itself is reliable." Lapsley v. Xtek, Inc., 689 F.3d 802, 810 (7th Cir.2012) (quoting Bielskis, 663 F.3d at 894).
But even if an expert's testimony is deemed reliable, it must be excluded if it is not relevant, which means under Rule 702 that it is not likely "to
Moreover, when determining whether an expert's testimony is admissible, "[i]t is critical under Rule 702 that there be a link between the facts or data the expert has worked with and the conclusion the expert's testimony is intended to support." United States v. Mamah, 332 F.3d 475, 478 (7th Cir.2003) (citing Gen. Elec. v. Joiner, 522 U.S. 136, 146, 118 S.Ct. 512, 139 L.Ed.2d 508 (1997)). As the Supreme Court wrote: "[N]othing in either Daubert or the Federal Rules of Evidence requires a district court to admit opinion evidence that is connected to existing data only by the ipse dixit of the expert." Gen. Elec, 522 U.S. at 146, 118 S.Ct. 512. Stated another way, an expert "who invokes `my expertise' rather than analytic strategies widely used by specialists is not an expert as Rule 702 defines that term." Zenith Elec. Corf), v. WH-TV Broad. Corp., 395 F.3d 416, 419 (7th Cir.2005); see also Mamah, 332 F.3d at 478 ("The court is not obligated to admit testimony just because it is given by an expert."). Indeed, the Seventh Circuit has consistently held that "[a]n expert who supplies nothing but a bottom line supplies nothing of value to the judicial process." Zenith Elec. Corp., 395 F.3d at 419-20 (collecting cases).
State Farm challenges Dr. Wood's qualifications to render statistical opinions, the
State Farm concedes that Dr. Wood is qualified to opine on warnings (Pl.'s Reply 1) and attacks only her qualifications to render the statistical opinions in her joint report with Dr. Steffey (Pl.'s Mem. in Supp. 5-6; Pl.'s Reply 5-6). To review, Drs. Wood and Steffey opined that the risk of dryer fires reported for Electrolux dryers is statistically significantly lower than the risk of fires for all manufacturers' dryers and that relative to fire rates for all dryers, Electrolux dryers are not unreasonably dangerous. (Dr. Wood Report 8.) State Farm argues that Dr. Wood does not have the required "knowledge, skill, experience, training or education" to render these opinions because she has little education or background in statistics, the actual design of household appliances, product defect analysis, or fire sciences. (Pl.'s Mem. in Supp. 5.)
But "[a] witness may qualify as an expert even if the opposing counsel can point to deficiencies in his or her qualifications." Traharne v. Wayne/Scott Fetzer Co., 156 F.Supp.2d 697, 706 (N.D.Ill.2001). First, Dr. Wood is not offering any opinion as to whether Electrolux dryers are defective; her opinions are limited to what she concluded about the risk of fires involving Electrolux dryers and dryers in general after a statistical analysis (see Dr. Wood Report 2 ("Exponent was retained to perform statistical analyses of the risk of fire involving Electrolux clothes dryers and clothes dryers in general....")). Despite her limited experience with dryers particularly, Dr. Wood has performed similar product risk analysis of fires involving kitchen ranges, smoke detectors, and dishwashers. (Dr. Wood Dep. 7-8.) She has also published a number of articles on risk analysis. (See Dr. Wood Report App. B at 19-21.) And, although State Farm takes issue with the fact that Dr. Wood is not a statistician (see Pl.'s Reply 3), as a highly educated psychologist, Dr. Wood has considerable knowledge in the area of statistics (Dr. Wood Dep. 4).
While Dr. Wood could certainly have more qualifications to opine in the area of statistics, "[t]he requirement that an expert be qualified by knowledge, skill, experience, education or training should not be viewed as being particularly rigorous." Traharne, 156 F.Supp.2d at 706. Indeed, "an adequately qualified witness need not specialize in the field in which the opinion is offered." Norwest Bank, N.A. v. K-Mart Corp., No. 3:94-CV-78RM, 1997 WL 33479072, at *2 (N.D.Ind. Jan. 29, 1997) (citing Holbrook v. Lykes Bros. S.S. Co., 80 F.3d 777, 783 (3d Cir.1996)); see also Dairyland Power Coop. v. United States, No. 04-106 C, 2008 WL 5122339, at *10 (Fed.Cl. June 20, 2008) ("An expert need only be qualified and need not be the best and the brightest for testimony to be admissible."); MATTHEW BENDER & CO., INC., FEDERAL RULES OF EVIDENCE MANUAL § 702.02 (2012) ("[C]ourts have not required a party to show that the witness is an outstanding expert, or to show that the witness is well-known or respected in the field; these are generally questions of weight.").
