Boggess v. Positec Tool Corporation

District Court, S.D. West Virginia·Decided May 23, 2024·No. 2:23-cv-00651·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF WEST VIRGINIA AT CHARLESTON

TERESA L. BOGGESS,

Plaintiff,

v. Civil Action No. 2:23-cv-00651

POSITEC TOOL CORPORATION, t/a, a/k/a, d/b/a POSITEC USA, INC., and WAL-MART STORES, INC.,

Defendants.

MEMORANDUM OPINION AND ORDER

Pending is defendant Wal-Mart Stores, Inc.’s (“Walmart”), Motion to Dismiss Plaintiff’s Complaint, ECF No. 4; ECF No. 5 (memorandum in support), which is ORDERED dismissed inasmuch as plaintiff thereafter has filed an amended complaint, see ECF No. 17. Pending now is Walmart’s Renewed Motion to Dismiss Plaintiff’s Amended Complaint, ECF No. 18; ECF No. 19 (memorandum in support) (hereinafter “Renewed Mot.”). Plaintiff timely filed a response to the Renewed Motion, ECF No. 25 (“Pl. Resp.”), and Walmart replied, ECF No. 27 (“Walmart Reply”). The motion is fully briefed. I. Background

The following allegations are drawn from the plaintiff’s Amended Complaint, ECF No. 17 (“Am. Compl.”), and are regarded as true for the purposes of the Renewed Motion to Dismiss. Plaintiff Teresa L. Boggess (“plaintiff” or “Boggess”) resides in Mingo County, West Virginia. Am. Compl. ¶ 1. Defendant Positec Tool Corporation d/b/a Positec USA, Inc. (“Positec”) was and is a corporation registered in and with its principal place of business in North Carolina. Id. ¶ 2. Positec “systematically conducts business in” West Virginia and

“sells, distributes, and/or places hedge trimmers into the stream of commerce” in West Virginia. Id. ¶ 3. Defendant Wal- Mart Stores, Inc. (“Walmart”) is a Delaware corporation with its principal place of business in Arkansas and which “sells, distributes, and/or places hedge trimmers into the stream of commerce” in West Virginia. Id. ¶ 4. At some point prior to October 3, 2021, plaintiff purchased a Hyper Tough HT10-401-002-02 20 3.7 Amp Electric Hedge Trimmer (hereinafter, the “hedge trimmer”) from a Walmart store in Logan, West Virginia. Id. ¶ 8. The Hyper Tough hedge trimmer is ”designed, manufactured, assembled, sold, and/or distributed” by Positec, allegedly “under the substantial control of” Walmart. Id. ¶ 9. Plaintiff alleges that Positec advertises on its website that “when client corporations such as [Walmart], ‘choose Positec as [their] private brand supplier,’ those clients are able ‘to tailor a complete line of power tools and outdoor equipment that meet the specific needs of their

customers.’” Id. ¶ 15 (quoting the Positec website without citation). According to plaintiff, the “Hyper Tough” brand is a private brand of products “that is exclusively sold, marketed, and distributed to consumers by” Walmart. Id. ¶ 10. Indeed, plaintiff alleges that the “Hyper Tough” brand name is a “trademark owned by Walmart Apollo, LLC,” which is a “wholly owned subsidiary of” Walmart. Id. ¶ 11. Walmart allegedly commissions and “exercises and maintains substantial control over” the ”design, manufacture, and assembly” of its “proprietary Hyper Tough range of products” through various manufacturers, including Positec. Id. ¶ 12, 13. Plaintiff

alleges that Walmart exercises such control “in order to create a line of tools that will meet certain cost, functionality, and quality standards that [Walmart] deems to be attractive to its consumers, profitable for [Walmart], and suitable to represent [Walmart’s] exclusive Hyper Tough brand name in the marketplace.” Id ¶ 14. Walmart “extensively markets its Hyper Tough” line of tools to its customers as “trustworthy,” using the slogan “Hyper Tough tools[:] Find everything you need from a brand you trust.” Id. ¶ 17. Specifically, the hedge trimmer model at issue in this matter “is exclusively sold, marketed, and distributed by”

