Gorman v. Saf-T-Mate, Inc.

513 F. Supp. 1028, 1981 U.S. Dist. LEXIS 13562
CourtDistrict Court, N.D. Indiana
DecidedMay 14, 1981
DocketCiv. F 80-147
StatusPublished
Cited by35 cases

This text of 513 F. Supp. 1028 (Gorman v. Saf-T-Mate, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gorman v. Saf-T-Mate, Inc., 513 F. Supp. 1028, 1981 U.S. Dist. LEXIS 13562 (N.D. Ind. 1981).

Opinion

MEMORANDUM OF DECISION AND ORDER

ESCHBACH, Chief Judge.

This cause is before the court on the September 12, 1980 motion to dismiss filed by defendant Saf-T-Mate, Inc. The motion challenges plaintiffs’ complaint on a variety of grounds. One of those challenges raises the question whether the private cause of action created by the Magnuson-Moss Warranty Act (Warranty Act), 15 U.S.C. § 2301 et seq., for breach of consumer product warranties includes damage claims for personal injury. This court concludes that the cause of action created by the federal statute does not, with certain exceptions, extend so far. For the reasons set forth below, the instant motion will be granted in part and denied in part and plaintiffs’ claims against defendant North Harbor, Inc., will be dismissed unless the plaintiff is able to amend the complaint consistent with this opinion.

*1030 In this action, plaintiffs Todd Gorman, a minor child, and his parents seek to recover at least $750,000 in compensatory damages, together with punitive damages for personal injuries which Todd allegedly sustained as a result of a misadventure involving a motorboat manufactured by the defendant Saf-T-Mate and sold to the Gormans by the defendant North Harbor. Saf-T-Mate is a Michigan corporation with headquarters in Cadillac, Michigan, and North Harbor is an Indiana corporation with headquarters in Fort Wayne, Indiana; plaintiffs are citizens of Indiana.

There are five counts in the complaint. Count I alleges breach of express and implied warranties of merchantability and fitness for ordinary use with regard to the motorboat. Count II sounds in strict liability in tort. Count III alleges negligent design and manufacture. Count IV alleges breach of warranty of fitness for a particular purpose. Count V alleges defendants misrepresented the fitness of the boat.

Plaintiffs seek to maintain jurisdiction on the basis of diversity of citizenship and also on the basis of § 110(d) of the Warranty Act, 15 U.S.C. § 2310(d). Saf-T-Mate’s motion to dismiss raises the following issues: (1) whether the Warranty Act affords a basis for the recovery of personal injury damages; (2) whether plaintiffs may recover attorney fees under the Warranty Act; (3) whether the allegations in the complaint are insufficient to support the prayers for punitive damages; (4) whether the count alleging misrepresentation fails to state a claim upon which relief can be granted; and (5) whether the implied warranty claims must be dismissed as duplicative of the strict products liability claims.

I. MAGNUSON-MOSS CAUSES OF ACTION

Since there is no diversity of citizenship among plaintiffs and the retailer defendant, North Harbor, because all are citizens of Indiana, plaintiffs’ claims against North Harbor must be dismissed unless the Magnuson-Moss Act affords an alternative jurisdictional basis for one or more of those claims. On August 8, 1980, North Harbor filed a motion to dismiss addressed to the obvious lack of diversity of citizenship among plaintiffs and North Harbor. That motion did not address the allegations of jurisdiction under the Magnuson-Moss Act and was, therefore, denied. In the instant motion, the other defendant, Saf-T-Mate, argues that the Warranty Act does, not create a federal cause of action allowing plaintiffs to sue for personal injury damages. Although Saf-T-Mate proffers this argument on its own behalf, dismissal of the Warranty Act claims would not require a complete dismissal as to Saf-T-Mate, given the apparent alternative jurisdictional basis of diversity of citizenship for at least some of plaintiffs’ claims against Saf-TMate. However, jurisdiction as to the Indiana defendant, North Harbor, does turn on whether plaintiffs have stated any claims under the Act.

Upon initial examination, the complaint in this case might appear to satisfy the requirements for federal court jurisdiction under the Act. The amount in controversy is alleged to be in excess of $50,000, and the plaintiffs’ injuries allegedly arise out of breach of warranties pertaining to a consumer product. The pertinent issue, however, is whether the Act creates a remedy for personal injury claims which happen to be susceptible of being alternatively stated in breach of warranty or in strict products liability in tort.

If such personal injury claims are cognizable under the Act, numerous products liability actions which historically have been confined largely to the state courts could be brought in federal court regardless of the locus of citizenship of the parties. This would be a major expansion of the jurisdiction of the federal district courts. Unless the authors of federal legislation clearly convey their meaning, there is a presumption against construing a statute so as to significantly change the federal-state jurisdictional balance. United States v. Bass, 404 U.S. 336, 349, 92 S.Ct. 515, 523, 30 L.Ed.2d 488 (1971); Apex Hosiery v. Leader, 310 U.S. 469, 513, 60 S.Ct. 982, 1002, 84 *1031 L.Ed. 1811 (1940). This rule of interpretation calls for a very thorough examination of the statute.

That task, however, poses a very considerable challenge:

A literal reading of the Magnuson-Moss Act is only a departure point for giving meaningful content to the statute which has been variously described as “disappointing”, “opaque”, and a product of “poor drafting”. A review of the legislative history gives but limited solace. That review is the legal equivalent of an archeological dig. Various consumer warranty bills were pending before the House and Senate for four years, during which each body defined, discarded, reintroduced and redefined concepts which in some fashion or another are related to the enacted legislation. Some provisions in the Act are vestigial reminders of concepts buried but not totally forgotten during the on-going legislative process. Both proponents and opponents of an expansive interpretation have cited compelling, to them, legislative history only dimly related to the language which finally emerged as law.

Skelton v. General Motors Corp., 500 F.Supp. 1181, 1184 (N.D.Ill.1980) (footnotes omitted).

The Warranty Act, 15 U.S.C. §§ 2301 to 2312, applies principally to products which sell at retail for more than five dollars and are accompanied by written warranties. The Act does not require written warranties, but if they are given the Act imposes a wide variety of requirements upon the form and content of such warranties. Written warranties for consumer products costing more than ten dollars must be prominently designated as “full” or “limited” warranties. 15 U.S.C. § 2303. A “full” warranty must comply with a list of minimum standards.

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Bluebook (online)
513 F. Supp. 1028, 1981 U.S. Dist. LEXIS 13562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gorman-v-saf-t-mate-inc-innd-1981.