Therefore, Dr. Wood's knowledge of statistics from her psychology background
Besides attacking Dr. Wood's qualifications, State Farm also argues that Dr. Wood used an unreliable methodology in conducting her comparative analysis of the risk of fire involving Electrolux dryers and dryers in general, which then led to her conclusion that Electrolux dryers are not unreasonably dangerous. (See Pl.'s Mem. in Supp. 6-12.) Specifically, State Farm contends that, in conducting her statistical analysis, Dr. Wood used data that was obtained from completely different sources and is inherently and significantly different in kind and scope. (Pl.'s Mem. in Supp. 7.) While she obtained her information on the number of fires involving all manufacturers' dryers from the March 2009 National Fire Protection Association ("NFPA") report (which derives its estimates from the National Fire Reporting System ("NFIRS")), Dr. Wood derived the number of fires involving Electrolux dryers solely from Electrolux, which related the number of dryer fires reported to it. (Pl.'s Mem. in Supp. 9-10.) According to State Farm, this amounts to "comparing apples and oranges" and necessarily skews the data in favor of Electrolux. (Pl.'s Mem. in Supp. 11.) State Farm further argues that Dr. Wood's second opinion — that Electrolux dryers are not unreasonably dangerous — is a function of the same flawed statistical analysis and should also be excluded. (Pl.'s Mem. in Supp. 12.) In defense of Dr. Wood's statistical opinions, Electrolux argues that she used the best data available and that this data is typical of the data manufacturers use when performing a statistical risk analysis. (Def.'s Resp. in Opp. 6-7.)
The Daubert "framework for assessing expert testimony is applicable to social science experts, just as it applies to experts in the hard sciences." Tyus v. Urban Search Mgmt., 102 F.3d 256, 263 (7th Cir.1996). And although "the test of reliability is `flexible,' and Daubert's list of specific factors neither necessarily nor exclusively applies to all experts or in every case," Kumho Tire, 526 U.S. at 141, 119 S.Ct. 1167 (citations omitted), "the methodology used by social science experts to reach their conclusions must `adhere to the same standards of intellectual rigor that are demanded in [their] professional work' in order to be reliable," Obrycka v. City of Chicago, No. 07 C 2372, 2011 WL 2600554, at *8 (N.D.Ill. June 29, 2011) (quoting Chapman, 297 F.3d at 688).
Nonetheless, while Federal Rule of Evidence 702 is the "primary locus" of the court's gatekeeping role, Daubert, 509 U.S. at 590, 113 S.Ct. 2786; In re TMI Litig., 193 F.3d 613, 697 (3d Cir.1999),
Furthermore, Rule 703 was "not intended to abolish the hearsay rule and to allow a witness, under the guise of giving expert testimony, to in effect become the mouthpiece of the witnesses on whose statements or opinions the expert purports to base his opinion." Loeffel Steel Prods., 387 F.Supp.2d at 808 (citations omitted). As such, an expert's proffered opinion that merely parrots information provided to her by a party is generally excluded. King-Indiana Forge, Inc. v. Millennium Forge, Inc., No. 1:07-cv-00341-SEB-DML, 2009 WL 3187685, at *2 (S.D.Ind. Sept. 29, 2009) (citing Black & Decker v. Bosch Tools, No. 04 C 7955, 2006 WL 5156873, at *1 (N.D.Ill. Sept. 8, 2006)). Moreover, "when an expert relies upon information given to him by a party or counsel, [she] must independently verify that information before utilizing it in [her] calculations." Id. (citation omitted); see Lyman, 580 F.Supp.2d at 726 (excluding expert testimony where expert failed to verify the reliability of data given to him by counsel).
