NANCY G. EDMUNDS, District Judge.
This dispute comes before the Court on Defendant's motion for summary judgment pursuant to Federal Rule of Civil Procedure 56. For the reasons set forth below, Defendant's motion is GRANTED.
Plaintiff Meemic Insurance Company filed suit against Defendant Hewlett-Packard
Plaintiff's insureds, Gary and Candace Keinath, purchased a Hewlett-Packard printer, Model No. C8970A, with an AC power adapter,
The Keinaths never experienced any issues with the printer. (Candace Keinath Dep., Def.'s Mot., Ex. A at 30; Gary Keinath Dep., Def.'s Mot., Ex. B at 17.) They never smelled or viewed anything that would indicated overheating or burning from the printer or the AC power adapter. (Candace Keinath Dep., Def.'s Mot., Ex. A at 30; Gary Keinath Dep., Def.'s Mot., Ex. B at 20-22.) And, neither the printer nor the AC power adapter was ever noticeably warm to the touch.
The printer was last used by Candace approximately 4 to 7 days prior to the fire. (Candace Keinath Dep., Def.'s Mot., Ex. A at 53.) After she was done using the printer, she turned it off and never turned it on again. (Id.) There is no record of anyone using the printer after that time.
On January 7, 2008, Candace came home from work to find her house on fire. (Candace Keinath Dep., Def.'s Mot., Ex. A at 57-58.) The Metamora Township Fire Department responded to Candace's 911 call and extinguished the fire. The fire department reported that "[t]he fire was contained to the living room, kitchen, and basement area." (Def.'s Mot., Ex. C at 2.)
(Def.'s Mot., Ex. C at 2.) When the fire department made contact with Candace, she informed them that, after she left for work, her daughter was on the computer and most likely left the computer on. Candace also told them that the power strip "was always on." (Def.'s Mot., Ex. C at 2.)
The fire department determined the "cause of the fire is unknown and undetermined, but possibly electrical." (Def.'s Mot., Ex. C at 2.) The fire department then called in Sergeant Bush of the Michigan State Police. Bush "looked through the house," performed an investigation, and stated that "he believed that it was probably electrical but he said that he was going to leave the cause undetermined at this time." (Id.)
Plaintiff and Defendant dispute the origin and cause of the fire. Each party had two independent experts investigate the fire: a cause and origin expert and an electrical engineering expert. A summary of the four investigations follow.
Cause and origin experts were retained to determine the exact location in the home that the fire originated and also to subsequently identify the specific cause of the fire.
Gary Kraft of Herndon & Associates was retained by Plaintiff to investigate the cause and origin of the fire. Kraft concluded "that the fire originat[ed] within the living room, at the northeast corner. Specifically, the origin is identified as the area of the position of the wood roll top desk." (Pl.'s Mot., Ex. 3 at 12.)
(Pl.'s Mot., Ex. 3 at 7-9.) Like the fire department, Kraft ultimately concluded that "the cause of the fire is undetermined." (Id. at 12.) Although Kraft could not conclusively determine the cause of the fire, his report indicates that he "believe[d] the ignition source [was] associated with electrical fault [and that] [t]he electrical fault may be associated with the Hewlett Packard printer." (Id.)
Doug McGrew of Fire Cause Analysis was retained by Carl Warren & Company to investigate the fire for Defendant. Specifically, McGrew was not asked to identify the cause and origin of the fire, but instead "to evaluate if there was any involvement of the Hewlett-Packard equipment in the fire." (McGrew Dep., Pl.'s Mot., Ex. 2 at 36.) McGrew performed an on-site inspection and was accompanied by one of Defendant's product safety engineers. (Id. at 23.) Contrary to Kraft's conclusion as to origin, McGrew "indicated in his report that the fire started in the basement, on the floor below where the adapter was located." (Def.'s Mot., Ex. D at 5.) McGrew also testified that, although he was unable to identify the exact cause of the fire, he was able to eliminate the AC power adapter as a potential cause of the fire. (Id. at 36-37.)
