Platt Electrical Supply, Inc. v. Underwriters Laboratories, Inc.

CourtCourt of Appeals for the Ninth Circuit
DecidedApril 15, 2008
Docket05-15672
StatusPublished

This text of Platt Electrical Supply, Inc. v. Underwriters Laboratories, Inc. (Platt Electrical Supply, Inc. v. Underwriters Laboratories, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Platt Electrical Supply, Inc. v. Underwriters Laboratories, Inc., (9th Cir. 2008).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

PLATT ELECTRICAL SUPPLY, INC., an  Oregon corporation, Plaintiff-Appellant, v. No. 05-15672 EOFF ELECTRICAL, INC., Plaintiff,  D.C. No. CV-03-00992-RMW and OPINION UNDERWRITERS LABORATORIES, INC., a Delaware not-for-profit corporation, Defendant-Appellee.  Appeal from the United States District Court for the Northern District of California Ronald M. Whyte, District Judge, Presiding

Argued and Submission Deferred February 16, 2007 Submitted February 14, 2008 San Francisco, California

Filed April 15, 2008

Before: Ronald M. Gould and Johnnie B. Rawlinson, Circuit Judges, and Alfred V. Covello,* Senior Judge.

Opinion by Judge Rawlinson

*The Honorable Alfred V. Covello, Senior United States District Judge for the District of Connecticut, sitting by designation.

3993 3996 PLATT ELECTRICAL SUPPLY v. EOFF ELECTRICAL

COUNSEL

James O. Devereaux (argued), and Jan A. Kopczynski, Berd- ing & Weil LLP, Alamo, California, for Appellant Platt Elec- trical Supply, Inc.

Michael J. Abernathy (argued), and Christopher I. Cedillo, Bell, Boyd & Lloyd LLC, Chicago, Illinois, for Appellee Underwriters Laboratories, Inc.

OPINION

RAWLINSON, Circuit Judge:

In its complaint, Appellant Platt Electrical Supply, Inc. (Platt) alleged that Appellee Underwriters Laboratories, Inc. (UL), a non-profit consumer safety group, negligently misrep- resented and fraudulently concealed that defective in-wall heaters were safe. Platt challenges the district court’s grant of UL’s motion to dismiss and motion for judgment on the PLATT ELECTRICAL SUPPLY v. EOFF ELECTRICAL 3997 pleadings. Platt contends that the district court erred in dis- missing its negligent misrepresentation and fraudulent con- cealment claims as time-barred under California’s statutes of limitations. Platt asserts that its claims were not time-barred in view of California’s discovery rule and UL’s fraudulent concealment. Platt also maintains that the district court erred in dismissing its claims without leave to amend the complaint.

We have jurisdiction pursuant to 28 U.S.C. § 1291 and we affirm the judgment of the district court.

I. BACKGROUND

Platt filed its complaint in 2003. According to its complaint,1 Platt was “engaged in the distribution, marketing, and whole- sale supply of electrical products intended for consumer pur- chase and use.” UL “is a not-for-profit corporation . . . principally engaged in the business of formulating safety stan- dards for new consumer products, testing such products against its standards, determining whether the product so tested conforms to the standards, and, if the product does comply, authorizing the product’s manufacturer to imprint UL’s distinctive mark on the complying product.”

Platt asserted that Cadet Manufacturing Company (Cadet) “manufactured . . . in-wall space heaters under the names ‘Cadet’ and ‘Encore.’ ” UL evaluated Cadet’s heaters, and determined that the heaters complied with UL’s safety stan- dards. UL “authorized Cadet to include the UL mark on the labels of the Heaters.” UL’s “process is known as ‘listing’, and a product that has qualified to bear the UL mark is said to be a ‘listed product.’ ” 1 The factual background is based on Platt’s complaint, because, in reviewing a motion to dismiss, “[w]e accept as true all well-pleaded facts in the complaint and construe them in the light most favorable to the non- moving party.” Watson v. Weeks, 436 F.3d 1152, 1157 (9th Cir. 2006) (citation omitted). The same standard applies to judgment on the plead- ings. Turner v. Cook, 362 F.3d 1219, 1225 (9th Cir. 2004). 3998 PLATT ELECTRICAL SUPPLY v. EOFF ELECTRICAL Platt charged that by permitting these listings, “UL impliedly represented to Plaintiffs” that the heaters were “suitable for reasonably safe use as an in-wall heater . . .”

Platt alleged that the heaters “manufactured between 1978 and the present, and listed by UL since at least 1985, are inherently defective.” According to Platt, “if the heaters had not been endorsed by UL then neither of the Plaintiffs would have engaged in the purchase, sale, advertisement, or distribu- tion of the Heaters. Moreover, Plaintiffs are informed and believe, and based thereon allege, that at no time prior to a 1999 CPSC [Consumer Product Safety Commission] recall did they become aware that the Heaters were inherently defective.”

Platt alleged that “based on the express approval by UL of the Heaters, [it] distributed in excess of nineteen-thousand [sic] (19,000) Cadet heaters.”