Although "[t]here is a fine line between a court finding that proffered expert testimony is `unpersuasive' (and capable of being submitted to a jury) and when a court concludes that evidence is wholly `unreliable' (and properly excludable under Daubert)," Fail-Safe, L.L.C. v. AO. Smith Corp., 744 F.Supp.2d 870, 887 (E.D.Wis.2010), here, Dr. Wood's testimony on statistics falls on the side of being unreliable rather than merely unpersuasive. In her report, Dr. Wood compared the risk in the United States of dryer fires reported to Electrolux for its dryers to the risk posed by all models of dryers from all manufacturers. (Dr. Wood Report 4.) She determined the "adverse event" risk ratio by dividing the number of adverse events (dryer fires) by the amount of exposure (the number of dryers in use). (Dr. Wood Report 4-5; Dr. Wood Dep. 11-12.) Dr. Wood indicated that she determined the number of fires involving dryers from all manufacturers and the number involving only Electrolux dryers from two different sources. (See Dr. Wood Report 4.) Data on fires nationwide involving dryers from all manufacturers was obtained from a NFPA report and was derived from the NFIRS's data, which consists of reports by firefighters from a sample of fire departments across the country. (Dr. Wood Report 4; see Dr. Wood Dep. 13-14.)
On the other hand, data regarding the fires involving Electrolux dryers was obtained from Electrolux itself, which compiled reports from consumers, retailers, insurance carriers, and other sources of fire incidents "in which it is claimed that the fire involved an Electrolux clothes dryer." (Dr. Wood Report 4.) Dr. Wood testified that she accepted those numbers as the number of adverse events for Electrolux dryers. (Dr. Wood Dep. 15-16.) Besides the multi-page document that Dr. Wood received from Electrolux providing these numbers, Dr. Wood did not review
But "[w]hen an expert bases her opinion on information supplied by another," particularly a party, "the Court[] must focus on the reliability of the expert's foundation." Black & Decker, 2006 WL 5156873, at *1. But despite the fact that this data on the number of fires involving Electrolux dryers supposedly came from Electrolux itself, Dr. Wood admittedly did nothing to independently verify the reliability of this information before she used it in her calculations.
Dr. Wood's failure to verify the data that Electrolux supposedly supplied to her is not the only fatal flaw in her statistical analysis. When conducting a comparative analysis, to meet the reliability that Daubert demands, an expert must "select samples that are truly comparable. To put it another way, care must be taken to be sure that the comparison is one between `apples and apples' rather than one between `apples and oranges.'" Loeffel Steel Prods., 387 F.Supp.2d at 812 (quoting Donnelly v. R.I. Bd. of Governors for Higher Educ., 929 F.Supp. 583, 591 (D.R.I. 1996)). Here, Dr. Wood obtained the number of fires involving all manufacturers' dryers from the NFPA report, which relies on NFIRS reports by firefighters, but received the number of fires involving Electrolux dryers from Electrolux itself, which provided the number of fires reported directly to it. Regardless of State Farm's argument that Electrolux's data under reports fires in its dryers, Dr. Wood's comparative analysis is fatally flawed because she compared two different types of data — (1) the data on all dryer fires derived and estimated from NFIRS reports by fire departments and (2) the data on Electrolux fires derived from only those fires reported to Electrolux. Although this second kind of data may be the
Moreover, while Dr. Wood claims that this was the best available data (Def.'s Resp. in Opp. 6-7), State Farm points out that Dr. Wood could have obtained the data on Electrolux dryer fires from the same source as the data on fires involving all manufacturers' dryers because the NFIRS report forms include a section for reporting the brand, model, serial number, and year for the dryer involved in each fire (Pl.'s Mem. in Supp. 10), further suggesting the unreliability of her comparative analysis. Cf. Cook Inc. v. Endologix, Inc., No. 1:09-cv-01248-TWP-DKL, 2012 WL 3948614, at *5 (S.D.Ind. Sept. 10, 2012) (finding that plaintiff's expert's calculation of a market share was based on reliable data and methods when the defendant did not provide any alternative data that would have been more reliable upon which the expert could have relied). Therefore, because of Dr. Wood's failure to independently verify the data she received from Electrolux and her comparison of two distinctly different types of data, the data underlying her risk analysis opinion is "so unreliable that no reasonable expert could base an opinion on them," justifying the exclusion of her opinions relying on that data. Lyman, 580 F.Supp.2d at 726 (quoting In re TMI Litig., 193 F.3d at 697).