Because neither cause and origin expert was able to conclusively identify the cause of the fire and because Kraft concluded, consistent with the fire department, that the cause was possibly electrical, electrical engineering experts were retained to investigate further.
Based upon Kraft's suspicion that the fire was electrical in nature, Plaintiff retained Michael McGuire to investigate various electrical components, and to specifically investigate whether the printer's AC power adapter failed causing the fire at issue. (McGuire Dep., Def.'s Mot., Ex. E at 24.) McGuire is employed by EFI Global as a Senior Electrical Engineer and Engineering Supervisor. (Id. at 7, 11.) EFI's clients are typically insurance companies involved in subrogation actions, and McGuire is responsible for investigating the losses of those clients that require the assistance of an electrical engineer. (Id. at 7, 14.)
McGuire was provided the evidence
After that examination, McGuire concluded that the cause of the fire was a failure in the printer's AC power adapter, most likely due to an unknown manufacturing defect.
(Id. at 42.)
Donald Galler of Electrical Engineering Solutions was retained by Defendant to "participate in the examination of some evidence retained from the fire at the Keinath residence and investigate the possible role of the AC power adapter in the fire." (Galler Dep., Def.'s Mot., Ex. F. at 7; Def.'s Mot., Ex. D. at 2.) Galler explains that
(Galler Aff., Def.'s Reply, Ex. A at 1-2.)
As part of his investigation, Galler reviewed the reports of McGrew, Kraft, and McGuire,
(Def.'s Mot., Ex. D. at 5.) (Accord Galler Dep., Def.'s Mot., Ex. F. at 17.)
On May 11, 2009, Plaintiff filed this subrogation action in the United Stated District Court for the Eastern District of Michigan. [Docket Text # 1.] This matter comes before the Court on Defendant's motion for summary judgment pursuant to Federal Rule of Civil Procedure 56.
Summary judgment is appropriate only when there is "no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c). The central inquiry is "whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Rule 56(c) mandates summary judgment against a party who fails to establish the existence of an element essential to the party's case and on which that party bears the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
The moving party bears the initial burden of showing the absence of a genuine issue of material fact. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. Once the moving party meets this burden, the non-movant must come forward with specific facts showing that there is a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). In evaluating a motion for summary judgment, the evidence must be viewed in the light most favorable to the non-moving party. Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970). The non-moving party may not rest upon its mere allegations, however, but rather "must set forth specific facts showing that there is a genuine issue for trial." Fed.R.Civ.P. 56(e). The mere existence
Plaintiff's one-count Complaint alleges "Negligence / Products Liability / Breach of Implied Warranty." (Compl. Count I.) Defendant contends that these claims fail for two reasons. First, Defendant claims that the opinion of Plaintiff's electrical expert, McGuire, must be excluded pursuant to Federal Rule of Evidence 702 as unreliable under the standards set forth by the Supreme Court in Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), and its progeny. Defendant concludes that because Plaintiff's only evidence that the AC power adapter caused the fire is the opinion of McGuire, and assuming McGuire's opinion does not survive Daubert scrutiny, Plaintiff's claims must fail. Alternatively, and even if McGuire's opinion is admissible, Defendant claims that Plaintiff cannot establish that the allegedly defective AC power adapter caused the fire or that the AC power adapter was even defective— both necessary elements of its prima facie case of products liability, negligence and breach of implied warranty. The Court addresses each of Defendant's alternative basis for summary judgment in turn.
Courts considering expert testimony examine admissibility within the context of Federal Rule of Evidence 702.
Fed.R.Evid. 702. In Daubert, the United States Supreme Court held that Rule 702 requires district courts to ensure that expert testimony "both rests on a reliable foundation and is relevant to the task at hand." Id. at 597, 113 S.Ct. 2786. See also Kumho Tire Co. v. Carmichael, 526 U.S. 137, 152, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999) (expanding Daubert's analysis of expert scientific testimony to cover expert testimony based on "technical" and "other specialized knowledge"). Thus, Rule 702 imposes a "gatekeeping" duty on district courts, which must exclude unreliable and irrelevant evidence. See, e.g., Conwood Co., L.P. v. U.S. Tobacco Co., 290 F.3d 768, 792 (6th Cir.2002).
