LAU, J.
¶ 1 Cheri Rollins suffered serious injuries when the personal watercraft (jet ski) she tried to start exploded. She appeals the trial court's summary judgment dismissal of her product liability claim against Bombardier Recreational Products (Bombardier). She contends Bombardier negligently designed the model of personal watercraft when it failed to include an engine ventilation system. The trial court dismissed her product liability claim on summary judgment, reasoning that, as a matter of law, the Federal Boat Safety Act (FBSA) preempted her state product liability claim. Because her claim directly conflicts with the Coast Guard's explicit decision, pursuant to Congressional authority, to exempt personal watercraft from the ventilation system requirement, it defeats the purpose of the FBSA and is therefore preempted. We affirm the order of dismissal.
¶ 2 The main facts are undisputed. On August 1, 2009, Cheri Rollins tried to start a personal watercraft (jet ski) when it exploded.
¶ 3 In August 2011, Rollins sued the Longs alleging their failure to properly maintain the jet ski negligently caused her injuries. In April 2012, the Longs filed a third party complaint against Bombardier. The complaint alleged violations of Washington's Product Liability Act (WPLA) and Washington's Consumer Protection Act (CPA). Rollins amended her complaint to assert the same WPLA design-defect claim against Bombardier. The parties agree that the defect underlying Rollins' claim is Bombardier's alleged failure to Include a powered ventilation system—a "blower" device—on the jet ski.
¶ 4 In June 2013, Bombardier moved for summary judgment dismissal, arguing that federal law preempted Rollins' product liability claim. In September 2013, Rollins and the Longs entered into a Settlement Agreement, entitled "Settlement Agreement, Release, and Assignment." Clerk's Papers (CP) at 2594-99. The Agreement provided that the Longs' insurer, State Farm, paid Rollins $1.2 million. As consideration, Rollins assigned her personal injury claim against Bombardier to the Longs and State Farm. After executing the Agreement, Rollins non-suited her claims, with prejudice, against the Longs. In October 2013, Rollins notified Bombardier that State Farm controlled her claims. In November 2013, Bombardier filed a motion to dismiss "pursuant to CR 12, 17, and 56." CP at 2548-66. Bombardier argued that Rollins' lawsuit was an improper claim for indemnification brought by State Farm. Because the Agreement settled Rollins' claims against the Longs and granted State Farm ownership of her remaining claims, the lawsuit had transformed into an attempt by State Farm to use "[Rollins] as a vessel through which it seeks indemnification from Bombardier." CP at 2555. Bombardier also argued that State Farm was not the party in interest.
¶ 5 The trial court issued two orders addressing Bombardier's two motions—the June 12 motion for summary judgment and the November 21 motion to dismiss. In December 2013, the trial court granted Bombardier's summary judgment motion and dismissed Rollins' product liability claim, reasoning that the claim is preempted by federal law. In January 2014, the trial court issued an order ruling that the settlement agreement between the Longs and Rollins was an "indemnification agreement . . . collusive in effect." CP at 2791. But the court concluded that Bombardier's November 21 motion to dismiss was rendered moot when it dismissed Rollins' claim on summary judgment. Rollins appeals the trial court's order granting Bombardier's June 12 motion for summary judgment.
¶ 6 We review summary judgment orders de novo, engaging in the same inquiry as the trial court. Michak v. Transnation Title Ins. Co., 148 Wn.2d 788, 794-95, 64 P.3d 22 (2003). Summary judgment is proper if, viewing the facts and reasonable inferences in the light most favorable to the nonmoving party, no genuine issues of material fact exist and the moving party is entitled to judgment as a matter of law. CR 56(c); Michak, 148 Wash.2d at 794-95, 64 P.3d 22. The parties agree on the material facts. The sole issue is whether federal law preempts Rollins' product liability claim.
¶ 7 Bombardier contends a federal regulation exempting Bombardier from including powered ventilation systems on its jet skis preempts Rollins' state law claim under the WPLA. Rollins alleges Bombardier's jet ski was defectively designed because it lacked a powered ventilation system.