Dr. Wood's second statistical opinion — that relative to fire rates for all dryers, Electrolux dryers are not unreasonably dangerous — suffers from the same infirmities as her first one. Dr. Wood testified that this second opinion was simply a function of her statistical analysis as presented in her report. (Dr. Wood Dep. 45.) As such, it is also based on unverified data from a party and a flawed comparative analysis, rendering it unreliable. Without this underlying analysis, Dr. Wood's opinion is nothing more than the "bottom line," which "supplies nothing of value to the judicial process." See Zenith Elec. Corp., 395 F.3d at 419-20. Furthermore, with such an opinion — that Electrolux dryers are not unreasonably dangerous — Dr. Wood improperly opines with respect to an ultimate legal conclusion in the case — whether Electrolux dryers are in fact unreasonably dangerous. Wielgus v. Ryobi Techs., Inc., No. 08 CV 1597, 2012 WL 3643682, at *4 (N.D.Ill. Aug. 23, 2012) (citing United States v. Sinclair, 74 F.3d 753, 757, 758 n. 1 (7th Cir.1996)); see Good Shepherd Manor Found, v. City of Momence, 323 F.3d 557, 564 (7th Cir.2003) (excluding expert testimony that consisted of legal conclusions); Scottsdale Ins. Co. v. City of Waukegan, 689 F.Supp.2d 1018, 1022 (N.D.Ill.2010) (stating that experts may provide opinions as to the ultimate factual issues in a case, but may not testify as to legal conclusions that will determine the outcome of the case).
And even if Dr. Wood's statistical opinions were reliable, they do not fit the facts of this case and, as such, would not assist the trier of fact. See Chapman, 297 F.3d at 687; Hall, 93 F.3d at 1342. State Farm alleges that the Slabachs' Electrolux gas dryer was defectively designed and that these defects caused lint to accumulate in areas not visible to the user and subsequently ignite. Dr. Wood's report does not address this claim, "but instead compares all Electrolux dryers (regardless of model or type) with all other dryers in the United States (again, regardless of model or type) regarding the frequency of dryer fires." State Farm Fire & Cas. Co. v. Electrolux N. Am., No. 2:10-CV-01147 RSM, 2012 WL 161821, at *3 (W.D.Wash.
Perhaps Dr. Wood's opinions would be relevant if the question before the Court was whether the Electrolux brand, as a general matter, is comparatively safer than other brands, but this is not at issue in this case; rather the central question posed here is whether the specific Electrolux model the Slabachs owned was defective, which Dr. Wood's opinions based on her statistical analysis do not speak to. Id. at *4. Accordingly, Dr. Wood's two statistical opinions do not meet the basic relevancy requirements of Federal Rule of Evidence 702 and, therefore, must be excluded on this basis as well. Id. at *3.
Besides challenging Dr. Wood's statistical opinions, State Farm also moves to exclude Dr. Wood's warnings opinions as unreliable and unsupportable. In her report, after reviewing the owner's guide and operating instructions accompanying the Slabachs' dryer and the warnings on the dryer itself, Dr. Wood states that "[t]he safety information contained within the Electrolux Owner's Guide, Operating Instructions, and on the product clearly communicates the need for proper installation and exhaust, the need to consistently clean and keep the dryer free of lint, and to have authorized personnel clean the dryer approximately every 18 months." (Dr. Wood Warnings Report 5.) She then concludes that the "[w]arnings and safety information about factors associated with the dryer fires provided by Electrolux were reasonable and adequate in content, location, and format and were not defective." (Dr. Wood Warnings Report 6.)