First, the Court must determine "whether the experts' testimony reflects `scientific knowledge,' whether their findings are `derived by the scientific method,' and whether their work product amounts to `good science.'" Daubert v. Merrell Dow Pharmaceuticals, Inc., (on remand), 43 F.3d 1311, 1315 (9th Cir.1995), cert. denied, 516 U.S. 869, 116 S.Ct. 189, 133 L.Ed.2d 126 (1995) (quoting Daubert, 509 U.S. at 590, 593, 113 S.Ct. 2786). "An expert opinion that is based on scientifically valid principles will satisfy Fed.R.Evid. 702; an expert's subjective belief or unsupported speculation will not." Smelser v. Norfolk So. Ry. Co., 105 F.3d 299, 303 (6th Cir.1997), abrogated on other grounds by Morales v. American Honda Motor Co., Inc., 151 F.3d 500 (6th Cir.1998) (quoting Daubert (on remand), 43 F.3d at 1316).
In its gatekeeping role, the Court is to consider the basis of an expert's opinion by evaluating: (1) whether the theory or technique can be and has been tested; (2) whether it has been subjected to peer review and publication; (3) its known or potential error rate and the existence and maintenance of standards controlling the technique's operation; (4) whether it has attracted widespread acceptance in a particular field; and (5) "whether the experts are proposing to testify about matters growing naturally and directly out of the research they have conducted independent of the litigation, or whether they have developed their opinions expressly for purposes of testifying because the former provides important objective proof that the research comports with the dictates of good science." Smelser, 105 F.3d at 303.
To evaluate the admissibility of expert testimony, the Court must also consider the purpose for which the testimony is offered. Here, Plaintiff seeks to offer McGuire's testimony to establish that the cause of the fire was a failure in the printer's AC power adapter. McGuire's opinion was based, in part, on a visual inspection of the AC power adapter.
(McGuire Dep., Def.'s Mot., Ex. E at 21, 33.) McGuire's opinion was also conditioned on the fact that Kraft informed him that the AC power adapter was within the area of origin.
(McGuire Dep., Def.'s Mot., Ex. E at 24, 32, 36.) (See also id. at 32 ("Q: . . . The basis for conclusions [sic] are lab examination. . ., discussion with . . . Kraft . . ., and review of x-rays taken . . . A: Yes.").)
McGuire ultimately concluded that, based on the localized nature of the damage to the AC power adapter, some defect must have occurred and resulted in a fire.
(McGuire Dep., Def.'s Mot., Ex. E at 38-39, 41-42, 50.)
Defendant claims—assuming arguendo McGuire is qualified to offer opinion testimony—his opinion here is unreliable and should not be admitted to support Plaintiff's claims. Specifically, Defendant contends that McGuire's opinions are not the product of reliable principles and methods because he failed to test any of his theories and because he did not offer any theory that has been subjected to peer review and publication, has a known or potential error rate, or is generally accepted in the engineering community.
"Daubert teaches that expert opinion testimony qualifies . . . under Rule 702 only if it is derived by the scientific method and is capable of validation." Smelser, 105 F.3d at 304. McGuire's opinion—that the cause of the fire was a failure in the printer's AC power adapter— cannot be considered "reliable" when he: (1) failed to perform any testing, rely upon any principles that have been tested concerning the AC power adapter's alleged failure,
Although McGuire developed a general hypothesis—that the AC power adapter caused the fire—he failed to show that the AC power adapter could have failed or even had the capability of causing such a fire. McGuire's conclusions are not based upon reliable principles and methods, but instead are based primarily upon his "real world experience." (Pl.'s Resp. at 10.)
Plaintiff contends that "[f]ire cases are unique to the extent that the defect in the product which results in the fire, does not, in many cases survive the calamity it produced." (Pl.'s Resp. at 8.) Plaintiff offers the following in support:
(Id. at 10.) The Court is not persuaded by Plaintiff's contention. See, e.g., Chester Valley Coach Works, Inc. v. Fisher-Price, No. 99-4197, 2001 WL 1160012, at *3 (E.D.Pa. Aug. 29, 2001) (holding that an expert's opinion "as to fire origin and causation [that was] not based on any testing, experimentation, or generally accepted texts, treatises, or other writing" and was instead "based primarily upon his `experience and education'" was not supported by valid and reliable methodology and was, thus, inadmissible.)
