Pickard v. Amazon.com Inc

CourtDistrict Court, W.D. Louisiana
DecidedNovember 27, 2023
Docket5:20-cv-01448
StatusUnknown

This text of Pickard v. Amazon.com Inc (Pickard v. Amazon.com Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pickard v. Amazon.com Inc, (W.D. La. 2023).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA SHREVEPORT DIVISION

ANGELA PICKARD, ET AL CIVIL DOCKET NO. 5:20-cv-01448

VERSUS JUDGE DAVID C. JOSEPH

AMAZON.COM, INC. MAGISTRATE JUDGE KAYLA D. MCCLUSKY

MEMORANDUM ORDER AND CERTIFIED QUESTIONS Before the Court is a MOTION FOR SUMMARY JUDGMENT (the “Motion”) [Docs. 59, 76] filed by Defendant, Amazon.com, Inc. (“Amazon”). The Motion is opposed by Plaintiffs, Angela Pickard, Individually and as Executor of the Estate of Archie Pickard, deceased, Dustin Pickard, Wendy Elmore, Joni Thompson, Wayne Pickard, and Stacey Coale (hereinafter, “Plaintiffs”). [Doc. 69]. On October 17, 2023, this Court held oral argument and requested additional briefing on the definition of a “seller” under the Louisiana Products Liability Act, La. R.S. Ann. 9:2800.51, et seq. (“LPLA”). After careful consideration of the parties’ briefing, applicable law, and Louisiana jurisprudence, the Court finds that certification of two questions of law to the Louisiana Supreme Court is necessary to resolve Amazon’s Motion for Summary Judgment. Accordingly, Amazon’s Motion is DENIED pending action by the Louisiana Supreme Court on this Court’s certified questions. Amazon may re-urge its Motion within thirty (30) days of disposition of the certified questions by the Louisiana Supreme Court. BACKGROUND AND PROCEDURAL HISTORY On December 15, 2019, Archie Pickard (“Pickard”) purchased a “18650 Rechargeable Li-ion Battery Charger 4 Slot Universal Smart Li-ion Battery Charger” on Amazon’s website. [Doc. 17]. Although purchased from Amazon’s website, Amazon’s product listing explicitly stated that the charger was actually being “sold

by” a third-party company, “Jisell.” [Doc 59-10 p. 2]. The product listing also included the product’s Amazon Standard Identification Number, ASIN B07PGTHXCT. Id. The third-party seller, Jisell, sold products on Amazon’s website, assented to Amazon’s terms of use, and used Amazon’s optional “Fulfillment by Amazon” (“FBA”) storage and logistics service to fulfill its orders. [Doc. 59-10, pp. 2-3]. As such, although the battery charger was stored at an Amazon fulfillment center in San

Marcos, Texas, prior to shipment, Jisell never transferred ownership of the battery charger to Amazon. [Doc. 59-10, p. 6, Doc. 69-42, p. 10]. In the early morning hours of December 21, 2019, a house fire, allegedly caused by a defect in the battery charger, ravaged Pickard’s home in Shreveport, Louisiana. As a result of the fire, Pickard suffered severe burn wounds and died of his injuries. In November 2020, Plaintiffs filed a wrongful death and survival action suit in the United States District Court for the Western District of Louisiana, Shreveport

Division. [Doc. 1]. Plaintiffs assert state law claims under the LPLA as well as under the tort theory of negligent undertaking as described in the Restatement (Second) of Torts §§ 323 and 324A. The Court has jurisdiction over this matter based on the parties’ diversity of citizenship and no claims or defenses arise under federal law or the laws of any other jurisdiction. Accordingly, the substantive law of State of Louisiana applies to the asserted claims. U.S.C. § 1332; see Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S. Ct. 817, 82 L. Ed. 1188 (1938); Nat'l Liab. & Fire Ins. Co. v. R & R Marine, Inc., 756 F.3d 825, 834 (5th Cir. 2014). DISCUSSION Amazon’s online website, Amazon.com, includes both: (i) products sold by

