Allstate Insurance v. Electrolux Home Products, Inc.

840 F. Supp. 2d 1072, 2012 WL 13512, 2012 U.S. Dist. LEXIS 846
CourtDistrict Court, N.D. Illinois
DecidedJanuary 4, 2012
DocketCase No. 09 C 6379
StatusPublished
Cited by17 cases

This text of 840 F. Supp. 2d 1072 (Allstate Insurance v. Electrolux Home Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Insurance v. Electrolux Home Products, Inc., 840 F. Supp. 2d 1072, 2012 WL 13512, 2012 U.S. Dist. LEXIS 846 (N.D. Ill. 2012).

Opinion

MEMORANDUM OPINION AND ORDER

MORTON DENLOW, United States Magistrate Judge.

Before the Court is Defendant Electrolux Home Products Inc.’s Motion to Strike Expert Report or Disqualify Expert From Offering Testimony. Pursuant to Rule 37 of the Federal Rules of Civil Procedure, Defendant Electrolux Home Products, Inc. (“Defendant” or “Electrolux”) asks the Court to either strike the report of Plaintiff Allstate’s (“Plaintiff” or “Allstate”) expert witness William R. Keefe (“Keefe”) or disqualify him from offering any testimony in this case.

Defendant alleges that Keefe, in forming his expert opinion, considered documents that are subject to a confidentiality agreement (“Confidential Documents”) between Defendant and a third party (“Carrier One”) in an unrelated arbitration proceeding involving a similar claim that Defendant’s dryer caused a fire. For the reasons set forth below, the Court denies Defendant’s motion to strike Keefe’s report or disqualify Keefe from testifying. As stated during the hearing on December 14, 2011, the Court orders Keefe to amend his expert report to eliminate any reference to the Confidential Documents and to reflect his testimony that he did not rely [1075]*1075on the Confidential Documents in forming his opinion in this case.

I. BACKGROUND FACTS

A. THE LITIGATION.

On September 1, 2006, John Clark experienced a fire at his residence in Lake Forest, Illinois. Pursuant to an insurance policy, Allstate paid Clark $202,924.96 for the damages resulting from the fire. Allstate investigated the fire and determined that the cause of the fire was an accumulation of lint in the heat vent at the rear of the dryer drum from a Frigidaire brand clothes dryer manufactured by Electrolux. In this lawsuit, Allstate, as subrogee of John Clark, seeks to recover damages from Electrolux resulting from that fire. Allstate brought the suit in the Circuit Court of Lake County under theories of strict liability, negligence, and breach of implied warranty. Dkt. 1. Electrolux removed this suit to this Court on October 12,2009. Id.

1. The Keefe Expert Report.

In the course of discovery, Allstate designated Keefe as their expert. Keefe prepared and submitted a detailed sixteen page expert’s report in accordance with Federal Rule of Civil Procedure 26(a)(2). Mr. Keefe has been a practicing engineer for over twenty-seven years in the areas of mechanical, safety and forensic engineering. He has participated in the investigation of approximately fifty fires involving Electrolux dryers. In his report he describes his methodology, the background of the incident, the site inspections he made on September 12, 2006, October 6, 2006, and April 19, 2011, and the laboratory inspection of the dryer and other artifacts conducted on November 25, 2008.

The report then proceeds through a detailed nine page discussion and analysis of the dryer at issue. The report reviews the May, 2003 Consumer Products Safety Commission Report on Electric Clothes Dryers and Lint Ignition. The report explains that Keefe has been involved in approximately fifty investigations of fires that originated with Electrolux dryers of this type and that the patterns of lint accumulation were similar.

Keefe issued eight detailed opinions over three pages based on his education, training and experience, inspection and testing performed in this investigation, and the facts contained in the materials. Keefe attached a complete curriculum vitae and a list of twenty-eight cases in which he has testified as an expert over the past four years. As Appendix I, he listed forty categories of information and documents reviewed and relied upon. Only half of these are specifically mentioned in the report.

2. Prior Arbitration Proceeding Involving Electrolux.

In 2007, Electrolux entered into a binding arbitration agreement (“Arbitration Agreement”) with Carrier One, a third party insurance carrier which mandated arbitration of any subrogation claims for amounts under a certain threshold arising from Electrolux products.1 Under the terms of the Arbitration Agreement, the “parties and the arbitrators” were to treat “the proceedings, any related discovery, and the decisions of the arbitrators as confidential.” Electrolux and Carrier One agreed that “neither the content nor the results of the arbitration may be used in any other proceeding.”

Subsequently, Electrolux and Carrier One submitted to arbitration in at least one case in which Keefe was retained as a consulting expert for Carrier One. Pursuant to the Arbitration Agreement, the ar[1076]*1076bitration resulted in the designation of materials as confidential (“Confidential Documents”). Def. Mem. I.2 These documents included photographs, test results, expert reports, pleadings, briefs, and depositions. Id. The root of the present conflict is that Keefe, in his role as a consulting expert for Carrier One, was privy to documents designated as confidential.3 Id. at 2. Grotefeld Hoffmann Schleiter Gordon & Ochoa LLP (“GHSGO”) represented Carrier One in the arbitration.4 In that capacity, GHSGO worked with Keefe, who was retained directly by Carrier One. Id. GHSGO now represents Allstate, who has hired Keefe in the present matter as a testifying expert.

3. The Reference to Confidential Information in Keefe’s Expert Report.

In the case at bar, Allstate submitted to Electrolux a report pursuant to Federal Rule of Civil Procedure 26(a)(2)(B) which, appropriately, included a list of the facts and data considered by Keefe in forming his expert opinion. One of the forty items on the list was “Information on Electrolux dryer fires subject to confidentiality agreements.” Def. Mem. Ex. A, at 3.

Keefe’s deposition testimony was ambiguous on what, if any, confidential information he relied upon. Keefe Dep. 21:2-15 (Def. Mem. Ex. B). When Electrolux inquired specifically about the contents of the Confidential Documents, Allstate’s counsel objected and prevented Defendant from pursuing the line of questioning. Id. at 22:18-25:12. This left Defendant in a tough spot: it did not want to violate the confidentiality of those documents, but it wanted to be able to cross-examine Keefe on all materials that he considered and rejected or considered and relied upon in forming his opinion.

Electrolux urges the Court to find that Allstate has not complied with Rule 26 and asks the Court, pursuant to Federal Rule of Civil Procedure 37, to strike Keefe’s expert report and prohibit him from testifying at trial. Specifically, Electrolux argues it cannot effectively cross-examine Keefe on his consideration of the Confidential Documents.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
840 F. Supp. 2d 1072, 2012 WL 13512, 2012 U.S. Dist. LEXIS 846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-insurance-v-electrolux-home-products-inc-ilnd-2012.