Plaintiff has not met its burden here: it has failed to establish that McGuire's opinion was based on scientifically valid principles, was repeatable, had been the subject of peer review or publication or was a generally accepted method for determining that a manufacturing defect in an electrical component caused a fire.
Second, the Court must determine the relevancy of the proposed testimony. Expert testimony is relevant only when it will assist the trier of fact in understanding the evidence or determining a material fact in question. Daubert, 509 U.S. at 592-93, 113 S.Ct. 2786. Again, the party offering expert testimony must prove its admissibility by a preponderance of the evidence. Id. at 592 n. 10, 113 S.Ct. 2786.
United States v. Thomas, 74 F.3d 676, 684 n. 6 (6th Cir.1996), abrogated on other grounds by Morales v. American Honda Motor Co., Inc., 151 F.3d 500 (6th Cir. 1998) (emphasis added). See also Berry v. City of Detroit, 25 F.3d 1342, 1350 (6th Cir.1994) ("If everyone knows [a particular fact], then we do not need an expert because the testimony will not assist the trier of fact to understand the evidence or to determine a fact in issue.") (internal citation omitted).
For example, in Cook, the Sixth Circuit reversed the district court's decision to admit expert testimony because the expert's only testing involved a visual examination of "the line at the place where it parted and observed some char marks on some of the fibers; that much the jurors could have done, and presumably did do." Cook, 53 F.3d at 739. Such "was not scientific, technical, or other specialized knowledge based upon testing conducted, as Daubert requires, in accordance with valid scientific methodology in order to permit [the expert] to draw inferences that
Id. Here, McGuire's visual examination and conclusion that the "damage [on the AC power adapter was] much more severe than anything else," is certainly a matter "within the understanding or common knowledge of the average juror" and "invades the province of jury." McGuire's opinion—based on personal conjecture and speculation—will confuse and mislead, rather than assist, the trier of fact.
Plaintiff seeks to hold Defendant liable for the loss it sustained alleging claims of "Negligence / Products Liability / Breach of Implied Warranty" under the theory of products liability. In Michigan, a product liability action is defined as "an action based on a legal or equitable theory of liability brought for . . . damage to property caused by or resulting from the production of a product." Mich Comp. Laws § 600.2945(h). "Traditional principles of products liability law recognize three types of defects: manufacturing defects, defects due to faulty design, and defects due to inadequate instructions or warnings." Fleck v. Titan Tire Corp., 177 F.Supp.2d 605, 613 (E.D.Mich.2001) (citing Rest.3d of Torts § 2 (1998)).
In order "[t]o provide compensation for injuries caused by such defects, Michigan recognizes two distinct causes of action for product failures: negligence and implied warranty." Id. (citing Gregory v. Cincinnati, Inc., 450 Mich. 1, 538 N.W.2d 325, 329 (1995); Hollister v. Dayton Hudson Corp., 201 F.3d 731, 736-37 (6th Cir.2000)). The "negligence theory generally focuses on the defendant's conduct, requiring a showing that it was unreasonable," whereas the implied warranty cause of action "generally focuses upon the fitness of the product, irrespective of the defendant's conduct." Prentis v. Yale Mfg. Co., 421 Mich. 670, 365 N.W.2d 176, 186 (1985).
Sundberg v. Keller Ladder, No. 00-10117, 2001 WL 1397290, at *5 (E.D.Mich. Nov. 8, 2001). Plaintiff's Complaint, though inartfully drafted, appears to assert a manufacturing defect claim under a negligence theory and also a breach of implied warranty claim.