¶ 8 Federal preemption doctrine derives from the supremacy clause, which provides that "the Laws of the United States. . . shall be the supreme Law of the Land." U.S. Const. art. VI. Federal preemption of state law can be "either expressed or implied, and is compelled whether Congress' command is explicitly stated in the statute's language
¶ 9 We conclude that federal law impliedly preempts Rollins' state product liability claim because it directly conflicts with federal safety standards promulgated under the FBSA. It therefore "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress." Sprietsma v. Mercury Marine, 537 U.S. 51, 64, 123 S.Ct. 518, 154 L.Ed.2d 466 (2002) (quoting Freightliner Corp. v. Myrick, 514 U.S. 280, 287, 115 S.Ct. 1483, 131 L.Ed.2d 385 (1995)).
¶ 10 In the FBSA, Congress explicitly provided that federal regulations of recreational watercraft preempt conflicting state laws. The FBSA "was enacted `to improve boating safety,' to authorize `the establishment of national construction and performance standards for boats and associated equipment,' and to encourage greater `uniformity of boating laws and regulations as among the several States and the Federal Government.'" Sprietsma, 537 U.S. at 57, 123 S.Ct. 518 (quoting Pub. L. 92-75, § 2, 85 Stat. 213-14). The Senate Report underlying the FBSA explains, "[t]he need for uniformity in standards if interstate commerce is not to be unduly impeded supports the establishment of uniform construction and equipment standards at the Federal level." S. REP. No. 92-248 (1971), reprinted in 1971 U.S.C.C.A.N. 1333, 1335. The same report explains preemption of conflicting state law is necessary to "assure[ ] that manufacture for the domestic trade will not involve compliance with widely varying local requirements." S. REP. No. 92-248, 1971 U.S.C.C.A.N. at 1341.
¶ 11 In accordance with this purpose, section 4302 of the FBSA delegates to the Secretary of Transportation authority to "[establish] minimum safety standards for recreational vessels and associated equipment," including "requiring the installation, carrying, or use of associated equipment (including . . . ventilation systems . . .)." 46 U.S.C. § 4302(a)(1)-(2). The official notes of section 4302 emphasize that this delegation of authority grants the Secretary broad discretion to establish uniform safety standards:
46 U.S.C. § 4302, historical and revision notes (emphasis added). Consistent with this flexible regulatory authority, the FBSA also grants the Secretary the discretionary power to exempt certain vessels from those same regulations: "If the Secretary considers that recreational vessel safety will not be adversely affected, the Secretary may issue an exemption from this chapter or a regulation prescribed under this chapter." 46 U.S.C. § 4305. Finally, section 4306 of the FBSA—titled "Federal preemption"—expressly provides that the regulatory scheme
46 U.S.C. § 4306 (emphasis added).
¶ 12 The Secretary of Transportation has delegated all regulatory authority under the FBSA to the Coast Guard. See Sprietsma, 537 U.S. at 57, 123 S.Ct. 518 (citing 49 C.F.R. § 1.46(n)(1) (1997)). It is a well-settled principle of preemption doctrine that "a federal agency acting within the scope of its congressionally delegated authority" is afforded the same preemptive power over state law as Congress. Louisiana Pub. Serv. Comm'n v. FCC, 476 U.S. 355, 369, 106 S.Ct. 1890, 90 L.Ed.2d 369 (1986). Accordingly, "Coast Guard regulations are to be given pre-emptive effect over conflicting state laws." U.S. v. Locke, 529 U.S. 89, 109-10, 120 S.Ct. 1135, 146 L.Ed.2d 69 (2000). One regulation promulgated by the Coast Guard requires boats to be equipped with a ventilation system:
33 C.F.R. § 183.610. Since 1988, however, the Coast Guard has granted an official exemption to Bombardier for personal watercraft due to their unique design. The Coast Guard's Grant of Exemption number CGB 88-001, entitled "In the matter of the petition of BOMBARDIER CORPORATION for an exemption from [33 C.F.R. § 183.610]," considers several different regulatory requirements as they relate to personal watercraft. CP at 677-80. Regarding ventilation, the Coast Guard concluded an exemption would not adversely affect boating safety:
CP at 679 (emphasis added). In light of this exemption, the Coast Guard required Bombardier to affix labels to its personal watercraft models alerting consumers to the exemption:
CP at 680 (emphasis added). The record includes a photograph of this label affixed to a jet ski identical to the one involved in the accident underlying Rollins' lawsuit. The Coast Guard has exempted nearly all personal watercraft manufacturers, including Bombardier, from complying with the ventilation requirement under 33 C.F.R. § 183.610(a)(1)-(2).