Amazon as the retailer, and (ii) the products of approximately two million “third- party sellers.” [Doc. 69-30, p. 3]. These third-party sellers, among other responsibilities, set their own prices and describe their own products. To list products on Amazon, third-party sellers must set up a seller account and agree to the terms of the Amazon Services Business Solutions Agreement (“BSA”). [Doc. 59-10, p. 3]. The BSA requires the third-party seller to provide information regarding its products

including description, price, and any required labels and warnings. Id. It also allows the third-party seller to offer any warranty of its choosing. Id. at p. 4. Third-party sellers are responsible for importing and ensuring their products are properly packaged and comport with all applicable laws. Id. Here, Jisell was listed as the seller on the product detail page on Amazon’s website and in the “sold by” line of the transaction record when Pickard purchased the relevant battery charger. As Amazon required for its third-party sellers, Jisell

had previously agreed to Amazon’s BSA. Id. at p. 3. Likewise, as a condition to using the website to make a purchase, Amazon required Pickard to agree to its “Conditions of Use,” wherein Amazon declares that the only warranty covering consumer purchases from a third-party seller come from that third-party seller. [Doc 59-10, pp. 4–5]. In addition to its use of Amazon’s website and payment system to sell its products, Jisell also used Amazon’s optional FBA storage and logistics services to fulfill Pickard’s order. Amazon’s FBA program allows third-party sellers to send inventory to Amazon’s fulfillment centers for storage and subsequent delivery. [Id. at p. 6. Under the FBA program, when a consumer places an order for a third-party

seller’s product, Amazon simply retrieves the pre-packaged product from its warehouse, places the product in a shipping container or applies a shipping label to the product’s box, and delivers or arranges delivery of the product to the buyer. Id. Thus, under the FBA program, a third-party seller merely provides a product, a product description, and a price to Amazon. Amazon then provides its website platform and marketing, physically stores the product in its warehouses, receives

payment on behalf of the third-party, and ultimately delivers possession of the product to customers. In exchange for its services to the third-party seller, Amazon receives a service fee.1 Amazon organizes its inventory on its e-commerce site by Amazon Standard Identification Numbers (“ASINs”). The ASIN of the battery charger Pickard purchased is B079GTHXCT. Amazon maintains a Product Safety Team that it claims employs multiple tools, procedures, and processes to monitor for potential safety

issues with listed ASINs. [Doc 69-15, p. 10]. At its discretion, the Product Safety

1 Specifically, Amazon’s fees in Pickard’s transaction included a $3.28 “FBA Pick & Pack Fee,” which was the fee Amazon charged for “pulling the product off the shelf, packing it, shipping and distributing it to Mr. Pickard,” and Amazon’s $2.25 “Referral Fee,” which was the fee Amazon “charge[d] for sales in [its] stores for referring Amazon customers to a particular seller’s offer.” [Doc. 69-3, pp. 14–15]. Amazon withholds those fees when remitting the sale price to the seller after the transaction takes place. Id. at p. 5. Team can “suppress” or remove listings that pose safety issues. At the time of Pickard’s purchase, there were no safety-related reviews or reports for the ASIN for the four-slot battery charger. However, there were three negative consumer safety reviews on a similar six-slot battery charger, which bore a different ASIN, but was also sold by Jisell.2

Plaintiffs argue Amazon is liable for the allegedly defective four-slot battery charger under three separate theories: manufacturer products liability under the Louisiana Products Liability Act, non-manufacturer liability under the Louisiana Products Liability Act, and liability under the tort theory of negligent undertaking. I. Products Liability and Non-Manufacturer Seller Liability The Louisiana Products Liability Act “establishes the exclusive theories of

liability for manufacturers for damage caused by their products.” La. R.S. Ann. 9:2800.52.

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