Walmart, which “commissioned, directed, and substantially controlled” the hedge trimmer’s “design, manufacture, and assembly.” Id. ¶ 18. The hedge trimmer was marketed by defendants Walmart and Positec “as safe for the non-professional home use, stating, inter alia, that it has a ‘Dual safety trigger design so this trimmer only activates when you mean for it to.’” Id. ¶ 27 (source of marketing language unspecified). Hyper Tough tools, including the hedge trimmer, “are marketed under the trademarked Hyper Tough brand, and do not clearly disclose that there is any company involved in their design, manufacture, or assembly other than Hyper Tough.” Id. ¶ 16. There was “no apparent disclosure . . . that Positec

participated in the manufacture of the hedge trimmer.” Id. ¶ 18. The court notes that, as acknowledged by plaintiff earlier in her complaint, Hyper Tough is a trademark allegedly owned by a Walmart subsidiary and is not a company. See id. ¶ 11. On October 3, 2021, plaintiff was “properly operating the hedge trimmer with all due care and attention” while trimming small shrubs on her residential property. Id. ¶ 19. After a “thin shrub branch” lodged in the hedge trimmer, its blades “ceased moving.” Id. ¶ 20. Plaintiff then “released the hedge trimmer’s operating button, properly turning” it off, and set it down. Id. Plaintiff alleges she “[did] everything to safely power off and disengage the hedge trimmer in accordance

with the instructions,” and, with the “hedge trimmer off, motor silent, and the blades motionless,” plaintiff proceeded to “manually remove the shrub branch lodged within the blades.” Id. ¶ 21. When plaintiff removed the shrub branch, “the hedge trimmer suddenly and unexpectedly reengaged with the blades moving.” Id. As a result, plaintiff “suffered severe cuts and lacerations to her nerves and tendons in three of her fingers on her left hand, requiring emergency care, subsequent surgeries, and extensive physical therapy.” Id. ¶ 22. Plaintiff alleges she suffered various economic and noneconomic damages. Id. ¶ 23.

On February 18, 2022 – after plaintiff was injured and Walmart “was notified of her injury” – an agent of “Wal-mart, Positec, [and/or] their insurance carrier(s) . . . came to Ms. Boggess’ home and took possession of the hedge trimmer.” Id. ¶ 39. Plaintiff had not yet retained counsel or “ha[d] a qualified independent expert inspect, test, and document the condition of the hedge trimmer.” Id. On September 28, 2023, plaintiff filed her original complaint. ECF No. 1. Defendant Walmart timely filed its original motion to dismiss, arguing that West Virginia’s Innocent Seller Statute, W. Va. Code § 55-7-31, barred plaintiff’s suit against it. ECF No 4, 5. After that motion

was fully briefed, plaintiff filed a motion for leave to amend her complaint, ECF No. 11, which was unopposed. The court granted plaintiff’s motion for leave to amend and ordered her Amended Complaint be contemporaneously entered, ECF No. 16 (order), ECF No. 17 (Amended Complaint). As in her original complaint, plaintiff’s Amended Complaint alleges four counts: Count I, “Strict Products Liability as to All Defendants”; Count II, “Strict Liability – Failure to Warn as to All Defendants”; Count III – “Negligence as to All Defendants”; and Count IV – “Breach of Implied Warranties of Merchantability and Fitness for a Particular Purpose as to All Defendants.” Am. Compl. ¶ 40-73. Defendant Walmart timely filed its Renewed Motion to

Dismiss Plaintiff’s Amended Complaint, again only contending that plaintiff’s suit against Walmart is barred by West Virginia’s Innocent Seller Statute, W. Va. Code § 55-7-31, and must thus be dismissed under Rule 12(b)(6). In the Renewed Motion, Walmart alternatively “requests” that if the court denies the motion, the court “permit only limited discovery as to Walmart with respect to the narrow exception(s) to the Innocent Seller Statute.” Renewed Mot. 10.

II. Applicable Law

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