¶ 13 Federal courts have found conflict preemption when a common law claim imposes a requirement that is inconsistent with federal safety standards. For instance, in Gracia v. Volvo Europa Truck, N.V., 112 F.3d 291 (7th Cir.1997), the court explained that allowing the plaintiff's design defect claim to continue would defeat the federal government's goal of maintaining uniform safety standards across the country:
Gracia, 112 F.3d at 298.
¶ 14 The same reasoning applies here. In Becker v. U.S. Marine Co., 88 Wn.App. 103, 943 P.2d 700 (1997), we stated that "[a] tort claim defeats the purposes of the [FBSA] and is therefore preempted only when the duty asserted conflicts with the Coast Guard's explicit decision either to adopt a particular standard or to leave the feature or structure unregulated." Becker, 88 Wash.App. at 111, 943 P.2d 700. Because Rollins' claim directly conflicts with an exemption granted by the Coast Guard acting within the scope of its congressionally delegated authority, it is preempted. The FBSA grants authority to the Secretary of Transportation to promulgate boat safety regulations and exempt individual manufacturers or boat models from those same regulations. Together, these regulations and exemptions create a framework of safety standards intended to encourage uniformity among the states and protect manufacturers from "widely varying local requirements." S. REP. No. 92-248, 1971 U.S.C.C.A.N. at 134; see also Sprietsma, 537 U.S. at 57, 123 S.Ct. 518. With these goals in mind, the act provides that standards promulgated under the act preempt conflicting state laws.
¶ 15 Pursuant to this regulatory authority, the Coast Guard granted Bombardier an official exemption from the ventilation requirement for its Sea-Doo model jet skis. The parties agree that the thrust of Rollins' design defect claim is that the jet ski lacked a ventilation system. Because her claim effectively "impos[es] a requirement' that is inconsistent with the federal safety standard, it creates an obstacle to the FBSA's purpose and is therefore preempted." 46 U.S.C. § 4306 ("[A] State or political subdivision of a State may not . . . impos[e] a requirement. . . that is not identical to a regulation prescribed under section 4302 of this title." (emphasis added)); see Gade, 505 U.S. at 98, 112 S.Ct. 2374 ("conflict preemption [occurs] where . . . state law `stands as an obstacle to
¶ 16 Rollins argues her claim is not preempted because the Coast Guard's Grant of Exemption is not a "regulation." Rollins asserts that the FBSA preempts state laws only when those laws are "not identical to a regulation prescribed under section 4302 of this title." 46 U.S.C. § 4306 (emphasis added). Because the Coast Guard's Grant of Exemption is "a mere letter," and not a "regulation," it has no preemptive authority under the FBSA. Br. of Appellant at 1. The key difference, according to Rollins, is that the content of the Coast Guard's Grant of Exemption was never published in either the Code of Federal Regulations or the Federal Register. To support this argument, Rollins cites Brock v. Cathedral Bluffs Shale Oil Co., 796 F.2d 533 (D.C.Cir.1986):
Brock, 796 F.2d at 538-39 (quoting 44 U.S.C. § 1510 (1982)). In other words, Rollins argues her claim is not preempted because there is no "law" or "regulation" preempting the claim.