Platt also asserted “that since at least 1988, UL became aware that the Heaters were exhibiting defects . . . . However, UL took no action relative to rescinding its endorsement of the product or notifying the general public, product distribu- tors or retailers . . . of the dangerous defects inherent in the Heaters.” “Despite its knowledge, as early as 1988, of the defects inherent in the Heaters, UL continued to list Cadet heaters.” According to Platt, “Plaintiffs did not discover Defendants’ wrongful conduct or its basis for liability until 2001 when they became involved in [sic] consumer class action . . . and were granted through pre-trial discovery lim- ited access to Defendant UL’s files concerning the Heaters.” Additionally, Platt charged that “Defendants’ wanton and reckless refusal to disclose such information fraudulently con- cealed from Plaintiffs crucial facts . . .”

“[I]n or around 1998, the [CPSC] became aware that Cadet heaters were defective. Accordingly, on or around January 14, 1999, the CPSC filed an administrative order recalling all PLATT ELECTRICAL SUPPLY v. EOFF ELECTRICAL 3999 Cadet heaters . . .” “Plaintiffs were required, under controlling federal statute to bear a portion of the costs of conducting the recall.”

“[C]ontemporaneous to the CPSC recall, a consumer class action was filed on behalf of all purchasers of the Heaters . . .” Platt “was named as a defendant . . . [and] entered into a settlement agreement with the class, pursuant to which Plaintiff PLATT continues to pay money to the class.” According to Platt, it “has paid in excess of one-million one- hundred fifty-six-thousand dollars ($1,156,000.00) pursuant to the class settlement.”

In its negligent misrepresentation claim, Platt alleged that “at least since 1989 [UL] had knowledge that the Heaters failed and could, and in fact had, caused catastrophic injury and death. Despite such knowledge, [UL] continued to repre- sent to the world at large that the Heaters were safe products.” “[UL] continued to allow its mark to be placed on the Heaters knowing that consumers, distributors, and retailers rely on the mark as an assurance of safety. [UL] continued to make such material representations of material facts without an adequate basis or knowledge for making such representations.” Accord- ing to Platt, “[UL] failed to act because such action would constitute a tacit admission that [UL’s] testing procedures were flawed and such an admission would undermine [UL’s] position as the self-proclaimed leader in certifying the safety of consumer goods.”

Platt also alleged that “[a]t no time prior to the Class Action or CPSC recall did Plaintiffs have any reason to sus- pect that the Heaters were unsafe. Plaintiffs relied on the UL mark as an assurance of the Heaters’ safety and suitability for its end use . . .”

In its fraudulent concealment claim, Platt alleged that it was not required to conduct an independent investigation of the heaters’ safety. Rather, Platt “heavily [relied] on the exis- 4000 PLATT ELECTRICAL SUPPLY v.

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

Related

Watson v. Weeks
436 F.3d 1152 (Ninth Circuit, 2006)
Norgart v. Upjohn Co.
981 P.2d 79 (California Supreme Court, 1999)
Bernson v. Browning-Ferris Industries of California, Inc.
873 P.2d 613 (California Supreme Court, 1994)
Jolly v. Eli Lilly & Co.
751 P.2d 923 (California Supreme Court, 1988)
Hamilton Materials, Inc. v. Dow Chemical Corp.
494 F.3d 1203 (Ninth Circuit, 2007)
Betz v. Trainer Wortham & Co., Inc.
504 F.3d 1017 (Ninth Circuit, 2007)
Snow v. A. H. Robins Co.
165 Cal. App. 3d 120 (California Court of Appeal, 1985)
Baker v. Beech Aircraft Corp.
39 Cal. App. 3d 315 (California Court of Appeal, 1974)
Intrieri v. Superior Court
12 Cal. Rptr. 3d 97 (California Court of Appeal, 2004)
Ventura County National Bank v. MacKer
49 Cal. App. 4th 1528 (California Court of Appeal, 1996)
County of Santa Clara v. Atlantic Richfield Co.
40 Cal. Rptr. 3d 313 (California Court of Appeal, 2006)
Prudential Home Mortg. Co. v. Superior Court of Orange Cty.
78 Cal. Rptr. 2d 566 (California Court of Appeal, 1998)
Shamsian v. Atlantic Richfield Co.
132 Cal. Rptr. 2d 635 (California Court of Appeal, 2003)
Parsons v. Tickner
31 Cal. App. 4th 1513 (California Court of Appeal, 1995)
LiMandri v. Judkins
52 Cal. App. 4th 326 (California Court of Appeal, 1997)
BRANDON G. v. Gray
3 Cal. Rptr. 3d 330 (California Court of Appeal, 2003)
Goldrich v. Natural Y Surgical Specialties, Inc.
25 Cal. App. 4th 772 (California Court of Appeal, 1994)
Slovensky v. Friedman
49 Cal. Rptr. 3d 60 (California Court of Appeal, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
Platt Electrical Supply, Inc. v. Underwriters Laboratories, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/platt-electrical-supply-inc-v-underwriters-laborat-ca9-2008.