Hays v. General Electric Co.

151 F. Supp. 2d 1001, 45 U.C.C. Rep. Serv. 2d (West) 449, 2001 U.S. Dist. LEXIS 11407, 2001 WL 883196
CourtDistrict Court, N.D. Illinois
DecidedAugust 2, 2001
Docket95 C 5220
StatusPublished
Cited by8 cases

This text of 151 F. Supp. 2d 1001 (Hays v. General Electric Co.) 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
Hays v. General Electric Co., 151 F. Supp. 2d 1001, 45 U.C.C. Rep. Serv. 2d (West) 449, 2001 U.S. Dist. LEXIS 11407, 2001 WL 883196 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

BUCKLO, District Judge.

Roadmaster Corp. (“Roadmaster”) sued General Electric Co. (“GE”) for breach of contract (Count I) and breach of express and implied warranties (Counts II, III, and IV) arising out of the failure of GE motors that Roadmaster used in its treadmills. 1 GE moves for summary judgment on all four counts. The motion is granted in part and denied in part.

I.

In the 1990s, Roadmaster was one of the leading manufacturers of exercise treadmills. Beginning in 1993, it tested GE drive-systems for its treadmills, which consisted of a 2.0 horsepower electric motor (“motor”), an electric controller and a fan system. The motor passed Roadmaster’s internal qualification testing in August 1993, and Roadmaster submitted its first purchase order for the motor to GE in October 1993. Roadmaster installed the motors in its treadmills, and in early 1994 it began to receive reports that some treadmills would “runaway” (the parties’ term), or accelerate to top speed without warning. PX 61 (customer complaints from 1/20/1994 to 4/13/1994). 2 During *1005 March and April, Roadmaster also received customer reports of another problem with the GE motors: they were overheating, smoking, spitting out plastic chips, and emitting a burning odor; one customer said she was afraid it would catch fire. GE produces five customer complaints that were marked as an exhibit at the deposition of Robert Bennett, Roadmaster’s customer service manager. Four of the five reports contain no mention of any “runaway” related problem; one mentions that the motor raced up before it smoked and shorted out. Mr. Bennett said that these five reports were “typical complaints” of those received in early 1994, and although he could give no total number of complaints, he thought there were more than these five. DX 9 at 169-70. 3 In May and August, Roadmaster received two reports of treadmill fires. DX 45, 46. Roadmas-ter continued to test the motor throughout 1994, and two tests in June and July show motor temperatures exceeding 160"Celsius when the motor was run between eight and 10.6 amps. DX 35A-B, 77.

GE redesigned the controller (increasing the amps from 10 to 16) in September 1994 to correct the “runaway” problem, but the motor design did not change. In late December 1994, Roadmaster received reports of “shorted armatures and melted brush holders” in treadmills with GE motors, and two damaged motors were sent to Brook Compton, the British manufacturer, by a GE temporary employee. PX 30. GE investigated, and on January 12, 1995, told Roadmaster that some of the motors had been manufactured by its vendor, Brook Compton, with brushes of an incorrect grade of resistance (European 220 volts instead of American 120 volts). Roadmas-ter recalled the treadmills with incorrect brushes. On February 13,1995, Roadmas-ter told GE that there was a “non-brush related” problem with the motors overheating and failing at 4 miles per hour and 9 amps. A GE engineer said that “[t]he failed motors appear to be totally roasted with blackened windings.” PX 69. Road-master says that the first reports of GE motor fires came to its attention in “early 1995” (12/14/2000 declaration of Bill Hebb) or “approximately January 1995” (12/13/2000 declaration of Charles Sanders); Roadmaster’s earliest customer claim file in this case refers to a fire on January 6, 1995. Roadmaster claims that the motors were defective, unfit for use in treadmills, and non-merchantable.

II.

Summary judgment is appropriate where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c). I must construe all facts in the light most favorable to the non-moving party and draw all reasonable and justifiable inferences in favor of that party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In this diversity action, I apply Illinois substantive law. Lexington Ins. Co. v. Rugg & Knopp, 165 F.3d 1087, 1090 (7th Cir.1999).

m.

Before I address the contract and warranty claims, I must resolve a question of the scope of this lawsuit. GE claims that Roadmaster has changed its theory of the *1006 case in response to GE’s motion for summary judgment. It argues that Road-master’s recovery, if any, should be limited to claims involving the 2.0 horsepower motors, and should not encompass the controllers or the “drive-system,” which consists of both the motor and the controller. The theory of the case is relevant to GE’s claims that Roadmaster gave insufficient notice of the alleged defect or breach of warranty; if the problem was with the redesigned controller, then Roadmaster could not have known of the problem before September 1994, but if the problem was with the motor, Road-master had received reports of overheating and possible fires several months earlier. The scope of Roadmaster’s theory is also relevant to GE’s argument that any implied warranties are excluded because Roadmaster examined and tested the motor before buying them; it is undisputed that Roadmaster tested the motors in 1993 and throughout the summer of 1994, and that it did not conduct any new qualification testing after the controller was redesigned in September 1994.

“A plaintiff may not amend [its] complaint through arguments in [its] brief in opposition to a motion for summary judgment.” Insolia v. Philip Morris, Inc., 216 F.3d 596, 606 (7th Cir.2000). Although a complaint cannot be dismissed because the plaintiff has failed to identify a theory, or indeed, has identified the wrong theory, Daniels v. USS Agri-Chemicals, 965 F.2d 376, 381 (7th Cir.1992), the plaintiff must commit to a theory of the case at some point, see Sanders v. Venture Stores, Inc., 56 F.3d 771, 774 (7th Cir.1995). A change of theories at the summary judgment stage is not allowed because, ordinarily, discovery has been completed, and an eleventh hour change of theory would waste judicial resources and the resources of the parties.

Roadmaster’s amended complaint alleges that GE sold “components for drive-systems” and that the “components consisted of controllers and 2.0 horsepower DC electric motors (the ‘GE Motors’).” In the next sentence, the controller and “GE Motors” are referred to separately, and all other allegations refer only to the “GE Motor.” From this it is unclear whether “GE Motors” refers only to the 2.0 horsepower motors or to both the motor and controller. 4

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151 F. Supp. 2d 1001, 45 U.C.C. Rep. Serv. 2d (West) 449, 2001 U.S. Dist. LEXIS 11407, 2001 WL 883196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hays-v-general-electric-co-ilnd-2001.