¶ 17 We are not persuaded by Rollins' attempt to cast the exemption letter as a "mere letter" lacking any preemptive effect. Rollins' argument elevates form over substance. She fails to cite any authority stating that only published regulations have preemptive force. "Where no authorities are cited in support of a proposition, the court is not required to search out authorities, but may assume that counsel, after diligent search, has found none." DeHeer v. Seattle Post-Intelligencer, 60 Wn.2d 122, 126, 372 P.2d 193 (1962). Indeed, preemption does not typically depend on whether a regulation is published. Rather, it is the "purpose of Congress" that is "the ultimate touchstone of pre-emption analysis." Cipollone, 505 U.S. at 517, 112 S.Ct. 2608. Accordingly, federal courts have acknowledged that "federal agency action taken pursuant to statutorily granted authority short of formal, notice and comment rulemaking may also have preemptive effect over state law." Fellner v. Tri-Union Seafoods, LLC, 539 F.3d 237, 244 (3d Cir.2008); see also Colacicco v. Apotex Inc., 521 F.3d 253, 271 (3d Cir.2008) ("Although preemption is commonly thought of in terms of statutes and regulations, a federal agency's action taken pursuant to statutorily granted authority may also have preemptive effect over state law."). The FBSA evidences Congress' clear intent to grant the Secretary of Transportation (and, by extension, the Coast Guard) broad regulatory authority to establish uniform safety standards that supersede conflicting state requirements. In Gracia, 112 F.3d at 291, the court explained that federal action can have preemptive force even if it involves no regulation. In Gracia, the National Highway Transportation Safety Administration (NHTSA) established windshield retention requirements and exemptions for certain vehicles pursuant to its authority under the National Traffic and Motor Vehicle Safety
Gracia, 112 F.3d at 296-97. In Gracia, it was irrelevant whether or not the exemptions at issue had been published.
¶ 18 We acknowledged the same principle in Becker. The plaintiff in Becker filed a product liability claim against a boat manufacturer alleging the manufacturer negligently caused injury by failing to include certain safety features such as handrails on one of its boat models. Becker, 88 Wash.App. at 104-05, 943 P.2d 700. The Coast Guard had never promulgated any regulation or exemption related to handrails. Becker, 88 Wash. App. at 110, 943 P.2d 700. But despite any formal law or regulation, we stated that preemption may nevertheless exist if there was sufficient evidence that the Coast Guard had considered and rejected regulations addressing handrails: "[t]he issue in this case, therefore, is a factual one: has the Coast Guard explicitly considered and rejected regulation in matters of handrails and bow seating design?" Becker, 88 Wash.App. at 111, 943 P.2d 700. This key inquiry would have been unnecessary if, as Rollins contends, a federal agency's action must be a formally published law or regulation to have preemptive effect. Instead, we considered whether the Coast Guard had made an "explicit decision to either to adopt a particular standard or to leave the feature or structure unregulated." Becker, 88 Wash.App. at 111, 943 P.2d 700. We ultimately held the plaintiff's tort claim was not preempted "[b]ecause the Coast Guard has not formally considered, evaluated, and rejected regulation of bow seating design, including handrails. . . ." Becker, 88 Wash.App. at 112, 943 P.2d 700.
¶ 19 Here, unlike in Becker, the Coast Guard's exemption letter provides strong evidence of "explicit decision either to adopt a particular standard or to leave the feature or structure unregulated." Becker, 88 Wash. App. at 111, 943 P.2d 700. Despite Rollins' assertion that the Coast Guard's Grant of Exemption is a "mere letter," the record shows the Coast Guard grants such exemptions through formal exemption procedures only after conducting a rigorous evaluation process. Scott Evans, retired Captain and former Chief of Office of Boating Safety of the U.S. Coast Guard, explained the exemption process in a declaration submitted to the trial court. The exemption procedure is also summarized in the Coast Guard's 1999 Federal Register.
¶ 20 To obtain an exemption, a manufacturer such as Bombardier must first send a petition to the Coast Guard's Product Assurance Division. The petition must describe the boat or vessel for which the exemption is being sought and include detailed design information and specifications. The petition must also provide data and argument explaining why the vessel should receive an
¶ 21 During this extensive review process, the Coast Guard works closely with manufacturers to ensure that relevant designs met or exceeded federal requirements. Under the FBSA, the Coast Guard may only grant an exemption if it determines that the exemption will not adversely affect boat safety. Once the Product Assurance Division determines that the exemption would not adversely affect boat safety, the exemption request would be vetted through the Chief of the Officer of Boating Safety. Once the exemption is granted, it "constitute[s] official Coast Guard regulatory action done pursuant to. . . Congressional authority." CP at 1755; see 46 U.S.C. § 4305. This exemption process has remained the same since 1988. In 1999, the Coast Guard proposed changing the exemption process. The Coast Guard published a description of the exemption process in the Federal Register and sought public comments on certain aspects of the process.