State Farm argues that these opinions are unreliable because Dr. Wood merely accepted information that Electrolux provided to her without independently verifying it (Pl.'s Mem. in Supp. 16) and then deemed the content, location, and format of product literature and labels containing the warnings as reasonable, adequate, and not defective without considering the warnings' origination, designed purpose, intent, wording, or effectiveness (Pl.'s Reply 7). Along those same lines, State Farm notes that Dr. Wood does not opine about the effectiveness of the warnings and instructions. Based on this omission, State Farm concludes, without any supporting authority, that "to present evidence to the jury that the warnings are 'reasonable,' `adequate,' and `not defective,' even though they very well might be completely 'ineffective' does not meet the evidentiary standards set forth in [Federal Rules of Evidence] 702 and 703." (Pl.'s Reply 9.) Moreover, State Farm maintains that Dr. Wood's opinions fail to consider whether the warnings identify the hazard of lint accumulating in close proximity to the heat source or the necessity of disassembling the dryer to clean out the lint behind the drum frequently enough to prevent the risk of fire, which — according to State Farm — are the contested issues in the case. (Pl.'s Reply 7-8.) And, finally, State Farm argues that Dr. Wood has failed to test her opinions or subject them to peer review or publication. (Pl.'s Mem. in Supp. 16.)
Regarding State Farm's claim that Dr. Wood merely relied on information Electrolux
As to State Farm's contention that Dr. Wood opines as to the adequacy of the warnings without considering their origination, designed purpose, intent, wording, or effectiveness, under Indiana law, when determining the adequacy of warnings, courts consider "the adequacy of the factual content, the adequacy of the manner in which the content is expressed, and the adequacy of the method of conveying these expressed facts." Jarrell v. Monsanto Co., 528 N.E.2d 1158, 1162-63 (Ind.Ct.App.1988) (citing Ortho Pharm. Corp. v. Chapman, 180 Ind.App. 33, 388 N.E.2d 541 (1979)); see generally Am. L. Prod. Liab. § 33:3 (3d ed. 2012) (stating that factors relevant to the adequacy of a warning "include that the warning adequately indicates the scope of the danger, reasonably communicates the extent or seriousness of the harm that could result from misuse, and adequately alerts a reasonably prudent person to the danger"). In concluding that the warnings and safety information associated with the Slabachs' Electrolux dryer were adequate in content, location, and format, Dr. Wood expressly considered these factors.
Drawing from the American National Standard for Product Safety Signs and Labels and other guidance documents, Dr. Wood indicated that warnings should identify the hazard, the actions taken to avoid the hazard, and the consequences of failing to take these actions. (Dr. Wood Warnings Report 3.) Applying that standard to the factual content of the warnings and instructions here, Dr. Wood found that the safety information clearly identifies fire as a potential hazard; provides numerous steps to reduce this risk, including repeated iterations of the importance of removing lint from the dryer and methods of doing so; and indicates that the consequences of not taking these actions include injury or death. (Dr. Wood Warnings Report 3.) As to the manner in which this content is expressed, Dr. Wood noted that the safety information is presented using common formatting techniques that assist the reader in processing information, such as using headings, "signal words," and safety alert symbols. (Dr. Wood Warnings Report 3.) And the method used to convey these facts includes giving specific instructions in the owner's guide about preventing fires, required care and cleaning, items that should not be dried, and further drying procedures as well as a customer instruction checklist. (Dr. Wood Warnings Report 3-4.) Dr. Wood further pointed out that Electrolux provides specific warnings on the inside of the dryer that include a safety alert symbol and the
Therefore, despite State Farm's claims to the contrary, Dr. Wood's failure to consider the warnings' origin, purpose, intent, wording, or effectiveness do not make her opinion on their adequacy unreliable as she properly opines on the adequacy of the factual content of the warnings and safety information, the adequacy of the manner in which this content was expressed, and the adequacy of the method of conveying these facts. See Jarrell, 528 N.E.2d at 1162-63. Furthermore, according to the American Law of Products Liability treatise, "an adequate warning is one that includes the directions, communications, and information essential to enable the user to use the product safely so that, had, the injured person complied with the warning, there would have been no injury." Am. L. Prod. Liab. § 33:3 (emphasis added). This suggests that an adequate warning need not compel compliance or be effective in changing a consumer's behavior. As such, that Dr. Wood does not opine to the effectiveness of the warnings when concluding that they are adequate does not mean that she failed to meet the evidentiary standards of Rules 702 and 703. Rather, this is simply a basis for cross-examination. See Gayton v. McCoy, 593 F.3d 610, 616 (7th Cir.2010) ("Determinations on admissibility should not supplant the adversarial process; `shaky' expert testimony may be admissible, assailable by its opponents through cross-examination.").