20 Mich. Civ. Jur. Products Liability § 4 (2010).
Regardless of whether a plaintiff is proceeding under a negligence theory or a breach of implied warranty theory the plaintiff must, at a minimum, establish: (1) that the product was defective; (2) that the product was defective when it left the control of the defendant; and (3) that the defective product caused the plaintiff's injuries. See Kupkowski v. Avis Ford, Inc., 395 Mich. 155, 235 N.W.2d 324, 328 (1975) (holding "that in order to establish a Prima [sic] facie case of negligence or breach of warranty in products liability cases, plaintiffs who seek to avoid a directed verdict must prove a defect attributable to the manufacturer (or seller) and causal connection between that defect and the injury or damage of which he complains") (internal quotation and citation omitted). Because the Court finds that Plaintiff has not met its burden on any of these elements, Defendant's motion for summary judgment is granted. The Court first addresses causation, followed by the issue of defectiveness.
In order to establish causation, Plaintiff must prove that the defective product caused the injury—that the allegedly defective AC power adapter caused the fire. McGuire is Plaintiff's only expert witness who definitively opined as to causation. Other than McGuire's opinion, Plaintiff lacks any competent evidence that the AC power adapter malfunctioned or failed causing the fire. Because McGuire's testimony is inadmissible under Fed.R.Evid. 702 and Daubert, Plaintiff has no evidence to establish causation and its claims fail. As there is no genuine issue of material fact on the issue of causation, the Court grants summary judgment in favor of Defendant.
Notwithstanding that determination, Defendant claims that—even if the Court were to consider McGuire's opinion— Plaintiff still cannot establish a prima facie
"It is well settled under Michigan law that a prima facie case for products liability requires proof of a causal connection between an established defect and injury." Skinner v. Square D Co., 445 Mich. 153, 516 N.W.2d 475, 478 (1994). Thus, to establish a prima facie case of products liability, the plaintiff must show "that the defendant supplied a product that was defective and that the defect caused the injury." Auto Club Ins. Ass'n v. General Motors Corp., 217 Mich.App. 594, 552 N.W.2d 523, 527 (Mich.1996) (internal citations omitted).
Skinner, 516 N.W.2d at 478. "While plaintiffs may show causation circumstantially, the mere happening of an unwitnessed mishap neither eliminates nor reduces a plaintiff's duty to effectively demonstrate causation." Id. Thus, "causation theories that are mere possibilities or, at most, equally as probable as other theories" are simply insufficient. Id. at 484. "To be adequate, a plaintiff's circumstantial proof must facilitate reasonable inferences of causation, not mere speculation"; "the plaintiff must present substantial evidence from which a jury may conclude that more likely than not, but for the defendant's conduct, the plaintiff's injuries would not have occurred." Id. at 480 (emphasis added). And, where an expert opinion is used to establish causation such an "opinion must be supported by `more than subjective belief and unsupported speculation' and should be supported by `good grounds,' based on what is known." Pomella v. Regency Coach Lines, Ltd., 899 F.Supp. 335, 342 (E.D.Mich.1995) (quoting Daubert, 509 U.S. at 590, 113 S.Ct. 2786 (1993)). Thus, the expert's conclusions regarding causation must have a basis in established fact and cannot be "premised on mere suppositions." Skinner, 516 N.W.2d at 484.
As to both theories of liability— negligent manufacturing and breach of implied warranty—Plaintiff has not presented substantial evidence of causation. Plaintiff's only evidence to establish a causal connection between the fire and the AC power adapter is the opinion of McGuire. And, as discusses above, McGuire's opinion is based on his subjective belief following a visual examination of the AC power adapter: it amounts to little more than "mere suppositions." Notwithstanding this Court's determination that McGuire's opinion is inadmissable, his opinion is also insufficient to establish a
In Prentis, the Michigan Supreme Court elaborated on the meaning of the word defective in the products liability context:
Prentis, 365 N.W.2d at 181-82. "[I]t is the injury inflicted on the plaintiff that entitles him to a remedy, not his skill in discovering precisely where defendant's manufacturing process went wrong." Holloway v. General Motors Corp., 403 Mich. 614, 271 N.W.2d 777, 783 (1978). Thus, the Holloway court concluded that a person injured by a product need not identify the specific defect. See id. Indeed, "[a] demonstrable malfunction is generally clear evidence of a defect." Kenkel v. Stanley Works, 256 Mich.App. 548, 665 N.W.2d 490,
Defendant claims that, even if McGuire's testimony is accepted, Plaintiff cannot establish that the AC power adapter was defective. Indeed, Plaintiff's expert admits that he cannot point to a manufacturing defect with the AC power adapter. McGuire testified that "[t]he failure mode, as far as I can tell it's the entire power supply heated up. I don't know which specific component caused the heat, but that circuit board heated up sufficiently to start a fire. . . . The heat adaptor would have ignited the housing first, and then if it's sitting on the carpet, the carpet and the floor and any other surrounding combustibles." (McGuire Dep., Def.'s Mot., Ex. E at 51.)