¶ 22 Under these circumstances, the Coast Guard's Grant of Exemption preempts Rollins' claim. Unlike in Becker and Sprietsma, where the record failed to establish that the Coast Guard had explicitly considered and rejected the regulation at issue,
¶ 23 The authority Rollins cites is inapposite. She concedes that Brock—the primary case upon which she relies—has nothing to do with preemption doctrine. In Brock, the court addressed whether the Secretary of Labor's enforcement policy promulgated under the Federal Mine Safety and Health Act was a "binding norm" or simply a statement of general policy. Brock, 796 F.2d at 536. The court concluded that the enforcement policy did not constitute a "binding, substantive regulation" because the "language of the
¶ 24 The legal question in Brock is entirely unrelated to the issue here. The Brock court analyzed the difference between regulations and general statements of policy, not whether either of those agency actions have preemptive force. As discussed above, both federal and Washington courts have acknowledged that an agency action may preempt state law even if there is no formal, published regulation. See Fellner, 539 F.3d at 244; see also Becker, 88 Wash.App. at 111, 943 P.2d 700.
¶ 25 Rollins also relies on Wabash Valley Power Ass'n. Inc. v. Rural Electrification Admin., 903 F.2d 445 (7th Cir.1990). The Wabash court concluded that the Rural Electrification Administration (REA) could not preempt state law with a letter, stating that instead it "must establish rules with the force of law." Wabash, 903 F.2d at 453-54. There are several key differences between the letter at issue in Wabash and the Coast Guard's Grant of Exemption at issue here. First, in the letter, the REA sought to exercise control over Wabash's electricity rates. Wabash, 903 F.2d at 450. The REA failed to show it had any legal authority to do so: "[n]either REA's letter to Wabash nor its brief in this court cites any provision of the statute allowing it to regulate the rates charged by its borrowers. Unless the REA has this authority, it is hard to see how it can preempt state law. . . ." Wabash, 903 F.2d at 453. Second, the court criticized the REA's letter as an "informal procedure" lacking legal force. Wabash, 903 F.2d at 454. Here, in contrast, the Coast Guard unquestionably possesses the authority to grant exemptions from boat safety regulations. 45 U.S.C. § 4306. As discussed above, the Grant of Exemption letter is the product of a rigorous evaluation procedure distinct from the informal letter at issue in Wabash.
¶ 26 Rollins also claims that the saving clause in the FBSA saves her state law claim from preemption. The saving clause provides that "[c]ompliance with this chapter or standards, regulations, or orders prescribed under this chapter does not relieve a person from liability at common law or under State law." 46 U.S.C. § 4311. In Sprietsma, the court concluded the FBSA did not preempt a state product liability claim in part because of the saving clause:
¶ 27 Indeed, both federal and Washington courts have recognized that saving clauses like the one in section 4311 protect only those tort claims outside the scope of federal regulation. In Geier v. American Honda Motor Co., Inc., 529 U.S. 861, 120 S.Ct. 1913, 146 L.Ed.2d 914 (2000), the court explained that saving clauses do not broadly protect tort claims, but rather prevent manufacturers from using compliance with federal regulation as a general defense to tort liability:
Geier, 529 U.S. at 869-70, 120 S.Ct. 1913 (quoting United States v. Locke, 529 U.S. 89, 106-07, 120 S.Ct. 1135, 146 L.Ed.2d 69 (2000)). Indeed, the Senate report for the FBSA confirms that the purpose of the saving clause is to prevent defendants from using compliance with federal regulations as a broad defense to tort claims. See Becker, 88 Wash.App. at 108, 943 P.2d 700 ("According to the same Senate report, the purpose of the savings clause is `to assure that in a product liability suit mere compliance by a manufacturer with the minimum standards promulgated under the Act will not be a complete defense to liability.'" (quoting S. REP. 92-248 § 40 (1971), 1971 U.S.C.C.A.N. at 1352)). With this understanding of the saving clause, we held that "[a] tort claim defeats the purposes of the [FBSA] and is therefore preempted only when the duty asserted conflicts with the Coast Guard's explicit decision either to adopt a particular standard or to leave the feature or structure unregulated." Becker, 88 Wash.App. at 111, 943 P.2d 700.