State Farm further maintains that Dr. Wood's opinion fails to address the contested warnings issues in the case — namely whether the warnings identify the hazard of lint accumulating in close proximity to the heat source or the necessity of disassembling the dryer to clean out the lint behind the drum. (Pl.'s Reply 7-8.) But that is State Farm's theory of defective warnings, and Dr. Wood is not required to accept that theory in reaching her conclusions. Nor is a warning required to include an explanation of the exact danger or all the attendant risks that may result in hann. Am. L. Prod. Liab. § 33:3. Rather, the question is whether the warnings "make apparent the potential harmful consequences" and whether the warning is "of such intensity to cause a reasonable man to exercise for his own safety caution commensurate with the potential danger." Jarrell, 528 N.E.2d at 1162 (citation omitted).
In her report, Dr. Wood acknowledges that the NFPA and the Consumer Product Safety Commission ("CPSC") have recognized that lint accumulation within dryers may result in fires and that the CPSC recommends that users clean the lint screen before or after drying each load of clothes, clean behind the dryer where lint can build up, and have a service person clean the interior of the dryer periodically to minimize lint accumulation. (Dr. Wood Warnings Report 5.) Dr. Wood then concludes that "the warnings and safety information provided by Electrolux induce and emphasize the concerns identified in the analysis of dryer-related incidents conducted by the NFPA and CPSC and Electrolux disseminates this information to purchasers of their clothes dryers." (Dr. Wood Warnings Report 5.) As such, Dr. Wood properly opines as to whether the warnings and safety information "make apparent the potential harmful consequences" of lint accumulation and, with her conclusion that the warnings are adequate in content, location, and format, also opines as to whether the warning appropriately conveys the nature of this risk to consumers so they can exercise the necessary caution. See Jarrell, 528 N.E.2d at 1162 (citation omitted).
Ultimately, State Farm's various challenges to Dr. Wood's opinions concerning the warnings attack the substance of her conclusions rather than the reliability of the methodology she used, and the former (unlike the latter) are something for the jury to consider. See Smith, 215 F.3d at 718 ("The soundness of the factual underpinnings of the expert's analysis and the correctness of the expert's conclusions based on that analysis are factual matters to be determined by the trier of fact...."). Undoubtedly, State Farm will have ample opportunity to test the accuracy of Dr. Wood's opinions through the traditional methods at trial, such as vigorous cross-examination, the presentation of contrary evidence, and careful instructions on the burden of proof. Lapsley, 689 F.3d at 805 (quoting Daubert, 509 U.S. at 596, 113 S.Ct. 2786); Tober, 2004 WL 1987239, at *11. Accordingly, under the circumstances of this case, Dr. Wood's proposed testimony on warnings is admissible.
For the foregoing reasons, the undersigned Magistrate Judge RECOMMENDS that Plaintiffs Motion to Exclude Dr. Christine T. Wood from Testifying at Trial (Docket #92) be GRANTED with regards to Dr. Wood's statistical opinions and DENIED concerning Dr. Wood's opinions about the warnings.
The Clerk is directed to send a copy of this Report and Recommendation to counsel for Plaintiff and Defendant. NOTICE IS HEREBY GIVEN that within fourteen days after being served with a copy of this recommended disposition a party may serve and file specific, written objections to the proposed findings or recommendations. Fed. R. Civ. P. 72(b). FAILURE TO FILE OBJECTIONS WITHIN THE SPECIFIED TIME WAIVES THE RIGHT TO APPEAL THE DISTRICT COURT'S ORDER. Lorentzen v. Anderson Pest Control, 64 F.3d 327, 330 (7th Cir. 1995); Egert v. Conn. Gen. Life Ins. Co., 900 F.2d 1032, 1039 (7th Cir. 1990).
SO ORDERED.
Entered this 5th day of November, 2012.