(Id. at 55.) As discussed above, such an opinion is conjecture and speculation, and it does not tend to show a "demonstrable malfunction." Although Plaintiff need not pinpoint a specific defect, Plaintiff must provide more than "mere supposition" to establish that something with the AC adapter went wrong consistent with a defect. See Sundberg, 2001 WL 1397290, at *6 (holding that "the mere showing that something went wrong consistent with the existence of a defect is sufficient . . . As a result, the plaintiff need only demonstrate a logical sequence of cause and effect between the alleged defect and the injury") (internal citations omitted). Here, Plaintiff has not shown that the AC power adapter failed, let alone that "something was wrong with it that makes it dangerous." Prentis, 365 N.W.2d at 181-82. Viewing the evidence in a light most favorable to Plaintiff, the Court finds that Plaintiff lacks sufficient evidence to establish that the AC adapter was defective.
For the foregoing reasons, Defendant's motion for summary judgment is GRANTED.
(Pl.'s Mot., Ex. 3 at 12.)
(Id. at 55.)
(Galler Aff., Def.'s Reply, Ex. A at 2-3.)
(Galler Dep., Def.'s Mot., Ex. F. at 22.) The AC power adapter is also equipped with two fuses: an AC fuse and a DC fuse. (Id. at 25.) The fuses back up the electronic current limiting feature such that if it does not operate correctly and the current increases, the fuse will "open" (or "blow") and interrupt the current. (Id.)
Plaintiff has presented no evidence that McGuire's opinion is based upon well established and tested concepts generally applicable to electrical engineering. See, e.g., Cook v. American Steamship Co., 53 F.3d 733, 739 (6th Cir. 1995), overruled on other grounds by General Electric v. Joiner, 522 U.S. 136, 118 S.Ct. 512, 139 L.Ed.2d 508 (1997) (holding that it was error for the trail court to allow an expert to speculate that a marine rope had failed from exposure to a torch when the only "test" that was conducted was "to visually examine the frayed end of the line with the naked eye and under a low power microscope." In particular, the Sixth Circuit concluded that the expert's causation opinion was not based upon science even though it was "adorned . . . in the dress of scientific or technical expertise.")
McGuire did, however, attempt to eliminate some other potential causes in the area of origin identified by Kraft. (See, e.g., McGuire Dep., Def.'s Mot., Ex. E at 33 (eliminating the surge suppressor as a possible cause).) And, besides from the visual examination and the x-ray, McGuire also took measurements of the circuit board and the power cord. (Id. at 35.)
(McGuire Dep., Def.'s Mot., Ex. E at 37.)
(Id. at 58.)
Oddi, 234 F.3d at 158. The Chester court also relied on Booth v. Black & Decker, 166 F.Supp.2d 215 (E.D.Pa.2001), which granted summary judgment to the defendant on plaintiff's negligence, design defect, and breach of warranty claims stemming from a house fire allegedly caused by a Black & Decker toaster oven. The court granted summary judgment only after concluding that the plaintiff's causation expert's testimony must be excluded pursuant to Daubert. In doing so, the Booth court noted:
Id.
(McGuire Dep., Def.'s Mot., Ex. E at 55.)
Id.; Istvan, 2010 WL 1254844, at *5
Id. (internal citations and quotations omitted).