¶ 28 Unlike this case, the tort claim in Sprietsma was saved from preemption because it targeted an area that the Coast Guard had not regulated. The plaintiff in Sprietsma filed a product liability claim when his wife died after being struck by the propeller of a boat manufactured by Mercury Marine. Sprietsma, 537 U.S. at 54, 123 S.Ct. 518. The plaintiff alleged the boat was not equipped with a propeller guard. Sprietsma, 537 U.S. at 55, 123 S.Ct. 518. Although the Coast Guard had considered promulgating a standard for propeller guards, it ultimately did not impose any propeller guard regulation due to "the lack of any `universally acceptable' propeller guard for `all modes of boat operation.'" Sprietsma, 537 U.S. at 67, 123 S.Ct. 518. Therefore, "although the Coast Guard's decision not to require propeller guards was undoubtedly intentional and carefully considered, it does not convey an `authoritative' message of a federal policy against propeller guards." Sprietsma, 537 U.S. at 67, 123 S.Ct. 518.
¶ 29 Here, in contrast, the Coast Guard has promulgated a uniform standard for exhaust ventilation. 33 C.F.R. § 183.610 establishes
¶ 30 Rollins nevertheless argues her claim is not preempted because the regulation at issue presented Bombardier with a choice to use ventilation systems or not. In Williamson v. Mazda Motor of Am. Inc., 562 U.S. 323, 131 S.Ct. 1131, 179 L.Ed.2d 75 (2011), the court analyzed a regulation under the National Traffic and Motor Vehicle Safety Act which allowed manufacturers a choice as to what type of seat belt—either lap belts or lap-and-shoulder belts—to install in rear middle seats. Williamson, 562 U.S. at 326-27, 131 S.Ct. 1131. The plaintiff's tort claim alleged that Mazda should have installed lap-and-shoulder belts rather than just lap belts. Williamson, 562 U.S. at 327, 131 S.Ct. 1131. The court held that when a regulation offers a manufacturer a choice, that regulation does not preempt state law claims based on a manufacturer's choice if providing that choice is not central to federal regulatory objectives. Williamson, 562 U.S. at 336, 131 S.Ct. 1131.
¶ 31 Williamson is inapposite for several reasons. First, Rollins' reliance on Williamson is a recasting of her previous argument that because the exemption does not prohibit ventilation systems Bombardier could nevertheless include a ventilation system without violating the Coast Guard's regulatory scheme. However, as discussed above, imposing additional requirements via tort liability defeats the Coast Guard's statutory authority to grant exemptions and creates an obstacle to federal regulatory objectives. See Gracia, 112 F.3d at 298 ("If Gracia's common law claim was not preempted, then manufacturers would be placed in a position where they could be subject to varying standards from state to state, which could not all be complied with simultaneously."); see also Becker, 88 Wash.App. at 111, 943 P.2d 700 ("A tort claim defeats the purposes of the [FBSA] and is therefore preempted only when the duty asserted conflicts with the Coast Guard's explicit decision either to adopt a particular standard or to leave the feature or structure unregulated.").
¶ 32 Second, the Bombardier's exemption does not provide the same "choice" available to manufacturers in Williamson. In 1999, the Coast Guard published an explanation of the exemption process in the Federal Register. The Coast Guard stated that once a boat model is subject to an exemption, the manufacturer cannot change the design of that model without petitioning for an amendment to the exemption:
CP at 1748 (64 Fed. Reg. 201 (October 19, 1999)). Therefore, once Bombardier obtained the exemption for its Sea-Doo model, it could not alter the model without petitioning for an amendment to the exemption.
¶ 33 Further, the Coast Guard's ventilation regulation does grant manufacturers a choice, but Bombardier's Grant of Exemption exempts it from having to make that choice. The Coast Guard requires that every boat with a gasoline crank motor achieve ventilation by either (1) exposing the engine compartment to the open air or (2) equipping the model with an exhaust blower system. Manufacturers have the choice of which ventilation method to use. Bombardier's Grant of Exemption, however, allows it to avoid making this choice in the first place. Rollins' theory under Williamson would potentially allow a tort suit against a manufacturer who,
¶ 34 Because Rollins' product liability claim directly conflicts with explicit, uniform safety standards promulgated by the Coast Guard acting within the scope of its congressionally delegated authority, it is preempted.
¶ 35 We affirm the order dismissing Rollins' product liability claim on summary judgment.
WE CONCUR: SCHINDLER and APPELWICK, JJ.